Centurion Corporation Limited · SGX:OU8
Centurion — Phillip Securities Research Webinar 2024
38 slides from Centurion's conference presentation, Nov 26, 2024
Slide 1: Phillip Securities Research Webinar
Centurion Corporation Limited (Incorporated in the Republic of Singapore with limited liability) (Co. Reg. No.: 198401088W) Phillip Securities Research Webinar 26 Nov 2024
Slide 2: Disclaimer
DISCLAIMER This presentation and the accompanying presentation materials (if any) ("Presentation") are made for informational purposes, without regard to the objectives, financial situation nor needs of any specific persons. This Presentation does not constitute or form any part of any offer for sal
Slide 3: Contents
CONTENTS 01 Business Overview 02 Financial Highlights 03 Business Outlook by Markets 04 New Business Segment 05 Growth Ahead Centurion Corporation Limited 3
Slide 4: Business Overview
Business Overview enturion
Slide 5: An Established Global Business in Specialized Accommodation
An Established Global Business in Specialized Accommodation Centurion owns, develops, and operates quality Specialized Accommodation properties worldwide. The largest Purpose-Built Workers Accommodation (“PBWA”) provider with 17 operating assets in Singapore, Malaysia and China o supported by cons
Slide 6: Diversified Business Portfolio across Geography and Asset Type
Diversified Business Portfolio across Geography and Asset Type# United Kingdom Xiamen, China 2,786 beds c. 1,500 beds** United States 663 beds HKSAR, China c. 550 beds^^ c. 155 beds S$2.1b Malaysia c.27,373 beds Singapore Assets Under Management^ c.34,786 beds 66,660 Australia 897 beds* operational
Slide 7: Accommodation Growth Portfolio
Accommodation Growth Portfolio 90,000 1,086 beds were added to the portfolio in FY 2023. Net bed capacity growth in FY 2024 is expected to be c.2,163 beds. 80,000 6,057 70,000 6,396 5,233 4,501 5,218 4,501 6,080 3,208 5,348 6,433 60,000 5,608 50,000 No. of beds 2,672 40,000 2,362 73,656 67,064 65,03
Slide 8: Portfolio Growth and Enhancements
Portfolio Growth and Enhancements PBWA Singapore New PBD Westlite Ubi with c.1,650 beds expected completion in Dec 2024 Redevelopment of Westlite Toh Guan and Westlite Mandai commenced, to add c.1,764 and c.3,696 with expected completion in 2026 Malaysia AEI in progress to add c.680 beds to We
Slide 9: Outstanding Total Shareholder Return
Outstanding Total Shareholder Return +121% YTD* 1 0.9 SGD 0.90 Steady Price Appreciation 0.8 0.7 • Surpassed STI YTD* share price 0.6 appreciation of 15% 0.5 0.4 • Total shareholder** return over a 0.3 period of: 0.2 • 1 year: +134.18 % 0.1 • 2 years: +180.60 % 0 • 3 years: +187.88 % January 2024 Ap
Slide 10: Financial Highlights
Financial Highlights 3Q 2024 Business Update
Slide 11: Performance Highlights
Performance Highlights Revenue by business Segment 9M 2024 9M 2023 Revenue Others 0% Others 0% 3Q 2024 S$62.1m PBSA 23% PBSA 24% 22% from S$51.1m in 3Q 2023 9M 2024 S$186.5m 25% from S$149.0m in 9M 2023 PBWA PBWA 76% 77% Financial Occupancy Revenue by Country PBWA 95% for 9M 2024 Australia 9M 2024 U
Slide 12: Performance Highlights
Performance Highlights 25% increase in 9M 2024 revenue YOY 22% increase in 3Q 2024 revenue YOY Higher contributions mainly from Positive rental revisions across all PBWAs and PBSAs Strong occupancies across Singapore PBWA, Australia and UK PBSAs Partly offset by A weaker Malaysia Ringgit which
Slide 13: Prudent capital management and ample liquidity
Prudent capital management and ample liquidity Total Assets Total Borrowings Cash and undrawn committed facilities S$2.0b S$0.7b S$229m Net Gearing Ratio Interest Cover Ratio Average debt maturity 32%1 4.5x2 6 years Note: 1 Net gearing ratio is computed as borrowings less cash and bank balances divi
Slide 14: Business Outlook: Purpose Built Workers Accommodation
Business Outlook Purpose Built Workers Accommodation
Slide 15: PBWA: Healthy and Supportive Industry Fundamentals
PBWA : Healthy and Supportive Industry Fundamentals Positive regulatory and demand-supply factors drive growth of PBWA sector and asset class High demand for migrant workers1 in multiple countries globally o SE Asia, Middle East etc. Growing awareness of the need for improved welfare of migrant
Slide 16: Workers Accommodation Portfolio – Singapore
Workers Accommodation Portfolio – Singapore 5 operating Purpose Built Dormitories (PBD) assets with capacity of 27,530 beds 4 operating Quick Build Dormitories (QBD) assets with capacity of 7,256 beds 4,100 Total capacity: 34,786 beds Beds 1,300 30yrs Beds wef 2013 3+1+2yrs Westlite Woodlands wef 20
Slide 17: Workers Accommodation Landscape - SG
Workers Accommodation Landscape - SG c.443k (as at Jun 2024#) Work Permit Holders from Construction, Marine Shipyard, Process sectors who require approved dormitory beds (vs 441k as at Dec 2023) Additionally, c.400k W-pass in non-CMP sectors (excluding MDW, as at Jun 2024) Demand Workers from constr
Slide 18: Workers Accommodation Outlook – Singapore
Workers Accommodation Outlook – Singapore Singapore • Average financial occupancy of SG PBWAs was 99% for 9M 2024 as compared to 98% in 9M 2023 o demand and supply dynamics for PBWAs continue to be positive 1,2 • Singapore’s PBWA revenue increased 31% to S$130.0 million in 9M 2024 from S$99.3 millio
Slide 19: Workers Accommodation Portfolio – Malaysia
Workers Accommodation Portfolio – Malaysia 8 operating assets with capacity of 27,373 beds 5,790 3,321 Beds Beds Freehold Freehold Penang Westlite Bukit Minyak Westlite Tampoi 6,044 Beds 1,776 176 21+9yrs wef Beds + Beds 2020 99yrs 6+3yrs Westlite – PKNS Petaling Jaya Selangor wef 1986 + 2019 wef We
Slide 20: Workers Accommodation Outlook – Malaysia
Workers Accommodation Outlook – Malaysia Malaysia • Average financial occupancy declined to 90% in 9M 2024 as compared to 94% in 9M 2023 o excluding beds unavailable due to ongoing AEI at Westlite Senai II, and including beds added in 4Q 2023 with AEI completed at Westlite Senai, occupancy for which
Slide 21: Diversified, Stable Customer Base
Diversified, Stable Customer Base • more than 1,892 customers in Singapore and Malaysia • serves companies from diverse industries • ability to cater to multiple industries insulate the Group • less affected by economic fluctuations or government policies affecting any one industry S/N. Industry Per
Slide 22: Workers Accommodation Portfolio – Hong Kong, China
Workers Accommodation Portfolio – Hong Kong, China 1 asset with capacity of c.550 beds 550 550 Beds Beds Sheung Shui 5.9yrs + 5yrs wef Jul 2024 Westlite Sheung Shui * Master Lease secured in Jul 2024 by Centurion-Lionrock (HK) Limited, an indirect 60%-owned subsidiary of the Company. Operations expe
Slide 23: Workers Accommodation Outlook – China
Workers Accommodation Outlook – China Hong Kong, China • Centurion expanded into the China PBWA market with a master lease asset secured in July 2024 o Westlite Sheung Shui with c.550 beds will accommodate foreign workers in multiple sectors, including food & beverage (F&B) and service sectors ― exp
Slide 24: Business Outlook: Purpose Built Student Accommodation
Business Outlook Purpose Built Student Accommodation
Slide 25: PBSA: Healthy and Supportive Industry Fundamentals
PBSA : Healthy and Supportive Industry Fundamentals Resilient in-demand asset class with positive demand-supply dynamics • Investment appetite for student housing on the rise o strong global investments in student housing, estimated at more than US$31.5 billion in 20221,2 o underpinned by expectat
Slide 26: Student Accommodation Portfolio – UK
Student Accommodation Portfolio – UK 10 operating assets with a total capacity of 2,786 beds Presence in five major cities with well known universities 982 362 Beds Beds 181 Beds Freehold Freehold 125yrs wef 1995 dwell MSV dwell MSV South dwell Garth Heads 145 140 Beds Beds 133 Beds 125yrs Freeh
Slide 27: Student Accommodation Outlook – UK
Student Accommodation Outlook – UK UK • Average financial occupancy increased to 99% in 9M 2024, as compared to 97% in 9M 2023 o demand and supply imbalance driving high financial occupancy and healthy rental revisions • Revenue grew 24% to S$28.6 million in 9M 2024 from S$23.0 million in 9M 2023 •
Slide 28: Student Accommodation Portfolio – Australia
Student Accommodation Portfolio – Australia 2 operating assets in Australia with a capacity of 897 beds 300 Beds Freehold dwell East End Adelaide Adelaide Melbourne 597 Beds Freehold dwell Village Melbourne City* * Redevelopment of dwell Village Melbourne City carpark into new PBSA block of c.600
Slide 29: Student Accommodation – Australia
Student Accommodation – Australia Australia • Average financial occupancy increased to 95% in 9M 2024 from 87% in 9M 2023 o occupancies are expected to remain resilient, supported by the ongoing shortage for beds • Occupancies and rental revisions expected to remain at healthy levels o genuine stude
Slide 30: Student Accommodation Portfolio – US, China
Student Accommodation Portfolio – US, China 3 operating assets in US with a capacity of 663 beds 2 assets with capacity of 155 beds in HKSAR, China United States* HK, China** 226 Beds 206 231 Freehold Beds Beds dwell The Statesider Freehold Freehold 89 Beds dwell College & Crown dwell The Towers on
Slide 31: Student Accommodation – US, China
Student Accommodation – US, China United States • Centurion US Student Housing Fund portfolio assets continue to deliver healthy and stable occupancy o The Fund will come to term in November 2024 o dwell Tenn Street was sold in 2Q 2023, including Logan Square and Stadium View in 2Q 2024 Hong Kong, C
Slide 32: Entry to New Segment: Build-to-Rent (BTR) Accommodation
Entry to New Segment Build-to-Rent (BTR) Accommodation
Slide 33: BTR Accommodation Portfolio – China
BTR Accommodation Portfolio – China 2 BTR projects in Xiamen, China with a combined capacity of c.1,500 beds China 550 Beds 1,000 Apartments Centurion Cityhome Gaolin* Xiamen 550 Beds 500 Apartments Centurion Cityhome Lingxie** * 400 out of c.1000 units have been secured under master lease agreement
Slide 34: Workers and BTR Accommodation Outlook – China
Workers and BTR Accommodation Outlook – China Xiamen, China • The expansion aligns with China's regulatory push to increase bank financing for rental housing projects, supporting the growth of affordable and commercial rental supply across major cities1 • Centurion Group entered into a cooperation f
Slide 35: Growth Ahead
Growth Ahead Centurion
Slide 36: Growth Strategy
Growth Strategy Strategic focus for growth of specialised accommodation business in a prudent manner Enhance project returns through selective Asset Enhancement Organic Initiatives across existing portfolio assets Growth Expand revenue streams from provision of specialised accommodation manageme
Slide 37: Cautiously Optimistic Outlook
Cautiously Optimistic Outlook Managing Operating Performance The Group continues to deliver Inflationary pressures and high The Group will continue to high occupancies with healthy interest rate environment is practice prudent financial rental revisions. Positive expected to ease1 2. Centurion manag
Slide 38: Thank You
Thank You For any enquiries, please contact: Head, Corporate Communications Mr. David Phey david.phey@centurioncorp.com.sg Tel: +65 9182 7171 W: www.centurioncorp.com.sg