Centurion Corp - KGI Securities 2019-06-03: Site visit to ASPRI-Westlite Papan & Dwell Selegie


Centurion Corp - Site visit to ASPRI-Westlite Papan & Dwell Selegie

  • We visited two of Centurion’s properties in Singapore, a purpose-built workers accommodation (PBWA) development, ASPRI-Westlite Papan and Dwell Selegie, a purpose-built student accommodation property (PBSA).
  • Centurion remains to be the only locally listed company focusing on foreign worker and student accommodation.
  • Centurion is currently trading at 3 year historical low P/E of 4.5x and offers a decent dividend yield of 4.8%.

Site visit to Centurion's properties.

  • CENTURION CORPORATION LIMITED (SGX:OU8) is the only locally listed company focusing on specialised accommodation with a focus on foreign worker and student accommodation.
  • Centurion’s portfolio currently consist of 31 operating assets with a total bed count of 62,656 beds across Singapore, Malaysia, Australia, US, UK and South Korea. Centurion owns and directly manages both the Westlite brand and the Dwell brand which represents their PBWA and PBSA businesses respectively.
  • We visited two of Centurion’s properties, ASPRI-Westlite Papan (PBWA) and Dwell Selegie (PBSA).

ASPRI-Westlite Papan.

  • Westlite Papan is strategically located in Jalan Papan, a 12 minutes’ drive away from Jurong Island. The asset consists of two 18-story blocks with a total capacity of 7900 beds.
  • The average occupancy for the property was above 95% as of end FY18. Most of the workers housed in ASPRI-Westlite Papan works in the energy and chemical industry on Jurong Island.
  • As a joint venture project, Centurion holds a 51% stake in this property, with the remaining stake held by the LIAN BENG GROUP LTD (SGX:L03).

Dwell Selegie.

  • Dwell Selegie is located at Short Street and is within close proximity to several campuses including LASELLE College of the Arts, Singapore Management University, Kaplan and Nanyang Academy of Fine Arts (NAFA). Dwell Selegie houses 355 student accommodation beds with an average occupancy of 89% last year.
  • Two education institutions serve as anchor tenants for this property, leasing approximately half of the total bed count.
  • Dwell Selegie has a residual tenure of about 4 years (3+3+2 years), effective from 2015. Management communicated that this was the reason why extensive renovations was not done at Dwell Selegie (as compared to Dwell branded accommodations abroad).

See attached PDF report for photos taken during the site visits.

Future bed supply pipeline remains strong.

  • Bed counts in the PBWA segment will see contributions from two Malaysian PBWA properties - Westlite Bukit Minyak (MY) and Westlite Juru (MY) in FY19 and FY20 respectively.

Valuation & Action:


  • Forex risk remains a key risk as 37% of FY18’s reported revenue was derived overseas (Euro, RM and AUD).
  • Higher interest expense may continue to reflect in the coming quarters due to Centurion’s debt/total assets ratio of 53%.

Geraldine Wong KGI Securities Research | https://www.kgieworld.sg/ 2019-06-03
SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998 SAME 99998