SINGAPORE (March 1): Centurion Corp reported $28.7 million in earnings for the full year ended Dec 31, a 16% decline from its earnings of $34.1 million posted in the previous financial year.

Centurion, the owner and operator of dorms for students and workers, said the full-year earnings decline stemmed from a fair valuation loss of $3.1 million compared to a fair valuation gain of $3.6 million of the group’s investment properties as at end Dec 2016.

Group revenue grew 15% to $120.3 million in FY16 from $104.5 million in FY15, mainly from Centurion’s accommodation business segment due to the occupancy growth from its newer workers accommodation assets such as Westlite Woodlands, and additional revenue contributions from its newly opened Aspri-Westlite Papan.  

There was also higher revenue contributions from student accommodation assets including Dwell Selegie in Singapore, in addition to four newly-acquired student accommodation assets in UK, UK Braemar, in FY16.

The higher revenue from accommodation was however partially offset by Centurion’s optical disc business, which experienced a decrease in revenue of 57% due to a continued weakening demand for physical optical disc media, and in addition to the cessation of its Indonesian unit.

Finance costs for the year increased by $5.4 million, mainly as a result of the additional interest costs for financing the expanded accommodation businesses such as ASPRI-Westlite Papan and Westlite Woodlands.

These increase in costs were, however, offset by the interest cost saved from the redemption of the $100 million medium-term notes (MTN).

Centurion has recommended a final dividend of 1 cent per share.

Shares of Centurion closed 1.2% lower at 42 cents on Tuesday.