centurion corporation limited presentationcenturion.listedcompany.com/newsroom/20160107... ·...

Centurion Corporation Limited

Presentation

7 January 2016

Disclaimer

This presentation should be read in conjunction with the Company’s 3Q 2015 Unaudited

Financial Statement Announcement for the period ended 30 September 2015.

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.

The Presentation does not constitute, or form any part of any offer for sale of or subscription of, or

solicitation of any offer to buy or subscribe for, any securities nor shall it, or any part of it form the

basis of, or be relied on in connection with, any contract or commitment whatsoever.

The Presentation was prepared exclusively for the parties presently being invited for the purposes

of discussion. Neither the Presentation nor any of its content be distributed, reproduced or used

without the prior written consent of Centurion Corporation Limited ('"Company"). The Company does

not make any representation or warranty, express or implied, as to the accuracy of the information

contained herein, and expressly disclaim any and all liability based, in whole or in part, on such

information, errors therein or omissions therefrom.

The Presentation includes forward-looking statements provided with respect to the anticipated

future performance of the Company. Such forward-looking statements reflect various assumption of

the management concerning the future performance of the Company. Accordingly, there can be no

assurance that such projections and forward-looking statements will be realised. The actual results

may vary from the anticipated results and such variation may be material. No representations or

warranties are made as to the accuracy or reasonableness of such assumptions or the forward-

looking statements based thereon.

2

About Us

Workers Accommodation

Student Accommodation

Conclusion

Financial Performance

3

Contents

About Centurion Corporation

Listed on Singapore Stock Exchange with market capitalisation of about S$293.2

mil1

One of Asia’s leading accommodation providers

Own, develop and manage quality workers accommodation and student

accommodation assets

Strong portfolio of 15 operational accommodation assets totalling 49,762 beds2

4

Centurion Properties Group (52.7%)

Public and Other Shareholders (47.3%)Centurion Corporation Ltd

1. Based on the closing price of S$0.39 per share as at 24 Dec 2015

2. Inclusive of Westlite Woodlands, exclusive of 315 beds from CSL Selegie, Singapore

5

Our Geographical Presence

Note: Total number of operational beds in Singapore are exclusive of 315 beds from CSL Selegie, currently undergoing refurbishment

1,906 beds

456 beds

19,800 beds

27,600 beds

United Kingdom

Malaysia

Singapore

Australia

U/C 16,600 beds

U/C 7,900 beds

Student 315 beds

6

Kong Chee MinGroup CEO

Tony BinExecutive Director,

Accommodation

Business

Kelvin TeoCOO,

Accommodation

Business

• Appointed as the

Group’s CEO in

August 2011 and

oversees its

operations and

strategic growth

• CPA with over 22

years of finance and

corporate

management

experience

• Joined the Group in

1996 and was its

Regional CEO and

Finance Director

• Appointed as

Executive Director

responsible for the

strategic planning

and overall

management of the

accommodation

business

• Concurrently, the

CEO of Centurion

Properties Pte Ltd

• 30 years of

experience in

financial and real

estate industries

• Over 26 years of

experience in the

property and

accommodation

development and

management

business

• Responsible for the

day-to-day

operations and

expansion of the

Group’s

accommodation

• President of

Dormitory

Association of

Singapore

Foo Ai HueyGroup CFO

• Appointed as the

Group’s CFO in

August 2011 and

oversees its finance

accounting and tax

functions, financial

and management

reporting


experience in finance

and accounting

related experience

Ho Lip ChinCIO,

Accommodation

Business

• Responsible for

growing the Group’s

Accommodation

Business and assists

in strategic planning

activities


experience in real

estate and hospitality

industries across

Asia Pacific

Strong Management Team

7

Workers Accommodation

8

• Foreign Workers 766,000 (Jun 2015)

• c.450,000 blue collar foreign workers requires approved accommodation

• c.200,000 beds1 PBWA2 in operation

• c.57,000 beds1 may enter the market in phases in 2016

• c.49,000 beds1 expiring in 2016 (some beds may be renewed)

• Imbalance in demand and supply of c.200,000 beds1 for PBWA

• Foreign Employee Dormitories Act 2015 came into effect in Jan 2016

Singapore

• Lack of proper foreign workers housing policies

• Government taking measures to ensure proper housing for foreign workers

• 1.5 million workers from Bangladesh may be brought into Malaysia in stages over 3 years to meet the demands from employers from various sectors

Malaysia

Workers Accommodation Landscape

Note:

1. Approximately, based on Centurion Corp research

2. PBWA denotes Purpose Built Workers Accommodation

Approved Purpose Built Workers Accommodation

9

Spacious living spaces with en-suite or shared bathrooms and cooking facilities

Comprehensive amenities, supermarket, food court, sick bay, gym, sporting and indoor/outdoor recreation facilities

Self-contained and secure environment

Community living with organised social activities

1. Purpose Built Dormitories

Permanent Dormitories Temporary Dormitories

Freehold or long term leases (20 – 30 yrs)

Permanent RC structure, apartment style

Building & Construction Authority (BCA) or

Jurong Town Corporation (JTC) on 3+3 to

3+3+3 yrs lease

Temporary steel structure, common facilities

Comprehensive Amenities and Facilities

Well Ventilated Bedrooms Recreation Area

Well Stocked Supermarket Supermarket

Superior Building Design

Street Soccer

Sepak Takraw

Basketball & Volleyball Courts Cricket CourtsMovie Screenings

Street Soccer

Gym ATM

Spacious

Kitchen

10

Non-Purpose Built Workers Accommodation

11

Authorities allow factory/ warehouse

owners to convert ≤49% of GFA

Converted from factory/ warehouse

space to house on-site/ off-site

workers

Not ideal as accommodation

Lacks proper facilities and security

Temporary licence granted on 1-3

year basis

2. Factory/ Warehouse

Temporary accommodation

constructed on project sites

House workers working on specific

project

Poor quality and unhygienic

Lacks proper facilities

Demolished at project completion

Close to workplace but not ideal

housing

3. On-Site Quarters

Owners renting out their shop lots/

houses to workers

Spaces are crammed

Due to poor personal upkeeping

habits, often rooms are messy with

clothes hanging everywhere

Inadequate facilities

May or may not be legal

4. Shop Lots/ Houses

Approved (but not ideal) Approved (but not ideal) Often Not Approved

One of the largest providers of workers

accommodation in Singapore and Malaysia

Operational: 10 assets; 47,400 beds

Under development/planning: 4 projects; 24,500 beds

Professionally managed under our WESTLITE brand

Shaped and inspired by roofs and the Chinese character

for people “人”

Westlite differentiates ourselves by managing our

accommodation “with a heart”

Established operational platform and system

Differentiation through holistic approach

12

About Westlite

13

Our Holistic Approach

Superior Building Design

Movie Screenings

Face Recognition Turnstile System

Variety Show

Well Ventilated Bedrooms

Basketball & Volleyball Courts

24 hrs Security & Surveillance

Westlite Celebrations

Recreation Area

Sepak Takraw

Native & Local Newspapers

Free Medical Screenings

Well Stocked Supermarket

Free Wi-Fi Access & Internet Room

Excursion to Universal Studios

Gym

Workers Accommodation - Singapore

4 operating assets and 1 under development

Current capacity of 27,600 beds; 7,900 beds under development

On a portfolio basis, assets are achieving high occupancy rates

14

Westlite Tuas

Purpose built

accommodation

Temporary prefabricated

steel structure

Capacity of 8,600 beds on

short term BCA lease (<1.5

years remaining)

Mainly for construction

workers

25% for workers in other

industries

Westlite Mandai (45% owned)

Purpose built

accommodation


freehold land

Officially opened in April

2014

Caters to workers in all

industries

Purpose built

accommodation


leasehold land (43 years

remaining)

Upgrading completed in

January 2014

Caters to workers in all

industries

Westlite Toh Guan

Purpose built

accommodation


leasehold land (28 years

remaining)

Mainly for workers in the

process, marine and

manufacturing industries

25% for workers in other

industries

TOP obtained in July 2015

Westlite Woodlands

15

Pipeline Project Under Development

Westlite Papan (51% owned)

Partnership with Association of Process Industry

(ASPRI) to develop 7,900 beds purpose built

workers accommodation and ASPRI training centre

Strategically located with convenient access to

Jurong Island

Tapping on future mega trend of the fast growing

chemical industry

Land tenure of 23 years

Estimated completion by mid-2016

Note: Images are artist impression for illustrative purposes only

Workers Accommodation – Malaysia

6 operating assets and 3 under development/planning

Current capacity of 19,800 beds; 5,500 beds under development; 11,100 beds

under planning

On a portfolio basis, the Malaysian assets are achieving high occupancy rates

Operating Accommodation

16

Opened in: Sep 2013

Capacity: 2,600 beds

Land: Freehold

Westlite Senai

Opened in: Apr 2012


Land: 60 yrs wef 2000

Westlite Tebrau

Opened in: Jul 2012



Westlite Johor Tech Park

Opened in: Jun 2012


Land: Freehold

Westlite Cemerlang

Opened in: Dec 2012



Westlite Pasir Gudang Westlite Tampoi

Opened in: Jan 2015


Land: Freehold

17

Westlite Senai II

Under construction

Freehold land

Estimated capacity: 5,500 beds

Estimated completion in 1Q 2016

Pipeline Projects Under Development / Planning

Westlite Bukit Minyak

Under planning

Freehold land


Estimated completion in 2017

Westlite Juru

Under planning

Land tenure of 99 yrs


Estimated completion in 2017

Note: Images are artist impression for illustrative purposes only

18

Student Accommodation

19

• Total student numbers of 1.3 million grew 4.5% from 20131

• c.347,500 full time international students1 grew 5.8%

• c.1,025,000 local students1 grew 4.1%

• Strong demand for high-quality, purpose built student accommodation

Australia

• Total student numbers stable at c.2.3 million

• Demand from c.435,500 full time international students2 grew by 3%

• Strong demand for high-quality, purpose built student accommodation

United Kingdom

• Good captive market of international students from well established institutions such as SMU, LASALLE, NAFA and Kaplan

• Safe and secure environment, regional magnet for students seeking quality education

Singapore

1. Australian Government Department of Education and Training 2014, http://docs.education.gov.au/system/files/doc/other/2014_student_summary.pdf

2. Higher Education Statistics Agency UK 2014, https://www.hesa.ac.uk/free-statistics

Student Accommodation Landscape

RMIT Village, Melbourne

20

rmit village

Liverpool Manchester

United Kingdom Australia

Student Accommodation Portfolio

Total operational capacity of 2,362 beds (2,677 beds if including CSL Selegie)

Student Accommodation in Melbourne, Australia

Asset comprised of RMIT Village with an

adjoining car park

High quality development strategically located

near RMIT University and the University of

Melbourne

Current capacity of 456 beds

Evaluating asset enhancement and

redevelopment potential

Completed rooms refurbishment in Jan 2015

Close to full occupancy rate

21

RMIT Village

A portfolio of 4 student accommodation assets comprising

1,906 beds

3 properties located in Manchester and 1 located in

Liverpool, all strategically located to access university

campuses and the city centre

o Manchester - University of Manchester, Manchester Metropolitan

University

o Liverpool - Liverpool John Moores University, Liverpool Institute

of Performing Arts

Close to full occupancy rate

22

UK Student Accommodation Portfolio

Liverpool

Manchester

Manchester Student Village Manchester Student Village South The Grafton Cathedral Campus

Asset comprise of a 10 storey building with a capacity of 315 beds

Commercial space for businesses such as food and beverage outlets

3+3+2 years lease term

Strategically located in the city with easy access to

o Singapore Management University, LASALLE College of the Arts, Nanyang Academy of Fine Arts, School of

the Arts Singapore and Kaplan

Refurbishment completed and operational in 4Q 2015

23

Singapore Student Accommodation

Selegie

CSL Selegie

Accommodation Growth Profile1

Note:

1. Based on developments at existing facilities that are already owned by Centurion Corp

2. Includes Westlite Tuas. The land lease of Westlite Tuas will expire in Apr 2017 if there are no further extension by the authorities. 24

2

5,30013,900

19,700 23,50027,600

35,500 35,50010,900

13,50014,500

19,800

25,300

36,400

456

456

456

456

315

315

315

1,906

1,906

1,906

1,906

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

5,300 24,800 33,200 40,362 50,077 63,477 74,577

2011 2012 2013 2014 2015F 2016F 2017F

No

. of

bed

s

Accommodation Portfolio - Bed Capacity

Singapore Malaysia Australia Singapore (Stu) United Kingdom

Strong Financial Growth of Accommodation Business

Note:

1. From core business operations 25

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2011 2012 2013 2014 9M 2015

5,380

13,761 19,631

30,142 26,004

12,987

37,381

47,275

76,460

72,186

Accommodation - Revenue & Net Profit1 (S$'000)

Net Profit Revenue

188%

43%

156%

26%

62%

54%

26

Conclusion

Stable and resilient asset classes

Diversified portfolio of Workers and Students accommodation assets

Pipeline of development projects for continued growth

Continue to seek selective opportunities to grow its accommodation

assets

Enhance project returns through asset enhancement initiatives

Capital management to enhance shareholder value

Why Centurion Corporation

One of Asia’s leading accommodation providers

Unique exposure to resilient accommodation asset classes

Strong pipeline of new projects to support continued growth

Reputable and recognized WESTLITE brand

Proven track record of delivering results

Expanded earning base in student accommodation

Diversified geographical coverage

Experienced and prudent management

27

Financial Performance

28

29

S$’000 3Q 2015 3Q 2014 Change 9M 2015 9M 2014 Change

Revenue 24,578 20,899 + 18% 76,250 58,338 + 31%

Profit from

Continuing

Operations

7,360 7,917 - 7% 26,390 38,292 - 31%

Profit from Core

Business

Operations

7,360 7,917 - 7% 26,390 20,999 + 26%

Net Profit Margin (Based on profit from

core business

operations)

30% 38% - 8pp 35% 36% - 1pp

Note:

1. Net Profit = Profit from core business operations

Key FinancialsGroup Net Profit1 increased by 26% to 26.4m in 9M 2015 (Recurring - Exclude one off items)

30

Segment BreakdownStrong Accommodation Business Results in 3Q 2015 (Recurring - Exclude one off items)

* Net Profit = Profit from core business operations.

S$’000 Accommodation Optical Disc

Workers Students

3Q 2015 3Q 2014 Change 3Q 2015 3Q 2014 Change 3Q 2015 3Q 2014 Change

Revenue 18,176 16,069 13% 5,348 3,294 62% 1,054 1,536 -31%

Net Profit * 6,606 7,652 -14% 655 185 254% 99 80 24%

Net Profit Margin 36% 48% - 12pp 12% 6% + 6pp 9% 5% + 4pp

74%77%

22%

16%

4%

7%

0

5,000

10,000

15,000

20,000

25,000

30,000

3Q 2015 3Q 2014

Revenue (S$'000)

Workers Accom Students Accom Optical Disc

90%

97%

9%

2%

1%

1%

5,000

6,000

7,000

8,000

9,000

3Q 2015 3Q 2014

Net Profit (S$'000)


31

Segment BreakdownStrong Accommodation Business Results in 9M 2015 (Recurring - Exclude one off items)

* Net Profit = Profit from core business operations.

S$’000 Accommodation Optical Disc

Workers Students

9M 2015 9M 2014 Change 9M 2015 9M 2014 Change 9M 2015 9M 2014 Change

Revenue 52,695 45,467 16% 19,491 6,930 181% 4,064 5,941 -32%

Net Profit * 20,784 19,532 6% 5,220 1,345 288% 386 122 216%

Net Profit Margin 39% 43% - 4pp 27% 19% + 8pp 9% 2% + 7pp

69%78%

26%

12%

5%

10%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

9M 2015 9M 2014

Revenue (S$'000)


79%93%

20%

6%

1%1%

0

5,000

10,000

15,000

20,000

25,000

30,000

9M 2015 9M 2014

Net Profit (S$'000)


S$’000 30 Sep 2015 31 Dec 2014 Change %

Cash & Cash Equivalents 141,354 63,144 + 124%

Current Assets 152,353 82,446 + 85%

Non Current Assets 955,684 791,587 + 21%

Current Liabilities 88,768 70,988 + 25%

Non Current Liabilities 623,884 411,485 + 52%

Net Assets 395,385 391,560 + 10%

Net Gearing Ratio1 49% 45% + 4pp

32

Balance Sheet Highlights

Note:

1. The net gearing ratio is computed as borrowings less cash and cash equivalents divided by total capital. Total capital is

calculated as borrowings plus net assets of the Group.

9M 2015 FY 2014

Earnings Per Share 3.5¢ 14.7¢

Earnings Per Share(Excluding fair value gains & trading profit)

3.5¢ 4.1¢

Share Price 42.0¢1 50.5¢2

Dividend 0.5¢3 1.5¢4

NAV per share 52.4¢ 51.6¢

Market Capitalisation S$316m 1 S$382m 2

33

Key Ratios

Note:

1. As at 30 September 2015

2. As at 31 December 2014

3. Interim dividend of 0.5 cent per share for 1H 2015

4. Comprising special dividend of 0.5 cents per share for FY 2014

For any enquiries, please contact:

Mr. David Oh, Investor Relations Manager

Tel: +65 6745 3288 Email: [email protected]

Centurion Corporation Limited (http://www.centurioncorp.com.sg)

centurion corporation limited presentationcenturion.listedcompany.com/newsroom/20160107... ·...

Documents