Shares of Centurion (OU8.SI), a purpose-built accommodation operator, soared 5.50% in intraday trading, reaching a new 52-week high. The stock's surge comes on the heels of impressive financial results and strategic plans announced by the company.
Centurion recently reported a stellar performance for the second half of 2024, with net profit jumping 97% to S$226.6 million, driven by a significant net fair-value gain. Full-year results were equally impressive, with revenue increasing by 22% to S$253.6 million and net profit more than doubling to S$344.8 million compared to the previous year. In response to the strong performance, the company raised its final dividend to S$0.02 per share, up from S$0.015 in the prior year.
Adding to investor optimism, Centurion announced in January that it is exploring the establishment of a real estate investment trust (REIT) comprising some of its workers and student accommodation assets. The proposed REIT, which would be listed on the Singapore Exchange's mainboard, aligns with the company's strategy to become more asset-light. CEO Kong Chee Min emphasized that while the group aims to grow its assets under management, it doesn't necessarily need to hold onto the properties, suggesting a shift towards a more flexible and potentially profitable business model.
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