According to the Singapore Real Estate Exchange that period saw a 50% rental increase across the board, following 8 years of zero or even negative rental growth. Obviously you're more versed on Singapore than I am so you may have more insight but within this context that doesn't seem too weird.
1) I wonder IF the coming RTS link will start to relieve this and lead to more commuting from Johor e.g. YouTube has been showing me updated videos on that in my feed e.g. https://www.youtube.com/results?search_query=RTS+link
Well rents have gone up quite a bit for condos, just surprised that the same is true for worker accommodation. Usually they stay 8-12 men per room in large barracks.
The interesting part might be the student dormitories but the value will always be 'stuck' if they do not divest and as such can only be assessed based on their management of the accommodations and based on core earnings.
The strength in the company lies in the revenue increase have largely increased gross profit as well and the cost structure have been well maintained.
Thanks for the comment. The thing is, at their current valuation they don't need huge rental rate increases for it to work out. Even if they can keep profit stable, at 6x earnings the stock will do very well. Additionally, while maybe not as drastic as recent years they will get steady growth by increasing their number of beds under management, which they are likely to do over the next 5 years. The only major concern would be a significant decrease in rates but with limited supply and high levels of immigration it's hard to see that happening in the near future.
Looks like revenues per bed have gone up significantly since 2019, up 50% or so. A bit odd, no?
Yes that is a bit strange, let me look into it and get back to you.
According to the Singapore Real Estate Exchange that period saw a 50% rental increase across the board, following 8 years of zero or even negative rental growth. Obviously you're more versed on Singapore than I am so you may have more insight but within this context that doesn't seem too weird.
https://www.srx.com.sg/price-index#
1) I wonder IF the coming RTS link will start to relieve this and lead to more commuting from Johor e.g. YouTube has been showing me updated videos on that in my feed e.g. https://www.youtube.com/results?search_query=RTS+link
2) SmartKarma seemed to be pushing them or maybe they were doing IR work for them e.g. this webinar https://www.smartkarma.com/insights/smartkarma-corporate-webinar-centurion-quality-housing-for-workers-and-students-the-world-over kept being included in emails from them... IF Centurion is paying for IR work, its something to be aware of and not necessarily a bad thing...
3) I linked to your post for my Monday links post: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-may-20-2024
Well rents have gone up quite a bit for condos, just surprised that the same is true for worker accommodation. Usually they stay 8-12 men per room in large barracks.
The core of its profit still comes from Singapore Workers Dormitory Segment, which has seen increase in its rental in the recent 2 years. Rates are around 500-650 now. Centurion should be around 550 but the room to increase rates are rather unlikely despite the limited supply as motel/hotels have started to get in at around 600-700 in Singapore (https://www.channelnewsasia.com/singapore/construction-foreign-workers-dormitories-rental-soar-alternative-housing-ctq-3788066)
The interesting part might be the student dormitories but the value will always be 'stuck' if they do not divest and as such can only be assessed based on their management of the accommodations and based on core earnings.
The strength in the company lies in the revenue increase have largely increased gross profit as well and the cost structure have been well maintained.
Thanks for the comment. The thing is, at their current valuation they don't need huge rental rate increases for it to work out. Even if they can keep profit stable, at 6x earnings the stock will do very well. Additionally, while maybe not as drastic as recent years they will get steady growth by increasing their number of beds under management, which they are likely to do over the next 5 years. The only major concern would be a significant decrease in rates but with limited supply and high levels of immigration it's hard to see that happening in the near future.
Late to the party... looks very interesting. Will do some further research. Thanks for a great find.