Billion Dollar Club: CONSUMER CYCLICAL

Specialised dormitory operator Centurion Corp is the big winner at this year’s Billion Dollar Club (BDC) for the consumer cyclical industry segment. Besides emerging as the overall sector winner, Centurion Corp is also named the winner for the weighted return on equity (ROE) and returns to shareholders categories.

Genting Singapore, operator of one of the two integrated resorts here in Singapore, prevented a clear sweep with its win in the growth in profit after tax category.

Centurion operates workers’ dormitories under the Westlite brand in Singapore and Malaysia; it runs students’ accommodation under the Dwell brand in popular markets Australia, the UK and the US. It also has a fledgling built-to-rent accommodation business in China. In FY2024, Centurion added 2,552 beds to its portfolio.

See also: A rejuvenated Singapore market, a reset for The Edge Singapore

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As of March 31, it operated 69,931 operational beds and apartments in 37 properties across 15 cities in six different countries. Its total portfolio value as of March 31 was around $2.6 billion. Centurion is remarkable for sustaining a long-term growth story. Revenue between 2011 and 2024 was up at a CGAR of 26% during this period, with earnings up by the same magnitude.

Taking advantage of a strong jump in revenue in FY2024, thanks to higher rentals across both workers’ and students’ dorm segments, the company has taken a bold step towards being more capital-efficient in its growth.

It signed sale and leaseback agreements with Malaysia’s public services pension fund, KWAP, for two worker accommodation assets, which, in Centurion’s view, validates specialised worker accommodation as an increasingly sought-after asset class. With funds freed up for quicker recycling, Centurion can invest more quickly to generate further growth. For investors, the most telling aspect of this strategy is the spin-off of Centurion Accommodation REIT in September, which raised more than $700 million, potentially setting the company up for bigger things to come.
In its most recent FY2024 ended Dec 31, 2024, Genting Singapore posted a 5% y-o-y growth in revenue. While the topline exceeded pre-pandemic levels, rising costs caused its earnings to dip 5.3% y-o-y to $578.9 million. Nonetheless, in the three years under consideration for this year’s BDC, Genting Singapore’s net profit increased at a CAGR of 46.7%, which makes the resort operator the leader in this industry segment.

Not one to sit still, Resorts World Sentosa on Nov 15 broke the ground for its “monumental waterfront lifestyle development”, part of its broader RWS 2.0 masterplan to bring the resort to a new level. Set to open by 2030, the new waterfront development will feature a promenade, a four-storey retail and dining complex with entertainment offerings, two luxury hotels with 700 rooms and an immersive mountain trail.