Company Update: 27 March 2026
Capital-light model taking shape
- CAREIT spin-off completed, capital-light model taking shape. Centurion completed the divestment of 14 stabilised PBWA and PBSA assets into CAREIT in Sep-25, crystallising value and strengthening its capital recycling framework. As of 31 Dec 2025, the group’s AUM comprised 25 owned and operated assets with 53,107 beds and 17 managed assets with 25,740 beds, including 14 CAREIT-owned assets.
CAREIT Spin-Off Completed, Capital-Light Model Taking Shape
Centurion completed the divestment of 14 stabilised PBWA and PBSA assets into CAREIT in Sep-25, crystallising value and strengthening its capital recycling framework. As of 31 Dec 2025, the group’s AUM comprised 25 owned and operated assets with 53,107 beds and 17 managed assets with 25,740 beds, including 14 CAREIT-owned assets.
Stronger Post-CAREIT Financial Position And Improving Earnings Visibility
Following the CAREIT divestment, Centurion’s balance sheet has strengthened meaningfully, with cash and bank balances rising to S$373.1mn and net gearing declining to 12% as of 31 Dec 2025, versus 29% a year earlier. Beyond the stronger capital position, the group is also beginning to see a broader post-listing earnings mix, supported by retained CAREIT exposure, management fee income and third-party dormitory management contracts. Visibility on Singapore PBWA has also improved, with retained capacity approvals for c.664 beds at Westlite Toh Guan and c.1,980 beds at Westlite Mandai, while CAREIT’s acquisition of EPIISOD Macquarie Park, Sydney reinforces the sponsor platform.
Valuation & Action
We maintain OUTPERFORM and raise our target price to S$1.85 from S$1.80, reflecting firmer visibility on post-CAREIT earnings streams, the emergence of fee income as a more meaningful earnings leg, continued execution of the group’s development pipeline, and a stronger post-transaction balance sheet.
Risks
Prolonged elevated interest rates, economy slowdown, policy shifts in key markets, currency volatility and global tensions, which could impact labour and student mobility.
