Company Update: Centurion Corp Ltd (CENT SP/OU8.SI)
Company Update: 11 April 2025
Potential REIT listing and robust expansion pipeline
- REIT listing exploration. Centurion is exploring a potential REIT structure comprising stabilized PBWA and PBSA assets in mature markets like Singapore, Malaysia, and the UK. This could unlock asset value, enhance capital recycling, and deliver stable income for shareholders via a potential dividend-in-specie.
Stronger than anticipated revenue growth
Total revenue rose 22% YoY to S$253.6 million, while net profit after tax surged 118% to S$382.6 million, driven by high financial occupancy and rental rate uplifts across all key markets.
Expanding global footprint
As of 31 December 2024, Centurion operated 69,929 beds across 37 assets with AUM of S$2.5 billion. It added 2,552 new beds and has 7,662 beds under development for 2025-2026, including a new PBSA in Macquarie Park, Australia.
Valuation & Action
We maintain OUTPERFORM, raising our target price to S$1.38, based on a DCF valuation with a WACC of 5.0% and terminal growth of 2.0%. Near-term tailwinds include high occupancy and rental reversion, while the medium-term outlook is bolstered by rising contribution from the BTR, AEI-enhanced portfolio and new properties.
Risks
Prolonged elevated interest rates, recessionary fear, policy shifts in key markets, currency volatility and global trade tensions impacting labour and student mobility.
