Company Update: 26 December 2025
Capital recycling via CAREIT and continued earnings resilience
- CAREIT divestment completed, enhancing cash flow visibility. Centurion completed the divestment of 14 stabilised PBWA and PBSA assets to Centurion Accommodation REIT (CAREIT), crystallising asset value and strengthening balance sheet flexibility. The transaction introduces recurring sponsor-related income streams while improving earnings quality through a more capital-light model.
Solid operating performance in 9M25.
Group revenue rose 12% YoY to S$208.3mn, underpinned by positive rental reversions and sustained high occupancies across PBWA and PBSA assets in Singapore and the UK. 3Q25 revenue increased 9% YoY to S$67.5mn despite softer conditions in Australia and Malaysia.
Portfolio expansion across core markets.
The acquisition of Harum Megah in Sep 25 added 7,197 PBWA beds in Johor, expanding Malaysia exposure by c.25%. In PBSA, Centurion continues to advance its EPIISOD-branded development pipeline in Australia and the UK, reinforcing its positioning in premium student accommodation.
Valuation & Action
We maintain OUTPERFORM, raising our target price to S$1.80 from S$1.38, reflecting the completed divestment of stabilised assets to CAREIT and improved earnings and cash flow visibility post-listing. The upward revision is supported by the quality and high occupancy of the assets transferred to CAREIT, as well as Centurion’s retained exposure through recurring sponsor income. Our valuation incorporates potential upside from CAREIT’s enlarged portfolio and future asset enhancement initiatives.
Risks
Prolonged elevated interest rates, recessionary fears, policy shifts in key markets, currency volatility and global trade tensions, which could impact labour and student mobility.
