🎯 Is Centurion Corporation (SGX: OU8) worth checking out?
📌 Centurion Corporation: Turning Dormitory Scale into REIT Growth $Centurion(OU8.SI)$
📈 Revenue Momentum
FY2024 revenue climbed 22% YoY to S$253.6 million, driven by stronger rents across dormitory and student assets and near-full 99% occupancy in core Singapore sites.
Gross margin widened five points to 77.1% thanks to utilities contracts locked in at lower rates and tighter vendor management. Management guides for another high-teens top-line lift in FY2025 as new beds come on-stream.
💰 Core Earnings Surge
Excluding revaluation gains, operating net profit jumped 45% to S$110.8 million, while headline NPAT more than doubled to S$344.8 million after a S$219.1 million fair-value uplift. Free cash flow improved to S$92 million, supporting both capex and dividends.
🏢 REIT Spin-Off
On 14 July 2025 Centurion announced agreements to list Centurion Accommodation REIT on SGX mainboard.
The IPO seeds 14 income-generating assets - five purpose-built worker accommodation (PBWA) properties in Singapore, eight purpose-built student accommodation (PBSA) properties in the UK and one PBSA in Australia - valued at >S$1.8 billion.
A deferred acquisition of Episod Macquarie Park PBSA in Sydney will lift the REIT to 15 assets, 27,602 beds and about S$2.1 billion in asset value. Centurion keeps the Malaysian portfolio outside the vehicle, providing a pipeline for future injections.
🛏️ Capacity Pipeline
Westlite Ubi (1,650 beds) opened in Dec 2024; Westlite Toh Guan (+1,764 beds) completes by Dec 2025 and Westlite Mandai (+3,696 beds) by 2026, raising regulated Singapore bed count ≈11%.
Overseas, Malaysia’s Bukit Minyak and Australia’s Perth expansion could add >2,000 beds within two years, underpinning organic growth even after the REIT listing.
🔍 Analyst Lens
Five brokerages rate the stock “Buy,” with target prices clustered between S$1.45 and S$1.70, implying mid-teens upside as the market digests listing economics.
Post-spin off, Centurion is expected to trade at ≈5× FY2026E P/E versus the Straits Times Index’s ≈11×, leaving scope for multiple expansion once earnings normalise.
🏘️ Competitive Landscape
Centurion’s integrated owner-operator model eclipses smaller dorm peers such as LHN and Wee Hur in scale and compliance.
On the other hand, accommodation (REITs) heavyweights CapitaLand Ascott Trust and Mapletree Pan Asia Commercial Trust offer broader geographies but lack Centurion’s worker-housing dominance.
📈 Conclusion
Centurion is leveraging a REIT spin-off to monetise mature assets, de-leverage and accelerate its development pipeline while maintaining exposure to structurally tight worker- and student-housing markets.
Investors seeking defensive yield with embedded growth optionality should keep this counter on their radar.
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