Centurion Corp Rides Construction Boom, Eyes REIT Listing & Global Expansion

📈 Strong Financial Performance Amid Rising Demand
Centurion Corporation delivered a stellar financial performance for FY2024, driven by higher rental and occupancy rates in its worker dormitories. Revenue surged 22% y-o-y to $253.6 million, while net profit jumped 125% to $344.8 million, boosted by fair value gains. Excluding these gains, net profit rose 43% to $99.3 million.

🔹 Dividend Growth: Shareholders will receive a final dividend of 2 cents per share, bringing the total FY2024 payout to 3.5 cents, up from 2.5 cents in FY2023.

🏗️ Construction Boom Fuels Worker Dormitory Demand

With Singapore’s construction demand projected to hit $47B-$53B in 2025 (up from $44.2B in 2024), Centurion sees a positive demand-supply dynamic for its purpose-built worker accommodation (PBWA).

• Addressable Market:

  • 443,000 workers in construction, marine & process sectors must live in approved dormitories.
  • Another 400,000 work permit holders in other industries can stay in alternative housing.

• Supply Constraints & Higher Rents:

  • Singapore’s 9,000-bed reduction in 2Q2025 (as a competitor’s lease expires) will tighten supply.
  • The Dormitory Transition Scheme (DTS), requiring upgraded dorms by 2027, will further limit availability.
  • Westlite Toh Guan & Westlite Mandai will serve as “swing sites” during transition shifts.
  • Quick-build dormitories (QBDs) already meet new regulatory standards, ensuring uninterrupted revenue flow.

Centurion’s Malaysia segment is also growing, with 7,000 new beds planned in Nusajaya, Iskandar & Johor. Meanwhile, Hong Kong’s rising demand for Mainland workers adds another growth avenue.

🏫 Student Housing & Global Expansion

Beyond worker dorms, Centurion is thriving in student accommodation across Australia, the UK & the US, benefiting from higher occupancy & rental rates.

• UK: Rising international student intake boosts demand.
• Australia: Persistent student housing shortage drives rental growth.
• Hong Kong: The city’s push to become an education hub presents expansion opportunities.
• Melbourne & Sydney: Identified for future bed count expansion.

Additionally, Centurion is entering China’s build-to-rent (BTR) market via a partnership in Xiamen, catering to working professionals as China increases bank financing for rental housing projects.

📢 Centurion Revives REIT Listing Plans

After a decade, Centurion is ready to spin off a REIT, leveraging its $2.5B assets under management (AUM), 69,929 beds, and 37 properties across six countries. CEO Kong Chee Min believes the time is right for this move.

Analysts React Positively:

• UOB Kay Hian (Adrian Loh): Raised target price to $1.16 (from $1.11), citing higher valuation at 8.7x earnings (up from 6.9x).
• RHB Bank Singapore (Alfie Yeo): Buy rating, $1.17 target price, citing stronger earnings outlook for FY2025-FY2026 due to an expanded bed capacity.

🚀 Outlook: Growth on Multiple Fronts

With robust demand for worker housing, a growing student accommodation portfolio, and REIT plans on the horizon, Centurion is well-positioned for further expansion. Its global footprint, regulatory compliance, and strategic acquisitions make it a strong player in the rental housing market.

Thank you