KGI Securities (Singapore) Pte. Ltd.
April 11, 2025
Centurion Corp Ltd: Real Estate and Singapore REIT Potential
Centurion Corp Ltd (CENT SP/OU8.SI) has recently been explored as a potential candidate for a REIT listing, which could unlock asset value, enhance capital recycling, and deliver stable income for shareholders via a potential dividend-in-specie.
Company Update and Financials
Centurion Corp Ltd, a leading player in the real estate sector, has demonstrated a strong performance in FY24, with total revenue rising 22% YoY to S$253.6 million and net profit after tax surging 118% to S$382.6 million. This growth was driven by high financial occupancy and rental rate uplifts across all key markets.
Key Highlights and Developments
REIT Listing Exploration: Centurion is evaluating a potential REIT structure comprising stabilized PBWA and PBSA assets in mature markets like Singapore, Malaysia, and the UK. This strategic move could position the company as a long-term REIT sponsor and manager.
Strong Revenue Growth: The company’s total revenue rose 22% YoY to S$253.6 million, driven by high occupancy and rental rate increases across key markets.
Global Footprint Expansion: Centurion operated 69,929 beds across 37 assets with AUM of S$2.5 billion as of December 2024. It added 2,552 new beds and has 7,662 beds under development for 2025-2026.
2H24 Financial Performance
Increased Capacity and Higher Rates: Revenue increased 18% YoY to S$129.2 million from S$109.3 million in 2H23. Gross profit grew 27% to S$101.5 million, driven by sustained high occupancy and positive rental revisions.
Net Profit and Dividend: Centurion declared a final dividend of 3.5 cents per share for FY24, representing a 28.6% increase from the 2.5 cents distributed in FY23.
Potential Impact from Tariffs and Market Positioning
While Centurion’s core operations are not directly affected by U.S. tariffs, it remains exposed to broader macroeconomic headwinds that could weigh on accommodation demand and investor sentiment.
Valuation and Action
We maintain our OUTPERFORM rating, with a raised target price of S$1.38, based on a DCF valuation with a WACC of 5.0% and terminal growth of 2.0%.
Financial Discipline and Growth Strategy
Centurion’s financial structure and debt management are prudent, with a significant decline in its net gearing ratio from 38% to 29%.
The company closed the year with a healthy cash position of S$89 million and access to S$150.4 million in unutilized committed credit facilities.
Pipeline and Expansion Plans
Strategic Expansion and Portfolio Optimization: Centurion continues to evolve into a diversified, multi-segment accommodation provider, with strategic positioning across PBWA, PBSA, and its newest vertical, Build-to-Rent (BTR).
Centurion Corp Ltd Financials
Year 2023 2024 2025F 2026F 2027F
Revenue (S$’000) 207,245.0 253,616.0 292,890.0 328,081.7 327,193.0
PATMI (S$’000) 175,913.0 382,636.0 263,224.0 248,613.0 293,819.0
EPS (cents) 20.92 45.51 31.69 29.93 35.28
DPS (Sing cents) 2.5 3.5 3.8 3.6 3.9
Risks and Challenges
Medium-term macroeconomic uncertainties remain. Heightened global trade tensions and potential tariff escalations may weigh on Singapore’s growth outlook in 2025.
Company Outlook and Valuation
Centurion’s strong FY24 performance highlights its resilience and solidifies its long-term growth trajectory in the worker and student accommodation sectors.
Our target price of S$1.38 is derived from a DCF analysis, using a terminal growth rate of 2.0% and a WACC of 5.0%.
Financial Highlights
FY24 Performance: Centurion Corp Ltd reported a strong FY24 performance, with a 22% YoY increase in total revenue to S$253.6 million and a 118% surge in net profit after tax to S$382.6 million.
Centurion Corp Ltd Financial Highlights
Year 2023 2024 2025F 2026F 2027F
Revenue (S$’000) 207,245 253,616 292,890 328,082 327,193
PATMI (S$’000) 175,913 382,636 263,224 248,613 293,819
EPS (cents) 20.92 45.51 31.69 29.93 35.28
DPS (SGD cents) 2.5 3.5 3.8 3.6 3.9
Centurion Corp Ltd: Key Statistics
Market Capitalization: 950
52-week Low/High: $0.43 / $1.27**
Free Float (%): 26.3
Recommendation and Target Price
We maintain our OUTPERFORM recommendation with a raised target price of S$1.38, underpinned by Centurion’s strong FY24 performance and higher rental reversions across its PBWA and PBSA segments.
Appendix: Properties in Centurion’s Portfolio
Listed below is the updated list of properties in Centurion’s portfolio.
Centurion Corp Ltd: Properties in Portfolio
Location , Capacity as at 31 Dec FY24 , Expected capacity as at 31 Dec FY25 , Land tenure
Westlite Ubi Ave 3 1,650 1,650 30 yrs (wef 2023)
Westlite Mandai 6,300 6,300 Freehold
Westlite Woodlands 4,100 4,100 30 yrs (wef 2013)
Additional Insights and Data
The Group also continues to implement AEIs across its mature PBWA and PBSA assets, driving occupancy and increasing rental yields.
Centurion’s active pipeline, including a new development in Macquarie Park, Australia, positions the Group to capitalize on imbalances in student housing and workers’ accommodation.
