Centurion Corp Poised for Continued Growth Amid Strong Demand, Expansion Pipeline

Lim & Tan Securities | April 4, 2025

Centurion Corp Delivers Stellar FY24 Results

Centurion Corporation (S\$1.23), a leading provider of purpose-built worker and student accommodations, has reported impressive financial results for the fiscal year ended 2024. The company’s strong performance was driven by positive demand-supply dynamics across its key markets, enabling high occupancy rates and healthy rental rate revisions in both its Purpose-Built Worker Accommodation (PBWA) and Purpose-Built Student Accommodation (PBSA) segments.

In FY 2024, Centurion achieved significant growth in revenue and profits, as well as substantial fair value gains reflected in a strong increase in Net Asset Value per share. Financial occupancy of the Group’s PBWA portfolio held steady at 94%, driven by robust demand for dormitory beds in Singapore as employers continued to bring in workers to meet construction demand. Similarly, the financial occupancy of Centurion’s PBSA portfolio rose to 97% as PBSA beds remained in short supply in both the UK and Australia.

Coupled with healthy rental rate revisions, the strong occupancies resulted in a 22% climb in revenue to S\$253.6 million. Improved margins from management and operational efficiencies further boosted the company’s profitability, with Net Profit from Core Business (excluding Fair Value Adjustments) soaring 45% to S\$110.8 million. Centurion also recorded fair value gains of S\$219.1 million in FY 2024, a 158% leap compared to the previous year, bringing the company’s Net Profit after Tax to S\$382.6 million for the year.

Expansion Pipeline to Fuel Future Growth

Looking ahead, Centurion is poised to maintain its strong growth momentum with a robust pipeline of new bed capacities to expand its revenue streams in the coming years. The company’s new 1,650-bed PBWA in Singapore, Westlite Ubi, became operational in December 2024, and the redevelopments of Westlite Toh Guan and Westlite Mandai will add approximately 1,764 and 3,696 beds respectively upon completion in late 2025 and early 2026.

In the PBSA segment, Centurion’s new asset in Sydney, Australia is expected to add around 732 beds when completed in November 2025, and the redevelopment of dwell Village Melbourne City’s carpark will add a new block of approximately 600 beds in early 2026. The company has also expanded into new markets and segments, entering Hong Kong SAR and China with two PBSA assets and one PBWA asset in the second half of 2024, as well as a new Build-to-Rent Accommodation in Xiamen, China that began operations in January 2025.

Valuation and Recommendation

At S\$1.23, Centurion is currently capitalized at S\$1 billion and trades at 9.8x forward P/E and 0.9x P/B, with a dividend yield of 2.8%. The company’s pipeline of new bed capacities across Singapore, Malaysia, and Australia remains healthy, and its strategic initiatives to transition towards an asset-light model are expected to sustain its growth trajectory.

With more stabilized assets compared to 2015, Centurion could potentially unlock further value for shareholders by divesting or spinning off some of its assets into a REIT platform on the SGX-ST, which could serve as a re-rating catalyst. Consensus target price of S\$1.45 represents an 18% potential upside, and we have an “Accumulate on Weakness” recommendation on the stock.