CGS International Securities
August 11, 2025
Centurion Corporation Ltd: Riding Industry Tailwinds for Its Next Growth Phase
Overview: Strong Momentum and Industry Leadership
Centurion Corporation Ltd (“CENT”) has delivered a robust performance for 1H25, positioning itself as a leading player in the purpose-built accommodation sector. Driven by favourable supply-demand dynamics, regulatory reforms, and a strategic focus on asset expansion, CENT stands out in the Singapore real estate investment landscape.
- 1H25 core PATMI: S\$58 million (+19% YoY), beating estimates.
- Reported PATMI: S\$73.9 million, declined 38% due to reduced net fair value gains.
- Occupancy: 99% for Singapore PBWA portfolio, 100% for Westlite Ubi’s new beds.
- CAREIT IPO: On track for FY25, enabling capital recycling and AUM growth.
- Target Price: S\$2.05 (unchanged), with 21.3% upside from current price of S\$1.69.
- Consensus Rating: 5 Buys, 0 Holds, 0 Sells.
Financial Highlights: Growth Across Core Segments
Centurion’s financials demonstrate resilience and scalability, particularly in its core segments of purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA).
| Financial Metric |
Dec-23A |
Dec-24A |
Dec-25F |
Dec-26F |
Dec-27F |
| Total Net Revenues (S\$m) |
207.2 |
253.6 |
285.1 |
309.8 |
341.0 |
| Operating EBITDA (S\$m) |
123.6 |
161.6 |
179.9 |
191.5 |
210.6 |
| Net Profit (S\$m) |
153.1 |
344.8 |
153.2 |
145.8 |
155.6 |
| Normalised EPS (S\$) |
0.08 |
0.12 |
0.14 |
0.15 |
0.16 |
| Normalised EPS Growth |
21.3% |
43.4% |
19.1% |
6.4% |
7.8% |
| FD Normalised P/E (x) |
20.53 |
14.31 |
12.02 |
11.30 |
10.48 |
| DPS (S\$) |
0.025 |
0.035 |
0.042 |
0.045 |
0.048 |
| Dividend Yield |
1.48% |
2.07% |
2.50% |
2.66% |
2.86% |
| Net Gearing |
66.9% |
43.3% |
39.2% |
32.8% |
26.5% |
| P/BV (x) |
1.72 |
1.23 |
1.12 |
1.03 |
0.95 |
| ROE |
9.2% |
10.0% |
9.8% |
9.5% |
9.4% |
- Core PATMI exceeded expectations, driven by associate/JV contributions and a lower effective tax rate.
- PBWA profit up 16% YoY, supported by solid rental reversions.
- PBSA profit declined 1% due to FX headwinds and occupancy dips in Australia (91%) and the UK (97%).
Strategic Expansion: CAREIT IPO and Asset Growth
Centurion’s strategy is anchored on scaling its accommodation portfolio through capital recycling, leveraging the upcoming Centurion Accommodation REIT (CAREIT) IPO on the Singapore Exchange.
- IPO proceeds will be used to grow AUM, with a focus on Australian PBSA assets.
- Pipeline includes two Epiisod-branded projects: ~644-bed Melbourne City asset (completion 1Q27F) and a ~675-bed site near RMIT University, expected to be yield-accretive.
- Ongoing commitment to expand in six core geographies, with new projects anticipated in the UK and Singapore.
Operational Excellence: Visit to Westlite Ubi
Westlite Ubi sets a new benchmark in dormitory standards, being among the first privately-owned, standalone purpose-built dormitories (PBDs) in Singapore to meet the Ministry of Manpower’s New Dormitory Standards (NDS) ahead of the 2040 deadline.
- Maximum 12 residents per room, minimum 4.2 sqm living space per resident.
- En-suite toilets, showers, ensuite kitchens, refrigerators, and washing machines in all rooms.
- On-site amenities: minimart, canteen, barber, multi-purpose hall, and gym.
- 100% financial occupancy across all 1,650 beds by April 2025.
- NPI margin expected to match other Westlite properties despite higher operating costs.
Regulatory and ESG Leadership
Centurion is well-placed to benefit from regulatory reforms in worker accommodation standards in Singapore and Malaysia.
- Singapore’s Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) drive upgrades in living conditions.
- Malaysia compliance achieved as of January 2022, with Asset Enhancement Initiatives (AEIs) planned for Singapore dorms between 2027 and 2030.
- Active initiatives for residents’ physical, social, and mental well-being, enhancing holistic residential experiences.
- Utility consumption intensity stable; further efforts to reduce carbon footprint and enhance renewable energy use are encouraged.
Peer Comparison: Positioning Against Industry Leaders
A comparative look at Centurion and its sector peers highlights its value proposition.
| Company |
Ticker |
Recommendation |
Current Price |
Target Price |
Market Cap (US\$m) |
Core P/E CY25F |
Core P/E CY26F |
P/BV CY25F |
P/BV CY26F |
Recurring ROE CY25F |
Recurring ROE CY26F |
EV/EBITDA CY25F |
EV/EBITDA CY26F |
Dividend Yield CY25F |
Dividend Yield CY26F |
| Centurion Corp Ltd |
CENT SP |
Add |
1.69 |
2.05 |
1,106 |
13.2 |
11.9 |
1.2 |
1.1 |
8.8% |
9.4% |
10.5 |
9.3 |
2.3% |
2.5% |
| UNITE Group PLC |
UTG LN |
NR |
745.00 |
na |
4,903 |
15.8 |
15.1 |
0.7 |
0.7 |
6.3% |
6.4% |
18.7 |
15.6 |
5.2% |
5.4% |
RNAV and Valuation Drivers
Centurion’s target price is derived using a 20% discount to its RNAV, aligning it with Singapore hospitality REITs.
- RNAV per share: S\$2.57
- Applied discount: 20%
- Target Price: S\$2.05
- Key valuation drivers: Sustained rental reversions, new bed additions, and capital recycling efficiency.
- Potential downside: Lower bed capacity utilisation due to increased supply.
By the Numbers: Key Metrics, Ratios, and Bed Capacity
| Key Driver |
Dec-23A |
Dec-24A |
Dec-25F |
Dec-26F |
Dec-27F |
| PBWA Malaysia bed capacity |
27,373 |
28,053 |
28,923 |
28,923 |
28,923 |
| PBWA Singapore bed capacity |
34,786 |
36,436 |
37,536 |
37,536 |
39,252 |
| PBSA Australia bed capacity |
911 |
911 |
897 |
1,629 |
2,273 |
| PBSA UK bed capacity |
2,786 |
2,786 |
2,786 |
2,786 |
2,786 |
| PBWA Malaysia occupancy |
0.9 |
0.9 |
0.8 |
0.9 |
0.9 |
| PBWA Singapore occupancy |
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
| PBSA Australia occupancy |
0.9 |
1.0 |
0.9 |
0.9 |
0.9 |
| PBSA UK occupancy |
0.9 |
1.0 |
1.0 |
1.0 |
1.0 |
Corporate Governance and Analyst Disclosure
- CGS International reports no proprietary position or analyst interest in Centurion securities as of August 2025.
- Report prepared independently; analyst compensation not tied to investment banking transactions.
- Comprehensive compliance with international distribution laws.
Conclusion: Investment Outlook Remains Positive
Centurion Corporation stands well-positioned to benefit from sector tailwinds, regulatory reforms, and its innovative approach to accommodation standards and asset management. The company’s strong financials, strategic CAREIT IPO, and commitment to ESG make it an attractive pick for investors looking for growth, resilience, and value in the Singapore property sector.
- Recommendation: Add, with a 12-month total return expected to exceed 10%.
- Target Price: S\$2.05 (21.3% upside).
- Key Catalysts: Rental reversions, bed capacity growth, and effective capital deployment.
