Broker Name: Maybank Research Pte Ltd
Date of Report: November 27, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Centurion Accommodation REIT (CAREIT) is the first and only pure-play purpose-built living accommodation REIT on the SGX, with exposure to purpose-built worker accommodation (PBWA) in Singapore and purpose-built student accommodation (PBSA) in the UK and Australia.
- Maybank initiates coverage with a BUY rating and a DDM-based target price of SGD1.27, projecting a FY26E DPU yield of around 5.7% and distributable income CAGR of 13.8% from FY25-27E.
- CAREIT is positioned for both organic and inorganic growth through bed expansions, asset enhancement initiatives (AEI), and the acquisition of new assets such as Epiisod Macquarie Park in Australia, which offers a secured master lease for stable initial income.
- The REIT’s conservative gearing (projected at 31%, below the S-REIT average) provides substantial debt headroom for further acquisitions and growth.
- Singapore’s PBWA sector benefits from strong demand due to ongoing reliance on foreign workers and limited land supply, while the PBSA sector in the UK and Australia is supported by robust education demand and tight rental markets.
- CAREIT’s portfolio boasts high occupancy rates (c.97% for both PBWA and PBSA), diversified tenant base, and a strong sponsor (Centurion Corporation) with a proven track record and significant market share in Singapore’s worker accommodation sector.
- Key risks include macroeconomic uncertainties, changes in government policies on foreign workers and students, regulatory compliance costs, and potential delays in project deliveries.
- CAREIT’s distribution policy is to pay out 100% of distributable income until FY27E, then at least 90% thereafter, supporting attractive and stable yields for investors.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : https://www.maybank.com/investment-banking
