Centurion Corporation Limited: In-Depth Investor Update – 3Q & 9M 2025

Key Highlights and Price Sensitive Developments

• Successful Listing of Centurion Accommodation REIT (“CAREIT”) on SGX Main Board
  • CAREIT’s listing marks a pivotal milestone, enabling Centurion to recycle capital for further asset growth, establish stable recurring fee income, and create a long-term platform for ongoing asset and capital recycling.
  • This move is expected to unlock shareholder value, improve liquidity, and diversify income streams.
  • Centurion holds a 42.8% stake in CAREIT, which will directly impact the Group’s earnings and asset management profile.
• Inclusion in Key Market Indices & Awards
  • Centurion was added to the Singapore Small Cap Index, Broad Market Index, and iEdge Singapore Next 50 Index, increasing its visibility and potential institutional investor interest.
  • Recognized in Forbes Asia Best Under a Billion, SIAS Investors’ Choice Awards (Outstanding CEO), and The Edge Billion Dollar Club (Highest Returns to Shareholders and Weighted ROE in Consumer Cyclical Sector).
• Robust Financial Performance
  • 9M 2025 Revenue: S\$208.3 million (up 12% YoY)
  • 3Q 2025 Revenue: S\$67.5 million (up 9% YoY)
  • Growth driven by rental revisions, strong occupancy in Singapore PBWA and UK PBSA, and new revenue streams.
  • Partially offset by lower occupancy in Malaysia PBWA and Australia PBSA, and negative FX impact from AUD weakness.
  • Total Assets: S\$3.2 billion, Net Gearing Ratio: 10% (reflecting prudent financial management).
  • Interest Coverage Ratio: 4.3x; Cash: S\$434 million; Total Borrowings: S\$713 million.
• Strong Sector Fundamentals in PBWA and PBSA
  • Centurion is a pioneer in the living accommodation sector, specializing in Purpose-Built Worker (PBWA), Student (PBSA), and Build-to-Rent (BTR) accommodations across six countries and 14 cities, with 42 operational properties and over 79,500 beds/apartments.
  • Singapore PBWA: 99% financial occupancy and 14% revenue growth YoY, buoyed by construction sector strength and upcoming bed supply tightening due to regulatory upgrades.
  • Malaysia PBWA: Financial occupancy fell to 83% (from 90% YoY), reflecting government policies to reduce foreign labor. Revenue declined 1% YoY, but positive rental revisions provided partial offset.
  • UK PBSA: 97% financial occupancy, revenue up 7% YoY due to persistent demand-supply imbalance and rising international student visas.
  • Australia PBSA: Financial occupancy slipped to 92% (from 95%), revenue down 6% due to visa restrictions and FX headwinds, but sector demand remains strong given rising student numbers and supply shortfall.
  • Hong Kong SAR: Entered PBWA and PBSA markets with master leases. Occupancy ramping up post-refurbishment, with strong demand forecasts due to labor and education policies.
  • BTR (China): Centurion-Cityhome Gaolin (Xiamen) achieved 92% occupancy in Sep 2025 after a ramp-up, even as market supply increased.
• Growth Pipeline and Asset Expansion
  • Net bed capacity growth expected at c.4,372 beds in FY2026, following a record c.9,582 beds added in FY2025.
  • Major asset enhancements in Singapore (Mandai and Toh Guan), Australia (new PBSA blocks in Sydney, Melbourne, and Perth), UK (new PBSA in London), and Malaysia (new PBWA in Nusajaya and enhancement of Harum Megah assets).
  • Secured property management agreement in Singapore for a 548-bed dormitory on Jurong Island, adding fee-based income.
• Diversified and Stable Customer Base
  • 2,137 customers in Singapore and Malaysia, spanning construction, oil & gas, manufacturing, marine, engineering, and services, limiting exposure to any single sector or policy risk.
• Strategic Focus and Outlook
  • Centurion maintains a cautiously optimistic outlook amid global inflation, interest rate, and trade uncertainties.
  • Continued focus on prudent financial management, capital recycling, asset-light models, and selective development.
  • Active pursuit of portfolio enhancement to meet evolving regulatory and customer needs, especially in Singapore and Malaysia.
  • Potential expansion into new geographies such as China and the Middle East.

Potential Price Sensitive Information for Shareholders

• CAREIT Listing and Asset Recycling: The REIT listing is likely to improve Centurion’s capital efficiency, generate recurring management fees, and facilitate future growth. This structural change could enhance shareholder value and drive share price performance.
• Asset Expansion and Enhancements: Capacity growth across Singapore, Malaysia, Australia, and UK, alongside new developments and asset enhancements, signals future income growth and asset value uplift.
• Sector Resilience and Demand: Positive regulatory changes (e.g., Singapore’s Dormitory Transition Scheme, Malaysia’s labor reforms, HK SAR’s labor and education policies) underpin demand for Centurion’s core assets, supporting sustainable earnings and cash flows.
• Currency Risks and Occupancy Trends: While FX volatility (notably weaker AUD) and short-term occupancy drops (Malaysia, Australia) could affect near-term earnings, ongoing rental growth, stable occupancy in core markets, and diversified customer base mitigate these risks.
• Asset-Light Strategies and Management Services: Increasing focus on asset and property management fees through new contracts (e.g., Jurong Island) could provide new revenue streams less sensitive to capital market cycles.
• Potential Divestments in US: Ongoing disposal of US assets via the Centurion US Student Housing Fund could realize capital gains and redeploy funds to higher-growth regions.
• Geographic Expansion: Entry into China (BTR, PBWA) and potential expansion into the Middle East may open significant new markets and revenue opportunities.

Conclusion

Centurion Corporation Limited has delivered strong financial and operational performance in 3Q & 9M 2025, underpinned by strategic growth initiatives, sector resilience, and prudent capital management. The successful CAREIT listing, multiple asset enhancement projects, visible pipeline expansion, and diversified customer base position Centurion for sustainable long-term growth. Investors should closely watch upcoming regulatory transitions, occupancy trends, and new market entries, all of which have the potential to significantly impact Centurion’s earnings, asset values, and share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult their financial advisors before making investment decisions. The information herein is based on management’s forward-looking statements, which may be subject to material risks and uncertainties.

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