Broker Name: CGS International
Date of Report: January 21, 2026
Excerpt from CGS International report.
Report Summary
- Centurion Accommodation REIT (CAREIT) is the first pure-play, purpose-built living accommodation REIT listed on the Singapore Exchange, focusing on worker dormitories in Singapore and student accommodations in the UK and Australia.
- CAREIT is expected to deliver strong distribution per unit (DPU) growth of 27.4% in FY26 and 10.1% in FY27, driven by expanded bed capacity, asset enhancement initiatives, and sector tailwinds in both worker and student accommodation markets.
- The REIT’s portfolio of S\$2.1bn is diversified across geographies and sectors, with assets strategically located near key workplaces and universities, and over 83% of FY26F Net Property Income (NPI) coming from freehold or long-lease assets.
- CAREIT offers one of the highest projected DPU yields among S-REITs at 6.5% for FY26 and 7.1% for FY27, with a target price of S\$1.38, representing a 32% total return potential from current prices.
- Potential risks include stricter dormitory standards, lease non-renewals, changes in student accommodation regulations, and foreign exchange fluctuations, but these are balanced by the REIT’s financial flexibility and growth pipeline.
- The REIT is managed by experienced professionals and benefits from the backing of Centurion Corporation, which holds a significant stake and provides a right of first refusal for future asset injections.
- CAREIT’s business model is resilient, underpinned by high occupancy rates, dynamic pricing, and exposure to non-cyclical demand from foreign workers and students.
- Overall, the report initiates coverage with an “Add” rating, highlighting CAREIT’s visible growth, stable yields, and potential for value creation through both organic and inorganic means.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
