Broker Name: CGS International Securities
Date of Report: January 21, 2026
Excerpt from CGS International Securities report.
Report Summary
- CGS International initiates coverage on Centurion Accommodation REIT (CAREIT) with an “Add” rating and a target price of S\$1.38, citing strong dividend growth prospects and asset enhancement opportunities.
- CAREIT is the first pure-play, purpose-built living accommodation REIT listed on SGX, with a diversified portfolio of worker and student accommodations in Singapore, UK, and Australia, benefiting from robust sector tailwinds, high occupancy, and resilient rental growth.
- The REIT is expected to deliver 27.4% and 10.1% year-on-year DPU growth in FY26F and FY27F, respectively, supported by new bed capacity, acquisitions, asset enhancement initiatives, and efficient capital management.
- Risks include stricter regulatory requirements for dormitories, non-renewal of land leases, policy changes affecting foreign worker and student demand, and exposure to foreign exchange rates.
- CAREIT’s sponsor, Centurion Corporation, retains a significant stake in the REIT, ensuring strong alignment of interests and operational expertise.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
