Centurion Accommodation REIT Issues Management Fees in New Units

Key Highlights

• Centurion Accommodation REIT (CAREIT) has issued a total of 3,104,558 new units at S\$1.121 per unit as payment for management fees.
• The units were issued to Centurion Capital Investments Ltd. (CCIL), an entity nominated by the manager, Centurion Asset Management Pte. Ltd. (CAMPL).
• The issue price was determined based on the volume weighted average price for a unit in CAREIT over the 10 business days immediately preceding 31 December 2025.
• This issuance covers both the Base Fee and Performance Fee for the financial period from 25 September 2025 (Listing Date) to 31 December 2025.

Detailed Breakdown

• 2,675,760 new units were issued as payment for the Base Fee.
• 428,798 new units were issued as payment for the Performance Fee.
• The total number of units in issue following this event is now 1,722,435,558.

Important Details for Shareholders

• CAMPL, the manager, does not currently hold any units in CAREIT. Instead, CAMPL has directed that the new units, to which it was entitled as management fees, be issued directly to CCIL, a related corporation.
• The payment of 100% of management fees via units (instead of cash) could signal management’s confidence in the future value of the REIT, but it also results in a dilution of existing unitholders’ stakes.
• Unit dilution may be price sensitive as it increases the total number of units in issue, potentially impacting earnings per unit and market value, depending on investor perception.
• The arrangement is in accordance with the Trust Deed dated 12 August 2025, which allows the manager to receive fees in cash, units, or both.

Potential Impact on Share Price

• The issuance of new units for management fees is a noteworthy event as it increases the total number of units in circulation, which could lead to share price pressure due to dilution.
• The market’s perception of this event will depend on whether investors view the manager’s decision to take fees in units as a sign of confidence or as an incentive misalignment.
• Shareholders should note that the manager does not hold units directly but transferred the entitlement to a related entity, which may raise governance and related party transaction considerations.

Note: Holders of units do not have the right to request redemption or repurchase of their units by the manager while the units are listed. All dealings must occur through trading on the SGX-ST, and listing does not guarantee liquidity in the market.

Additional Information

• The joint issue managers and global coordinators for CAREIT’s initial public offering are DBS Bank Ltd. and UBS AG, Singapore Branch.
• The REIT’s value and income are subject to market fluctuations and investment risks, including the potential loss of principal.
• Forward-looking statements in this announcement are subject to risks, uncertainties, and assumptions, and actual performance may differ from expectations.

Conclusion

The issuance of new units for management fees is a significant event for Centurion Accommodation REIT. It reflects management’s chosen compensation structure and could have implications for unit price and investor perception due to the resulting dilution. Investors should evaluate the potential impact on their holdings and monitor further disclosures regarding related party transactions and governance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information herein is based on the latest public disclosures from Centurion Accommodation REIT as of 26 February 2026. Investors should review the official prospectus and consult their own advisors before making investment decisions. The value of investments in CAREIT may fall or rise and past performance is not indicative of future results.

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