Broker Name: Lim & Tan Securities
Date of Report: 18 March 2026
Excerpt from Lim & Tan Securities report.
- Centurion’s FY25 results: Revenue and core profits met expectations, with revenue up 17% year-on-year driven by strong rental reversions and high occupancy in Singapore and UK. Core profit rose 9% year-on-year.
- Dividend & CAREIT spin-off: Management proposed a special Distribution In Specie (one CAREIT unit for every ten Centurion shares) and maintained final dividends, implying a yield of ~8.9%.
- Insider purchases: Management insiders bought 3.6 million shares post-results, signaling confidence in outlook.
- Growth outlook: Robust construction demand in Singapore is expected to support dormitory bed demand. Centurion plans asset-light growth, expanding fee-based income and portfolio diversity.
- Bed pipeline: Healthy pipeline of new beds in Singapore, Malaysia, Australia, and UK, with asset-light strategy and third-party management contracts boosting recurring fee income.
- FY26F forecast: Core earnings forecast reflects a 14% year-on-year decline due to reduced CAREIT stake and higher non-controlling interest.
- Valuation: SOTP-based target price adjusted to S\$1.88, maintain “Accumulate” rating.
- Management purchases: Key management made significant share purchases following results, further indicating positive sentiment.
Report Summary:
- Centurion’s FY25 results are strong, supported by robust rental and occupancy rates.
- Asset-light growth strategy, healthy bed pipeline and insider confidence point to positive outlook, though earnings may decline in FY26 due to CAREIT spin-off.
Above is an excerpt from a report by Lim & Tan Securities. Clients of Lim & Tan Securities can be the first to access the full report from the Lim & Tan Securities website: https://www.limtan.com.sg
