Centurion Corporation Limited FY2025 Financial Results Analysis

Centurion Corporation Limited, a leading provider of specialized accommodation solutions, released its unaudited results for the year ended 31 December 2025. This article provides a structured review of the company’s performance, highlighting key financial metrics, trends, and strategic developments, and offering actionable recommendations for investors.

Key Financial Metrics: FY2025 vs. FY2024

Historical Performance Trends

Centurion delivered strong top-line growth in FY2025, with revenue up 17% year-on-year (YoY). This was driven by new contributions from Westlite Mandai (acquired and consolidated in Sep 2025), Westlite Ubi (commenced Dec 2024), and ongoing positive rental rate revisions across both worker and student accommodation segments. However, headline net profit was sharply lower YoY due to the absence of large fair value gains booked in FY2024. When adjusting for these revaluation swings and one-offs, core operational profit grew a healthy 26% YoY.

Exceptional Items and Asset Revaluation

• Asset Revaluation: FY2025 saw a net fair value loss on investment properties of S\$9.2m, compared to a S\$219.1m gain in FY2024. This was mainly due to stamp duties (S\$32.1m) related to asset transfers, offset by fair value gains. The revaluation line is volatile and not reflective of underlying operational performance.
• Spin-off/IPO Costs: The group incurred S\$12.5m in costs related to the spin-off and IPO of Centurion Accommodation REIT (CAREIT), including a S\$10.2m compensation payment, S\$1.2m underwriting fee, and S\$1m stamp duty.

Dividends & Capital Management

Centurion increased its total dividend payout for FY2025 to 4.0 cents per share (2.0 cents interim + 2.0 cents final), up from 3.5 cents in FY2024. In addition, a special distribution in specie of up to 84,077,862 units in CAREIT (1 CAREIT unit per 10 Centurion shares) has been proposed, reflecting a commitment to return value to shareholders. Both the final dividend and the special distribution are subject to shareholder approval at the AGM.

Strategic Developments, Fundraising and Asset Sales

• CAREIT IPO: In September 2025, Centurion successfully listed CAREIT on the Singapore Exchange, raising S\$771m (incl. over-allotment). Post-spin-off, Centurion retains a 42.9% stake in CAREIT and continues to consolidate its results.
• Asset Acquisitions: Major investments during the year include the acquisition of Westlite Mandai, Westlite Juniper, and the Harum Megah portfolio in Malaysia.
• Expansion and Development: Centurion expanded its pipeline with new PBWA sites in Singapore, Malaysia, and the UK, and launched its first Build-to-Rent asset in Xiamen, China.
• Asset Sales: The Centurion US Student Housing Fund sold several assets as it reached term, with two assets remaining in the portfolio.

Balance Sheet and Cash Flow

• Cash and bank balances surged to S\$373.1m (from S\$89.0m), mainly from CAREIT IPO proceeds and operating cash flows.
• Net gearing improved sharply to 12% (from 29%) due to higher cash reserves, despite increased borrowings for asset purchases.
• Investment properties rose to S\$2.68bn (from S\$1.84bn), reflecting the new acquisitions and developments.

Related-Party Transactions and Directors’ Pay

• Key management compensation for FY2025 was S\$9.4m, with directors receiving S\$5.5m.
• Notable related-party transactions include S\$191k in construction costs charged by a subsidiary of a non-controlling interest and S\$865k in interest charged by an associated company.

Macroeconomic & Regulatory Environment

• Singapore: Supportive construction demand, high occupancy, new dormitory regulatory standards, and government grants for retrofitting.
• Malaysia: Lower occupancy due to foreign worker quota caps, but offset by positive rental revisions and policy changes towards a levy-based system.
• UK/Australia: Robust student accommodation demand, with supply remaining tight and continued expansion in premium PBSA.
• China: Early-stage entry into Build-to-Rent, with first asset reaching 90% occupancy in 4Q 2025.

Outlook

The Board’s outlook is positive, emphasizing recurring income streams (owned assets, management fees, and distributions from CAREIT), a deep development pipeline, and a healthy balance sheet to support further growth. The group is actively seeking new asset management contracts, expansion opportunities in existing and new markets, and asset-light strategies such as joint ventures and private funds.

Chairman’s Statement

The Chairman’s statement is not included in the report. However, management commentary throughout the document projects a constructive and growth-oriented tone, highlighting strategic successes such as the CAREIT IPO, asset portfolio expansion, and continued strong operational metrics.

Conclusion and Investor Recommendations

Overall, Centurion’s financial performance for FY2025 is strong at the operational level, despite reported net profit being distorted by non-cash fair value swings and one-off IPO costs. The group has demonstrated solid revenue growth, improved core profitability, proactive capital management, and a clear strategy for long-term value creation.

Recommendations

• If You are Currently Holding the Stock: Maintain your position. The company’s fundamentals remain robust, balance sheet strength has improved, and capital returns (dividends + CAREIT units) are attractive. Centurion is well-positioned to benefit from its growing asset base, resilient market demand, and new recurring income from the CAREIT platform.
• If You are Not Holding the Stock: Consider accumulating on weakness. While headline net profit may appear volatile due to accounting revaluations and one-off items, underlying business growth is solid, and the company is executing well on its strategic roadmap. The current market environment and company initiatives suggest further upside potential over the medium term.

Disclaimer: This analysis is based solely on the information contained in Centurion’s FY2025 financial report. It does not constitute investment advice. Please consult your personal financial advisor and consider your own risk tolerance before making investment decisions.