Excerpt from KGI Securities (Singapore) Pte. Ltd. report.

Report Summary

• Centurion Corp successfully completed the spin-off of CAREIT, enhancing its capital-light approach and improving capital recycling. The company now manages a diverse portfolio of owned and third-party assets, with a growing contribution from fee income, particularly from management services and new dormitory contracts.
• FY25 financial results were robust with revenue up 17% to S\$295.9mn and core operating net profit rising 26% to S\$139.2mn. The balance sheet strengthened significantly, with a large increase in cash and a drop in net gearing to 12%.
• The company’s strategic direction now includes a stronger mix of earnings from management fees, CAREIT exposure, and new project developments in Singapore, Malaysia, Australia, and the UK, positioning it for medium-term growth and improved earnings quality.
• Centurion maintains a positive outlook for Singapore’s worker accommodation market, supported by ongoing infrastructure demand and tightening dormitory standards, while its student accommodation segment remains resilient amid policy uncertainties in Australia and the UK.
• KGI maintains an OUTPERFORM rating for Centurion, raising the target price to S\$1.85, citing improved earnings visibility, a stronger balance sheet, and the potential for further growth via its asset-light, seed-and-recycle model.

Above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities can be the first to access the full report from the KGI Securities website: https://www.kgieworld.com