|
Centurion Corporation said it was exploring an SGX‐listed REIT as of early January 2025, with DBS Bank and UBS advising on the plan. |
They start by carving out a proposed REIT that would house Centurion’s most stable assets—primarily its Singapore purpose-built worker accommodation (PBWA) portfolio along with freehold student beds in the UK and Australia. 
Using cap rates of 7.5% for the PBWA segment in Singapore and 6% for purpose-built student accommodation (PBSA) overseas, they back into valuations on a per-bed basis.
(“cap rate,” is a key metric in real estate that expresses the annual return on an income‐producing property as a percentage of its current market value)
For example, the analysts value each Singapore PBWA bed at about $44,688 and UK PBSA beds at around $194,940.
Next, they apply occupancy and income assumptions.
Multiplying these inputs by the total bed count in each geography gives an RNAV slice for each segment.
|
|
Beds |
Rent ($/mth) |
Occ. (%) |
NPI Margin (%) |
Cap Rate |
Val’n/ |
Val'n 100% stake |
|
UK PBSA |
2,786 |
2,052 |
95 |
50 |
6.0 |
194,940 |
543 |
|
US |
663 |
1,620 |
95 |
50 |
6.0 |
153,900 |
102 |
|
AU PBSA |
897 |
1,488 |
95 |
50 |
6.0 |
141,360 |
127 |
|
SG PBWA |
36,436 |
420 |
95 |
70 |
7.5 |
44,688 |
1628 |
|
MY PBSA |
28,053 |
75 |
95 |
70 |
8.0 |
7,489 |
210 |
UK = United Kingdom, US = United States, AU = Australia, SG = Singapore, MY = Malaysia
That slice for the REIT platform comes to about $1.16 per Centurion share.
The remaining business—covering Malaysia PBWA, China Build-To-Rent and other segments—is valued at about $0.91 per share, bringing the total RNAV to $2.07.
They also bake in Centurion’s development pipeline, which includes new beds coming on stream by 2026 in Singapore, Johor and Australia.
Spending of roughly $120 million on upcoming projects adds another roughly $180 million to the overall portfolio value.
This ensures the RNAV reflects not just today’s assets but the near-term growth story as well.
Centurion’s near-term development pipeline adds ~7,060 beds by 2026:
|
Asset |
Additional Beds |
Est. Completion |
|
Westlite Toh Guan (SG) |
1,764 |
End 2025 |
|
Westlite Mandai (SG) |
3,696 |
2026 |
|
Westlite Johor Tech Park (MY) |
870 |
4Q 2025 |
|
Macquarie Park PBSA (AU, 25% stake) |
732 |
Nov 2025 |
The RNAV of Centurion hits $2.07, and the analysts apply a 20% discount, which brings the fair value down to $1.72.
|
Component |
RNAV/Share (SGD) |
Notes |
|
REIT platform |
1.16 |
$0.80 cash + $0.36 sponsor stake |
|
Remaining business |
0.91 |
Malaysia PBWA, China BTR, other segments |
|
Total RNAV |
2.07 |
Sum of slices before discount |
|
Discount to RNAV |
20% |
Reflects possible post-spin-off trading discount |
|
Fair Value per share |
1.72 |
Implies c.21% upside from $1.42 close |
The REIT listing itself is estimated to unlock up to $1 billion in cash for Centurion, giving it fresh ammunition for further bed growth or special dividends to shareholders.
Post-listing, DBS analysts expect Centurion to step up its Australia PBSA expansion and explore new PBWA markets, leveraging the firepower from the spin-off to replicate the rapid bed growth seen since its 2011 pivot into lodging.
| Bottom line: DBS’s valuation hinges on slicing Centurion into a cash-rich, fee-light REIT and a growth-oriented sponsor. By valuing each slice on established cap rates, occupancy and rent assumptions, then applying a sensible discount to that combined RNAV, the analysts arrive at $1.72 per share—suggesting about 21% upside from recent levels if the spin-off goes ahead. |
The DBS report is here.