From Sunset Industry to Sunrise REIT: CENTURION’s Winning Pivot over 14 Years

Centurion Corp is about to hit a big milestone next month (Sept 2025) -- it's spinning off Centurion Accommodation REIT (CAREIT) on the SGX Mainboard.

This spin-off is no small debut: S$1.8 billion of assets spanning:

• Five purpose-built workers' accomodation (PBWA) assets in Singapore,
• Eight purpose-built students' accomodation (PBSA) assets in UK, and
• One PBSA asset in Australia.

Centurion will retain a ~45% stake and will use the cash raised from the spin-off for investing into new opportunities.

Westlite Ubi Resident Apartment Centurion's Westlite Ubi -- the first to meet Ministry of Manpower's New Dormitory Standards (including max 12 pax per room, 1m bed spacing, en-suite toilets and kitchens) well ahead of the 2040 compliance deadline. Opened in 4Q 2024, the dorm hit full occupancy by April 2025, with ~$600 per bed, per month rates. Photo: Company

Centurion's story is a classic pivot tale, led by CEO Kong Chee Min, who brings rare first-hand experience from a sunset industry to a sunrise one.

Back then, he was finance director and regional CEO at SM Summit, a Singapore-listed maker of audio cassettes, CD-ROMs, and DVD-ROMs – stuff that tanked with the internet boom.

kongcheemin8.25 Centurion CEO Kong Chee Min, 59, guiding analysts and media through the new Westlite Ubi. Photo: NextInsightSpotting the shift, in 2011, SM Summit scooped up a small worker dorm business (5,300 beds), rebranded as Centurion, and put Mr Kong, a 15-year veteran of SM Summit by then, at the helm.

That bet on property management for migrant workers – and later students – accelerated and paid off big.

Today, Centurion owns and manages a portfolio of 37 accommodation assets totaling 70,291 beds as of 30 June 2025, spanning Singapore, Malaysia, the UK, Australia, the US, China, and Hong Kong.

Westlite Ubi Gym A gym for workers at the shiny new 1,650-bed Westlite Ubi. Other facilities include multi-purpose halls, and on-site minimarts and barber shop. Photo: Company

Centurion's 1H25 numbers

Solid core profits, folks.

Core PATMI jumped 19% year-on-year to about S$58 million, thanks to rental reversions across the board.

S$ mn	1H25	1H24	YoY (%)	Comments
Revenue	140.7	124.4	13.1%	Positive rental revisions
Gross Profits	108.6	94.1	15.4%
PATMI	73.9	118.2	-37.5%	S$63mn reduction in fair value gains
Adj. PATMI	57.8	48.5	19.2%	Excl. fair value
Adj. PATMI margins	41.1%	39.0%	2.1%
Dividend - Interim (cents)	2.0	1.5	33.3%
Source: Company, PSR

Centurion's worker dorms in Singapore are basically full at 99% occupancy – sixth straight quarter – with rents up around 10% amid a bed shortage.

Big projects like Changi Terminal 5 and Intergrated Resort expansions are fueling demand.

Over in the UK and Australia, student spots are hot too and look sustainable going by some key events: UK visa applications surged 32% in 1Q2025, and Australia's foreign student cap rose 9% to 295k for 2026.

Overall PATMI dipped 38% to S$74 million due to a S$63 million reduction in net fair value gains on investment properties, but analysts say ignore that noise – it's not core ops.

Both Phillip Securities and CGS International issued fresh reports, and they're bullish on Centurion.

Big buzz: REIT

Looking ahead, the big buzz is CAREIT's spin-off.

Phillip Securities analyst Ben Yik values Centurion's 45% stake at S$697 million in their SOTP model.

CGS analysts William Tng and Tan Jie Hui see it as a capital recycling play to grow assets under management (AUM), eyeing Aussie PBSA expansions like two Epiisod projects (over 1,300 beds by 2027).

Malaysia's PBWA holds steady, and Singapore's Westlite Mandai redevelopment could add 1,700 beds by FY27.

chart8.25

Valuations

Phillip ups its target to S$2.01 (from S$1.88), maintaining its "Accumulate" recommendation on a 17x FY26 PE on non-REIT assets.

CGS sticks with "Add" at S$2.05, based on 20% discount to RNAV (in line with hospitality REITs).

Both forecast 6-8% dividend yields post-spin-off.

Risks? More bed supply in the market could crimp occupancy.

Security gantry at Westlite Ubi. Photo: Company

Bottom line: Centurion's riding favorable supply-demand waves, with the REIT magic unlocking growth.

If you're into steady yields from essential real estate, this could be a stock to consider for the long run.

Centurion shares at S$1.79 recently have room to climb 12-14.5% in the near term, according to analysts.

For more, see CGS' report here and Phillip's report here.

From Sunset Industry to Sunrise REIT: CENTURION’s Winning Pivot over 14 Years

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