CENTURION: Busy Executing a Small Risk, Big Pipeline Playbook

Back in September 2025, Centurion unlocked tremendous value from its stable by spinning off accommodation assets into a REIT (CAREIT).

In doing so, they crystallized roughly SGD 1.8 billion in assets. More importantly, it cleared up the balance sheet, knocking net debt-to-equity down from 29% in FY24 to 12%.

Instead of sitting on the cashpile, management has busily identified deployment opportunites with what DBS Research calls "firepower to pursue growth at scale."

Its latest strategic expansion: a brand-new purpose-built student accommodation (PBSA) development in Perth, Australia.

Centurion has acquired a 25% equity interest in a 182-bed PBSA project for AUD 250,000 cash.

Lounge Australia6.26 Artist impression of an area at the new student accommodation.

Located directly adjacent to the University of Western Australia, the project is slated for completion in 2Q2027 and will operate under Centurion's premium EPIISOD brand.

Designed as a fully integrated student living environment, the property will boast attractive lifestyle amenities, including a rooftop swimming pool, sauna, ice bath, and yoga studio.

KongCheeMin facecut CEO Kong Chee MinMr. Kong Chee Min, CEO of Centurion, said: "This development strengthens our PBSA presence in Australia and expands our footprint in Perth, capturing the strong student demand anchored by the University of Western Australia. As part of our growing pipeline in student accommodation, which is expected to deliver c.2,198 new beds progressively between 2027 and 2028, it reinforces our ability to scale our portfolio and deliver long-term value for shareholders."

Here is a summary of Centurion's capital deployment activities since it spun off CAREIT:

Date	Asset	Location	Asset Type	Beds	Value
Sep 2025	Harum Megah	Johor, Malaysia	6 PBWA assets	7,197	RM110.8m
Oct 2025	William Road, Euston	London	PBSA (99-1 JV with Landmark Properties)	225	GBP 41m
Dec 2025	Stirling Highway	Nedlands, Perth	PBSA (25% interest)	472	AUD6mn
Feb 2026	7 Kim Chuan Lane	Singapore	PBWA (65% stake)	TBA	SGD4.81m
Apr 2026	Velocity Village and Velocity Motel & Bistro	Karratha, Western Australia	Key Worker Accommodation	321	AUD45m
Apr 2026	Concorde South	South Hedland, Western Australia	Key Worker Accommodation	125	AUD28.55m
June 2026	Crawley	Perth	PBSA (25% interest)	182	AUD250K

DBS Research Weighs In: A Strategic Play

DBS Research views this move favorably, describing the Perth acquisition as a "small, capital-light and strategically aligned move that supports Centurion’s continued expansion into the Australian PBSA market under its EPIISOD brand".

A 25% stake means the near-term financial impact is limited but the DBS report noted, "Overall, the transaction is more strategic than earnings-accretive, reinforcing Centurion’s overseas PBSA growth narrative with minimal balance sheet risk".

Furthermore, this asset represents a future opportunity; DBS highlights that upon completion, the property "could form part of Centurion’s pipeline of properties for potential injection into CAREIT" (Centurion Accommodation REIT).

Broader Context: Firepower for Scale

This capital-light approach aligns with the broader narrative outlined in DBS Research’s June 18 initiation coverage report.

Risks

"In the PBSA segment, demand is closely linked to international student inflows, rendering the Group sensitive to changes in student visa regulations, immigration policies, and potential caps on foreign student enrolments in key markets. Any tightening of these frameworks could materially impact occupancy rates and revenue stability across student accommodation assets."
-- DBS Research

In the report, analysts noted that Centurion has successfully evolved from a purely asset-heavy operator into a diversified platform with multiple, resilient income streams.

The group also benefits from robust, recurring fee income generated by managing CAREIT properties, alongside steady distributions from its 38.1% stake in the REIT.

Driven by this diversified business model, DBS bases its SGD 1.86 target price on a sum-of-the-parts valuation.

Here is a summary of analyst target prices:

Broker	Target Price	Report Date
UOB Kay Hian	$2.10	May 2026
RHB Research	$1.87	May 2026
Lim & Tan Securities	$1.88	Mar 2026
DBS Group	$1.86	Jun 2026
Phillip Securities	$1.85	May 2026
KGI Securities	$1.85	Mar 2026
CGS Int'l	$1.84	Mar 2026
Maybank Research	$1.69	May 2026
---	---	---
Average Target Price	$1.87

Looking Ahead

As DBS highlighted in its initiation coverage, Centurion boasts an impressive growth pipeline, with "over 4,000 beds scheduled to come online through FY2027" to underpin strong earnings visibility.

The recent Perth acquisition is an example of Centurion's capital recycling strategy in action—redeploying capital into new developments for growth.

Lounge2 Australia6.26 Artist impression of the lounge at the upcoming student accommodation near the University of Western Australia.

Whether building premium rooftop pools for students in Australia or expanding its global footprint, Centurion continues to solidify its position as a growing, asset-light force in the specialised living sector.

CENTURION: Busy Executing a Small Risk, Big Pipeline Playbook

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