Centurion Accommodation REIT (CAREIT) posted distributable income of S$60.5 million for the six months ended Jun 30, outperforming its initial public offering (IPO) forecast by 9.6 per cent as higher rental rates and bed sales at its purpose-built worker accommodation (PBWA) assets lifted revenue.
Gross revenue reached S$108.9 million, 5.1 per cent above the prospectus projection. Net property income came in at S$78.4 million, topping estimates by 4.3 per cent. The trust declared a distribution per unit (DPU) of 3.499 Singapore cents, also 9.6 per cent ahead of forecast and translating into an annualised yield of 6.60 per cent based on the Jun 30 closing price of S$1.06. The books-closure and payment dates were not specified in the filing.
Performance was driven mainly by the Singapore PBWA portfolio, where rental renewals, favourable foreign-exchange movements and an additional S$1.1 million from expanded capacity at Westlite Toh Guan and Westlite Mandai offset a marginally lower financial occupancy rate of 92.2 per cent. The United Kingdom and Australian purpose-built student accommodation (PBSA) assets recorded financial occupancy of 99.1 per cent and 98.0 per cent, respectively, pushing overall PBSA occupancy to 98.8 per cent, 1.9 percentage points above projection.
By segment, PBWA accounted for 26,742 operational beds and generated the bulk of revenue, while the 3,494-bed PBSA portfolio benefited from strong student demand and the A$345.0 million acquisition of the 732-bed EPIISOD Macquarie Park in Sydney completed in January. The Australian asset is on a two-year master lease that guarantees A$14.1 million in rent for FY 2026 and A$20.0 million for FY 2027.
Finance costs were 18.8 per cent below forecast at S$12.1 million due to lower loan drawdowns and benchmark rates, supporting a healthy interest-coverage ratio of 5.91 times. Aggregate leverage stood at 29.9 per cent, leaving about S$380.0 million of debt headroom before hitting the 40 per cent threshold.
Looking ahead, the manager expects second-half revenue to exceed prospectus figures, citing planned additional contributions of roughly S$2.9 million from the newly licensed capacity at Toh Guan and Mandai. Development of a six-storey block adding 540 beds at Westlite Ubi is under way for a targeted fourth-quarter 2027 opening, and an asset-enhancement initiative at Dwell Hotwells House in Bristol will reconfigure rooms to align with evolving student preferences.
Chief executive officer Tony Bin said the 25.7 per cent expansion in bed capacity since the September 2025 listing, alongside inclusion in the FTSE EPRA Nareit Global Developed Index in June, underlines CAREIT’s growth trajectory. He noted that leasing momentum at Toh Guan and Mandai remains encouraging and that disciplined capital management positions the trust to pursue both organic developments and yield-accretive acquisitions under its global mandate.