Shares of Centurion Corp. (OU8.SI) tumbled 3.45% during Friday's trading session, as investors reacted to news of lower projected earnings for 2026 and the company's decision to spin off some assets into a new REIT. The Singapore-based property group's stock movement comes in the wake of an analyst report highlighting potential changes in the company's financial outlook.

According to RHB Research analyst Alfie Yeo, Centurion's spin-off of certain assets into a new REIT will remove these properties' contribution to the company's earnings. However, Yeo notes that Centurion is likely to receive service income from managing the REIT's properties, which could potentially yield higher gross and operating margins in 2026. Despite the projected lower earnings, RHB Research maintains a "buy" rating on Centurion's stock, albeit with a reduced target price of S$1.85, down from the previous S$2.01.

The market's negative reaction suggests investors are concerned about the short-term impact of the asset spin-off and lower earnings projections. However, Yeo remains optimistic about Centurion's future prospects, expecting the company to focus more on developing and acquiring properties with the cash received from selling assets to the REIT. "We believe it could venture its acquisitions and property development projects into new markets including in the Middle East," Yeo stated in his note. As Centurion navigates these strategic changes, investors will be closely watching how the company leverages its new financial structure to drive growth in the coming years.