Tiger Brokers

Centurion Accommodation REIT outlines growth plans, forecasts 7.54%–7.98% distribution yield

SGX Filings
Jan 21

Centurion Accommodation REIT (CAREIT) told investors at the Citibank 2026 ASEAN Summit in Bangkok on Jan, 22 2026 that its enlarged portfolio now consists of 15 properties valued at 2.118 billion Singapore dollars and providing 27,602 beds across Singapore, the United Kingdom and Australia. The initial portfolio at listing in Sep, 25 2025 held 14 properties valued at 1.838 billion Singapore dollars with 26,870 beds.

For Projection Year 2026 CAREIT expects gross revenue of 195.2 million Singapore dollars and net property income (NPI) of 137.8 million Singapore dollars, translating into distributable income of 114.8 million Singapore dollars and a forecast distribution per unit (DPU) of 6.64 cents. Based on the 0.88 Singapore-dollar listing price, the implied yield is 7.54 %. For Projection Year 2027 the REIT projects gross revenue of 204.6 million Singapore dollars, NPI of 145.5 million Singapore dollars and distributable income of 122.4 million Singapore dollars, lifting DPU to 7.02 cents and the yield to 7.98 %.

Growth drivers include the completed forward purchase of the 732-bed Epiisod Macquarie Park purpose-built student accommodation (PBSA) in Sydney, secured under a master lease until Dec, 31 2027, and approval to retain 1,980 additional beds at Westlite Mandai in Singapore until Dec, 31 2030. If the Mandai Expanded Capacity becomes operational by Jun, 30 2026, management estimates NPI could rise to 169.4 million Singapore dollars in 2027, with distributable income between 133.5 million and 135.0 million Singapore dollars, implying a potential yield range of 8.11 %–8.70 %.

CAREIT reported aggregate leverage of 20.9 % at IPO, rising to 31.0 % following the fully debt-funded Epiisod Macquarie Park acquisition. More than half of total borrowings are hedged, average interest cost is projected at about 4.1 % for 2026–2027, and debt headroom stands at 558.8 million Singapore dollars to reach the 45 % regulatory limit.

Five rated analysts from DBS Bank, UBS, Maybank, UOB Kay Hian and Beansprout now follow the REIT, which was added to the SGX iEdge Singapore Next 50 Index in Dec, 2025. The IPO also won the 2025 Singapore Capital Markets Deal of the Year at the IFR Asia Awards.

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