Centurion shares hit all-time high on submission to list Reit on SGX

[SINGAPORE] Shares of Centurion rose on Wednesday (Jun 11) afternoon after the company announced its listing application of a real estate investment trust (Reit) to the Singapore Exchange (SGX) and the Monetary Authority of Singapore.

As at 1 pm, the counter had climbed to S$1.53, 3.4 per cent or S$0.05 higher than its Tuesday closing price of S$1.48, with around 2.4 million shares changing hands, ShareInvestor data showed. This is the highest price Centurion shares have risen to since they started trading in 1995.

On Tuesday, Centurion said that the application was still under review, but the Reit it is aiming to establish will comprise some of the group’s worker and student accommodation assets.

The company noted that the details of the initial public offering (IPO) and proposed establishment are still being finalised.

“The listing of the Reit will be subject to, among other things, market conditions, commercial negotiations, the relevant regulatory, shareholders’ and other approvals being obtained, and the execution of definitive agreements by the relevant parties,” it added.

In a bourse filing on Jan 7, the group had expressed its interest in exploring the establishment of the Reit. Centurion chief executive officer Kong Chee Min said that the company was also considering a dividend-in-specie of some of the units in the proposed Reit held by the company to shareholders.

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Centurion was previously featured in RHB’s Singapore Small Cap Jewels 2025 report as one of its top stock picks, among other companies with small market capitalisation.

Analysts cited favourable demand-supply dynamics and a robust pipeline of expansion projects across key markets as the drivers for the company.

Headquartered in Singapore, Centurion operates purpose-built worker accommodation (PBWA) in Singapore and Malaysia, and student housing in Australia, the UK and the US.

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For its first quarter ended Mar 31, Centurion posted a 13 per cent increase in revenue to S$69 million. This was driven by positive rental revisions across markets, and strong financial occupancies both in Singapore and the UK.

Revenue from the PWBA segment grew 15 per cent to S$53.4 million from S$46.2 million in the year-ago period. Meanwhile, revenue from its purpose-built student accommodation segment rose 2 per cent to S$15 million from S$14.7 million a year ago.

Part of the growth in earnings was due to the ramp-up of new capacity, including a new 1,650-bed facility in Westlite Ubi, which became operational in late 2024.

Alfie Yeo, RHB Singapore’s head of small-mid cap research, expects Centurion’s earnings to rise by 4 per cent annually for FY2025 and FY2026, and 5 per cent for FY2027, on the back of stronger-than-expected bed rates and occupancy levels across its PBWA and student housing segments.

Shares of Centurion closed 3.4 per cent or S$0.05 higher at S$1.53 on Wednesday.