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Opportunity for S-Reits as student accommodation sector tops the class

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Jude Chan

Jude Chan

Published Fri, Aug 19, 2022 · 05:03 PM
    • Above: Archer House, part of Centurion Corporation's portfolio, is located near the University of Nottingham. Centurion, a specialised accommodation assets player, derived a quarter of its revenue for the first half from its student accommodation segment.
    • Above: Archer House, part of Centurion Corporation's portfolio, is located near the University of Nottingham. Centurion, a specialised accommodation assets player, derived a quarter of its revenue for the first half from its student accommodation segment. PHOTO: CENTURION CORPORATION

    PURPOSE-BUILT student accommodation (PBSA) is gaining traction as a resilient asset class among property players.

    There are currently no pure-play PBSA property groups and real estate investment trusts (Reits) listed in Singapore. But the strength of this sub-sector in the latest earnings season for the period ended June suggests this may soon change.

    For example, hospitality player Ascott Residence Trust (ART), a stapled group comprising Ascott Reit and Ascott Business Trust, posted a 45 per cent increase in revenue for the first half ended June to S$267.4 million, and a 44 per cent rise in gross profit to S$118.2 million.

    S-Reitsstudent accommodation

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