In his report dated Nov 22, Ong pointed out that Centurion’s 3QFY2025 and 9MFY2025 revenue rose 9% and 12% y-o-y to $67.5 million and $208.3 million respectively, broadly within consensus’ full-year forecast.
“The performance was mainly driven by high occupancies in Singapore and UK, as well positive rental reversion across PBWA and PBSA,” says Ong.
“Post the spin-off of some of its assets into Centurion Accommodation REIT, we adjust our FY2025 to FY2027 EPS due to its DIS and deconsolidation in the middle of FY2026,” he adds.
Ong also mentions that the recent London acquisition signals proactive deployment of proceeds into development opportunities to expand AUM and revenue streams.
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RHB Bank Singapore’s Alfie Yeo, in his Nov 18 report, remains positive on Centurion’s prospects, given its focus on property development, acquisitions, and being Centurion Accommodation REIT’s REIT manager post listing.
“Centurion’s growth drivers for its other assets and new focus remain intact. We expect a further dividend in specie when it pares down its stake in Centurion Accommodation REIT next year,” says Yeo.
Yeo’s SOP-based target price of $1.85 for Centurion remains unchanged, as lower core valuations from trimming his FY2025 and FY2026 forecast earnings are offset by a higher market value in Centurion Accommodation REIT.
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Meanwhile, Adrian Loh of UOB KayHian is maintaining a “buy” call along with a higher P/E-based target price of $1.90, from $1.70 previously, as he rolled forward his valuation to FY2026.
“Our target P/E ratio multiple of 12.4 times is 1 standard deviation above the company’s long-term average P/E ratio excluding the pandemic-affected years of FY2019 to FY2023. We believe that this target PE multiple is undemanding given the company's earnings growth over the next two years,” says Loh.
In his report dated Nov 20, Loh explains that in the past few years, Centurion has built a decent moat around its PWBA business, especially in its core market here in Singapore.
“Given that it takes 24 months or more for a potential competitor to tender for and build a PBWA facility, we do not foresee meaningful competition threatening Centurion’s core business in the near to medium term,” says Loh.
“In our view, Centurion’s current metrics are inexpensive, trading at FY2025 P/E ratio of 12.6 times and 1.1 times P/B ratio. Our FY2025 forecast payout ratio remains unchanged at 30%, thus implying a dividend of S$0.035/share or a yield of 2.4%,” concludes Loh.
Lastly, Ben Yik of Phillip Securities says in his Nov 17 report that Centurion’s recent expansion into a fee-based management services contract to manage a 548-bed dormitory for another company on Jurong Island, starting from Nov 2025 is still immaterial but given the company’s track record in managing PBWAs, more of such contracts are likely to be won.
“The acquisition of Harum Megah in Sep 2025 also added 7,200 beds to Centurion’s Malaysia PBWA (+25% capacity). Centurion signed a letter of intent with Malaysian authorities in May 2025 to double its bed capacity in Johor in the next five years,” states Yik.
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However, Yik has lowered his target price for Centurion to $1.81 from $2.01, before dividend-in-specie distribution, although he has upgraded his recommendation to “buy” due to recent share price movements.
“We lower our target price as we lower our SOTP valuations for most of the segments to 15 times P/E ratio (prev. 17 times), an 8% discount to peers’ average, to reflect ongoing regulatory headwinds in Malaysia and Australia,” says Yik.
As at 10:30 am, shares in Centurion are trading 1 cent higher or 0.73% up at $1.38, or 43.8% up year to date.
