Another asset, 732-bed Epiisod Macquarie Park in Australia, will only take place after the REIT is listed.
As listed in the prospectus, with a base of 10% of the REIT's annual distributable income, plus performance fees equal to 25% of the increase in DPU per financial year, Chong figures that Centurion Corp, which will fully hold the REIT's manager and the property managers, will generate management fees of $11.6 million in the coming FY2026.
For Centurion shareholders, Chong estimates that the dividend in specie payout to be around $113.5 million, or 7.5% of the current market cap.
In addition, 262 million Centurion REIT units will be offered at 88 cents each, giving a total baes of 1,719 million units, which will value the REIT at just over $1.5 billion.
The REIT has projected DPU yields of 7.47% for FY2026 and 8.11% for FY2027.
Chong believes that given high occupancy rates of workers' dormitories of 99% on average in the first half of 2025, and with several large-scale projects coming up such as Changi Airport T5, community hospitals, and Integrated Resorts, the REIT can achieve these projections.
For Centurion Corp, its stake of around 37.5% stake in the REIT following the listing will help support its FY2025 and FY2027 patmi at around $95 million on average.
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Through the REIT divestment, Centurion Corp is also expected to receive $473 million in net proceeds, which is around 32% of its market cap. It can reduce net debt by 89% to about $62 million, down from $535 million as of end of June.
"With a stronger balance sheet, we believe Centurion is better positioned to identify and pursue new growth opportunities, building on its strong track record from early investments in its UK and Australia PBSA assets," says Chong, who has kept his target price for Centurion at $2.01.
