Centurion Accommodation REIT (CAREIT), which listed in September 2025, has reported a distribution per unit (DPU) of 1.739 cents for the financial period from Aug 12, 2025, to Dec 31, 2025, outperforming its forecast DPU of 1.63 cents by 6.7%. Based on CAREIT’s closing price of $1.11 per unit as at Dec 31, 2025, the REIT’s annualised distribution yield is 5.84%.
During the period, gross revenue stood at $50.7 million, outperforming its forecast of 3.4%, while net property income (NPI) outperformed by 4.1% at $36.1 million.
Distributable income, like its DPU, was above forecasts by 6.7% at $30.0 million.
The higher revenue and NPI were attributed to higher rental rates from CAREIT’s purpose-built workers’ accommodation (PBWA) portfolio and higher financial occupancy across its PBWA and purpose-built student accommodation (PBSA) portfolio. Its PBWA portfolio reported an occupancy rate of 97.6%, up from its forecasted rate of 95.8%, while its PBSA's occupancy rate of 99.1% stood above the forecasted rate of 97.3%
The REIT received its temporary occupation permits (TOPs) for its newly constructed PBWA blocks at the 1,764-bed Westlite Toh Guan on Oct 25, 2025 and at the 3,696-bed Westlite Mandai on Jan 7.
The REIT also received regulatory approvals to retain 664 beds at Westlite Toh Guan till Dec 31, 2028, and 1,980 beds at Westlite Mandai till Dec 31, 2030. Applications for licences under the Foreign Employee Dormitories Act (FEDA) for both properties are in progress.
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Under its PBSA portfolio, CAREIT completed the acquisition of the 732-bed Epiisod Macquarie Park on Jan 13. The consideration of A$345 million ($308.7 million) was fully paid for via committed debt facilities. The REIT manager has entered into a two-year master lease arrangement with the master tenant of Epiisod Macquarie Park, Centurion Properties and its sponsor, Centurion Corp, till Dec 31, 2027.
As at Dec 31, 2025, the REIT’s aggregate leverage stood at 22.1% with a weighted average debt maturity of 4.3 years. Interest coverage ratio for the period stood at 6.6 times. The acquisition of Epiisod Macquarie Park has brought the REIT’s aggregate leverage to 30.7% with a debt headroom of $348 million based on a leverage threshold of 40%. The forecasted aggregate leverage stood at 31%, while the interest coverage ratio was initially forecast to be 4.7 times.
Cash and cash equivalents stood at $78.6 million for the period.
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Looking ahead, the REIT says it sees “favourable fundamentals” across its core markets with robust demand for foreign labour and a limited supply of PBWAs in Singapore. It is also bullish on the prospects of its PBSA arm on the back of high demand for higher education in its markets of the UK and Australia.
The REIT adds that it will continue to look at and undertake asset enhancement and redevelopment initiatives across its PBWA portfolio while monitoring regulatory developments including the dormitory transition scheme (DTS) and new dormitory standards (NDS).
It will also evaluate asset enhancement initiaitves (AEIs) for its PBSAs, which includes bed reconfigurations and refurbishments.
With ample debt headroom, CAREIT is strategically positioned to accelerate organic growth through targeted AEIs, while also cultivating a strong pipeline of inorganic opportunities via the Sponsor’s ROFR and a disciplined global acquisition strategy.
“We are delighted to deliver a strong set of inaugural results that exceed our IPO projections. This validates the resilience and quality of our purpose-built living sector portfolio,” says Tony Bin, CEO of the manager.
“Looking ahead, we remain focused on driving organic value through AEIs while leveraging our strong balance sheet to pursue accretive acquisitions. Supported by our sponsor’s ROFR (right of first refusal) pipeline and a structural demand for quality student and worker accommodation, we are well positioned to deliver sustainable, long-term value to our unitholders,” Bin adds.
Units in CAREIT closed 2 cents lower or 1.71% down at $1.15 on Feb 23.
