The upgrades were driven by several factors, including stronger rental rate assumptions and its exposure to the structural growth trends of the Johor-Singapore Special Economic Zone (JS-SEZ). Centurion is also a “safe harbour” stock amid the US-led tariffs, according to UOB Kay Hian’s Adrian Loh.
In a July 23 report, RHB Bank Singapore’s Alfie Yeo increased his target price to $2.01 from $1.50, the fourth increase this year, as he likes Centurion’s earnings outlook with the company’s bed rates for its purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA) properties outperforming his expectations, as well as its upcoming REIT listing.
Other analysts who had increased their respective target prices for Centurion include Lim & Tan Securities’ Chan En Jie from 83 cents to $1.20; KGI Securities’ Alyssa Tee whose latest target price is $1.38 from 65 cents previously and UOB Kay Hian’s Adrian Loh, who had previously described Centurion as his recent best call, now deems the stock worth $1.70 from $1.55.
Additionally, numerous brokerages, including UOB Kay Hian, Maybank, and Macquarie, have picked the company as a potential beneficiary of the Equity Market Development Programme (EQDP).
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In its 1QFY2025 ended March 31 results, the company noted that it expects to maintain “positive demand-supply dynamics” in its operating markets. Its portfolio of “stable, resilient” assets will also continue to perform well amid ongoing uncertainties, such as US-led tariffs, inflationary pressures and interest rate environment. The company reported that it had 37 operational properties with 69,929 operational beds in six countries as at March 31.
Centurion is also expected to benefit from the growing construction industry here, with projects such as Changi’s Terminal 5, the expansion of the two integrated resorts and other infrastructure works driving further demand for workers’ accommodation.
Most recently, Centurion is focusing on another market: housing for students, a market that is seeing persistent demand-supply imbalance in popular markets such as the UK and Australia. In 1Q2025, Centurion, citing Times Higher Education, noted a 27% y-o-y increase in international student applications in 1Q2025, with visa applications nearing 2022 levels.
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In Australia, where there is also an ongoing shortage of beds, Centurion recently launched a premium PBSA brand, Epiisod, aimed at students seeking a higher standard of living. Epiisod will be positioned as a complementary offering and not as a replacement for its existing Dwell brand.
The new brand, starting with its debut property in Sydney’s Macquarie Park, will enable Centurion to tap into the increasing affluence and rising number of international students in Australia, write CGS International analysts William Tng and Tan Jie Hui in a July 21 report. Tng and Tan have maintained their “add” call with a higher target price of $2.05, up from $1.46 previously.
The more immediate catalyst for Centurion is the planned REIT listing, which is expected by the end of the year. Centurion Accommodation REIT, as the spin-off is dubbed, will comprise 14 assets, including five PBWA assets in Singapore, eight PBSAs in the UK and one PBSA asset in Australia. These assets have an agreed portfolio value of $1.84 billion.
Including the Macquarie Park property, which will be included in the REIT upon its completion, the REIT’s agreed portfolio value will increase to $2.12 billion. Tng and Tan expect the REIT to unlock $1.4 billion in value. While existing Centurion shareholders can enjoy a bumper dividend in specie from the spin-off, Centurion will generate more resources to fund future developments, which, when mature, can then be sold into the REIT. At the same time, by keeping a significant stake of around 40% in the REIT, Centurion will continue to enjoy a steady income stream alongside other shareholders.
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