- Centurion Corporation (SGX:OU8) is a provider of purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA), with 66,572 beds over 36 properties in 6 countries as of 1Q23.
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- undersupply of beds across operating geographies,
- PBWA regulatory reforms spurred by pandemic handling experience, and
- growing awareness for migrant workers’ welfare.
SG PBWA tightness to persist; QBDs lease extension likely
- Singapore’s purpose-built dorms (PBDs) saw a ~30% rent growth year-to-date, while running at full capacity as foreign workers returned and escalating rents for public flats prompted some employers to move their Malaysian workers to PBDs, according to The Straits Times.
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- As such, we see a good likelihood that Centurion’s quick build dorms (QBDs), which were part of the government’s temporary solution to meet housing requirements of foreign workers during the pandemic, to be extended beyond current lease terms (3+1 years) in our forecast period. The Singapore market contributed 66% of Centurion’s FY22 revenue.
Border reopening boosts PBSA occupancy and rent growth
- Read more at SGinvestors.io.
