Centurion - KGI Securities 2023-10-13: Centuries Of Growth

• We assume coverage of Centurion (SGX:OU8) with an OUTPERFORM recommendation. Our S$0.56 target price is based on a DCF valuation.
• Centurion showed an 8% y-o-y growth in 1H23 revenue to S$97.9mil due to strong occupancies and positive rental revisions across all the Purpose-Built Workers Accommodations (PBWAs) and Purpose-Built Student Accommodations (PBSAs).
• - Read this at SGinvestors.io -

Occupancy recovery.

• With migrant workers returning to Singapore, post-COVID, we have witnessed a significant inflow of foreign workers to complete construction on buildings that were halted due to the pandemic. The sudden wave of workers has led to a strong incline in demand for housing.
• - Read this at SGinvestors.io -

Student dormitory revival.

• International and local students have once again flocked to the tertiary schools in the United Kingdom and Australia to continue their education. With physical classes resumed, students are again on the hunt for accommodations that are in good locations, look good and value for money.
• However, due to the shortage of such properties out for rent, there has also been a surplus in demand for such properties, and hence the sudden increase in prices for logging.

Shown resilience.

• Read more at SGinvestors.io.

Alyssa Tee KGI Securities Research | https://www.kgieworld.sg/ 2023-10-13 SGinvestors.io

---