- We turn more positive on Centurion (SGX:OU8) as it plans for the listing of its Centurion Accommodation REIT.
- We update our valuation methodology from P/E to sum of parts, comprising the remaining core business and the estimated value of REIT assets to be listed. We raise our target price by 34% to reflect the value of its REIT assets, which will be floated and pegged to market value.
A total of 15 assets to be injected into the REIT listing.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Centurion intends to declare a dividend in specie of some Centurion Accommodation REIT units to its shareholders, and intends to hold 35-40% in Centurion Accommodation REIT thereafter.
- The listing will help to unlock value for shareholders through floating the injected assets. It allows Centurion to be asset-light and concentrate on growing its fund management brand, and being the REIT and property manager. Spinning-off assets into the REIT helps lower Centurion’s debt and strengthen its balance sheet as well.
Repeg valuation to reflect imminent REIT listing.
- Read more at SGinvestors.io.
