- We initiate coverage on Centurion Accommodation REIT (CAREIT, SGX:8C8U) with a BUY and a DDM-based target price of S$1.27, which implies FY26E DPU yield of ~5.7%.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Resilient portfolio with organic growth potential
- To comply with the Interim Dormitory Standards (IDS) by 2030 and New Dormitory Standards (NDS) by 2040, management indicated that three Purpose-Built Worker Accommodation (PBWA) properties – Toh Guan, Woodlands and Juniper will face a reduction of 917 beds. But this will be more than offset by bed expansions at Mandai and Toh Guan, including +1,980 beds at Westlite Mandai (operational until end-2030), +1,764 beds at Westlite Toh Guan Phase 1 (TOP by 2025 year-end, operational by 1HFY26), and +3,696 beds from an additional block at Mandai (operational by 1Q26).
- In total, Centurion Accommodation REIT is projected to achieve a net 9% increase in capacity by 2030, reaching 23,181 beds. It also demonstrates a strong track record in occupancy ramp-up, with Westlite Ubi reaching 99% financial occupancy within 4 months.
Inorganic growth from strong Sponsor and pipeline
- Read more at SGinvestors.io.
