- Centurion REIT (SGX:8C8U) reported FY25 (from 12 Aug 2025 to 31 Dec 2025) DPU of S$1.739 cents, +6.7% above IPO forecast, underpinned by stronger-than-expected occupancy for both PBWA and PBSA, higher PBWA rates, and finance expense that was 17.6% lower than estimated.
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Robust operating metrics.
- FY25 revenue/NPI outperformed IPO forecasts by 3.4%/4.1%, respectively, as occupancy for PBWA and PBSA was 1.8ppts above estimates, reaching 97.6% (PBWA) and 99.1% (PBSA), supported by the progressive ramp-up in capacity at Westlite Toh Guan.
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- Portfolio valuation improved by 1.4% vs IPO, driven by an 8.8% uplift in Westlite Mandai’s valuation following the addition of 1,980 beds.
Prudent capital management.
- Cost of debt came in at 3.46%, 70bps below IPO guidance.
- Pro-forma gearing, following the acquisition of Macquarie Park and the S$34mil payment for Westlite Mandai, stood at 30.7%.
- With debt headroom of S$596m based on a 40% gearing threshold, we believe there is ample capacity to pursue inorganic growth in FY26E.
Maintain BUY with unchanged target price.
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