- Centurion Accommodation REIT (SGX:8C8U) reported a strong inaugural operating performance in 2025 with net property income (NPI) of S$36.1m exceeding the company’s forecast by 4.1%. This was due primarily to higher rental rates at its Purpose-Built Workers’ Accommodation (PBWA) assets and stronger-than-expected occupancy at both of its PBWA and Purpose-Built Students’ Accommodation (PBSA) of 97.6% and 99.1% respectively.
Higher-than-expected DPU presaging growth in 2026 and 2027.
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- While this translates to an annualised yield of 5.8% (based on end-25 Centurion REIT's share price), we note that the company has new PBWA capacity additions at Westlite Toh Guan and Westlite Mandai as well as PBSA additions in Sydney, thus reinforcing income visibility and growth in 2026 and 2027.
Solid balance sheet.
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- Importantly, it has no refinancing due until 2028, while financing costs remain low at 3.46%. Interest coverage of 6.6x and 55.8% fixed-rate borrowings provide strong protection against interest rate volatility and support future acquisition capacity.
Favourable demand and supply outlook in Singapore PBWA...
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