Centurion Corp has announced plans to list its Centurion Accommodation Real Estate Investment Trust (REIT), prompting a significant increase in its target price from SGD1.50 to SGD2.01. This move reflects the anticipated market value of its REIT assets, which are set to be floated. The updated valuation methodology, shifting from price-to-earnings to a sum-of-parts approach, includes both the core business and the estimated value of the REIT assets.
The decision to list the REIT is seen as a strategic step to unlock the value of Centurion Corp’s assets, offering a 20% upside potential. Analyst Alfie Yeo from RHB has maintained a “BUY” recommendation, highlighting the positive outlook on the company’s future performance.
The REIT listing is expected to enhance Centurion Corp’s market presence and provide investors with a more transparent valuation of its assets. This development is part of a broader strategy to optimise the company’s asset portfolio and improve shareholder returns.
The increased target price and positive outlook underscore the potential benefits of the REIT listing for Centurion Corp. As the company moves forward with its plans, investors will be keenly watching for further updates on the listing process and its impact on the company’s financial performance.
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