Centurion Corp has announced plans to list its Centurion Accommodation Real Estate Investment Trust (REIT), a move expected to unlock significant value for shareholdersm an RHB report said. The company, which remains well-positioned amidst a dormitory supply shortage in Singapore, anticipates better rental rates. The REIT listing is projected to offer a 19% upside, with a forecasted yield of approximately 2% for the financial year 2026.
The company’s first-half earnings for 2025 were in line with expectations, reinforcing confidence in meeting annual estimates. Analyst Alfie Yeo maintains a “BUY” recommendation with a target price of SGD2.01, reflecting the anticipated market value of the REIT assets.
This strategic move comes as Centurion Corp seeks to capitalise on the current market conditions, which favour higher rental yields due to limited dormitory supply. The listing is expected to enhance shareholder value by pegging the REIT assets to market value, thus providing a clearer reflection of their worth.
The announcement is part of a broader trend where companies are leveraging REITs to unlock asset value and provide investors with more transparent investment opportunities. As the market anticipates this listing, Centurion Corp’s strategy underscores its commitment to maximising shareholder returns and adapting to market dynamics.
Looking ahead, the successful listing of the Centurion Accommodation REIT could set a precedent for similar moves by other companies in the sector, potentially reshaping the landscape of real estate investments in Singapore.
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