| You know the basics of REITs: income-producing assets, steady yields, and diversification. But while you might be familar with REITs that invest in malls, logistics hubs and data centres, here's something different: Centurion Accommodation REIT (CAREIT). CAREIT focuses on "purpose-built living" accommodation. If you’ve seen the acronyms PBWA and PBSA but don't really get what these tongue-twisters mean, here are 10 key things about this unique REIT, which debuted on the SGX Mainboard in Sept 2025. Among the 10 points (described below) are forecasts and figures from Maybank Kim Eng's 20-page initiation report on the REIT and its "buy" recommendation: |
1. The Only Pure-Play Purpose-Built Living REIT on SGX
CAREIT is the first and only pure-play purpose-built living accommodation REIT listed on the Singapore Exchange.
Its strategy is built around housing workers and students --ie purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA).
2. A Dual-Accommodation Portfolio
CAREIT’s starting line-up is solid: 14 assets comprising five worker dorms in Singapore, eight student dorms in the UK and one in Australia.
As of 31 March 2025, that is 21,282 beds for workers 2,772 beds for students.
3. Singapore worker accommodation is the Value Engine
While the portfolio is global, its current property value is heavily weighted towards Singapore.
About 63.6% of the portfolio is comprised of Singapore worker accommodation, with UK student accommodation making up 20.7% and the Aussie one accounting for 15.7%.
By FY2026, Singapore worker accommodation is projected to contribute an even higher proportion (73.4%) of the Net Property Income.
4. High Occupancy and Rental Growth are the Norm
The REIT generates a lot of cash consistently.
Its worker dorms averaged 97.9% occupancy, and student dorms averaged 94.1%, between FY2022 and FY2024.
And rents have been climbing. The average rent CAGRs (Compound Annual Growth Rates) over the same period hit a whopping 26.3% for worker dorms and 11.3% for student dorms.
5. Riding the Singapore Dorm Supply Crunch
The Singapore construction sector is booming, driving strong demand for foreign workers for major infrastructure projects like Changi Airport Terminal 5 and Tuas Port.
But land supply is limited and living standards (Interim Dormitory Standards by 2030 and New Dormitory Standards by 2040) are getting stricter, translating into an undersupply of beds.
A gym for workers at the shiny new 1,650-bed Westlite Ubi. Other facilities include multi-purpose halls, and on-site minimarts and barber shop. Photo: Company
CAREIT is projecting a net 9% increase in its capacity by 2030 (reaching 23,181 beds) through various Asset Enhancement Initiatives that more than offset bed withdrawals required for compliance.
6. Growth in the Pipeline: Australia PBSA Acquisition
CAREIT is looking to expand, starting with the planned acquisition of Epiisod Macquarie Park (EMP), a student accommodation in Australia.
This is structured via a forward-purchase agreement -- the REIT pays up only after the property achieves practical completion (expected February 2026).
7. PBSA is a Counter-Cyclical Sector
Higher education is not considered a discretionary expense, and historically, periods of economic uncertainty—like the Global Financial Crisis—have often benefitted higher education, as weak job markets encourage more people to upskill.
The UK and Australia are significant destinations for higher education, ranking second and third, respectively.
8. Backed by a Big, Experienced Sponsor
CAREIT is sponsored by Centurion Corporation (CCL), an established specialised accommodation owner-operator.
CCL currently manages a substantial portfolio of 37 operational assets with 69,929 beds.
It is the largest operator of worker accommodation in Singapore, holding a 23.4% market share.
Post-listing, the Sponsor is committed to remaining the largest unitholder of the REIT.
9. Conservative Gearing Means Headroom for Deals
Good news for risk-adverse investors: CAREIT is expected to maintain a conservative capital structure.
After the fully debt-funded acquisition of Epiisod Macquarie Park, the gearing is projected to settle at 31%.
That is well below the average S-REIT gearing (c.39%), giving it significant debt headroom—SGD561m before hitting the 45% leverage limit—for acquisitions.
10. Potential DPU Upside from Falling Rates and Rents
Liu Miaomiao, Maybank analystThe management’s current DPU (Distribution Per Unit) projections for FY26–27E are based on a conservative 3% rent reversion, notes Maybank analyst Liu Miaomiao.
However, the tight supply of both worker and student accommodation actual rents could top that.
Furthermore, with 65% of borrowings in SGD and a 50% hedge ratio, CAREIT's financing costs could drop.
CAREIT offers investors exposure to the accommodation sector, driven by demand from two massive industries: construction/labour and higher education.
CAREIT demonstrates active asset management driving organic growth and a conservative balance sheet providing headroom for acquisitions. |
→ Maybank Kim Eng's report is here.
→ See also: From Sunset Industry to Sunrise REIT: Centurion's Winning Pivot over 14 Years