Corporate Highlight Featuring CEO & Head of Corp Communications from Centurion Corporation Limited

Company & Business Model (Centurion Corporation Limited)

Centurion is a specialized “living sector” property manager/operator focused on:

• Purpose-built worker accommodation (PBWA) — operating since 2011
  • Footprint: Singapore, Malaysia, and a smaller presence in Hong Kong/China
• Purpose-built student accommodation (PBSA) — entered in 2014
  • Footprint: UK, Australia, and master lease assets in Hong Kong/China
• Built-to-rent (BTR) in Saman/Shanghai (China) started opportunistically in 2024/2025

Growth & “Asset-light” Strategy via REIT

• FY2025 milestone: successfully listed Centurion Accommodation REIT (carry) on the SGX Mainboard
• Capital recycling: sold 14 assets (described as stable/mature) into the REIT to free capital
• Recurring fee income: as property manager / RE-manager, Centurion earns stable recurring fees
• Recycling loop: develop/acquire → stabilize → sell to the REIT → continue growing AUM/managed assets

Management Platforms & Brand Strategy

Brands and operational platforms help retain residents and attract demand:

• Westlite = worker accommodation brand
• Dwell Student Living = student accommodation brand
• Episode (launched July 2024 / last year) = more premium PBSA brand to attract higher-spending students

“Platform + management expertise” supports growth through asset-like strategies (own/manage and manage externally).

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Key Portfolio Metrics / KPIs (as stated)

• Total portfolio: 41 properties, 14 cities, 6 countries
• Capacity: just under 79,000 beds / “bits” (units)
• Assets under management (AUM): ~S$2.7 billion
• Brand/property split (post-REIT):
  • Own & operate: 24 assets, ~53,100 beds, AUM ~S$0.8B
  • Managed via carry/other managed structures for remaining beds/assets (fee and partial income model)
  • Ownership in carry: 42.8% at REIT point, 42.9% now
• FY2025 operational additions:
  • +8,918 beds in 2025
  • Expected +4,635 beds in 2026

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Financial Performance (FY2025)

Headline Growth

• Revenue: S$296.0m, +17% YoY
• Net profit: S$141.6m, -63% YoY (still described as “healthy”)
  • Reason: FY2024 had very large fair value gains, while FY2025 fair value gains were smaller.

Core Business Profit (excluding major one-offs)

• Net profit from core business (excluding fair value adjustments & one-offs):
  • S$139.2m, +26% YoY
• Net profit to equity holders (core basis): +9% (after accounting for listing-related items and other adjustments)

REIT Listing Costs

• Costs connected to carry listing: ~S$51m
  • S$32m stamp duties (carried paid) → recorded as fair value loss on investment properties
  • S$18.8m admin/other costs related to listing

Segment KPIs (FY2025)

• Worker accommodation
  • Revenue: S$233m, +20% YoY
  • Segment profit: S$151m
  • Segment margin: 65%
  • Margin dip: ~2% due to property revaluation and increased property taxes (Singapore one-time effect)
• Student accommodation
  • Revenue: +3% YoY
  • Profit: +18% YoY
  • Profit margin: +7 percentage points YoY

Geographic Revenue Mix (FY2025)

• Singapore: 72% of group revenue
• UK: 14%
• Malaysia: 7%
• Australia: 5%

Stated: Singapore delivers 72%, with international 28%.

Occupancy Highlights (FY2025)

• Singapore worker accommodation occupancy: 99% for the year
• UK student accommodation occupancy: 98% for the year (financial occupancy stable)
• Australia student accommodation occupancy: 93% average in 2025 (down vs 96% in 2024; timing delays)
• Hong Kong worker accommodation occupancy: 62%
• Malaysia worker accommodation: occupancy decline attributed to migrant worker housing quota caps

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Capital Structure & Balance Sheet Health

• Cash & bank balances: S$373m, +320%
• Total assets: S$3.3B, +50%
• Net assets: S$2.17B, +76% (vs S$1.23B prior year)
• Net gearing: down from 29% → 12%
• Interest coverage: 5.2x
• Debt maturity: long-term profile; >5 years headroom; no “immediate high debts”

Shareholder Returns (Dividend + Special Dividend in Units)

• Final dividend (recommended): 2 cents
• Total dividend FY2025: 4 cents (includes interim 2 cents)
• Special dividend (in-spec): distribution of carry REIT units
  • Mechanism: 1 carry unit for every S$0.10 of Centurion ordinary shares
  • Subject to shareholder approval at AGM

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Post-REIT Revenue Model (“3 Buckets” Framework)

After spinning/selling 14 assets into carry, management outlined three income streams:

1. Operating income (own & operate assets)
   • Example (Q4 2025 period post-REIT): S$30.5m revenue; ~S$11.9m profit
2. Fee income (manage carry + private funds)
   • Same period: S$6.5m fee revenue; ~S$3.2m profit
   • Stated fee-margin: ~50% of fee paid
3. Investment income (REIT distributions)
   • Expected DPU-related distribution to Centurion (net to Centurion): ~S$12.8m
   • Accounting note: taxes will “marginally” reduce net amount

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Market Outlook & Operational Playbooks (Execution Themes)

Worker Accommodation Demand Drivers (Singapore + Malaysia)

Demand is supported by:

• Employer requirement / compliance standards
  • employers must house migrant workers in approved dormitories
• Ethical standards required by international clients
  • e.g., expectations around “global labor” through main contractors

Singapore demand-supply balance:

• Captive demand: ~460,000 workers
• Supply: described as finely balanced (with additional non-captive demand cited)

Capacity Expansion Plan (Singapore)

• Westlite Ruby new block: +~540 beds, expected completion end-2027
• Second contract to manage third-party DOM: +~1,500 beds (Feb; location area referenced as “Google Drive” in the notes)
• Acquisition of 65% stake in a company owning land for PBWA development (pending government approvals)

Worker Accommodation: Malaysia Mitigation Approach

• Near-term headwinds: worker quota caps
• Mitigation logic:
  • treat as short-term policy headwind
  • rely on lobbying/approval process for employers to bring workers
  • expect progressive occupancy recovery as housing quality standards converge toward Singapore-like requirements
• Operational performance:
  • despite occupancy pressure, revenue +8% YoY to S$20.8m (offset by rental revisions + acquired assets)

Student Accommodation: Navigating Visa Tightening

Management stance: visa tightening is not expected to materially impair performance, because:

• Persistent PBSA supply shortage vs total demand
• City-center and university-adjacent locations (strong domestic + international mix)

Australia specifics:

• visa delays are expected to cause arrival timing shifts, not structural demand collapse

Growth offsets / capex actions:

• London (Zone 1): developing ~225 beds PBSA, completion end-2028
• Australia: pipeline through 2027–2028
  • “Episode McCary Park Sydney” started operations Jan 2026 (or Jan 2025 per context); ramping in semester 1
  • Melbourne conversion development: +~644 beds (in progress)
  • Another development completion expected Q4 2027

Market expectation: rentals may shift from fast growth to more moderate/flatter rental growth.

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ESG Approach (High Level—Business Execution)

• Governance: structured ESG accountability from board → senior management → operating management
• Target: reduce carbon emissions between 2030 and 2050 with progressive targets
• Certification:
  • Singapore green building council / BCA-related certifications
  • International certification via World Bank Group (for some assets)
  • UK: compliance with local regulated carbon emission standards
• Social differentiation: focus on migrant worker care, tracked via resident activities + participation rate
• Governance integrity: recognized for transparency and corporate governance; 0 violations of competition act and code of conduct (as claimed)

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“How We Plan to Grow” (3-Pillar Growth Playbook)

After the REIT spin-off, growth is structured into three pillars:

• 1) Operating income growth (own & operate)
  • acquire/develop new assets to add bed capacity
  • active management to preserve operational efficiency and margins
• 2) Fee income growth (as carry portfolio grows)
  • enhance property performance; add beds where applicable
  • earn from property management + RE management fees
• 3) Investment income growth (carry distributions)
  • as carry’s distributable performance improves (higher DPU/DTU), Centurion benefits proportionally through unit ownership

Capital strategy: “Development game”: develop/acquire → stabilize → offer/sell to REIT → recycle capital for scale.

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Actionable Examples / Concrete Initiatives Mentioned

• Capital recycling via REIT: sold 14 assets to establish carry and shift portfolio toward asset-light + recurring fees
• Premium PBSA brand expansion: launched Episode
• Singapore scaling moves:
  • approved new build Westlite Ruby (+540 beds, end-2027)
  • managing third-party PBWA (+1,500 beds)
  • land stake acquisition for future PBWA (65%, approvals pending)
• UK growth: build ~225-bed PBSA in London (end-2028)
• Australia ramp-up & development: new Sydney asset + Melbourne/other pipeline projects through 2027–2028

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Presenters / Sources (as named in subtitles)

• Junuan — founder, The Singaporean Investor.sg; author of Building Your Retirement Portfolio (host/intro)
• Mr. Kong Min — CEO, Centurion Corporation Limited (speaker; Q&A)
• Mr. David Fay — Head of Communications, Centurion Corporation Limited (main presenter)