Centurion Accommodation Reit posts DPU of S$0.01739 in first results since IPO

[SINGAPORE] (CAReit) reported distribution per unit of S$0.01739 for the financial period ended Dec 31, 2025, 6.7 per cent higher than its forecast of S$0.0163.  

Revenue was at S$50.7 million for the period from Sep 24 to Dec 31, 3.4 per cent higher than its S$49 million forecast.

This was primarily from higher rental rates in Singapore, as well as better-than-expected occupancy rates in its portfolio, said the manager in a bourse filing on Monday (Feb 23) evening. 

This brought its net property income to S$36.1 million, up 4.1 per cent from its forecast of S$34.6 million.

Distributable income was just under S$30 million, 6.7 per cent higher than its forecast of S$28.1 million. 

The DPU of S$0.01739 will be paid on Mar 31, after the ex-date of Mar 2 and record date of Mar 3.

The annualised distribution yield is 5.8 per cent, based on the pure-play worker and student accommodation Reit’s closing price of S$1.11 a unit on Dec 31, 2025. 

This are the first results for CAReit since its listing last September. Its initial public offering was the second-biggest mainboard listing on the Singapore Exchange that year, raising around S$771.1 million. 

Besides strong contributions from its assets, listing fees – which are non-deductible and have no impact on taxable income and distributable income – were 34.9 per cent lower than forecast, at S$5.3 million.

Finance costs were 17.6 per cent lower than its forecast at S$3.9 million, from lower weighted average loan drawdown and lower benchmark rates. 

The manager said CAReit’s portfolio remained resilient in the latest financial period. Its purpose-built workers accommodation (PBWA) portfolio had a financial occupancy of 97.6 per cent; that for its purpose-built student accommodation portfolio was 99.1 per cent. 

As at Dec 31, CAReit’s portfolio value was S$1.9 billion with 14 operational properties and 25,154 beds in Singapore, the United Kingdom and Australia. 

Its weighted average interest rate, excluding amortisation of upfront and other fees, stood at 3.5 per cent. Including the amortisation of such fees, the weighted average financing cost would have been 3.7 per cent. 

Interest coverage ratio was 6.6 times, and its aggregate leverage stood at 22.1 per cent, with a weighted average debt maturity of 4.3 years as at end 2025.

Following the acquisition of Sydney student housing Epiisod Macquarie Park, the trust’s aggregate leverage rose to 30.7 per cent, with a debt headroom of S$348 million, based on a 40 per cent leverage threshold. 

Net asset value per unit was S$0.87.

Tony Bin, CEO of the manager, said it would stay focused on driving organic value through asset-enhancement initiatives, and leverage its strong balance sheet to pursue accretive acquisitions. 

“Supported by our sponsor’s (right-of-first-refusal) pipeline and a structural demand for quality student and worker accommodation, we are well positioned to deliver sustainable, long-term value to our unitholders,” he said. 

CAReit units closed at S$1.15, down 1.7 per cent or S$0.02 before the release of the results on Monday.