Centurion Accommodation Reit beats nine-month income forecast

Centurion Accommodation Reit recorded nine-month net property income of S$117.7 million, its manager said on Nov 4. The result for the period ending Sep 30, 2026, surpassed its prospectus forecast by 4.8 per cent. Gross revenue reached S$164.4 million, exceeding the projected S$155.6 million by 5.7 per cent.

Centurion Asset Management linked the gains to increased rents in its Singapore worker dormitories and improved occupancy at Westlite Ubi, Westlite Woodlands and Westlite Juniper. Capacity additions at Westlite Toh Guan and Westlite Mandai brought in another S$2.3 million of revenue, while a stronger pound and Australian dollar also helped.

Third-quarter net property income reached S$39.3 million, exceeding the S$37.2 million projection by 5.7 per cent. Quarterly revenue of S$55.5 million was 6.9 per cent higher than the forecast S$51.9 million. The trust uses prospectus projections for comparison because its Sep 25, 2025, listing leaves it without year-earlier figures.

Worker accommodation generated 73.2 per cent of nine-month revenue and 75.1 per cent of net property income. Committed occupancy in that portfolio increased from 94.3 per cent at end-June to 98.1 per cent on Sep 30. Softer UK student rents, reduced bed availability during improvement works and increased marketing expenses partly offset the gains.

Aggregate leverage rose from 29.9 per cent at end-June to 30.7 per cent on Sep 30. The manager expects FY2026 gross revenue to outperform its prospectus projection, but said revenue from additional capacity would depend on when tenants arrive and how Westlite Mandai ramps up.

Planning permission has been obtained for two additional Westlite Woodlands blocks, subject to technical and regulatory requirements. Building work is targeted to start during the first half of 2027, with completion planned for the first half of 2029.