[SINGAPORE] Centurion Accommodation Reit (CAReit) reported a distribution per unit (DPU) of S$0.03499 for the half-year ended Jun 30, outperforming the Reit’s initial public offering forecast by 9.6 per cent.
Gross revenue for the first half stood at S$108.9 million, 5.1 per cent higher than its S$103.7 million forecast.
This outperformance was primarily driven by higher rental rates and increased bed sales in its Purpose-Built Worker Accommodation (PBWA) portfolio, favourable foreign-exchange movements from a stronger British pound and Australian dollar, and S$1.1 million in additional revenue from earlier-than-expected expanded capacity at Westlite Toh Guan and Westlite Mandai.
This brought its net property income (NPI) to S$78.4 million, up 4.3 per cent from its forecast of S$75.2 million.
The amount to be distributed to unitholders was S$60.5 million, exceeding the forecast of S$55.2 million by 9.6 per cent.
The DPU of S$0.03499 will be paid on Sep 17, after the record date of Aug 14.
Based on the pure-play worker and student accommodation Reit’s closing price of S$1.06 a unit on Jun 30, 2026, the annualised distribution yield is 6.6 per cent.
Finance costs were 18.8 per cent lower than its forecast at S$12.1 million, benefiting from lower loan drawdowns and benchmark interest rates.
The manager noted that CAReit’s portfolio remained resilient.
Its PBWA portfolio had a financial occupancy of 92.2 per cent, slightly below the 93.6 per cent forecast due to the ongoing ramp-up of new blocks, following the phased receipt of operating licences.
However, committed occupancy at Westlite Toh Guan and Westlite Mandai stood at a robust 99 and 87.2 per cent, respectively, as at Jul 31.
Meanwhile, its purpose-built student accommodation portfolio achieved a financial occupancy of 98.8 per cent, beating the 96.9 per cent forecast.
Since its listing in September 2025, CAReit’s portfolio capacity has grown by about 25.7 per cent to 30,236 operational beds.
As at Jun 30, the portfolio was valued at S$2.21 billion across 15 assets in Singapore, the UK and Australia.
The trust’s aggregate leverage remained healthy at 29.9 per cent, with an interest coverage ratio of 5.91 times and a debt headroom of S$380 million, based on a 40 per cent leverage threshold.
Tony Bin, CEO of the manager, noted that the Reit was included in the FTSE EPRA Nareit Global Developed Index from Jun 22, within nine months of its initial public offering.
“Since our IPO, we have expanded the portfolio by approximately 25.7 per cent while delivering gross revenue and NPI above the prospectus forecast in H1 2026, reflecting the continued execution of our growth initiatives and the resilient demand fundamentals of our living sector assets,” he said.
Bin added that the manager will focus on delivering the occupancy ramp-up at Westlite Mandai and progressing development at Westlite Ubi, while “actively exploring inorganic growth opportunities” and “selective asset enhancement initiatives” to “pursue sustainable growth and deliver long-term value to unitholders”.
Units of CAReit rose 0.9 per cent to close S$0.01 higher at S$1.16 on Wednesday (Aug 5) before the news.
