Yik Ban Chong, an analyst from Phillip Securities, maintained the Buy rating on Centurion Corporation Limited. The associated price target was raised to S$1.88.
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Yik Ban Chong has given his Buy rating due to a combination of factors that highlight Centurion Corporation Limited’s strategic initiatives and financial prospects. The company’s decision to spin off its real estate assets into a REIT is expected to unlock significant value, providing Centurion with substantial cash proceeds and REIT units, which will enhance its financial flexibility and reduce net debt significantly. This strategic move is anticipated to yield a 6% dividend in specie distribution, benefiting shareholders directly.
Additionally, the introduction of the EPIISOD brand, a premium student accommodation facility in Sydney, underscores Centurion’s commitment to expanding its portfolio and tapping into lucrative markets. The anticipated operational commencement of this facility by February 2026, coupled with its strategic location near Macquarie University, positions it well for high occupancy rates. These factors, combined with the REIT’s policy to distribute 100% of its annual distributable income until 2027, provide a compelling case for the company’s growth and profitability, justifying the Buy rating.
According to TipRanks, Ban Chong is ranked #1676 out of 9841 analysts.