Centurion

Centurion: In a non-rated report by CIMB, the house expects headwinds on Centurion from foreseeable increase in supply of bed space and potential slowdown in demand. Net addition of dormitory beds in the next two years is approx. 60-70k (100k new beds less 30-40k beds due to termination of short-lease dorms). Construction sector slow down and wage increases add pressure to demand and pricing. Pricing will become more competitive as vacancies rise. Singapore dormitories will continue to contribute 70-80% of Centurion’s profit. Value creation from student accommodation in Australia and UK is seen to be limited in the short-term. Estimated valuation of Centurion is $0.67 at 95% occupancy with 7cents drop for every 5% drop in occupancy.