- 2H25 revenue exceeded our expectations, at 105% of our FY25 forecasts, driven by revenue contribution from the remaining 55% stake in the 6,290-bed Westlite Mandai consolidated in 2H25. 2H25 adj. PATMI fell below our expectations, at 91% of our FY25 forecasts. This was due to a 33% YoY increase in 2H25 administrative fees (excl. CAREIT IPO fees) because of higher manpower costs.
- In 4Q25, Centurion recognised S$6.5mn revenue and S$3.2mn PATMI (49% profit margin) from property management fees of CAREIT. CAREIT has several portfolio pipelines upcoming in FY26e, and we estimate CAREIT’s FY26e revenue to increase by 25% YoY. FY26e PATMI recognised in property management fees by Centurion is estimated to increase by 25% YoY (full year basis) to ~SS$16mn (15% of FY25 adj. PATMI).
-
We maintain BUY with unchanged TP of S$1.81, before dividend-in-specie (DIS) distribution. We expect FY26e consolidated adj. PATMI to decline by ~14% YoY, due to an estimated 183% YoY spike in FY26e profit attributable to minority interests, driven by CAREIT’s inclusion. Centurion proposed special DIS of 1 CAREIT unit for every 10 Centurion shares, which we estimate to yield Centurion shareholders about 7%.
Continue Reading
