In today’s briefing:
- Centurion Accomodation REIT IPO – Thoughts on Valuation
- Centurion Accommodation REIT IPO: The Investment Case
- CICT SP: Buy Singapore REITs on Steep Interest Rate Decline (3M SORA)
Centurion Accomodation REIT IPO – Thoughts on Valuation
- Centurion Accomodation REIT (CAREIT SP) (CAREIT) plans to raise around US$600m in its Singapore listing.
- CAREIT plans to invest directly or indirectly, in a portfolio of purpose-built worker accommodation (PBWA), purpose-built student accommodation (PBSA) or other accommodation, located globally (excluding Malaysia).
- We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.
Centurion Accommodation REIT IPO: The Investment Case
- Centurion Accomodation REIT (CAREIT SP) is the exclusive S-REIT vehicle sponsored by Centurion Corp (CENT SP). It is seeking to raise up to US$600 million in an SGX IPO.
- The Initial Portfolio will comprise 14 assets, with five PBWA assets located in Singapore, eight PBSA assets located in the United Kingdom, and one PBSA asset located in Australia.
- Centurion Accommodation REIT offers an attractive value proposition due to its structural demand drivers, diversified portfolio, high occupancy rates, growth opportunities, and sizable debt headroom.
CICT SP: Buy Singapore REITs on Steep Interest Rate Decline (3M SORA)
- The Singapore’s interest rate, 3M SORA, has declined steeply from 3.034% in January to 1.563% in September
- The steep decline in interest rate will directly benefit S-REITs, through reduced borrow cost, more attractive valuation, as well as stabilizing cap rates to support book valuation
- Among S-REITs, we think CICT SP, with its portfolio mostly Singapore assets, will benefit the most from this structural trend
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