Nothing much to report for September as it is a rather muted month with the biggest downtrend seen in Centurion after the spin off.
It has corrected by around 14% from August. I think that with this spin-off it has reduced its exposure towards any potentially high bed rates due to its lower exposure via the reit and the other exposure is the quick dorms.
As such, it would pivot towarrds a management , short lease dorm as well as asset construction / acquisition company.
I don't think at this point it is worth a panic sell as there will be some distribution of the REIT Units which has opened above its IPO Price and has still been above water at time of writing.
Moving forwards, it will be interesting to see what pipelines Centurion can pull out , be it short dated QBDs or acquiring land and doing student / worker dorms or M&A.
But folks expecting for bumper dividends should reel their expectations due to this transition and their aim will still be to hit the AUM Targets they have set.
We should assess its results again through its business update / full year results to get a feel of the core earnings and the direction of the company's future pipelines.
All these would take time for sure, for folks who have views that bed rates might have a chance to shoot up quickly due to factors like booming construction and increased population in Singapore would be better off getting direct exposure through the REIT (or a value play will be to hold the parent and hope for an ideal distribution of REIT Shares in 2026).
I just find it funny that IF bed rates go up to say 800/1000, we might have the first reit to IPO and multibag in the same year.
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