centuria-building-aerial-view-feature
Image – Supplied.
  • FY21 statutory profit is $611.2M, up from $75.3M FY20
  • Portfolio now has 62 assets, up from 50
  • Book value $2.95B, up from $1.60B

Centuria Industrial REIT (ASX: CIP) has reported on a record year in terms of portfolio expansion and leasing activity, with industrial real estate still one of the strongest subsectors in the wider property industry.

The company made 18 industrial acquisitions in the financial year, worth a combined $966 million, and as of the new financial year has made even more. Following the latest acquisitions, the portfolio now stands at 67 industrial properties, with the portfolio value moving from $2.9 billion to $3.1 billion.

Within 13 months, CIP has almost doubled its portfolio value from $1.6 billion as at 30 June 2020 to FY22 YTD.

The 18 acquisitions included $631million worth of assets across two new high conviction industrial sub-sectors, Data Centres and Cold Storage, as well as $335 million worth of urban infill logistics acquisitions.

CIP’s portfolio weighted average capitalisation rate compressed 151bps from 6.05% to 4.54% during FY21.

Earnings FY21 FY20
Statutory profit $611.2 million $75.3 million
FFO $91.4 million $63.5 million
Distribution 17 cents 18.7 cents
Return on equity 41.80% 10.10%
Balance sheet 30 June 2021 30 June 2020
Total Assets $3,105.9 million $1,635.8 million
NTA $3.83 $2.82
Gearing 27.80% 27.20%
Portfolio snapshot 30 June 2021 30 June 2020
Number of assets 62 50
Book value $2,945.1 million $1,602.4 million
WACR 4.54% 6.05%
Occupancy by income 96.90% 97.80%
WALE by income 9.6 years 7.2 years
Leases agreed GLA 239,950 sqm 122,008 sqm

Online growth

“Increased tenant demand and record low national vacancy rates, propelled by the continued rise of e-commerce, positively impacted the industrial property market,” said Jesse Curtis, CIP Fund Manager.

“During FY21, Centuria delivered scale for CIP, boosting the portfolio with nearly $1 billion of high-quality industrial acquisitions. We made a high conviction call to enter two new industrial sub-sectors, with $633million of investment in Data Centre’s and Cold Storage, sectors that will continue to benefit from significant growth.”

Jesse Curtis, COF Fund Manager
Jesse Curtis, COF Fund Manager. Image – Supplied.

In his concluding remarks, Mr Curtis said that “the domestic industrial market has continued to strengthen with strong tailwinds from increased adoption of e-commerce as well as increased demand from tenants onshoring operations.”

“Record low vacancy rates have been recorded across all major markets and Australia’s industrial real estate sector remains a highly sought-after market attracting investment demand and creating robust competition for quality industrial and logistics assets.”

CIP provides FY22 FFO guidance of no less than 18.1 cents per unit and distribution guidance of 17.3 cents per unit with distributions paid in equal quarterly instalments.

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