centuria-logo-sign-pllaque-office-feature
Image – The Property Tribune.
  • Upgraded FY22 FFO guidance of no less than 18.2 cpu
  • Statutory profit $308.1M, up from HY21 $99.6M
  • NTA per unit $4.21, up from $3.83 HY21

Half-yearly reports continue to roll in, with Centuria Industrial REIT (ASX: CIP) delivering strong results off the back of e-commerce growth and supply chain onshoring.

The company today announced that funds from operation guidance was upgraded to no less than 18.2 cents per unit, and a reiterated distribution guidance of 17.3 cents per unit, reflecting a 4.6% yield.

Centuria Industrial’s figures were all on the up, including profit, moving from $99.6 million in HY21 to $308.1 million in HY22.

Earnings

HY22 HY21
Statutory profit $ million 308.1

99.6

Funds from operation

$ million 53.9 42.8
FFO per unit cpu 9.1

8.8

Distribution per unit

cpu 8.7 8.5
Return on equity % 46.5

11.9

Strong tailwinds from the e-commerce sector and increased supply chain onshoring, have increased occupier demand for last mile urban infill markets, where CIP has significant exposure.

Subsequently, CIP delivered strong leasing activity with 109,188 square metres of lease terms agreed, representing 8.5% of portfolio GLA, and achieved an average 10% rental growth over prior passing rents.

“Demand, particularly from the ecommerce occupiers, created competition for high-quality industrial assets. Major renewals and new tenant leases, together with strong investment demand for industrial assets, underpinned a healthy $281 million valuation uplift,” said CIP Fund Manager, Jesse Curtis.

During the period, CIP’s portfolio expanded 32% to 80 high-quality industrial assets worth $3.9 billion with 155 tenant customers. The expansion included 21 urban infill acquisition worth $680 million with 56% of the acquisition in tightly held NSW markets.

Portfolio snapshot

Pro forma HY22 HY22 FY21
Number of assets 84 80

62

Book value

$ million 3,972.4 3,878.9 2,945.1
WACR % 4.20 4.19

4.54

Occupancy by income

% 99.2 99.2 96.9
WALE by income years 8.8 8.9

9.6

Leases agreed by GLA

Square metres 109,188

239,950

“Acquisitions were largely positioned within land-constrained, eastern seaboard markets that lend themselves to low vacancy rates and high tenant demand, creating opportunities to extract outsized returns. Several acquisitions provided value-add opportunities through near term development, repositioning or leasing,” explained Mr Curtis.

Centuria Industrial continued to strengthen its balance sheet, and was assigned a Moody’s Credit Rating of Baa2 Stable.

Balance Sheet HY22 HY21
Total assets $ million 3,936.6 3,105.9
Net tangible assets per unit $ 4.21 3.83
Gearing % 30.5 27.8


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