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Centuria Industrial REIT (ASX:CIP) - Fund Manager, Jesse Curtis
Fund Manager, Jesse Curtis
Source: Centuria
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  • Centuria Industrial REIT (CIP) earnings increased by 712 per cent to $611.2 million in FY 21 from $75.3 million the previous year
  • The statutory profit was underpinned by $91.4 million in funds from operation, an increase from $63.5 million in FY 20
  • CIP will again be providing FY 22 guidance with FFO guidance of no less than 18.1 cpu and distribution guidance of 17.3 cpu
  • The purchases completed during the year, as well as a significant $587 million value gain in FY21, boosted total assets to $3,106 million
  • CIP is up 1.30 per cent, trading at $3.90 per share at 1:43 pm AEST

Centuria Industrial REIT (CIP) has enjoyed a bumper financial year, with profits rising 712 per cent to $611.2 million in FY 21 from $75.3 million in FY 20.

The statutory profit was underpinned by $91.4 million in funds from operation, an increase from $63.5 million in FY 20.

CIP fund manager Jesse Curtis said acquisitions and major portfolio leasing drove success in the fiscal year.

“Strong sector tailwinds supported increased tenant demand and record low national vacancy rates, propelled by the continued rise of e-commerce, positively impacted industrial property markets,” he said.

“CIP continued to execute its strategy with 18 high-quality industrial acquisitions worth $966 million.

“This included $631 million worth of assets across two new high conviction industrial sub-sectors, Data Centres and Cold Storage. CIP’s portfolio and tenant customer quality continued to improve with $335 million worth of urban infill logistics acquisitions.”

Mr Curtis said CIP enjoyed nearly 240,000sqm of terms agreed with occupancy remaining high at 96.9 per cent.

CIP’s portfolio income comprises 51 per cent of its top 10 blue chip clients, with 25 per cent coming from triple net leases.

“The portfolio has now increased to $2.9 billion in value, spans 62 assets and is supported by blue chip industrial tenant customers,” he said.

“Growth and scale of the portfolio led to increased market relevance with inclusion in the FTSE EPRA Nareit Global Developed Index.”

The purchases completed during the year, as well as a significant $587 million value gain in FY21, boosted total assets to $3,106 million.

“Having delivered a strong set of results through an active approach to the portfolio, CIP is pleased to have delivered our FY 21 twice upgraded FFO guidance of 17.6 cpu and a 12-month return on equity of 41.8%,” Mr Curtis said.

CIP will again be providing FY 22 guidance with FFO guidance of no less than 18.1 cpu and distribution guidance of 17.3 cpu.

The company said it had begun FY 22 in a good position, with 96.9 per cent occupancy, a weighted average lease expiry of 9.6 years and less than five per cent of the portfolio expiring during the year.

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

“With record low vacancy rates across all major markets, 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.”

Mr Curtis said CIP was focussing on building critical mass in key urban infill markets through acquisitions, leasing and value-add projects to capitalise on the rise of e-commerce and the demand for rapid delivery times.

CIP is up 1.30 per cent, trading at $3.90 per share at 1:43 pm AEST.

CIP by the numbers
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