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Centuria Industrial REIT (ASX:CIP) - Fund Manager, Jesse Curtis - The Market Herald
Fund Manager, Jesse Curtis
Source: Centuria
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  • A buoyant tenant market has sent Centuria Industrial REIT's (CIP) portfolio value up $285 million to $2.9 billion, according to a recent revaluation
  • One property, the Telstra Data Centre, in Clayton VIC saw its value increase by over $60 million while 2 Woolworths Way, Warnervale in NSW enjoyed a $38 million rise in valuation
  • Strong sector tailwinds continue to provide long-term benefits to industrial real estate with eCommerce and onshoring increasing demand for quality industrial accommodation, according to CIP fund manager Jesse Curtis
  • The company recorded an occupancy rate of 98.8 per cent, a weighted average lease expiry of 9.7 years and a portfolio capitalisation rate of 4.53 per cent, according to the announcement
  • CIP is down 0.82 per cent, trading at $3.62 per share at the conclusion of the trading day

A buoyant tenant market has sent Centuria Industrial REIT's (CIP) portfolio value up $285 million to $2.9 billion, according to a recent revaluation.

The external evaluation studied Centuria's 61 properties, not including two properties currently exchanged but not settled, and reported an 11 per cent increase from prior book values.

It has reaffirmed CIP as Australia’s largest listed pure-play industrial REIT, according to an announcement released by the company today.

One property, the Telstra Data Centre, in Clayton VIC saw its value increase by over $60 million while 2 Woolworths Way, Warnervale in NSW enjoyed a $38 million rise in valuation.

"Australia’s industrial real estate market remains a highly sought-after sector attracting investment demand from domestic and international capital," CIP fund manager Jesse Curtis said.

"Within the past six months the market has seen elevated transaction volumes with major asset and portfolio sales setting new benchmarks, which has resulted in significant compression of capitalisation rates compared to previous reporting periods. A substantial weight of capital continues to create competition for quality assets."

JLL recently reported that the industrial and logistics market hit a new record high in the first quarter of 2021, with gross take-up of industrial space exceeding 1.1 million square metres with face and effective rents also increasing across many markets.

Strong sector tailwinds continue to provide long-term benefits to industrial real estate with eCommerce and onshoring increasing demand for quality industrial accommodation, according to Curtis.

"CIP is a beneficiary of the buoyant tenant market with a number of assets delivering valuation gains on the back of strategic leasing," he said.

"Over the course of FY21, CIP has leased approximately 196,000 square metres demonstrating the increased tenant demand for industrial space, which is expected to continue given limited future land supply in infill markets."

The company recorded an occupancy rate of 98.8 per cent, a weighted average lease expiry of 9.7 years and a portfolio capitalisation rate of 4.53 per cent, according to the announcement.

"As Australia’s largest domestic pure-play industrial REIT, CIP remains well positioned to continue to benefit from the structural tailwinds and the strength of the Australian industrial market," Curtis added.

CIP is down 0.82 per cent, trading at $3.62 per share at the conclusion of the trading day.

CIP by the numbers
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