Centuria Industrial (CIP) H2 2026 earnings summary

Executive summary

• Achieved near record-breaking leasing activity, driving significant net operating income and FFO growth in FY26, with 226,200 sqm leased and 30% positive re-leasing spreads.

• Divested AUD 200 million of assets at a 17% premium to book value, supporting capital management, development funding, and validating portfolio valuations.

• Maintained 95.2% occupancy and a seven-year WALE, with embedded rent reversion and under-rented leases providing a clear runway for future earnings growth.

• Advanced data center strategy, securing significant power allocations, planning approvals, and identifying conversion opportunities exceeding 250MW potential capacity.

• Delivered 4% earnings growth, with FFO per unit rising to 18.2 cents and distributions per unit at 16.8 cents.

Financial highlights

• Net property income rose to AUD 204 million, up AUD 11.7 million year-over-year, with total revenue at AUD 212.2 million.

• Funds from operations reached AUD 114.1 million (AUD 0.182 per unit), up 4% from FY25, with a payout ratio of 92%.

• Distributions declared at AUD 0.168 per unit, in line with guidance.

• Portfolio externally revalued, recording a like-for-like uplift of AUD 116 million; fifth consecutive period of valuation growth.

• Net tangible assets per unit rose to AUD 4.01, with trading price at a 25% discount to NTA.

Outlook and guidance

• FY27 FFO guidance set at AUD 0.188–0.192 per unit (up to 5.5% growth), with distributions at AUD 0.173 per unit (up to 3% growth).

• Earnings growth expected to be driven by embedded rent reversion, leasing execution, and operational initiatives.

• Medium-term NOI growth expected at 5% p.a., with national face rental growth forecast at 4% p.a. from 2026–2030.

• Higher occupancy anticipated by year-end, contingent on leasing of key vacancies.

• Under-rented portfolio (average 17%) provides further upside for earnings and valuation.