Centuria Industrial (CIP) H1 2025 earnings summary

Executive summary

• Australia's largest listed pure-play industrial REIT with a $3.8bn portfolio, 87 assets, and a focus on high-quality, urban infill industrial properties diversified by geography, sub-sector, and tenant profile.

• Statutory profit for HY25 was $62.6m, up from $12.2m in HY24, with FFO rising 4.6% to $56.6m (8.9cpu) and NTA per unit increasing to $3.89.

• Achieved 6.4% like-for-like NOI growth, 79,000sqm of leasing at 50% re-leasing spreads, and 96.6% occupancy with 7.3 years WALE.

• 93% of rental income is from ASX-listed, national, and multinational tenants; 87% of assets are in urban infill markets with 90% east coast exposure.

• $60m of divestments at a 5% premium to book value, with proceeds used to repay debt and $47m portfolio valuation gains on a like-for-like basis.

Financial highlights

• HY25 gross property income rose to $126.4m from $110.9m in HY24; total revenue and other income reached $142.7m, up from $115.1m year-over-year.

• FFO grew to $56.6m (8.9cpu) from $54.1m (8.5cpu) year-over-year; distribution per unit increased to 8.15cpu, totaling $51.7m.

• Statutory net profit attributable to CIP was $62.6m, up from $12.2m in HY24, driven by net gain on fair value of investment properties.

• Portfolio book value at $3.8bn, NTA per unit at $3.89, and 33.5% gearing at the lower end of the target range.

• Cash and cash equivalents at period end were $23.9m, up from $16.5m at 30 June 2024.

Outlook and guidance

• FY25 FFO guidance reiterated at 17.5cpu; distribution guidance maintained at 16.3cpu (93% payout ratio), with distributions expected quarterly.

• Strong outlook for infill industrial property, with positive rental reversion and earnings growth expected as debt costs stabilise.

• Earnings and NTA accretive development pipeline, with $1.1bn expected end value and funding needs manageable through ongoing asset sales.

• Management focus remains on portfolio leasing, risk mitigation, and acquiring quality assets.