Centuria Industrial (CIP) H1 2026 earnings summary

Executive summary

• Delivered strong HY26 results with statutory profit of $68.9 million, FFO of $57.3 million, and NTA per unit rising to $3.95, driven by robust leasing, valuation gains, and proactive capital management.

• Achieved 144,000 sqm leased (11% of portfolio GLA), with occupancy at 95.7% and high re-leasing spreads, supported by a focus on high-quality, urban infill industrial assets.

• Upgraded FY26 FFO guidance to 18.2–18.5 cpu and distribution guidance to 16.8 cpu, reflecting strong portfolio fundamentals and prudent capital management.

• Significant progress in data centre exposure, with over $450 million in operating data centres, new acquisitions, and development opportunities identified.

• Strategic divestments and buybacks executed at a premium to book value, supporting capital allocation priorities.

Financial highlights

• Net property income for HY26 was $101.2 million, up 5.1% like-for-like year-over-year, with total revenue at $123.5 million.

• FFO increased to $57.3 million (9.1 cpu), payout ratio at 92%, and statutory net profit rose to $68.9 million.

• Portfolio valuation increased by $75 million, marking the fourth consecutive period of gains.

• Net tangible assets per unit rose to $3.95; gearing at 35.9%.

• Distributions for the half-year totaled 8.4 cpu, up from 8.15 cpu year-over-year.

Outlook and guidance

• Upgraded FY26 FFO guidance to 18.2–18.5 cpu and distribution guidance to 16.8 cpu, with medium-term NOI growth projected at 5% p.a.

• Significant earnings and valuation upside expected from under-rented leases and development pipeline.

• Market vacancy rates forecast to peak in 2026 and decline below 2% by 2030, supporting rental growth.

• Management focused on leasing, risk mitigation, and acquiring quality assets.