Centuria Industrial (CIP) H2 2024 earnings summary

Executive summary

• Achieved FY 2024 FFO of AUD 109.3 million, or 17.2 cents per unit, exceeding initial guidance, driven by strong leasing outcomes, 6.5% like-for-like NOI growth, and 43% average re-leasing spreads.

• Portfolio consists of 89 assets valued at AUD 3.8 billion, with high occupancy of 97.1% and a weighted average lease expiry (WALE) of 7.6 years.

• Divested four non-core assets for AUD 120 million at or above book value, supporting net tangible assets and portfolio optimization.

• Provided FY 2025 FFO guidance of 17.5 cents per unit and distribution guidance of 16.3 cents per unit, reflecting a third consecutive year of earnings growth.

Financial highlights

• Gross property income for FY 2024 was AUD 227.2 million, up from AUD 220.0 million in FY 2023, with total revenue reaching AUD 233.9 million.

• Like-for-like net operating income grew 6.5% year-on-year.

• Statutory net profit was AUD 48.1 million, rebounding from a AUD 76.6 million loss in FY 2023, despite a AUD 37.9 million net loss on fair value of investment properties.

• Distribution per unit held steady at 16.0 cents, with a 93% payout ratio.

• Net tangible assets per unit decreased to AUD 3.87 from AUD 3.96, reflecting cap rate expansion and revaluations.

Outlook and guidance

• FY 2025 FFO guidance set at 17.5 cents per unit, with 93% of debt hedged and no maturities until FY 2026.

• Distribution payout ratio expected to trend toward 90% over time, currently at 93% for FY 2025.

• Management expects continued earnings and rental growth, underpinned by strong leasing spreads and a significant development pipeline.

• Focus on driving leasing outcomes, activating the development pipeline, and maintaining proactive capital management.

• Development pipeline of AUD 1 billion over five years, requiring AUD 400–500 million in funding, with multiple funding avenues available.