Centuria Industrial (CIP) H2 2025 earnings summary

Executive summary

• Achieved $140 million in divestments at a 12% premium to book, supporting future valuation growth and buy-back rationale.

• Delivered strong FY 2025 performance with 5.8% like-for-like NOI growth, 34% positive re-leasing spreads, and FFO of $110.9 million (17.5cpu).

• Announced a $60 million on-market buyback to address the trading discount to NTA, with units trading at a 20% discount.

• Maintains a focus on urban infill industrial assets, with 85% portfolio weighting and 95.1% occupancy, driving tenant demand and rental growth.

• Portfolio construction leverages Centuria’s platform, with strong alignment through a 16% co-investment.

Financial highlights

• Net property income for FY 2025 was $192.3 million, up $11.5 million year-on-year.

• Like-for-like net operating income grew 5.8%.

• Funds from operations (FFO) reached $110.9 million or 17.5cpu; distribution declared at 16.3cpu, with a payout ratio of 93%.

• Statutory net profit attributable to the trust was $133.1 million, up from $48.1 million in FY24, driven by a $47.4 million net gain on fair value of investment properties.

• Portfolio value increased by $57 million, with a stable weighted average cap rate of 5.86%.

Outlook and guidance

• FY 2026 FFO guidance is up to 6% higher than FY 2025, with a range of 18.0–18.5cpu and distribution guidance of 16.8cpu.

• Portfolio is approximately 20% under-rented on average, with 65% of lease expiries to FY 2029 under-rented, supporting future NOI growth.

• Projected NOI growth of +5% p.a. over the medium term, with focus on leasing, mark-to-market rent reviews, and development pipeline.

• All-in cost of debt expected to stabilize around 5% in FY 2026, with potential for further reduction if interest rates fall.

• Medium-term development CapEx estimated at $140 million, easily funded by ongoing asset sales.