Centuria Industrial (CIP) Q1 2025 TU earnings summary

Executive summary

• Achieved c.67,000sqm of lease terms across seven transactions in Q1 FY25, with 54% positive re-leasing spreads, reflecting strong rental growth in urban infill markets.

• Divested $60.3m in non-core assets at an average 5% premium to book value, supporting net tangible assets.

• Acquired $8m land adjacent to a major urban renewal project, consolidating a strategic site in Port Melbourne.

• Progressed development and refurbishment projects in VIC and SA, targeting high ESG standards.

Financial highlights

• Reaffirmed FY25 FFO guidance of 17.5 cents per unit and distribution guidance of 16.3 cents per unit, to be paid quarterly.

• Portfolio occupancy at 97.2% and WALE of 7.5 years as of 30 September 2024.

• Divestments included a 21,300sqm asset in Geelong ($33.6m, 19% IRR) and a 12,500sqm facility in Richlands ($26.7m, 10% premium, 15% IRR).

• Proceeds from asset sales used to repay debt and strengthen the balance sheet.

Outlook and guidance

• FY25 FFO and distribution guidance reaffirmed, with expectations of continued robust rental growth and accretive development pipeline.

• Urban infill industrial property expected to benefit from structural tailwinds, supporting future performance.