The Centuria Industrial REIT (ASX: CIP) share price is edging higher in morning trade, up 2.22% to $3.23.
The real estate investment trust (REIT) is Australia's largest domestic pure-play industrial REIT. Below we take a look at the S&P/ASX 200 Index (ASX: XJO) listed company's latest announcement on its portfolio valuation.
What did the REIT report?
The Centuria Industrial REIT share price is gaining after the company reported the value of its portfolio of industrial assets increased by 8.1% or $192 million on a like-for-like basis from prior book values.
Centuria completed external valuations on 56 of its 61 industrial properties, which the company reports represents around 93% of its total portfolio by value, as at 31 March.
The new valuation brings Centuria Industrial's total portfolio value to $2.6 billion.
The company pointed to its leasing success and capitalisation rate compression in Australia's industrial market as key factors driving the increased valuation.
The REIT's Telstra Corporation Ltd (ASX: TLS) data centre in Clayton, Victoria led the charge higher, with its value increasing by $28.3 million.
Commenting on the revaluation, Centuria Industrial fund manager Jesse Curtis said:
Australia's industrial property market is currently experiencing a substantial re-rate, attracting significant investment demand from both domestic and international capital. Major transactions in the market continue to show capitalisation rate compression, complemented by strong tenant demand from e-commerce and a scarcity of investment grade assets.
Curtis added, "The CIP portfolio remains in an extremely strong position holding occupancy of 97.7%, WALE [weighted average lease expiry] of 9.8 years and portfolio capitalisation rate of 4.96%."
So far in the 2021 financial year, Centuria Industrial has transacted $757 million worth of industrial assets. The REIT reported that these new assets contributed to $64 million of its total portfolio revaluation gain.
Centuria Industrial pays a 5.6% annual dividend yield, unfranked.
Centuria Industrial REIT share price snapshot
Over the past 12 months, Centuria Industrial REIT shares have gained nearly 17%. That trails the 33% gains posted by the ASX 200.
Year to date, the Centuria Industrial REIT share price is up 4.5%, outpacing the 2.2% gains from the ASX 200.
