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.
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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.
