Investors who hold shares in Centuria Capital Group (ASX: CNI) would be jumping for joy. The ASX 200 stock just jumped almost 10% yesterday on earnings results news.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.70% on Tuesday.
Let's see what investors were reacting to.
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What is Centuria Capital Group
Centuria is an S&P/ASX 300 Index (ASX: XKO) Australasian funds manager of property and investment bonds. The business has two areas of focus: Centuria Property Funds and Centuria LifeGoal Investment Bond.
Its property funds management is the largest component of the company's platform. Centuria's assets include commercial, industrial, and healthcare real estate throughout Australia and New Zealand.
After yesterday's performance, its share price has now risen roughly 19.44% year to date and 32.72% over the past 12 months.
Why the big jump?
In the midst of earnings season, Centuria Capital Group released positive results:
- FY25 OEPS 12.2cps, outperformed FY25 guidance (+4.3% above FY24)
- FY25 DPS 10.4cps (+4% above FY24)
- FY26 guidance: OEPS 13.4cps (+10%pcp), DPS 10.4cps
- FY26 targeting more than $1 billion of real estate of acquisitions
The company also reported an increased operating net profit after tax of $100.8 million (FY24: $94.7 million).
What is management saying?
Joint CEOs John McBain and Jason Hulich pointed to improved market conditions for the strong results and optimistic FY26 guidance.
Improved real estate market conditions and the potential for higher relative returns to our investors present a more compelling real estate investment environment. We intend to capture investor appetite throughout FY26, by securing high-conviction assets that appeal to our retail, wholesale and institutional investor networks.
Our focus is on delivering innovative new real estate funds, including a continued strategy to launch further listed vehicles as equity capital markets unlock.
The company reported that, based on prevailing market conditions remaining stable, Centuria provided FY26 OEPS guidance of 13.4 cents per security, a 10% increase on FY25, and DPS guidance of 10.4 cents per security.
What's next?
In its report, the company anticipates Australian and NZ cash rates falling through FY26.
The company forecast favourable FY26 Centuria OEPS as a direct consequence of the following favourable market conditions:
- Real Estate Markets stabilising – value growth in most sectors.
- Australian/NZ deposit rates reducing.
- More attractive relative returns from Centuria's real estate funds through FY26.
