The ASX dividend stock Centuria Industrial REIT (ASX: CIP) has numerous positives to like about it. The real estate investment trust (REIT) is in an appealing part of the property market, offering both growth and yield for interested investors.
It owns a portfolio of industrial properties across Australia in metropolitan locations. Pleasingly, the vacancy rate for those properties is very low, which is a strong tailwind for rental earnings.
The business is invested in a few different types of industrial properties including distribution centres, manufacturing and production, transport logistics, data centres and cold storage.
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Solid and growing dividend yield
One of the first things that every investor would want to know about is how much passive income the ASX dividend stock could produce.
The REIT is expecting to grow its distribution by 3% to 16.8 cents per unit in FY26. At the time of writing, it's expected to pay a distribution yield of 4.75%.
That's a better dividend yield than what a typical term deposit is paying now, while also offering growth.
While 3% growth is not exactly shooting the lights out, it's a solid rise after a few years of difficulties for property businesses because of high interest rates.
I think it looks like a good buy today, not just for passive income but also because of the value it's currently trading at.
Decent value
The ASX dividend stock reported a net tangible assets (NTA) per unit of $3.92 at June 2025, so it's currently trading at a discount of 10% to NTA, which is a solid time to buy, in my opinion.
The Centuria Industrial REIT recently gave its quarterly update for the three months to 31 September 2025. This update included a couple of positives that bodes well for the value per unit.
Firstly, it divested 42 Hoepner Road, Bundamba, Queensland for $11.8 million, which was a 10% premium to the June 2025 book value.
It also announced increased guidance for its funds from operations (FFO) to 18.2 cents to 18.5 cents per security. Higher rental earnings bode well for the underlying value of the property, in my view.
Promising long-term prospects
The business is benefiting from a number of tailwinds including e-commerce adoption and increasing usage of refrigerated space for food and medicine.
The Centuria Industrial REIT fund manager Grant Nichols said:
CIP continues to achieve strong outcomes across its portfolio relating to leasing, capital transactions and value add initiatives. The ability to deliver these results is credited to CIP's portfolio being concentrated in Australia's urban infill markets where tenant demand is strongest, vacancy is low and supply is constrained. These urban infill assets provides multiple future opportunities for alternative, higher-use developments such as data centres and residential schemes.
Overall, I think the ASX dividend stock is capable of outperforming in all economic conditions.
