The Centuria Industrial REIT (ASX: CIP) share price is in focus after delivering $188 million of property divestments at a 17% average premium to book value and reaffirming FY26 funds from operations (FFO) guidance.
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What did Centuria Industrial REIT report?
- Divested four properties for $188 million, averaging a 17% premium to book value
- Development of 50-64 Mirage Road, Direk SA completed and sold at a 33% premium to project costs
- Approximately 14,400sqm of new lease terms agreed in Q3, with FY26 year-to-date re-leasing spreads at 36%
- FY26 FFO guidance reaffirmed at 18.2–18.5 cents per unit (cpu); distribution guidance at 16.8cpu
- Gearing set to reduce by approximately 3% post-settlement of divestments
What else do investors need to know?
Centuria Industrial REIT continues to focus on active asset management. Settlement of divested properties is expected by December 2026, supporting the trust's ongoing gearing reduction and portfolio optimisation strategy.
Key development milestones were reached, including completion and sale of the Mirage Road project in South Australia. In addition, CIP recently settled the acquisition of a data centre in Wellcamp and a strategic industrial site in Yarraville, Victoria. The trust is also exploring its data centre redevelopment pipeline with potential joint ventures or demerger options on the table, depending on future outcomes and market conditions.
What's next for Centuria Industrial REIT?
Looking forward, the trust expects the supply-demand imbalance in the Australian industrial market to persist, with tight availability of new warehousing and strong occupier demand. CIP is progressing further development opportunities, especially in data centre infrastructure, with construction on new, multi-unit industrial estates underway.
Management remains focused on optimising the existing portfolio, exploring potential partnerships for its data centre assets, and delivering on updated guidance while responding to broader macroeconomic shifts impacting inflation and market supply.
Centuria Industrial REIT share price snapshot
Over the past 12 months, Centuria Industrial REIT shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
