The Centuria Industrial REIT (ASX: CIP) share price is in focus after the full-year results showed Funds From Operations (FFO) rose 4% to $114.1 million and distributions met guidance.
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What did Centuria Industrial REIT report?
- FFO of $114.1 million, up 4% from FY25, or 18.2 cents per unit
- Distribution per unit of 16.8 cents, in line with FY26 guidance
- Net Tangible Assets (NTA) per unit lifted to $4.01
- Like-for-like Net Operating Income (NOI) grew by 5.2%
- $200 million in asset sales at an average 17% premium to book value
- Portfolio occupancy of 95.2% and 7.0-year WALE
What else do investors need to know?
Centuria Industrial REIT delivered nearly record leasing volumes during the year, with 226,200sqm leased—representing 18% of portfolio space. Leasing spreads remained highly positive, averaging 30%, propelled by robust tenant demand and low national industrial vacancy rates.
The REIT is making meaningful moves into the data centre sector, securing two strategic assets valued at roughly $60 million. Several properties are flagged as possible future data centre conversions, with the pipeline potentially providing over 250MW in capacity.
Balance sheet strength remains a highlight, with gearing at 34.9%, $457 million in liquidity, and 54% of debt hedged. Divestment proceeds have helped pay down debt, while the group also refinanced $775 million at improved margins.
What did Centuria Industrial REIT management say?
Grant Nichols, CIP Fund Manager and Centuria Head of Listed Funds, said:
FY26 has been another impressive year for CIP, marked by nearly record-breaking leasing activity. The high volume of leasing, along with consistently strong re-leasing spreads, enabled CIP to achieve significant Net Operating Income (NOI) growth, which translated into tangible growth in Funds From Operations (FFO).
What's next for Centuria Industrial REIT?
The outlook remains upbeat, with Centuria forecasting FY27 FFO of 18.8–19.2 cents per unit (up to 5.5% higher year on year) and distributions of 17.3 cents per unit (3% above FY26). These are expected to be paid quarterly.
Management's focus will be on maximising returns from its under-rented assets, progressing data centre conversion opportunities, and capitalising on urban infill scarcity to drive further income and valuation growth.
Centuria Industrial REIT share price snapshot
Over the past 12 months, Centuria Industrial REIT shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.
