What did Centuria Capital Group report?

• HY26 operating profit after tax (OPAT): $54.6 million
• Operating earnings per security (OEPS): 6.6 cents, up 6.5% from HY25
• Interim distribution per security (DPS): 5.2 cents
• Record assets under management (AUM): $21.8 billion (up from $20.6 billion at FY25)
• Operating EBITDA: $89.3 million, supported by 49% growth in core Property Funds Management
• FY26 OEPS guidance upgraded to 13.6 cents per security (11.5% above FY25), DPS guidance set at 10.4 cents

What else do investors need to know?

Centuria completed $0.5 billion in real estate acquisitions and has an additional $0.8 billion in due diligence or secured since 31 December 2025. The company also increased its interest in Centuria Bass Credit to 100%, which strengthens its presence in real estate finance.

Notably, Centuria secured management rights for Arrow Funds Management, growing agricultural assets under management to $1.3 billion. The company's property funds saw a mix of listed and unlisted AUM, with no single unlisted asset exceeding 3% of total AUM, reflecting disciplined diversification.

Centuria's cash and undrawn debt stood at $288 million as of 31 December 2025. Its balance sheet gearing remained conservative at 12.4% and the group's fund gearing averaged 45%, well below the weighted average covenant of 57%.

What did Centuria Capital Group management say?

Joint CEO John McBain said:

Today's earnings upgrade reflects the strength of the underlying Group's profit drivers and improved earnings visibility into 2H26. Centuria's platform is positioned to benefit from improving real estate market conditions, supported by rising transactional activity and a growing network of more than 15,500 private investors.

What's next for Centuria Capital Group?

Centuria has raised its FY26 guidance in light of improving market conditions and the successful acquisition of Arrow Funds Management. The business continues to pursue both organic and inorganic growth, building momentum through ongoing acquisitions and capital raisings.

Looking ahead, Centuria plans to advance its long-term strategy, including expanding its digital infrastructure and agricultural investment platforms, while maintaining a disciplined approach to balance sheet management. The group says it remains nimble amid changing markets and expects to benefit from its broad investor network and diversified portfolio.

Centuria Capital Group share price snapshot

Over the past 12 months, Centuria Capital Group shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Centuria Capital Group lifts profit and upgrades FY26 outlook appeared first on The Motley Fool Australia.

I like it when a share price declines because it pushes the dividend yield higher. For example, if a business has a dividend yield of 5% and the share price drops 10%, then the dividend yield becomes 5.5%. A 20% decline unlocks a 20% dividend yield. And so on.

Both of the ASX dividend shares below have a promising future, in my view.

Centuria Capital Group (ASX: CNI)

Centuria is one of the largest property fund managers in Australia, giving the business significant exposure across a range of property sectors, including industrial and office.

As the chart below shows, the Centuria share price has fallen by around 20% since 29 August 2025, making it significantly cheaper for investors.

The business has provided guidance that expects to generate operating earnings per share (OEPS) of 13.4 cents, representing growth of 10% year over year. This means the business is trading at 14x FY26's operating earnings.

The ASX dividend share is also expecting to pay a distribution to investors that equates to a distribution yield of 5.4%, at the time of writing, which I think is a solid start for passive income investors.

Centuria is aiming for at least $1 billion of real estate transactions in FY26, as well as expanding its real estate finance with new products and capital sources. Additional revenue is expected through its AI-related investments as well. All of this is expected to drive earnings growth.

I think the business has a very promising future, and this is a good time to invest.

Nick Scali Ltd (ASX: NCK)

This ASX dividend share is one of the larger furniture retailers in Australia. The business has the Plush and Nick Scali businesses in Australia, as well as the relatively new UK operations.

The Nick Scali share price is down around 25% since 11 February 2026, as shown in the chart below. This could be an exciting opportunity to invest in the company.

The business reported a good level of growth in the FY26 first-half result. In the first six months, ANZ revenue rose 13.1% to $251.7 million, and underlying ANZ net profit jumped 29.4% to $46.6 million.

UK revenue declined 38.5% to $17.6 million, while the underlying UK net loss worsened by 100% to $5.6 million.

Total revenue grew 7.2% to $269.3 million, overall underlying net profit increased 23.1%, and the dividend per share was hiked by 30% to 39 cents per share.

We shouldn't read too much into the UK numbers because there were numerous store closures for lengthy periods because of store refurbishments. UK sales orders increased by 12.8%, which bodes well for future growth.

Additionally, the UK gross profit margin increased to 59.2%, significantly above last year's gross profit margin of 45.1%.

A number of new UK stores are currently in negotiations, with a "strong focus on growing the store network".

Trading looks positive for the second half of FY26 – ANZ written sales orders for the month of January increased by 3.1% year over year. A further five new stores are confirmed for ANZ during the year, with additional opportunities currently being reviewed.

In the UK, the majority of the store refurbishment program is now complete, and it has seen an improvement. Total January written sales were $6.7 million. Four Nick Scali-branded stores that were trading in January FY25 achieved like for like sales growth of 32% in January FY26, which bodes well for the foreseeable future.

The forecast on CMC Invest suggests the business could deliver an annual dividend per share of 84 cents in FY27. That would translate into a grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The post These 2 ASX dividend shares are great buys right now appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

It's great being able to receive cash flow into bank accounts from our ownership of compelling businesses. I think it's important to focus on businesses that are at valuations that make sense and to aim for investments that can grow in value.

CBA is not exactly firing on all cylinders right now. The lending industry is competitive, with this being an impact on both loan growth rates and the margins lenders can achieve.

In the first quarter of FY26, the bank reported cash net profit after tax (NPAT) of $2.6 billion, representing just 2% year-over-year growth. That's not a compelling growth rate, nor is the current grossed-up dividend yield of 4.5%, including franking credits, particularly exciting.

There are quite a few ASX dividend shares I'd rather buy for passive income at the current valuations than CBA shares.

Centuria Capital Group (ASX: CNI)

This business is a fund manager that's focused on managing commercial properties. While it may be best known for its office and industrial buildings, it's also involved in areas like real estate finance, healthcare and agriculture.

I like the diversification of the business and how it's benefiting from recent interest rate cuts, which is reducing the cost of debt as well as providing a tailwind for the company's earnings through higher property valuations – this is boosting its ability to generate management fees.

In terms of passive income, the business paid an annual distribution per security of 10.4 cents in FY25, meaning it currently has a distribution yield of 4.9%.

The business is expecting to grow its operating earnings per security (OEPS) by 10% in FY26, which is a much stronger growth rate than what I'm expecting in FY26 from CBA.

I think this ASX dividend share is likely to deliver a stronger total shareholder return than CBA shares over the next three to five years. If the business continues making compelling property acquisitions, then it could be a pleasing market-beater, in my view.

WCM Quality Global Growth Fund (ASX: WCMQ)

Commonwealth Bank is heavily concentrated on the Australian (and New Zealand) economy. Why not look at investments that help provide global earnings diversification?

This exchange-traded fund (ETF) aims to invest in a portfolio of between 20 to 40 stocks that are quality global companies, primarily in the high-growth areas of consumer, technology and healthcare sectors.

The fund targets an annualised dividend yield of 5% for investors, which is a stronger yield than what CBA shares currently provide.

WCM looks for businesses that have expanding competitive advantages/economic moats and wants to see the businesses have a corporate culture that support the expansion of the economic moat.

The strength and performance of these underlying businesses have allowed the WCMQ ETF to deliver an average return per year of 15.9% over the last five years. That implies good growth of the ETF's net asset value (NAV), allowing for a growing distribution from the ASX dividend share.

Of course, past performance is not a guarantee of future investment performance. But, with a global share market to hunt for ideas, the future looks promising. Its three largest holdings are currently AppLovin, Taiwan Semiconductor and Amazon.

The post Forget CBA shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

REITs can have various property types in their portfolios, or they might specialise in just one type. 

For example, some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Each week, broker Bell Potter provides analysis on the sector, including target prices and recommendations. 

Right now, it appears the broker sees upside after a down month. 

Here is how the broker is viewing the sector right now. 

Underperforming over the last month 

In this week's report, the broker noted that REITs performed well until a stronger-than-expected employment print (unemployment down to 4.3% vs. 4.5% prior and 4.4% consensus) drove the sector down against the broader S&P/ASX 200 Index (ASX: XJO).

Bell Potter said overall, the sector has underperformed over the last month but could be poised for a bounce back.

On this sentiment, we still think the sector is well positioned (return of earnings growth, strong balance sheets, increased cap trans activity and potential for debt-funded accretive acquisitions) and worth bearing in mind 3mth BBSW is only marginally above where it started FY26 (c.3.6%).

The broker highlighted that Infratil Ltd (ASX: IFT) delivered its 1H26 result, reaffirming full-year guidance, but lost ground given prior strong consensus views. 

Other companies that fell last week included:

• Goodman Group (ASX: GMG) down 3%
• HMC Capital (ASX: HMC) lost 4% 
• DigiCo Infrastructure REIT (ASX: DGT) fell 7%

Buy, hold, and sell from Bell Potter

The report from Bell Potter also included target prices and recommendations.

REITs with buy recommendations include:

• Centuria Capital Group (ASX: CNI)
• Goodman Group (ASX: GMG)
• Dexus Convenience Retail REIT (ASX: DXC)
• GDI Property Group (ASX: GDI)
• Healthco Healthcare And Wellness Reit (ASX: HCW)
• Dexus Industria REIT (ASX: DXI)

Of this group, the team at Bell Potter sees the biggest upside for Healthco Healthcare and Wellness Reit (ASX: HCW) and Goodman Group (ASX: GMG). 

The broker sees roughly 37% to 40% upside from current levels. 

The broker has hold recommendations on: 

• HMC Capital (ASX: HMC)
• DigiCo Infrastructure REIT (ASX: DGT)
• Homeco Daily Needs REIT (ASX: HDN)  

Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF). 

Looking ahead, the broker said feedback from corporates and leading CRE private credit providers points towards potential for margin compression across the sector. 

The post What is Bell Potter's view on REITs? appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Two more of the best ASX shares to buy this month according to the broker are listed below. Here's why it is bullish on these names:

Centuria Capital Group (ASX: CNI)

 The first ASX share that Bell Potter is bullish on is investment manager Centuria Capital.

The broker believes it is well-positioned to be a winner from favourable tailwinds in the real estate sector. And with this yet to be fully priced in, Bell Potter thinks now could be an opportune time to invest. It said:

CNI manages funds spanning listed, unlisted wholesale and unlisted retail syndicates across all major asset classes. As per their listed funds, CNI's assets under management is primarily in the Office and Industrial markets, however it also operates in Daily Needs & Large Format Retail, as well as alternative subsectors such as Healthcare, Real Estate Credit, and Agriculture. CNI is well positioned to benefit from tailwinds in the Real Estate sector, and we see cyclical upside yet to be priced in.

Elders Ltd (ASX: ELD)

Another ASX share to make the list is agribusiness company Elders.

Bell Potter sees a lot of value in its shares at current levels. Especially given the acquisition of Delta Agribusiness, its cheap valuation, and its multiple drivers of growth. Commenting on the stock, Bell Potter said:

Elders is a leading Australian agribusiness and rural services company. It has an expansive network across Australia, providing a diverse range of services to rural and regional Australia, including livestock and wool agency and marketing, real estate services, agricultural supplies, financial services, and insurance. Elders supports primary producers across various sectors like livestock, cropping, and wool, and also operates a feedlotting business. We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition.

The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 11x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.

The post Bell Potter names more of the best ASX shares to buy in November appeared first on The Motley Fool Australia.

I'm not particularly impressed by the large ASX bank shares or ASX mining shares. They are huge businesses that are struggling to meaningfully grow earnings. Their dividend yields aren't particularly appealing at the current valuations either.

These days, banks appear to need to choose between growing their market share or delivering strong profit margins. I think that's a key reason why we saw profits decline for Westpac Banking Corp (ASX: WBC), despite the bank growing the size of its loan book.

I have conviction in the below two businesses for the following reasons.

Centuria Capital Group (ASX: CNI)

Centuria is a fund manager that specialises in properties and investment bonds.

It's recovering from the pain of high interest rates – in FY25, operating net profit increased 6.4% to $100.8 million. The business is targeting more than $1 billion of FY26 real estate acquisitions and it has already announced one.

With the property markets turning positive after a number of rate cuts this year, this could be a strong tailwind for funds under management (FUM) for the foreseeable future. Property valuations could increase and it may also lead to investors wanting to allocate more money to Centuria.

It's expecting to pay a distribution of 10.4 cents per security in FY26, translating into a forward distribution yield of 4.4%.

I like Centuria's efforts to continue diversifying its FUM into different areas such as agriculture, healthcare and real estate finance.

Fund managers have a lot of operating leverage, so this could be a great time to invest while its profit and FUM are seeing a turnaround in momentum.   

Coles Group Ltd (ASX: COL)

Coles may be seen as a defensive business, but I think more investors should categorise it as a compelling ASX dividend share.

Not many ASX blue-chips have increased their annual dividend every year since 2019, but Coles has achieved exactly that, combined with consistent sales growth.

In FY25, the business achieved $1.08 billion of net profit, or $1.18 billion of underlying net profit. That was a strong result, in my opinion.

I'm expecting the undervalued ASX dividend share to deliver further profit and dividend growth in FY26 because of two key factors. Firstly, sales growth continues to be strong as the company's offering resonates more with customers. In the first quarter of FY26, supermarket sales increased 4.8%, or 7% growth excluding tobacco.

Second, the company's investments in its supply chain should start paying off in FY26 with the facilities now fully operational. I'm particularly thinking of the automated distribution centres. I believe this will help improve efficiency, stock flow, fulfilment of online orders, and profit margins.

It currently has a trailing grossed-up dividend yield of 4.5%, including franking credits. But, I'm expecting the payout to be larger in the new financial year.

I think it looks undervalued following a decline of more than 8% since August, despite its strong sales performance at the start of the new financial year.

The post 2 undervalued ASX dividend shares delivering huge profits appeared first on The Motley Fool Australia.

There are multiple reasons for my belief in holding stocks for long stretches, including letting compounding work its magic and not reducing that compounding unnecessarily with (capital gains) tax events.

The two businesses I want to highlight have already grown significantly over the last decade and I'm expecting plenty more growth.

Xero Ltd (ASX: XRO)

Xero is a cloud accounting software business which has grown its global subscriber base to more than 4.4 million. It's a truly international company with subscribers in New Zealand, Australia, the UK, the US, Canada, South Africa, Singapore and plenty of other markets.

The world is becoming increasingly digital and tax authorities in different countries are wanting businesses to submit documents digitally, providing more incentive for small businesses to sign up to Xero.

It has an incredibly high gross profit margin of 89%, which means nearly all of the new revenue turns into gross profit for Xero. It has reached that milestone of profitability where it has grown enough that further revenue expansion will significantly fall to the bottom line.

In the FY25 result, the company's net profit grew 30% and free cash flow surged 48%. Over the next ten years, I'm expecting significant profit growth from the company and further subscriber growth, which is highly beneficial with its extremely high subscriber loyalty rate.

If it can reach a good market share in the US (a huge market), it could become a much larger ASX share.

Centuria Capital Group (ASX: CNI)

Centuria is a property-focused fund manager. It offers various property funds, including the real estate investment trusts (REITs) Centuria Industrial REIT (ASX: CIP) and Centuria Office REIT (ASX: COF).

Following multiple RBA cash rate cuts in 2025, the outlook looks promising for the business. I don't know exactly how the commercial property market will develop over the next decade, but I'm confident the business will be able to add to its growing portfolio of properties that it manages.

For example, in August, it announced the $216 million acquisition of the Port Adelaide Distribution Centre for a new unlisted fund.

Rising management fees are a key driver for the business. In FY26, the business is targeting at least $1 billion of FY26 real estate acquisitions. I also like how the business is aiming to grow in different areas of the property world including agriculture, healthcare and real estate finance.

The business is expecting to grow its operating earnings per security (OEPS) by 10% in FY26. In ten years, I think its OEPS could be much higher.

The post 2 ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

That's because Bell Potter has picked out its favourite through its Australian equities panel. Here are two dividend shares that it is bullish on:

Centuria Capital Group (ASX: CNI)

The first ASX dividend share that could be a best buy in October is Centuria Capital. It is an investment manager with a focus on real estate.

Bell Potter believes the company is well-placed to benefit from tailwinds in the real estate sector. And as these have yet to be fully priced in, the broker thinks that now is the time to buy. It said:

Centuria Capital Group (CNI) is an investment manager with c.$21b of predominantly real-estate-focused assets under management. CNI manages funds spanning listed, unlisted wholesale and unlisted retail syndicates across all major asset classes. As per their listed funds, CNI's assets under management is primarily in the Office and Industrial markets, however it also operates in Daily Needs & Large Format Retail, as well as alternative subsectors such as Healthcare, Real Estate Credit, and Agriculture. CNI is well positioned to benefit from tailwinds in the Real Estate sector, and we see cyclical upside yet to be priced in.

Bell Potter expects a dividend yield of approximately 4.8% over the next 12 months.

Macmahon Holdings Ltd (ASX: MAH)

Another ASX dividend share that gets a big thumbs up from Bell Potter is Macmahon. It is an Australian contractor that operates two core segments: contract mining and civil infrastructure.

Bell Potter believes it can continue its positive form in the coming years, especially given the recent acquisition of Decmil and its expansion into renewables and public infrastructure. It said:

Contract Mining division operates surface and underground mines across Australia and SE Asia, exposed primarily to Gold (53%), Met Coal (19%), and Lithium (9%). Contracts are long-term with cost escalation pass-through, ensuring revenue stability. While capital-intensive, this segment generates EBITDA margins of 15-20%. The Civil Infrastructure division, strengthened by the Decmil acquisition, executes EPC projects, expanding from mine support into renewables and public infrastructure. Margins are lower (7% EBITDA), but the division is less capital-intensive, offering higher returns on capital and greater scalability. Despite contracts suggesting mid-to-high single-digit growth, MAH has achieved a 12.2% compound annual growth rate over five years (19.9% in Australia) through strong execution and acquisitions.

The broker is expecting a dividend yield of 4.3% from its shares over the next 12 months.

The post Bell Potter names the best ASX dividend shares to buy in October appeared first on The Motley Fool Australia.

In this article, I'll highlight two businesses with pleasingly defensive earnings and resilient payouts.

I'm a fan of businesses that can offer stability in the face of economic uncertainty because it's at those times when we want the cash payments to continue flowing the most.

Centuria Industrial REIT (ASX: CIP)

The first business I would like to highlight is a real estate investment trust (REIT) that owns a portfolio of high-quality industrial properties across Australia's major cities.

I really like the industrial property sector because of the tailwinds it's exposed to, providing strong support for rental income growth and capital growth. Tailwinds include e-commerce adoption, refrigerated space for food and medicine, data centres, population growth, and more.

This demand, and limited additional supply, has led to a very low vacancy rate in the industrial property sector. This is helping drive up the rental potential of the sector, which in turn benefits the ASX dividend share.

In the FY25 result, the business reported a pleasing increase in the right metrics. It revealed 5.8% like-for-like net operating income (NOI) and 2% distribution growth.

Further passive income growth is expected in FY26. Funds from operations (FFO) – net rental earnings – per unit is expected to grow up to 6% in the 2026 financial year, with distribution growth of 3% to 16.8 cents per unit. That translates into a forward distribution yield of 4.8%.

Centuria Capital Group (ASX: CNI)

The other business I want to highlight is the fund manager of Centuria Industrial REIT, which is called Centuria Capital Group.

While the REIT generates earnings from rental income, the fund manager makes money from managing the properties.

Centuria is a key beneficiary of RBA rate cuts because of how that can help its assets under management (AUM). A rate cut should, theoretically, boost the value of properties and increase Centuria's management fees and operating earnings.

Additionally, rate cuts should reduce the cost of debt, which is also a tailwind for Centuria's earnings.

Finally, the more supportive environment for properties could see investors want to give more money to Centuria to manage, further boosting FUM.

The ASX dividend share is targeting at least $1 billion of real estate acquisitions in FY26, with forecast operating earnings per security (EPS) growth of 10% to 13.4 cents per security. It expects to pay a distribution yield of 4.7% in FY26, at the time of writing.

The post 2 ASX dividend shares to buy for this year and beyond appeared first on The Motley Fool Australia.

Three more of the best ASX shares to buy this month according to the broker are listed below. Here's why it is bullish on these names:

Centuria Capital Group (ASX: CNI)

A new addition to the panel this month is Centuria Capital.

Bell Potter believes the investment manager's shares are being undervalued by the market based on its positive outlook. Commenting on the ASX share, it said:

Centuria Capital Group (CNI) is an investment manager with c.$21b of predominantly real-estate-focused assets under management. CNI manages funds spanning listed, unlisted wholesale and unlisted retail syndicates across all major asset classes. As per their listed funds, CNI's assets under management is primarily in the Office and Industrial markets, however it also operates in Daily Needs & Large Format Retail, as well as alternative subsectors such as Healthcare, Real Estate Credit, and Agriculture. CNI is well positioned to benefit from tailwinds in the Real Estate sector, and we see cyclical upside yet to be priced in.

Praemium Ltd (ASX: PPS)

Another new addition to the panel in October is investment platform provider Praemium.

The broker highlights that despite its strong operational performance, its shares trade at a significant discount to peers. However, it feels this could change once it delivers further market share and funds under administration (FUA) growth. Bell Potter said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~18x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth fashion retailer Universal Store could be an ASX share to buy in October according to Bell Potter.

The broker thinks that its shares are good value. Especially given its potential for double-digit earnings growth in the coming years. It explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

The post Bell Potter names more of the best ASX shares to buy in October appeared first on The Motley Fool Australia.

As a (predominately) real estate fund manager, Centuria has been negatively impacted by the high interest rates in the last few years.

However, with the RBA now reducing the cash rate, it seems like headwinds are turning into tailwinds for Centuria and other property businesses.

Strong FY26 with pleasing guidance

The business reported that its FY25 operating earnings per security (OEPS) rose 4.3% year-over-year to 12.2 cents, which beat FY25 guidance.

Centuria pointed to improved market conditions which allowed it to outperform guidance.

The business paid a distribution per security of 10.4 cents in FY25, 4% higher than FY24. Any growth is a solid outcome, in my view. Its group assets under management (AUM) was $20.6 billion at 30 June 2025 and rate cuts could help that AUM figure growth organically in FY26.

Additionally, the ASX share is targeting more than $2 billion of real estate acquisitions in FY26, which I believe will be a strong tailwind for operating earnings growth in the medium-term.

The business is expecting to grow its operating EPS by another 10% in FY26, which is a strong growth rate for a business like Centuria where expectations were fairly low. It has also guided a distribution per security of 10.4 cents in FY26, translating into a forward distribution yield of 4.8%.

Since Centuria's announced acquisition of 50% ownership of ResetData in August 2024, it has launched Australia's first AI marketplace and constructed Australia's first sovereign public AI factory called AI-F1, it expects to start generating revenue in the second quarter of FY26. It's evaluating the feasibility for eight potential data centre/AI factory opportunities. This could unlock new ongoing earnings streams for Centuria.

Bullish market commentary

The ASX share's leadership team said:

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.

Increased real estate transaction volumes, expanding real estate finance with new products and capital sources, and complementary revenues through AI-enabled technology are anticipated to drive earnings growth.

In my view, the future looks very promising for the ASX share, particularly if more RBA rate cuts are on the cards. That's why I'm still a shareholder and I was very pleased by what was revealed.

The post Why I loved this ASX share's result (and it wasn't due to the 10% gain) appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.70% on Tuesday. 

Let's see what investors were reacting to. 

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.

The post Why this ASX 200 stock flew 10% higher yesterday appeared first on The Motley Fool Australia.

Broadly, when the interest rate is reduced, it should be beneficial for asset prices. The legendary investor Warren Buffett once explained why that's the case:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

With that in mind, the following ASX shares look like buys to me amid a falling interest rate environment.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns a variety of farms across Australia, including cattle, almonds, macadamias, and vineyards.

I think rate cuts are a powerful tailwind for this business because they can reduce interest costs (helping rental profits and distributions) and increase the value of the properties.

The business is benefiting from organic rental growth which is linked to inflation, or there's fixed annual increases, plus market reviews.

It expects to pay a distribution yield of 6.2%, which is a strong level of passive income in this era of reducing interest rates.

The reason why I think the stock is so attractive is that it's trading at a discount of around 40% to the net asset value (NAV) as of 31 December 2024.

Centuria Capital Group (ASX: CNI)

Centuria is a fund manager focused on providing real estate investments and investment bonds.

The fund manager can benefit from rate cuts in the same way as Rural Funds – with lower interest costs and an increase in the value of properties (helping funds under management (FUM) grow organically). But the business can also benefit if clients decide to allocate more money to Centuria, with a more positive environment for property prices.

The ASX share expects to report 2.5% growth of operating earnings per security (EPS) to 12 cents in FY25, and the distribution per security will be higher by 4% to 10.4 cents. That translates into a distribution yield of 5.3%.

I think this ASX share could be one of the biggest beneficiaries of rate cuts in the S&P/ASX 200 Index (ASX: XJO).

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment company that focuses on relatively small technology businesses with big potential. These tech names normally have attractive unit economics, international growth potential, and deliver repeat revenue.

As interest rates reduce, I think high-growth businesses may become more highly valued by investors (if they aren't already). Plus, Bailador aims to pay a good dividend yield based on its portfolio value, which may also become increasingly attractive for income-seeking investors.

Based on the monthly update for July 2025, the ASX share is trading at a 30% discount to its post-tax net tangible assets (NTA) per unit of $1.68, which I think is a very attractive valuation.  

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The two ASX 200 shares I'm going to highlight today are two of my favourites in the ASX 200, which is why I've invested in them for my own portfolio.

I believe both businesses can benefit from the Reserve Bank of Australia (RBA)'s interest rate cuts, which is particularly useful because plenty of market commentators are predicting a rate cut later this month.

Centuria Capital Group (ASX: CNI)

This ASX 200 share is a fund manager predominantly focused on real estate. It also provides exposure to tax-effective investment bonds.

It has exposure to various property subsectors, including office, industrial, real estate finance, large format retail, healthcare, daily needs retail, and agriculture. I like how the business is diversifying its earnings, while continuing to win new client mandates in its core areas.

Despite the headwind of high interest rates, the business has been able to deliver operating earnings growth for investors. In the FY25 half-year result, operating net profit rose 3.4% to $51.1 million, operating earnings per security (OEPS) grew 1.6% to 6.2 cents, and the distribution per security increased by 4% to 5.2 cents. I'm expecting further growth in the medium term.

Rate cuts could help by reducing the cost of Centuria's debt (boosting profit and the distribution), increasing the value of the properties it manages (boosting management fees), and encouraging clients to allocate more funds to Centuria to manage.

The FY25 annual distribution per security of 10.4 cents translates into a distribution yield of 5.7%.

Centuria Industrial REIT (ASX: CIP)

This is one of the real estate investment trusts (REITs) that Centuria manages.

It's focused on high-quality Australian industrial properties, diversified by geography, sub-sector, tenants, and lease expiry. Its biggest three tenants include Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), and Arnott's.

The ASX 200 share is benefiting from a number of tailwinds, including increased e-commerce adoption, a growing national population, onshoring of supply chains, increased data centre demand, and fresh food and pharmaceutical demand (for temperature-controlled spaces).

Australia has one of the lowest vacancy rates in the Western world, and medium-term demand is expected to exceed future supply, which could help drive rental income higher.

The business is working on a development pipeline worth more than $1 billion, which can help grow rental profit and increase the value of its property portfolio.

I'm expecting RBA rate cuts will help increase rental profit (with lower interest costs) and push up the value of the properties. The REIT is currently trading at a discount of close to 20% to its net tangible assets (NTA) as at 31 December 2024, which is a very appealing discount, in my opinion.

The ASX 200 share's FY25 distribution translates into a distribution yield of 5.2%.

The post 2 of the best ASX 200 shares to buy right now appeared first on The Motley Fool Australia.

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High inflation and high interest rates were detrimental for asset valuations, but I'm expecting that to reverse in the coming months and years.

While the US tariff situation remains uncertain, I think certain ASX stocks are well positioned to materially benefit from rate cuts.

ASX property shares to win?

For me, there's one clear area of opportunity. Property businesses like ASX real estate investment trusts (REITs) have suffered from both the higher cost of debt (hurting rental profits) as well as the headwind for property valuations.

Warren Buffett once explained why interest rates are so important to valuations:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Currently, there are a number of appealing ASX property shares that are trading at large discounts to their underlying value. I'm thinking of names like Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Dexus Industria REIT (ASX: DXI).

With predictable rental income, sizeable distributions and large asset discounts, I think they're primed to outperform the S&P/ASX 200 Index (ASX: XJO) over the medium-term.

I also believe property fund managers could be strong performers because a turnaround in conditions for the real estate sector could mean a boost to funds under management (FUM), both through positive property revaluations and clients allocating more money to funds managers such as Centuria Capital Group (ASX: CNI) and Charter Hall Group (ASX: CHC).

Other areas that could benefit

I also believe that defensive ASX shares could beneficiaries of the rate cuts. I'm thinking of names like Transurban Group (ASX: TCL), APA Group (ASX: APA) and Propel Funeral Partners Ltd (ASX: PFP) that look appealing at the current valuations. In my view, they look too cheap, particularly with RBA rate cuts seemingly inbound.

ASX retail shares could also be appealing. However, they're unlikely to see a uniform increase in sales. So, I'd pay closer attention here to the valuation and potential for a sales recovery. Names like Accent Group Ltd (ASX: AX1) and Adairs Ltd (ASX: ADH) could be brave, contrarian ideas.

The post Where I'd invest in ASX shares ahead of the likely RBA rate cut appeared first on The Motley Fool Australia.