SYDNEY: Centuria Industrial REIT (ASX: CIP), Australia’s largest domestic pure-play industrial real estate investment trust, posted a 2% year-on-year increase in Funds From Operations (FFO) to $110.9 million for the fiscal year ended June 30, 2025.
The REIT delivered 17.5 cents per unit in FFO and 16.3 cents in distributions, both in line with guidance. Net Tangible Assets (NTA) rose to $3.92 per unit, supported by a 5.8% like-for-like Net Operating Income (NOI) growth.
CIP announced a $60 million on-market buy-back, citing a disconnect between its trading price and divestment metrics. The REIT divested four assets during FY25 for $140 million, achieving an average 12% premium to book value.
“CIP’s portfolio delivered another strong year, enabling forecast earnings growth for FY26,” said Grant Nichols, CIP Fund Manager. “We anticipate further growth beyond FY26 as we capitalize on significant portfolio under-renting.”
The REIT maintained a strong balance sheet with 33.2% pro forma gearing and $457 million in liquidity. Debt refinancing of $455 million was completed during the year, with 86% of debt hedged.
Portfolio metrics remained robust, with 87 assets valued at $3.9 billion, 95.1% occupancy, and a 7.1-year weighted average lease expiry. Leasing activity covered 150,900 sqm, with positive re-leasing spreads averaging 34%.
CIP provided FY26 guidance of 18.0–18.5 cents per unit in FFO and 16.8 cents in distributions, reflecting up to 6% and 3% growth respectively.
Centuria continues to assess data center potential across four CIP sites and targets zero Scope 2 emissions by 2028.