Centuria Industrial (CIP) H1 2026 earnings summary

Executive summary

• Delivered strong HY26 results with 5.1% like-for-like NOI growth, $57.3m FFO, and statutory profit of $68.9m, supported by robust leasing, proactive capital management, and a focus on high-quality, urban infill industrial assets.

• Portfolio occupancy increased to 95.7%, with 143,900–144,000 sqm leased (11–12% of portfolio GLA), and WALE at 7.1 years.

• Achieved average re-leasing spreads of up to 133% in Melbourne and 44% portfolio-wide, with significant valuation gains and strategic divestments at a premium to book value.

• Data centre exposure expanded with over $450m in operating assets, new acquisitions, and a DA submitted for a 40MW facility, leveraging demand from AI and cloud sectors.

• Units continue to trade at a 20% discount to NTA, with $36m of a $60m buyback completed.

Financial highlights

• Net property income for HY26 was $101.2m, up 5.1% like-for-like year-over-year.

• FFO increased to $57.3m (9.1 cpu), with a payout ratio of 92%.

• Statutory net profit attributable to unitholders was $68.9m, up from $62.6m in HY25.

• Portfolio valuation increased by $75m, marking the fourth consecutive period of gains.

• Net tangible assets per unit rose to $3.95; gearing at 35.9%.

Outlook and guidance

• Upgraded FY26 FFO guidance to 18.2–18.5 cpu and distribution guidance to 16.8 cpu, both to be paid quarterly.

• Significant earnings and valuation upside expected from under-rented leases and development pipeline, with national vacancy projected to fall below 2% by 2030.

• Management remains focused on portfolio leasing, risk mitigation, and acquiring quality assets.

• Market outlook remains supportive, with face rental growth of 4% p.a. expected from 2025–2030.