Centuria Industrial (CIP) H2 2025 earnings summary

Executive summary

• Achieved FY25 FFO of $110.9m (17.5cpu), up 2% year-over-year, with 5.8% like-for-like NOI growth and 34% positive re-leasing spreads, supporting forecast FY26 earnings growth.

• Divested $140m of non-core assets at a 12% premium to book value, supporting future valuation growth and funding a $60m on-market buyback to address the trading discount to NTA.

• Portfolio occupancy at 95.1%, with 85% exposure to urban infill markets and c.20% under-rented, providing a significant earnings tailwind.

• FY26 FFO guidance of 18.0–18.5cpu (up to 6% above FY25) and distribution guidance of 16.8cpu (3% above FY25).

• Maintains strong balance sheet with 33.2% pro forma gearing, 86% debt hedged, and $457m in liquidity.

Financial highlights

• Net property income for FY25 was $192.3m, up from $180.9m in FY24.

• Like-for-like NOI grew 5.8% year-over-year.

• FFO reached $110.9m (17.5cpu), with distribution per unit at 16.3cpu and payout ratio at 93%.

• Statutory net profit was $133.1m, up from $48.1m in FY24, driven by a $47.4m net gain on fair value of investment properties.

• Portfolio value increased by $57m, with a stable weighted average cap rate of 5.86%.

Outlook and guidance

• FY26 FFO per unit guidance of 18.0–18.5cpu, up to 6% above FY25, and distribution guidance of 16.8cpu, 3% above FY25.

• Portfolio is c.20% under-rented on average, with 65% of lease expiries to FY29 under-rented, supporting future NOI growth.

• All-in cost of debt expected to stabilize around 5% in FY26, with potential for further reduction if interest rates fall.

• Medium-term development CapEx estimated at $140m, funded by ongoing asset sales and supported by a robust pipeline.

• Management expects continued earnings growth beyond FY26, supported by under-renting and strong market fundamentals.