AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- 11.5% revenue increase to $128.9m
- Strong leasing activity with 79,000sqm secured
- Effective capital management with strategic hedging
Centuria Industrial REIT (ASX:CIP) has unveiled its half-year results for HY25, demonstrating a resilient performance amid evolving market conditions. The latest figures highlight a notable revenue growth, operational efficiency, and sound capital management practices that support a strong future development pipeline.
The reported total revenue reached $128.9 million, marking an 11.5% improvement compared to the previous half-year period. This uplift reflects the REIT’s ability to adapt to market demands and capitalize on new leasing opportunities. In addition, funds from operations (FFO) per unit increased to 8.9 cents, while distributions per unit reached 8.15 cents, resulting in a distribution yield of 5.8%. These figures indicate that the REIT’s core performance metrics remain solid and continue to generate attractive returns for its stakeholders.
Operational performance was another area of strength, with a like-for-like net operating income (NOI) growth of 6.4%. The REIT secured over 79,000 square meters of new leasing space, contributing to an impressive portfolio occupancy rate of 96.6%. This achievement underscores a robust demand for industrial assets and points to the REIT’s effective strategy in managing and expanding its portfolio. Furthermore, $60 million was invested in development commencements during the period, paving the way for future enhancements and capacity expansion.
On the capital management front, Centuria Industrial REIT implemented a strategic approach by executing $200 million in interest rate hedging at competitive pricing. Additionally, the organization refinanced $100 million of forward debt, maintaining a gearing ratio of 33.5%—positioned at the lower end of its targeted range. With no debt maturities scheduled until FY26, the REIT is well-placed to navigate any market fluctuations and sustain its growth trajectory.
Looking ahead, the REIT has reiterated its guidance for FY25, projecting FFO to reach 17.5 cents per unit and distributions to be 16.3 cents per unit, with a payout ratio maintained at 93%. This forward-looking guidance reinforces the confidence in the company’s operational capabilities and financial stability, ensuring that future performance aligns with the strategic objectives set out by management.
Overall, the HY25 results for Centuria Industrial REIT (ASX:CIP) reflect a period of notable progress, characterized by strong revenue performance, robust leasing activity, and prudent capital management. These developments underscore the REIT’s continued commitment to growth and operational excellence while strategically positioning itself for future opportunities.
