Centuria Industrial REIT
FY21 Annual Results
Centuria Industrial REIT (ASX:CIP) provides its FY21 Results to 30 June 2021.
During FY21, CIP transacted 18 high quality acquisitions worth $966 million1. This included $631 million worth of assets across two new high conviction industrial sub-sectors, Data Centres and Cold Storage, as well as $335 million worth of urban infill logistics acquisitions.
Already in FY22, the REIT has further increased its portfolio from 627 to 677 industrial properties, increasing its portfolio value from $2.9 billion6 to $3.1 billion3. Within 13 months, CIP has almost doubled its portfolio value from $1.6 billion as at 30 June 2020 to FY22 YTD.
The quality of CIP’s portfolio is illustrative with more than a half-billion-dollar valuation uplift ($587 million4) during FY21.
CIP’s portfolio Weighted Average Capitalisation Rate (WACR) compressed 151bps from 6.05% to 4.54% during FY21.
The strong valuation gain underpinned Net Tangible Assets (NTA) of $3.83 per unit5,6, a 36% increase during FY217. This, combined with distributions of 17.0cpu7, delivered a Return on Equity of 41.8%8 to unitholders throughout the financial year.
FY21 was punctuated with by strong leasing transactions for CIP with nearly 240,000sqm of lease terms agreed9. A substantial 33 leasing transactions were completed, which accounted for more than a fifth (22%) of the portfolio’s gross lettable area (GLA). Major long term leasing transactions were undertaken with the likes of Woolworths and Visy.
As at 30 June 2021, occupancy was maintained at 96.9%10 and CIP’s Weighted Average Lease Expiry increased to 9.6 years11 from 7.2 years during the previous period.
During FY21, CIP was included in S&P/ASX 200 Index and most recently the FTSE EPRA Nareit Global Index, the latter means the REIT is more easily compared to high-performing peers across the world.