You are now leaving Centuria Australia
and entering Centuria New Zealand.
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.
Providing Unitholders with exposure and diversification across the key sub-sectors of Industrial Real Estate.
|MANUFACTURING||DISTRIBUTION CENTRES||TRANSPORT LOGISTICS||DATA CENTRES||COLD STORAGE|
|29% portfolio value||29% portfolio value||16% portfolio value||17% portfolio value||9% portfolio value|
1. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adjusted for certain non-cash and other items.
2. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill.
3. Return on equity calculated as (closing NTA minus opening NTA plus distributions) divided by opening NTA.
4. FY21 initial earnings guidance of 17.4 cents per unit was increase twice during FY21 to be no less than 17.6 cents per unit.
5. Reflects gross increase. Excludes capital expenditure incurred.
6. By income.
7. Excludes assets not settled as at 30 June 2020. In FY21 contracts were exchanged to acquire 18 assets. As at 30 June 2021, 13 assets were exchanged & settled. Five assets exchanged however not yet settled.
8. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill.
9. NTA per unit is calculated as net assets less goodwill divided by number of units on issue.
10. Source: Moelis Australia. Total Securityholder Return (TSR) equals change in unit price during the period, plus distributions declared.
11. Past performance is not a reliable indicator of future performance.
12. Occupancy and Weighted Average Lease Expiry (WALE) by income.