CIP provides FY27 guidance uplift

Delivers near record leasing, strong re-leasing spreads and valuation gains in FY26

• FY27 guidance¹ : FFO² of 18.8–19.2cpu (up to 5.5% above FY26), distributions of 17.3cpu (3% above FY26)
• Strong 5.2% like-for-like Net Operating Income (NOI) growth
• Near-record leasing totalling c.226,200sqm (18% of portfolio GLA)³ , 30% positive re-leasing spreads ^4,5
• $116 million portfolio valuation gain⁶ in FY26, +3.2%
• Existing asset conversion to data centre opportunities provide potential +250MW pipeline
• Delivered on FY26 guidance: 18.2 cents per unit (cpu) FFO ¹, 16.8 cents distribution per unit (dpu)

Australia’s largest listed domestic pure-play industrial REIT, Centuria Industrial REIT (ASX: CIP), announced its FY26 results, revealing an impressive year marked by near-record leasing activity and consistently strong re-leasing spreads, enabling CIP to achieve significant Net Operating Income (NOI) growth, which is translating into tangible growth in Funds From Operations (FFO).

CIP delivered on its FY26 guidance, providing $114.1 million Funds From Operations (FFO)², up 3% on FY25, equating to 18.2 cents per unit (cpu). FFO reflects the REIT’s earnings. CIP also delivered on distribution guidance of 16.8 cents per distribution per unit (dpu).

During FY26, the REIT executed c.226,200 sqm of leasing activity³, representing 18% of portfolio GLA ⁷. Persistent tenant demand for high-quality urban infill industrial accommodation has enabled CIP to achieve significant positive average re-leasing spreads of 30%^4,5. Re-leasing spreads reflect the increased rental value between a prior lease and current lease on the same property. With a relatively low national industrial vacancy rate and a diminishing future supply pipeline, the outlook for continued rental growth is robust.

Significantly, across CIP’s portfolio its leases are on average 17% under-rented providing ample opportunity for continued NOI growth. During FY26, CIP achieved like-for-like NOI growth of 5.2%.

These strong tailwinds permit the REIT to provide an uplift for its FY27 guidance¹ with a FFO guidance range of 18.8 – 19.2cpu, up to 5.5% above FY26, and distribution guidance¹ of 17.3cpu, 3% above FY26.

Throughout FY26, CIP’s Net Tangible Assets⁸ (NTA) increased to $4.01 from $3.92. Its NTA, coupled with strong sales evidence, underline a disparity with REIT’s current trading price, reflecting a c.25% discount. CIP divested five assets for a combined value of $200 million⁹ during the period at a significant average premium to book value of 17%. We believe these sales underscore the ongoing investment demand for Australian urban infill industrial real estate. 86% of CIP’s portfolio is located in urban infill markets.

Grant Nichols, CIP Fund Manager and Centuria Head of Listed Funds said, “Throughout FY26, CIP has continued to capitalise on persistently strong investment demand for Australian urban infill industrial real estate. In FY26, CIP’s divestments provided an average 17% premium to book value and the REIT has consistently sold assets at substantial premiums to book value for a number of years. These sales once again highlight the continued disconnect to CIP’s current trading price.”

During the period, CIP continued to progress its data centre strategy, which targets real estate returns from its current, operational data centres while seeking a higher and better use from its large, urban infill landholding by obtaining power allocations and planning approval for data centre conversion.

Mr Nichols continued, “CIP has notably progressed its exposure to data centres. Data centre demand, driven by increasing AI workloads, is expected to far exceed anticipated capacity. Within the CIP portfolio, there are several assets with characteristics suitable for large-scale data centre conversion, some of which are capable of being ‘ready for service’ in the relatively near future, which may align when supply shortages are most critical.”

CIP has identified several data centre conversion opportunities across its portfolio, potentially exceeding 250 MW, with some offering the capacity to develop new operational data centres by 2030.

Power applications are progressing across multiple sites, and CIP anticipates development approval for a new c.40 MW in Clayton, Victoria will be obtained in 1H FY27.

Complementing asset conversion opportunities, CIP progressed several developments during FY26. The REIT completed three developments, securing strong leasing commitments for two and achieving an excellent Internal Rate of Return (IRR) from the sale of another.

CIP sold its new c.21,000 sqm Mirage Road, Direk SA industrial facility to an owner-occupier upon practical completion for $50 million, generating a 33% premium to cost and achieving an excellent 25% IRR.

It’s other c.7,000 sqm Direk industrial facility, located at 15-19 Caribou Road, was fully leased on a five-year term, achieving rents c.20% above underwritten feasibility rents and its redeveloped facility at 30 Fulton Drive, Derrimut Vic was leased on a five-year term, achieving a 42% re-leasing spread.

Mr Nichols commented, “These results underscore the ongoing development opportunities present within CIP’s largely urban infill portfolio, which has limited future competing land supply. They also reflect the capabilities of Centuria’s in-house development team to deliver innovative, modern assets in highly desirable locations.”

CIP has two development projects expected in FY27 – the redevelopment of 51 Musgrave Road, Coopers Plains Qld where construction has commenced on a new 10,300 sqm facility that will deliver eight units ranging from 1,500 sqm – 3,000 sqm. It is also seeking pre-commitments for 74 Newton Road, Wetherill Park NSW, a new c.30,000 sqm warehouse within one of Sydney’s fragmented infill industrial markets.

Grant Nichols, concluded, “The outlook for CIP is strong. Urban infill real estate offers multiple opportunities for higher and better use, while we expect the Australian industrial market to continue to have relatively low vacancy rates, with future supply expected to diminish. This creates an excellent environment for medium-term rental growth. Additionally, the under-renting that persists across the CIP portfolio further enhances the potential for future earnings and valuation growth.”

As at 11 August 2026, CIP’s portfolio consists of 83 assets worth $3.9 billion¹⁰, providing a 7.0-year WALE¹¹and 95.2% occupancy¹².

¹ Guidance remains subject to unforeseen circumstances and material changes in operating conditions

² FFO is CIP’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adjusted for certain non-cash and other items

³ Includes heads of agreement (HOA)

⁴ On a net rent basis compared to prior passing rents

⁵ Excludes capped rent reviews on exercise of options, renewal of specialised cold storage renewals and new lease where tenant vacated following unexpected liquidation

⁶ On a like-for-like basis. Reflects gross increase. Excludes capital expenditure incurred

⁷ Gross Lettable Area (GLA)

⁸ NTA per unit is calculated as net assets divided by number of units on issue

⁹ Includes divestment of 69 Rivergate Place, Murarrie Qld which exchanged in May 2025 and 680 Boundary Road, Richlands Qld which exchanged in July 2025. Settlement expected in FY26

¹⁰ CIP ownership share of joint venture assets

¹¹ By income

¹² Excludes development assets and 30 Fulton Drive, Derrimut Vic which has been withdrawn and currently undergoing significant repositioning works