Key Takeaways
- • Centuria Industrial REIT (ASX: CIP) will be included in the FTSE EPRA Nareit Global Index effective 21 June 2021, marking a significant milestone for the Australian industrial real estate platform.
- • The portfolio has grown to $2.9 billion across 61 assets with 98.8% occupancy and a 9.7-year weighted average lease expiry (WALE), demonstrating operational strength and tenant stability.
- • Portfolio valuations increased by $192 million (approximately 8% in book values) in late March 2021, driven by compression across data centres and logistics assets in key markets including Victoria, Greater Western Sydney, and Brisbane Airport.
- • The company completed its 13th acquisition for the financial year in mid-April 2021 with the purchase of Arndell Park in Sydney for $27 million, and recently secured a lease extension with Woolworths.
- • Global index inclusion reflects Centuria's track record as Australia's largest domestic pure-play industrial REIT and recognition of the fund manager's sector foresight since inception of the REIT over five years ago.
Summary
Centuria Industrial REIT has achieved inclusion in the FTSE EPRA Nareit Global Index, with the listing to commence on 21 June 2021. The Financial Times Stock Exchange European Public Real Estate Nareit Global Index tracks listed real estate investment trusts globally based on liquidity, size, and revenue metrics, positioning CIP among a select group of REITs meeting these international standards.
The milestone reflects a period of strong operational and valuation performance. In late March 2021, Centuria reported portfolio valuations rose by $192 million, representing approximately 8% growth in book values. This appreciation was distributed across multiple geographies and asset types: a data centre in Victoria achieved 50 basis points of capitalization rate compression, two properties in Greater Western Sydney posted gains of $11.8 million and $3.4 million respectively, and a property near Brisbane Airport increased in value by $20 million. These gains underscore the quality of Centuria's industrial and logistics portfolio and market conditions favoring the sector across Australia's eastern seaboard.
The portfolio now comprises 61 assets valued at $2.9 billion with a 9.7-year weighted average lease expiry and 98.8% occupancy, metrics indicating both scale and operational stability. The company completed 13 acquisitions during the financial year, including the Arndell Park purchase in Sydney for $27 million in mid-April 2021. A recent lease extension with Woolworths further underpins revenue stability. According to Fund Manager Jesse Curtis, the global index inclusion represents recognition of Centuria's industry foresight. The company, which has managed the REIT for just over five years, is established as Australia's largest domestic pure-play industrial REIT and maintains inclusion in the S&P/ASX 200 Index.
The milestone reflects a period of strong operational and valuation performance. In late March 2021, Centuria reported portfolio valuations rose by $192 million, representing approximately 8% growth in book values. This appreciation was distributed across multiple geographies and asset types: a data centre in Victoria achieved 50 basis points of capitalization rate compression, two properties in Greater Western Sydney posted gains of $11.8 million and $3.4 million respectively, and a property near Brisbane Airport increased in value by $20 million. These gains underscore the quality of Centuria's industrial and logistics portfolio and market conditions favoring the sector across Australia's eastern seaboard.
The portfolio now comprises 61 assets valued at $2.9 billion with a 9.7-year weighted average lease expiry and 98.8% occupancy, metrics indicating both scale and operational stability. The company completed 13 acquisitions during the financial year, including the Arndell Park purchase in Sydney for $27 million in mid-April 2021. A recent lease extension with Woolworths further underpins revenue stability. According to Fund Manager Jesse Curtis, the global index inclusion represents recognition of Centuria's industry foresight. The company, which has managed the REIT for just over five years, is established as Australia's largest domestic pure-play industrial REIT and maintains inclusion in the S&P/ASX 200 Index.
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