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 REIT five years after inception.
- • The portfolio has grown to AUD 2.9 billion across 61 assets with a 9.7-year weighted average lease expiry and 98.8% occupancy, demonstrating strong operational metrics.
- • In late March 2021, portfolio valuations increased by AUD 192 million (approximately 8% rise in book values), driven by capitalisation rate compression across eastern seaboard properties and regional acquisitions.
- • CIP completed 13 acquisitions during the financial year, including the AUD 27 million acquisition of Arndell Park in Sydney in mid-April 2021, strengthening its industrial property footprint.
- • Global index inclusion reflects recognition of Centuria's management foresight and operational strength, positioning the REIT for enhanced institutional investor visibility and liquidity.
Summary
Centuria Industrial REIT has achieved a significant milestone with its inclusion in the FTSE EPRA Nareit Global Index, effective 21 June 2021. The FTSE EPRA Nareit Global Index is a major benchmark tracking listed real estate investment trusts' performance worldwide based on funds' liquidity, size, and revenue. This recognition comes approximately five years after Centuria commenced management of the REIT, reflecting substantial institutional traction and operational maturation.
The company's portfolio has expanded considerably to AUD 2.9 billion, comprising 61 industrial assets with a weighted average lease expiry of 9.7 years and occupancy of 98.8%. These metrics underscore strong leasing quality and cash flow stability. Portfolio valuations have risen sharply, with late March 2021 reporting showing an increase of AUD 192 million, representing approximately 8% growth in book values. This appreciation was driven by capitalisation rate compression across multiple markets: a data centre in Victoria achieved a 50-basis-point improvement, while properties in Greater Western Sydney increased in value by AUD 11.8 million and AUD 3.4 million respectively, and a Brisbane Airport-adjacent property appreciated by AUD 20 million.
CIP's acquisition strategy has remained active, with 13 acquisitions completed during the financial year. In mid-April 2021, the REIT acquired Arndell Park in Sydney for AUD 27 million, further diversifying its tenant and geographic mix. Recent operational highlights include a lease extension with Woolworths, which maintains stability within the portfolio's major tenant relationships.
According to Fund Manager Jesse Curtis, the global index inclusion represents recognition of Centuria's industry foresight and the quality of its industrial property portfolio management. The inclusion should enhance the REIT's profile among international institutional investors and potentially improve liquidity for existing shareholders.
The company's portfolio has expanded considerably to AUD 2.9 billion, comprising 61 industrial assets with a weighted average lease expiry of 9.7 years and occupancy of 98.8%. These metrics underscore strong leasing quality and cash flow stability. Portfolio valuations have risen sharply, with late March 2021 reporting showing an increase of AUD 192 million, representing approximately 8% growth in book values. This appreciation was driven by capitalisation rate compression across multiple markets: a data centre in Victoria achieved a 50-basis-point improvement, while properties in Greater Western Sydney increased in value by AUD 11.8 million and AUD 3.4 million respectively, and a Brisbane Airport-adjacent property appreciated by AUD 20 million.
CIP's acquisition strategy has remained active, with 13 acquisitions completed during the financial year. In mid-April 2021, the REIT acquired Arndell Park in Sydney for AUD 27 million, further diversifying its tenant and geographic mix. Recent operational highlights include a lease extension with Woolworths, which maintains stability within the portfolio's major tenant relationships.
According to Fund Manager Jesse Curtis, the global index inclusion represents recognition of Centuria's industry foresight and the quality of its industrial property portfolio management. The inclusion should enhance the REIT's profile among international institutional investors and potentially improve liquidity for existing shareholders.
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