• $56.6m Funds From Operations (FFO), 8.9 cents per unit
• 8.15 cents distribution per unit
• 6.4% like-for-like Net Operating Income growth
• $3.89 per unit Net Tangible Assets

Centuria Industrial REIT (CIP), Australia's largest domestic pure-play industrial REIT, has announced its Half Year financial results for the period ended 31 December 2024. CIP delivered Funds From Operations (FFO) of $56.6 million or 8.9 cents per unit, and declared distributions of 8.1 cents per unit. The portfolio achieved a strong 6.4% like-for-like growth in Net Operating Income, driven by positive re-leasing spreads of 50% across 13 lease deals representing 7% of portfolio GLA. CIP's balance sheet remained robust, with gearing at 33.5% and interest coverage ratio of 2.8 times, providing substantial headroom to covenants. The portfolio was externally valued, resulting in a $47 million like-for-like valuation gain and a weighted average capitalization rate of 5.83%. CIP's Net Tangible Assets (NTA) stood at $3.89 per unit. The company progressed its $1.1 billion development pipeline, commencing $60 million of new projects, and also completed $60 million of strategic divestments at a premium to book value. CIP's portfolio is well-positioned to capitalize on strong macroeconomic tailwinds, including population growth, e-commerce adoption, and onshoring of supply chains, driving demand for urban infill industrial facilities.

CIP reaffirms its FY25 FFO guidance of 17.5 cents per unit and distribution guidance of 16.3 cents per unit.

Australian industrial markets continue to exhibit the lowest industrial vacancy rates among comparable international markets, with urban infill markets outperforming fringe markets. This indicates greater capacity for continued rental growth within the urban infill markets, which CIP is largely exposed to.