Centuria Industrial REIT: FY24 Property Compendium Overview
CIP (CIP) Share Update July 2024 Tuesday 30th
Centuria Industrial REIT Releases FY24 Property Compendium
Centuria Industrial REIT (ASX: CIP), Australia's largest domestic pure-play industrial real estate investment trust, has released its FY24 Property Compendium. This detailed report provides an in-depth look at the REIT's extensive portfolio, which includes properties across New South Wales, Victoria, Queensland, Western Australia, and South Australia.
Instant Summary:
- Portfolio value: $3.8 billion
- Number of assets: 89
- Occupancy rate: 97.1%
- Top tenants include Telstra, Woolworths, and Arnott’s
- Weighted average lease expiry (WALE) by income: 7.6 years
Portfolio Overview
Centuria Industrial REIT's FY24 Property Compendium reveals a robust portfolio valued at $3.8 billion, comprising 89 assets with a gross lettable area (GLA) of 1,325,318 square meters. The REIT boasts an impressive occupancy rate of 97.1% and a WALE by income of 7.6 years, reflecting the stability and long-term nature of its lease agreements.
The portfolio is diversified across several key Australian states, with significant holdings in New South Wales (23 assets), Victoria (31 assets), Queensland (20 assets), Western Australia (9 assets), and South Australia (6 assets). This geographic spread ensures a balanced risk profile and exposure to various industrial markets.
Key Properties and Tenants
Some of the standout properties in the portfolio include:
- 10 and 12 Williamson Road, Ingleburn, NSW: Two manufacturing facilities with a combined book value of $148.6 million and major tenants like Visy and Real Petfood Company.
- Telstra Data Centre Complex, Clayton, VIC: A high-value asset at $417 million, serving as a critical data center with a WALE of 26.2 years.
- 22 Hawkins Crescent, Bundamba, QLD: A temperature-controlled distribution center valued at $42 million, fully leased to API.
The REIT's top tenants by income include Telstra (9%), Woolworths (7%), and Arnott’s (7%), indicating a strong and reliable tenant base. Other notable tenants include Visy, Fantastic Furniture, and Bidfood Australia.
Strategic Locations and Future Developments
Centuria Industrial REIT's properties are strategically located in urban infill markets close to major infrastructure, enhancing their appeal to tenants and ensuring high occupancy rates. The portfolio's freehold ownership stands at 99%, providing long-term security and potential for future redevelopment.
The REIT is also focused on sustainability, with several properties targeting Green Star ratings. For instance, the recently completed development at 204-208 Bannister Road, Canning Vale, WA, aims for a Five Star Green Star rating, reflecting the REIT's commitment to environmentally responsible investments.
The release of the FY24 Property Compendium is likely to positively impact Centuria Industrial REIT's stock, as it highlights the REIT's strong portfolio, high occupancy rates, and stable income from long-term leases. Investors may view the detailed information on key properties and tenants as a sign of the REIT's robust performance and potential for future growth.
Investor Reaction:
Analysts are expected to react favorably to the comprehensive data provided in the compendium. The high occupancy rates and long WALE indicate a stable and secure investment, which should bolster investor confidence. The focus on sustainability and strategic locations further enhances the REIT's appeal.
Conclusion:
Investors should consider Centuria Industrial REIT's strong portfolio and strategic approach when making investment decisions. The detailed insights provided in the FY24 Property Compendium underscore the REIT's potential for sustained growth and stability in the industrial real estate market.