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Centuria Industrial $70m Capital Raising

Centuria Industrial REIT announced the acquisition of 3 industrial assets for $59.3M and a fully underwritten capital raising of $70m.

Approximately $60M of funds from the capital raising will be used to fund the acquisitions and associated transactions costs, with a further $10 million earmarked for capital expenditure to enhance the assets.

The capital raising is is fully underwritten by Moelis Australia Advisory Pty. Ltd. and UBS AG, and priced at $3.05 per unit, representing a;

  • 3.0% discount to the distribution-adjusted last close price of 3.14 on 26 June 20193 ;

  • 3.2% discount to the distribution-adjusted 5-day VWAP of 3.15 on 26 June 20194 ; and

  • 6.5% FY20 FFO yield

CIP has also independently revalued 9 of its existing 42 properties as at 30 June 2019, resulting in an increase of $24.1 million, or 8.5% on prior valuations, and reflecting 32 bps of capitalisation rate compression.

Following completion of the acquisitions and capital raising, CIP expects :

  • FY19 FFO per unit of 19.3 cents;

  • FY19 distributable earnings per unit (EPU) of 18.8 cents per unit, at the mid point of previous guidance7;

  • FY19 distribution per unit (DPU) of 18.4 cents; and

  • FY20 FFO per unit growth of 2–3% over FY19 FFO.

CIP‘s forma gearing reduces to 34.9% providing capacity to pursue future opportunities in line with CIP's strategy