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Centuria Industrial Quarterly Update


Centuria provide an operating update for Q1 FY20 for its Industrial REIT this week.

Key Highlights

  • Terms agreed for leasing deals over 34,652sqm across eight transactions (4.0% of portfolio GLA)

  • WALE at 4.2 years , occupancy at 95.3%

  • Acquisition of $61.8 million of industrial assets

Jesse Curtis, CIP Fund Manager commented, “CIP has achieved strong leasing outcomes across the portfolio with terms agreed1 across more than 34,600sqm further underpinning our active management of the portfolio’s occupancy and expiry profile.” “Pleasingly, CIP’s team generated strong leasing success across two of its recent acquisitions delivering a new long term lease at North Geelong and securing new tenant customers at Hemmant.

This further demonstrates the team’s ability to deliver leasing outcomes within a short timeframe to enhance value across the portfolio.”

Significant leases agreed in the quarter include:

  • 75-95 & 105 Corio Quay Road, North Geelong VIC (21,772sqm): Lease extension with the incumbent tenant, Boardriders Inc., increasing the asset’s WALE to 11.8 years

  • 9-13 Caribou Drive, Direk SA (7,027sqm): New lease agreed with a Fisher & Paykel for a 5 year term

  • 46 Gosport Street, Hemmant QLD: Two new leases agreed in the quarter over 4,127sqm of warehouse and approximately 5,500sqm of hardstand

As a result of leasing during the quarter CIP’s remaining FY20 expiry has reduced to 5.3%.

During the quarter, a $70 million Placement was settled along with an upscaled Unit Purchase Plan (UPP) of $21m million. Proceeds were used to complete acquisitions during the quarter:

  • Settlement of 75-95 & 105 Corio Quay Road, North Geelong VIC ($22.8m) and 680 Boundary Road, Richlands QLD ($19.5m) as announced on 27 June 2019

  • The conditional exchange of 32-54 Kaurna Avenue, Edinburgh Park SA for $19.5 million as announced on 9 September 2019. Settlement remains subject to conditions precedent.

Jesse Curtis commented, “CIP has continued to focus on identifying and executing strategic acquisitions that are relevant to the broader tenant markets and are well located in core metropolitan areas with good access to key infrastructure. Furthermore, the acquisitions provide another example of our team’s ability to unlock and execute off market transaction opportunities, continuing to grow CIP’s high quality portfolio.”

CIP confirms its forecast FY20 FFO4 guidance growth of 2-3% per unit from FY19, with distributions of 18.7 cents per unit.

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