Centuria Industrial REIT (ASX : CIP) is a real estate investment trust listed on the Australian Securities Exchange (ASX), focused exclusively on industrial assets. It is part of the broader Centuria Capital Group and holds a portfolio of strategically located industrial properties, primarily in urban infill areas such as Sydney, Melbourne, Brisbane, Adelaide, and Perth. The REIT is managed with a strategy centred on value creation through proactive asset management, development, and acquisitions in logistics and distribution hubs that are integral to supply chain operations. With a total market capitalisation of $1.92 billion and 634.93 million ordinary shares, CIP is ranked 20th out of 97 in its sector and 213th out of 2,322 on the ASX.
Leasing Momentum and Occupancy Strength
In Q3 FY25, CIP reported impressive leasing activity, securing 23,058sqm in leasing agreements across six separate deals. This lifted the total leasing figure for the financial year to approximately 102,000sqm, representing an 8% increase in gross lettable area. Key tenants secured during the quarter include Genus Infrastructure (6,441sqm in Welshpool, WA), Nova Concepts (4,606sqm in Keysborough, VIC), and a renewal by Fujitsu (6,561sqm in Malaga, WA). These leases reflect the quality and strategic positioning of CIP’s assets in high-demand infill locations.
Notably, the REIT achieved an average positive re-leasing spread of 41% YTD, signalling strong market demand and effective lease negotiations. This figure indicates a significant increase in rental income compared to previous lease terms. Management highlighted the importance of its urban infill strategy, particularly in Sydney, which comprises 30% of CIP’s total portfolio. These areas are experiencing supply constraints and elevated tenant competition, contributing to favourable rental growth trends.
CIP’s consistent occupancy levels and Weighted Average Lease Expiry (WALE) stability underpin its resilient income stream, offering investors both security and potential upside. These metrics are crucial for long-term performance and align with CIP’s focus on income reliability and capital growth.
Development Pipeline and Strategic Acquisition
Centuria Industrial REIT has continued to advance its development strategy, with two key repositioning projects in Direk, South Australia, on track for practical completion in FY26. These projects, valued at approximately $60 million, will enhance the portfolio’s modern logistics capabilities and yield-driven growth.
In addition, a new development at 346 Boundary Road, Derrimut (VIC) is set to commence in Q4 FY25, offering an opportunity to leverage strong industrial demand in one of Melbourne’s most tightly held industrial corridors. These development initiatives aim to create long-term value through increased rental income and improved asset quality.
Strategically, CIP acquired a 30% stake in a prime industrial facility in Canning Vale, Western Australia for $11.6 million. The property comprises two fully leased warehouses totalling 17,904sqm with a WALE of 2.5 years. This asset is adjacent to a property already owned by CIP, giving the REIT a significant combined corner landholding in a key logistics precinct. This acquisition aligns with the trust’s land consolidation strategy and enhances its scale and influence in Perth’s industrial sector.
CIP reaffirmed its FY25 guidance with funds from operations (FFO) of 17.5 cents per unit and distribution of 16.3 cents per unit, reflecting confidence in the strength and resilience of its operational platform. The fund manager emphasised that the current leasing environment remains favourable and highlighted the benefit of exposure to markets with limited supply pipelines.