Highlights

• FY26 FFO of 18.2cps and distribution of 16.8cps per unit, delivered in line with market expectations

• Exceptional leasing activity: 226,000+ sqm across transactions with 30% positive re-leasing spreads

• Portfolio valuations increased $116m; FY27 FFO guidance upgraded to 18.8–19.2cps

• Data-centre conversion opportunities identified within the portfolio adding long-term strategic value

Centuria Industrial REIT (ASX:CIP) is Australia's largest ASX-listed pure-play industrial property trust, investing in a diversified portfolio of warehouses, logistics facilities, industrial estates and data centre-adjacent properties across Sydney, Melbourne, Brisbane, Adelaide and Perth. The trust benefits from the structural growth of e-commerce, Supply chain reshoring and logistics automation, which have driven sustained Demand for quality industrial space across Australia's major metropolitan markets. CIP is managed by Centuria Capital Group, one of Australia's leading non-bank property fund managers.

Latest Developments

Centuria Industrial REIT delivered strong FY26 results, including 18.2 cents per unit FFO and 16.8 cents distribution per unit. Leasing exceeded 226,000 square metres with 30% positive re-leasing spreads, while portfolio valuations increased $116 million. FY27 FFO guidance was upgraded to 18.8–19.2 cents, supported by strong leasing and data-centre opportunities.

Industry Context

Australian industrial property has been one of the strongest performing real estate sectors globally, driven by structurally declining vacancy rates, strong rental growth from E-commerce logistics demand, and the fundamental shortage of quality industrial zoned land in metropolitan areas. Re-leasing spreads of 30% — the premium CIP is achieving on renewed leases versus expiring leases — reflect how significantly market rents have grown ahead of in-place Lease rents. Data centre demand is creating an additional layer of value for strategically located industrial properties that can accommodate power and cooling infrastructure.

Key Risks

• Industrial property rental growth may moderate if the e-commerce driven demand cycle cools

• Rising interest rates increasing REIT Debt costs and compressing the spread between industrial yields and funding costs

• Portfolio valuation risk if cap rates rise due to higher Interest Rate environment

• Supply response — new industrial land releases and development could increase competition in some markets

• Data centre conversion optionality requires power access and regulatory approval that may limit the number of eligible assets

Key Catalysts to Watch

• FY27 re-leasing spreads continuing above 20–30%, driving sustainable rental growth above inflation

• Data centre partnerships or conversions within the portfolio creating value beyond traditional industrial lease income

• Interest rate cuts improving the financing cost environment and expanding the income spread on industrial properties

• Portfolio Acquisition of additional metropolitan industrial Assets at accretive yields

• Further FY27 guidance upgrades if leasing activity continues to outperform expectations

Conclusion

Centuria Industrial REIT (ASX:CIP) has delivered an outstanding FY26 result — 30% re-leasing spreads, 226,000sqm of leasing activity, rising valuations and an upgraded FY27 guidance are all characteristics of a trust operating in a genuinely favourable property market. The data centre optionality within the portfolio adds a strategic dimension beyond traditional industrial property returns. For investors seeking exposure to Australia's industrial property sector through a high-quality, diversified portfolio, CIP remains one of the most compelling listed property trust Options available.