Highlights

• FY26 funds from operations reached A$114.1 million, with FFO of 18.2 cents per unit.

• Portfolio occupancy stood at 95.2%, supported by more than 226,200 sqm of leasing activity.

• The portfolio recorded a fifth consecutive period of valuation growth, including a A$116 million increase.

• FY27 guidance targets FFO of 18.8 to 19.2 cents per unit and distribution of 17.3 cents per unit.

• Gearing was 34.9% at 30 June 2026, while net tangible Assets were A$4.01 per unit.

Centuria Industrial REIT (ASX:CIP) is Australia’s largest domestic pure-play industrial REIT, with a portfolio focused on industrial assets in key urban infill locations. Its FY26 result highlighted continued leasing activity, valuation gains and higher recurring earnings, while FY27 guidance points to further FFO growth and a modest increase in distributions. The current profile combines high occupancy and long Lease duration with a gearing level that remains important to monitor as the trust advances acquisitions, developments and Portfolio Management initiatives.

FY26 Earnings and Portfolio Performance

For the year ended 30 June 2026, CIP reported funds from operations of A$114.1 million and FFO of 18.2 cents per unit. Distribution per unit was 16.8 cents, while statutory profit was A$160.4 million. Net tangible assets reached A$4.01 per unit and gearing stood at 34.9%. For a property trust, FFO is a useful measure of recurring operating performance because statutory profit can include non-cash property valuation movements.

Leasing Activity Supports Income Growth

CIP (ASX:CIP) completed more than 226,200 sqm of leasing across 30 transactions during FY26, representing a material share of its portfolio. Average re-leasing spreads were 30% on a net rent basis under the company’s stated methodology, while like-for-like net Operating Income increased 5.2%. Portfolio occupancy was 95.2% by income and weighted average lease expiry was 7.0 years, providing visibility over contracted rental income while leaving some vacancy and future lease expiries to manage.

Valuations and Portfolio Positioning

The trust reported a A$116 million valuation increase during FY26, marking its fifth consecutive period of valuation growth. At 30 June 2026, the portfolio comprised 83 assets with a Book Value of A$3,934 million and a weighted average Capitalisation rate of 5.80%. CIP also continued portfolio recycling, including strategic divestments, while maintaining a portfolio concentrated in industrial and logistics property across major Australian markets.

FY27 Guidance and Development Pipeline

For FY27, CIP (ASX:CIP) guided to FFO of 18.8 to 19.2 cents per unit and distribution of 17.3 cents per unit, paid quarterly. The trust is also progressing a proposed data centre development at Clayton, Victoria, where development approval is targeted during the first half of FY27. The company has not provided earnings contributions for the project, so its financial impact should not be assumed. Guidance remains subject to property income, funding costs, leasing outcomes and broader operating conditions.

Balance Sheet Considerations

Gearing of 34.9% places funding discipline alongside leasing and valuations as a key operational consideration. Industrial property values remain sensitive to capitalisation rates and financing conditions, while refinancing requirements can affect future cash flows. CIP’s occupancy, lease duration and rental escalations provide recurring income support, but changes in valuations or interest costs can influence net tangible assets, gearing and the capacity to fund new investments.

Key Insights

CIP’s FY26 result showed an industrial property portfolio with high occupancy, active leasing and continued valuation growth. FY27 guidance indicates management expects incremental FFO and distribution growth, while the Balance Sheet and development pipeline remain central to the outlook. The key variables are the durability of rental growth, progress on new developments, property valuations and the cost of funding as the trust manages its portfolio through the next reporting period.