• Lease terms covered 24,929 square metres of gross lettable area across seven deals, with financial year-to-date re-leasing spreads averaging 31 per cent.
  • Contracts have been exchanged to sell 22 Hawkins Crescent, Bundamba, for A$34.25 million, with settlement expected in December 2026.
  • FY27 guidance was reaffirmed: FFO of 18.8 to 19.2 cents per unit and distributions of 17.3 cents per unit.

Centuria Industrial REIT (ASX:CIP) released its Q1 FY27 operating update on 15 October 2026, reporting Lease terms covering 24,929 square metres of gross lettable area across seven deals in the quarter. The company said financial year-to-date re-leasing spreads averaged 31 per cent on a net rent basis against previous passing rents, and reaffirmed its FY27 guidance for Funds From Operations (FFO) and distributions.

Leasing and rent levels

The leasing figure, which the release describes as approximately 25,000 square metres and which includes heads of agreement, comes from seven transactions. CIP estimates its portfolio is approximately 17 per cent under-rented on average, and about 55 per cent of leases expiring over the next three years are currently under-rented. Those are company estimates of the gap between passing and market rents; whether it can be captured depends on future leasing outcomes.

Asset sale

Contracts have been exchanged to sell 22 Hawkins Crescent, Bundamba, Queensland, for A$34.25 million, in line with its most recent book value. The property of about 19,000 square metres is being sold to an owner-occupier, with settlement expected in December 2026. CIP said 40 per cent of its divestments by number of transactions since FY25 have gone to owner-occupiers. Settlement has not yet occurred.

Data centres and energy

CIP reports an identified power pipeline of more than 250 megawatts, including sites at Clayton and Thomastown in Victoria. It said data centre opportunities are expected to materialise primarily from FY28 onward, so they are not described as contributing to FY27 guidance. The release also mentions a renewable energy Partnership with Energy Bay that could allow CIP to commercialise roof space without Capital outlay.

On sustainability, CIP targets zero scope 2 emissions by 2028 for existing Assets under its operational control, using onsite solar and large-scale generation certificates. Its GRESB score rose from 71 in 2025 to 74.5 in 2026, and the company said it was the only listed pure-play industrial A-REIT to participate for a second consecutive year. The FY26 Sustainability Report is expected in October 2026.

Guidance

CIP reaffirmed FY27 FFO guidance of 18.8 to 19.2 cents per unit, which it described as up to 5.5 per cent above FY26, and distributions of 17.3 cents per unit, 3 per cent above FY26, paid in quarterly instalments. The company said guidance is subject to unforeseen circumstances and material changes in operating conditions. Guidance is a company forecast and not a result.

Context and what to watch

The Responsible Entity is Centuria Property Funds No. 2 Limited. The release notes that parent Centuria Capital Group reported A$22.2 billion in total assets under management at 30 June 2026. Named milestones are the December 2026 settlement of the Bundamba sale and the release of the FY26 Sustainability Report in October 2026. The release does not give a date for further data centre developments beyond the expectation of FY28 onward, and it does not report portfolio valuations, gearing or occupancy figures in the text reviewed.