Centuria Capital Group (ASX:CNI), a property funds manager with a growing exposure to data centre and AI infrastructure, has recorded a large decline in its security price over the past year despite higher operating earnings. Centuria Capital Group (ASX:CNI) securities were priced at $1.18, up 2.17% in today’s session, and are down 46.67% over the past year. The group announced its FY26 results for the year ended 30 June 2026 on 27 August 2026.

For context, the S&P/ASX 200 Real Estate index [XRE] (INDEXASX: XRE) stood at 3,202.90, up 1.11% (+35.20 points) in today’s session as of 6 Oct, 4:45 pm, and is down nearly 22% over the past year.

Business Model and Operational Footprint

Centuria manages listed and unlisted property funds, earns management and performance fees, invests alongside its funds and provides property and development finance. Its group Assets under management reached a record $22.2 billion, and it oversees $8.6 billion of lending facilities across listed and unlisted funds. The group is led by Joint CEOs and is based in Sydney.

In FY26 the group acquired the Arrow Primary Infrastructure Fund, completed $1.2 billion of real estate acquisitions and recently completed the $454 million Sydney CBD Prime Office Fund. It also has a joint venture with ResetData, which is deploying GPU infrastructure across part of 10 MW of near-term power capacity, with a potential Centuria data centre pipeline of more than 250 MW.

Sector Dynamics

Property funds managers depend on investor capital, Acquisition volumes, valuations and fund performance. Diversifying into data centres and AI infrastructure adds exposure to GPU hardware costs, customer contracts and power supply. Credit markets affect fund gearing and refinancing, and Centuria reports that its funds’ average Debt margins reduced to 144 basis points.

Centuria’s 46.67% one-year decline compares with a fall of nearly 22% for the S&P/ASX 200 Real Estate index, and with a 19.58% decline for Charter Hall Group (ASX:CHC). Centuria is up 2.17% today at $1.18, against a 1.11% rise for the index.

Relative to the index, Centuria Capital Group’s one-year decline of 46.67% is about 24.7 percentage points larger than the index’s decline of nearly 22%, while its move today is up 2.17% against the index’s 1.11% rise.

FY26 Results Release

Operating net profit after tax (ONPAT) was $113.8 million, compared with $100.8 million, and operating Earnings per security were 13.6 cents, up 11.5%. Distributions were 10.4 cents per security. Statutory NPAT attributable to securityholders was $56.5 million, or 6.7 cents per security. Operating EBITDA was $182.5 million, supported by 23% growth in the core property funds management segment. Property Investment earnings were $92.2 million, and property and development finance EBITDA was $24.3 million.

The ResetData Business recorded an operating EBITDA loss of $10.9 million, equal to a net loss to Centuria of $5.9 million, which the group attributes to the scale-up phase. During the second half, the group raised $300 million through a fully underwritten Equity raise. Net asset value was $1.76 per security, Balance Sheet gearing was 5.1%, and cash and undrawn debt totalled $445 million. Weighted average cost of debt was 7.8% and average margins were about 273 basis points.

FY27 guidance is ONPAT of $130 million, 14% above FY26, operating earnings per security of 13.0 cents and distributions of 10.4 cents per security. The group notes that it expects to deploy capital in the near term in ResetData to create a pathway for future Revenue ramp-up.

The group notes that its funds platform has 25 lenders, with weighted average fund gearing of 46% against a weighted average loan-to-value covenant of 58%. The Arrow Primary Infrastructure Fund acquisition added Diversification to the platform, and Joint CEO John McBain said the group intends to pursue larger real estate acquisitions, as illustrated by the $454 million Sydney CBD Prime Office Fund.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include record funds under management, larger real estate acquisitions, the ResetData joint venture, a data centre pipeline of more than 250 MW and the $300 million of new Liquidity raised.

Operating risks include the ResetData losses of $10.9 million at the operating EBITDA level and the need for near-term capital deployment, FY27 operating earnings per security guidance of 13.0 cents that is below the 13.6 cents of FY26 despite higher ONPAT, dilution from the equity raise, a weighted average cost of debt of 7.8% and statutory earnings of $56.5 million that are lower than operating earnings. Fund valuations and transaction volumes also affect performance fee and fee income.

Where Things Stand

Centuria reports higher operating earnings, record assets under management and new equity, while its securities remain well below levels of a year ago. Reference points ahead include ResetData deployment progress and delivery of the FY27 ONPAT guidance of $130 million.