Key Highlights

• Per Centuria's FY26 release, operating EPS was 13.6 cents, up 11.5%, and distributions were 10.4 cents per security, in line with guidance.

• It manages listed vehicles, including Centuria Industrial REIT and Centuria Office REIT, and a range of unlisted funds, and it has a private Credit arm, Centuria Bass Credit, with AUM of $2.6 billion (FY25: $2.3 billion).

• Operating gearing was 5.1%, and cash plus undrawn Debt was $445 million, including the $300 million fully underwritten Equity raise in the second half.

• For Centuria Capital Group (ASX:CNI), the answer in its FY26 result of 27 August 2026 was a larger capital base and a new growth leg: ResetData, a 50%-owned data centre and AI infrastructure venture.

How does a property funds manager grow Earnings when per-security guidance for the coming year is lower than the year just reported? For Centuria Capital Group (ASX:CNI), the answer in its FY26 result of 27 August 2026 was a larger capital base and a new growth leg: ResetData, a 50%-owned data centre and AI infrastructure venture. Management guided FY27 operating net profit after tax (ONPAT) to $130 million, up 14% on FY26, but operating earnings per security (OEPS) to 13.0 cents, below the 13.6 cents reported for FY26, because the $300 million equity raise increased the number of securities on issue.

The central development

Per Centuria's FY26 release, operating EPS was 13.6 cents, up 11.5%, and distributions were 10.4 cents per security, in line with guidance. Operating EBITDA was $182.5 million, and ONPAT was $113.8 million, compared with $100.8 million in FY25. Group Assets under management (AUM) reached a record $22.2 billion at 30 June 2026, from $20.6 billion a year earlier, including about $0.4 billion from the Arrow Primary Infrastructure Fund management rights.

FY27 guidance includes ONPAT of $130 million, distributions maintained at 10.4 cents per security, and OEPS of 13.0 cents. The guidance assumes prevailing market conditions remain stable. The distinction between growth in total profit and a decline in per-security earnings is important: if a company issues equity, existing holders' share of earnings is diluted until the new capital earns a return.

How the group earns revenue

Centuria is a real estate funds manager and investor. It earns management, performance and transaction fees from funds across office, industrial, healthcare, agriculture and other sectors, plus returns on co-investments in its own funds. It manages listed vehicles, including Centuria Industrial REIT and Centuria Office REIT, and a range of unlisted funds, and it has a private credit arm, Centuria Bass Credit, with AUM of $2.6 billion (FY25: $2.3 billion).

Property Funds Management, the core business, grew operating EBITDA 23%. Acquisitions of $1.2 billion exceeded the group's target, with $702 million settled and $521 million yet to settle at the reporting date. Record leasing of 729,000 square metres covered 18% of total net lettable area. Highlights included the Port Adelaide Distribution Centre, described as Australia's largest single-asset industrial fund, and a Sydney CBD office fund at $454 million.

ResetData and the data centre bet

ResetData is the new element. The release says it signed a Master Services Agreement with CDC Data Centres for an initial 7MW, with a letter of intent to increase it to 10MW, and that Revenue is expected from the second half of FY27. It also reports 72MW of power generation units secured for delivery in 2028 and a pipeline of more than 250MW.

Management said the revenue impact will be most visible in the second half of FY27 and into FY28, which means the FY27 outlook leans on delivery within a short window. An arrangement of around 2MW with another customer is non-binding and subject to binding agreements. The Business also requires capital before revenue arrives, so execution and funding discipline are key.

Balance sheet and credit exposure

Operating gearing was 5.1%, and cash plus undrawn debt was $445 million, including the $300 million fully underwritten equity raise in the second half. Low corporate gearing gives room to invest, but it does not reflect Leverage inside the managed funds, which can matter if property values fall. In private credit, Bass Credit's Loan book is 94% first Mortgage with a 67% gross average loan-to-value ratio and 93% residential exposure; commitments are split 38% construction, 37% bridge and 23% residual stock. Construction and residential development lending can be sensitive to housing and funding cycles.

Sector and competitive position

Australian listed property managers compete for investor capital and for assets against Charter Hall, Goodman, Dexus and global private-capital groups. Centuria's niches include mid-sized industrial and office assets, healthcare and alternatives, and the group has been diversifying into credit and infrastructure-like assets. Fund managers' fees depend on AUM, which depends on valuations, new capital raisings and the ability to transact.

Risks and what to monitor

Risks include a fall in commercial property values or transaction volumes; funds flow and fundraising conditions; refinancing and interest-rate sensitivity in managed funds; concentration in residential and construction credit; the capital intensity and execution risk of ResetData; customer concentration in data centres; and dilution already experienced through the equity raise. Back-weighted earnings mean any delay in ResetData could push benefits further out. Management states that FY27 guidance is subject to market conditions.

Events to monitor include progress on binding customer agreements for ResetData, the first revenue from the CDC arrangement in the second half of FY27, settlement of the $521 million of acquisitions, the half-year result to December 2026, and updates on listed fund performance.

Overall, Centuria's FY26 result shows a funds platform at record scale, with growth now depending on whether a new data centre venture delivers on schedule while core property conditions stay stable.