Key Highlights

• At 30 June 2026 it held 83 Assets with a Book Value of about $3.9 billion.

• Occupancy was 95.2 per cent, against 95.1 per cent a year earlier, and the weighted average Lease expiry (WALE) was 7.0 years, against 7.1 years.

• Management says the portfolio is, on average, about 17 per cent under-rented, meaning passing rents sit below its estimate of market levels.

• The full-year results, released on 11 August 2026, showed FFO of $114.1 million, up from $110.9 million, or 18.2 cents per unit compared with 17.5 cents.

What does Centuria Industrial REIT (ASX:CIP)'s latest update say about its Earnings outlook? In short, the trust reaffirmed on 15 October 2026 its guidance for Funds From Operations (FFO) of 18.8 to 19.2 cents per unit in the 2027 financial year, up to 5.5 per cent above the 18.2 cents delivered in FY26, alongside distributions guided at 17.3 cents per unit. Guidance is an expectation, not a certainty.

What the trust owns and how it earns

Centuria Industrial REIT (ASX:CIP) is an Australian real estate Investment trust focused on industrial property, managed by Centuria Capital. At 30 June 2026 it held 83 assets with a book value of about $3.9 billion. Its income is largely rent from tenants in warehouses, logistics facilities and similar buildings, so earnings depend on occupancy, lease terms and the rents achieved when leases expire.

Those measures were encouraging at balance date. Occupancy was 95.2 per cent, against 95.1 per cent a year earlier, and the weighted average lease expiry (WALE) was 7.0 years, against 7.1 years. Management says the portfolio is, on average, about 17 per cent under-rented, meaning passing rents sit below its estimate of market levels. That estimate is the company's own and should be read as such.

FY26 results in brief

The full-year results, released on 11 August 2026, showed FFO of $114.1 million, up from $110.9 million, or 18.2 cents per unit compared with 17.5 cents. Distributions rose to 16.8 cents per unit from 16.3 cents.

Like-for-like net Operating Income grew 5.2 per cent. Net Tangible Assets (NTA) per unit rose to $4.01 from $3.92.

Leasing and asset recycling

Leasing was a clear resilience. CIP reports about 226,200 square metres leased across 30 transactions in FY26, roughly 18 per cent of portfolio floor area, with re-leasing spreads averaging 30 per cent on a net rent basis. About 55 per cent of leases expiring over the next three years are described as under-rented.

The trust has also been selling assets. Five properties were sold for $200 million at an average 17 per cent premium to book value, including the Mandoon Road, Girraween asset in New South Wales at $98.0 million, which had exchanged but not settled at the time of the results. A further sale, 22 Hawkins Crescent, Bundamba in Queensland, was announced in October at $34.25 million, in line with book value, with settlement expected in December 2026. The buyer is an owner-occupier, a group that accounts for about 40 per cent of divestments by number since FY25.

Proceeds are being recycled into other opportunities. CIP acquired an operational data centre at Wellcamp in Queensland for $30 million in January 2026, and an industrial Facility at Yarraville in Victoria for $30.2 million in April, which management says offers data centre optionality. A $23 million Acacia Ridge, Queensland, purchase is expected to settle in January 2027.

The data centre angle

The most distinctive part of the strategy is the plan to convert selected industrial sites to data centres. Management has identified conversion potential of more than 250 megawatts, and expects development approval for a roughly 40 megawatt facility at Clayton in Victoria in the first half of FY27. This is a pipeline, not contracted income. Approvals, power connections, construction costs and tenant Demand are all uncertain, and terms have not been disclosed.

Balance sheet and funding

Gearing was 34.9 per cent at 30 June 2026, up from 33.2 per cent, with Interest Cover of 2.4 times and Liquidity of $457 million in cash and undrawn debt. The weighted average Debt expiry was 3.6 years, and 54 per cent of debt was hedged, including a $50 million swap entered in July 2026. Moody's rates CIP Baa2 with a stable outlook.

The trust also has $325 million of exchangeable notes with a 3.50 per cent fixed coupon. Noteholders have a Put Option at Face Value in September 2028, which creates a refinancing consideration investors may wish to follow. During the year CIP refinanced $775 million of debt, including $450 million at margins 10 to 20 basis points lower.

Sector conditions and competition

CIP competes with other listed and unlisted industrial landlords, including larger groups with bigger development pipelines and deeper access to capital. CIP's levers are active leasing, redevelopment and asset recycling, as described above. Management expects low industrial vacancy and diminishing future Supply to support medium-term rental growth, though that view depends on economic conditions and tenant demand holding up.

Risks and what to watch

Several uncertainties sit behind the guidance. Leasing outcomes may moderate if economic activity slows, and the reported rental spreads reflect particular leases rather than a guaranteed trend. Asset sales reduce earnings until proceeds are redeployed, and settlement timing can shift. Development and data centre projects bring construction, approval and counterparty risk. The FY27 guidance itself is subject to unforeseen circumstances and material changes in operating conditions.

Upcoming checkpoints include the settlement of the Hawkins Crescent and Acacia Ridge transactions, the Clayton approval, the first-half FY27 result, and any progress on pre-commitments for the Wetherill Park development in New South Wales. Investors weighing the trust should compare these milestones with their own objectives and risk tolerance.