This article is from the Australian Property Journal archive
PURE-play trust Centuria Industrial REIT has posted an increase in interim funds from operations to $30 million after an acquisitive first half, which saw its portfolio lease expiry profile enhanced by the purchase of Arnott’s facilities in Brisbane and Adelaide.
This is higher than $23.9 million in the previous corresponding period.
CIP fund manager, Jesse Curtis said significant acquisitions and portfolio leasing drove the result, which included a $31.5 million statutory profit – down from $46.1 million – and distributions of 9.4 cents per security.
“Success during the half was driven by a continued focus on executing our investment strategy of acquiring quality industrial assets located within infill markets, fostering relationships with our tenant customers and driving leasing outcomes to deliver superior returns for CIP’s unit holders.”
Total assets increased to over $1.616 billion as a result circa $300 million in acquisitions across five assets, as well as like for like revaluation gains of $28.1 million.
CIP snapped up Arnott’s biscuits facilities in Brisbane and Adelaide for a combined $236 million in a sale and leaseback deal with the biscuit brand, and undertook a $154 million capital raising to partially fund the acquisitions.
A 44,785 sqm facility in Brisbane’s northern suburb of Virginia was picked up for $211.8 million, on an initial yield of 5.8% and with a 30 year lease, and $24.4 million was paid for a 23,593 sqm Marleston facility Adelaide’s inner west, at 7.4%, and is leased for 12 years.
Portfolio occupancy was maintained at 95.8% with over 63,300 sqm leased, and weighted average lease expiry increased to 7.1 years, underpinned by the addition of the ultra-long leases to Arnott’s and leasing across the existing portfolio.
Revaluations gains contributed to the 6.7% increase in net tangible per assets to $2.83, and continued to be driven by CIP’s New South Wales and Victoria portfolios, which account for 53% of the trust’s portfolio. The weighted average capitalisation rate firmed by 27 basis points to 6.19%.
“CIP’s strategy remains consistent, to own quality industrial assets located within infill markets with close proximity to major infrastructure,” Curtis said. “The portfolio will continue to benefit from increased demand within the Australian industrial and logistics sector supported by population growth, trends in online retailing and scarcity of investment grade stock.”
