This article is from the Australian Property Journal archive
CENTURIA Industrial REIT (ASX: CIP) has posted strong profit results for FY21, following an acquisitive year which saw the trust secure a circa $1 billion in new investments as COVID-19 accelerated the growth of e-commerce.
With 18 new high-quality acquisitions for the financial year worth $966 million, including two new industrial sub sectors, data centres and cold storage, CIP’s portfolio now includes 62 assets for a total value of $2.9 billion.
“FY21 was a successful year for CIP, driven by transformative acquisitions and major portfolio leasing. Strong sector tailwinds supported increased tenant demand and record low national vacancy rates, propelled by the continued rise of e-commerce, positively impacting industrial property markets,” said Jesse Curtis, fund manager of CIP.
This portfolio value also includes a 25% valuation uplift of $587 million, with $149 million from FY21 acquisitions.
The REIT brought in a statutory profit of $611.2 million, up from $75.3 million in FY20. This was underpinned by $91.4 million in FFO or 17.6cpu, up from FY20’s $63.5 million or 18.9cpu.
Total return on equity was 41.8%, after a strong NTA uplift and ongoing distributions, up from FY20’s 10.1%.
In the REIT’s balance sheet, total assets increased from $1,635.8 million to $3,105.9 million, with a 36% increase in NTA per unit to $3.83 from $2.82 in FY20. The portfolio’s weighted average capitalisation rate compressed by 151bps from 6.05% to 4.54% over FY21.
CIP reported $274 million in available debt headroom, with gearing of 27.8%, which is below the REIT’s target range of 30% to 40%, with no debt maturing before FY23 and a weighted average debt maturity of 3.1 years.
“CIP’s active management approach de-risked major near-term expiries as well as continuing to deliver value-add projects across the portfolio,” said Curtis.
Portfolio occupancy was reported at 96.9%, with a WALE of 9.6 years, with less than 5% of the portfolio expiring throughout FY22. Rent collections were high, average 99% even with the impacts of COVID-19.
“Pleasingly, CIP completed its first five-star Green Star design and as-built industrial development at Bundamba, QLD, reinforcing the REIT’s commitment to creating modern sustainable industrial products for tenant customers and unitholders,” added Curtis.
Over FY21 239,950sqm in lease terms were agreed to, representing 22% of portfolio GLA.
CIP has provided a FY22 FFO guidance of no less than 18.1cpu and a distribution guidance of 17.3 cents per units.
