Centuria Provides Operating Update, Share Price Rises (ASX:CIP)

Centuria Provides Operating Update, Share Price Rises (ASX:CIP)

Centuria Industrial REIT [ASX:CIP] is having a pretty good October.

Ever since the start of the month the stock has been on the up. Making headway after its bold bid for a Telstra data centre in early August.

Today, it has provided a new update on its Q1 FY21 operations. Highlighting their progress in bringing a range of new assets into their portfolio.

Making it very clear that the property market is still going strong. Especially when it comes to industrial assets.

And that has helped see their share price rise by 1.55% at time of writing.

Valuable assets

Whereas many commercial property managers are sweating, Centuria is sitting pretty.

They’ve reported a 96.5% occupancy rate across their entire portfolio. With a Weighted Average Lease Expiry of 10 years.

Plus, in the six months to September, they’ve averaged a 97% rent collection rate. Meaning that they’re not having to deal with any egregious cash flow issues.

And with six new acquisitions for the quarter, including the Telstra data centre, the future is looking good. As Fund Manager Jesse Curtis comments:

We have generated strong momentum through the first quarter of FY21 with $523m of quality, fit-for-purpose industrial asset acquisitions. The expanded portfolio, totalling $2.1 billion, now provides a broader exposure to industrial sub-sectors of data centres and cold storage assets. We will continue to pursue acquisition opportunities that complement CIP’s strategy.

That strategy definitely seems to be working. With Centuria confirming that its funds from operations guidance was on target for 17.4 cents per unit. Reaffirming their distribution guidance of 17 cents per unit for the year.

So, barring any unforeseen circumstances, Centuria is well on track.

For shareholders that is bound to be pleasing news.

Industry isn’t the only property sector booming

Crucially, Centuria is showcasing that the property market has plenty of value. Even if it does seem largely tied up in industrial assets.

However, that doesn’t mean the broader commercial and residential markets are worth ignoring. Property in Australia is simply in a state of flux at the moment. A period that requires investors to be smarter and strategic with their capital.

To learn more about this new landscape for property, we’ve got a handy report.

Get your free copy, right here.


Ryan Clarkson-Ledward,
For The Daily Reckoning Australia