Centuria Industrial REIT (ASX: CIP) – Centuria Industrial FY26 Financial Report

Centuria Industrial REIT reported statutory net profit of $160.4 million for the year ended 30 June 2026, up 20.5 percent from $133.1 million in the prior year. The increase was supported by a rising portfolio valuation and continued operational performance across the Trust’s industrial property holdings. More notably, net tangible assets per unit increased to $4.01, a gain of 9.0 cents from $3.92 at 30 June 2025, signaling improved asset backing and underlying value creation for unitholders during the period.

Funds from operations, a key metric for assessing the cash-generative capacity of the REIT, reached $114.1 million compared with $110.9 million in the prior year. The reconciliation from statutory profit to FFO reveals the adjustments that matter most for investors: $72.2 million in gains on fair value of investment properties, partially offset by $12.1 million in straight-lining adjustments to rental income and $5.7 million in amortisation of incentives and leasing fees. These adjustments illustrate the difference between accounting profits driven by property valuations and the actual cash flow generation that supports distributions. The FFO result underscores CIP’s ability to generate sustainable earnings from its operational portfolio during a period of market volatility.

The Trust’s total portfolio value, including investment properties held for sale and co-owned assets, stood at $3,934.1 million as at 30 June 2026, representing a 3.2 percent increase from $3,890.2 million at the prior year end. The fact that 33 investment properties were externally revalued during the period suggests management has maintained disciplined valuation practices and responded to market conditions affecting industrial real estate. This appreciation in property values, combined with FFO growth, underpins the improvement in NTA and demonstrates CIP’s positioning within Australia’s industrial property market, where demand for logistics and distribution facilities has remained resilient.

For investors, the combination of profit growth, rising NTA, and steady FFO offers a mixed but generally positive picture. The 9.0 cent increase in NTA per unit reflects real value accretion, though investors should monitor whether this translates into distribution growth and capital stability going forward. The industrial property sector faces headwinds from interest rates and economic uncertainty, so the Trust’s ability to maintain occupancy rates, rental growth, and operational cash flow will be critical to watch. Additionally, the gap between statutory profit and FFO highlights the importance of monitoring how future property revaluations might affect reported earnings, given the significant gains in the current period. Unitholders should consider whether the portfolio’s 3.2 percent valuation uplift is sustainable or reflects a one-off recovery in the industrial market. This announcement is price sensitive and has been flagged as material by the ASX.

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About Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT is Australia’s largest domestic pure play industrial property investment trust, owning a portfolio of approximately 85 prime assets valued at around $3.9 billion. The company specializes in owning and managing industrial properties including manufacturing facilities, distribution warehouses, and data centres, primarily concentrated in infill locations across major Australian cities such as Melbourne, Sydney, Brisbane, Perth, and Adelaide. Its portfolio generates substantial income from listed, national, and multinational tenants with a focus on supporting last-mile fulfillment operations.

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