Centuria upgrades FY22 guidance, expects elevated demand for industrial assets

Centuria Industrial REIT (ASX: CIP) continues to ride the strong demand for quality industrial property, delivering an outsized 46.5% return on equity in the first half of FY22. 

“CIP delivered a strong performance throughout the first half of FY22 with significant leasing activity supported by exceptional, double-digit rental growth and strategic acquisitions,” said Jesse Curtis, CIP Fund Manager and Centuria’s Head of Industrial.

“This success has enabled CIP to upgrade its FY22 Funds From Operations (FFO) guidance of no less than 18.2 cents [per share] and reiterated FY22 distribution guidance of 17.3 cents [per share], reflecting a 4.6% distribution yield.”

The new FFO figure represents a 7.1% increase compared to FY21 figures.

Centuria momentum drivers 

During the first half, Centuria acquired 21 new assets worth $680m focused on sought-after urban infill industrial properties. 

The acquisitions extend the company’s portfolio to 80 assets, up from 62 in FY21. 

Curtis expects industrial rents to continue to rise as "demand for industrial space [is] expected to remain elevated, thanks to customer shifts to eCommerce plus onshoring to maintain supply chain resilience ...".

Looking ahead, Centuria said its well placed to leverage these themes, with $290m in cash available and a flexible debt position.