Centuria Industrial REIT Keeps FY27 Guidance, Sells Bundamba

Centuria Industrial REIT (ASX:CIP) used its first-quarter update to report leasing progress and the sale of a vacant Queensland property, and to reaffirm FY27 earnings and distribution guidance.

During Q1 FY27, 24,929 sqm of lease terms were agreed across seven deals, including heads of agreement, and FY27 re-leasing spreads average 31% year to date on a net rent basis against prior passing rents. CIP estimates the portfolio is approximately 17% under-rented on average, and that approximately 55% of leases expiring over the next three years are under-rented. It has exchanged contracts to sell 22 Hawkins Crescent, Bundamba QLD to an owner-occupier for $34.25 million, in line with the property's most recent book value, with settlement of the c.19,000sqm property expected in December 2026. CIP reaffirmed FY27 FFO guidance of 18.8-19.2 cpu, up to 5.5% above FY26, and distribution guidance of 17.3cpu, 3% above FY26. It also says it is pursuing an identified power pipeline exceeding 250MW, including opportunities at Clayton and Thomastown in Victoria, as part of its data centre strategy.

Guidance remains subject to unforeseen circumstances and material changes in operating conditions. Data centre opportunities are expected primarily from FY28 and beyond, and the release gives no capital cost or timing for any conversion.