Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — HY25 Earnings Presentation
44 slides from Centuria Industrial Reit's earnings presentation, Feb 25, 2025
Slide 1: Centuria Industrial REIT HY25 results
25 FEBRUARY 2025 | ASX:CIP Centuria Industrial REIT HY25 results SOUTHSIDE INDUSTRIAL ESTATE VIC
Slide 2: Speakers
Speakers Jesse Curtis Grant Nichols Michael Ching Head of Funds Management – Head of Listed Funds & Fund Manager – Assistant Fund Manager – Centuria Capital Limited Centuria Industrial REIT Centuria Industrial REIT Centuria ASX:CIP 2
Slide 3: Agenda
Acknowledgement of Country Our Group manages property throughout Australia and New Zealand. Accordingly, Centuria pays its respects to the traditional owners of the land in each country, to their unique cultures and to their Elders past and present. AGENDA 1. Overview 2. Financial results 3. Operati
Slide 4: Centuria Capital Group: A leading Australasian ASX funds manager
Centuria Capital Group: A leading Australasian ASX 200 funds manager CNI is the manager of CIP and is included in the S&P/ASX200 Index Group AUM1 $20.5bn Centuria Real estate $19.6bn Life Limited Investment Listed (30%2) $5.9bn Unlisted (70%2) $13.7bn bonds $3.9bn $1.9bn $0.1bn $6.1bn $2.8bn $2.5bn
Slide 5: Overview
ASX:CIP Overview SECTION ONE 12-13 & 14-17 DANSU COURT, HALAM VIC
Slide 6: CIP: Vision, strategy and objectives
CIP: Vision, strategy and objectives VISION A clear and simple strategy To be Australia’s Deliver income and capital growth to investors from a portfolio of high leading domestic pure quality Australian industrial assets. play industrial REIT. Key objectives Centuria Industrial REIT (CIP) Australia’
Slide 7: HY25 strategy execution
HY25 strategy execution Leveraging market fundamentals, delivering income growth and proactive capital management • Strong 6.4% like for like NOI growth. HY25 results • 8.9cpu of earnings delivered in HY25. • Over 79,000sqm of leasing secured1, delivering 50% re-leasing spreads.2 • $60m of developme
Slide 8: Key metrics
Key metrics Australia’s largest listed domestic pure-play industrial REIT Reiterated FY25 FFO guidance7 of PORTFOLIO FINANCIAL 17.5 cpu 87 $3.8bn 6.4% $3.89 High-quality assets Portfolio book value1 LFL NOI growth in HY25 Net tangible assets per unit5 HY25 average re-leasing spreads8 of 96.6% 7.3yrs
Slide 9: Growth drivers for industrial real estate
Growth drivers for industrial real estate Key themes providing market tailwinds Increased ecommerce Demographics1 Supply imbalance1 adoption1 • Each additional c.$1bn of online sales requires • Recent population growth indicates c.5.5sqm of • Higher construction costs, capital constraints and c.300,
Slide 10: Fundamentals support strong industrial rent growth in Australia
Fundamentals support strong industrial rent growth in Australia Australia has prevailing low vacancy and medium-term demand is expected to exceed future supply Global vacancy comparison1 Industrial spaces supply-demand forecast 2 2 (‘000 sqm) Historical demand Forecast demand Uncommitted future supp
Slide 11: Industrial infill markets and smaller tenancy sizes are outperforming
Industrial infill markets and smaller tenancy sizes are outperforming 30% of vacancy is for buildings above 20,000sqm1 Vacancy rate by size bracket1 Infill market vacancy1 Infill market rent growth1 7.0% 30.0% Infill Non-Infill Infill Non-infill 5.0% vacancy rate vacancy rate 6.0% 25.0% rent growth
Slide 12: CIP's infill portfolio construction capitalises on industry growth drivers
CIP’s infill portfolio construction capitalises on industry CIP portfolio growth drivers strategic metrics A predominantly infill portfolio Exposure to growth sub-sectors Providing tenants with proximity to customer bases and Significant portfolio exposure to ecommerce, data centres and 87% reliable
Slide 13: CIP data centre exposure
CIP data centre exposure High-conviction secular AI and cloud • CIP manages over $450 million of megatrends data centre properties • Hyperscale cloud and enterprise co-location remains strong. • Bluechip customers include Telstra and Fujitsu • AI will drive DC capacity and power requirements beyond
Slide 14: Financial results
ASX:CIP Financial results SECTION TWO 56-88 LISBON STREET, FAIRFIELD NSW
Slide 15: Funds From Operations (FFO)
Funds From Operations (FFO)1 Revenue HY25 HY24 Variance Strong re-leasing spreads Gross property income $m 126.4 110.9 15.5 driving 6.4% like for like NOI growth Other income $m - 2.0 (2.0) Share of net profit of equity accounted investments $m 1.7 3.9 (2.2) Divestments since FY24 impact gross prope
Slide 16: Capital management
Capital management 33.5% Strong balance sheet maintained with conservative gearing Gearing5 at the lower end of target range of 30%-40% (covenant of 50%) 700 profile ($m) Debt and hedge maturity 600 Domestic and International banks A$MTN 500 300 $200m of hedging 400 Executed in HY25 Exchangeable not
Slide 17: Operational performance
ASX:CIP Operational performance SECTION THREE 23-41 GALWAY AVE, MARLESTON SA
Slide 18: Australia's largest listed domestic pure-play industrial REIT
Australia’s largest listed domestic 100% exposure to Australian industrial property pure-play industrial REIT Portfolio snapshot HY251 Number of assets # 87 WA 9% Qld 20% Book value $m 3,803 total portfolio total portfolio WACR % 5.83 4.9 yrs 8.9 yrs GLA sqm 1,284,938 WALE WALE Average asset size sq
Slide 19: Accelerating re-leasing spreads achieved over the past three years
Accelerating re-leasing spreads achieved over the past three years Over 79,038 sqm of leasing (7% of portfolio) secured in HY251 Select HY25 leasing outcomes CIP re-leasing spreads2 CIP RE-LEASING SPREADS 50% 92-98 Cosgrove Road, Enfield NSW • Renewal secured across 11,232sqm and 43% 13,840sqm of ha
Slide 20: High quality tenant customers
High quality tenant customers Secure income backed by 93% blue chip tenant customers Leveraging CIP’s scale to generate a ‘networking effect’ Tenant industry sector diversifications1 to grow and service customers across multiple locations. 93% Listed, Strong relationships providing multinational or
Slide 21: Strategic transactions in HY25
Strategic transactions in HY25 Direct market transactions underpin NTA Divestments Acquisitions 75-95 & 105 CORIO QUAY ROAD, GEELONG VIC 616 BOUNDARY ROAD, RICHLANDS QLD • Divested for $33.6m • Divested for $26.8m • Acquired for $22.8m in 2019 • Acquired for $15.9m in 2018 • c.19% IRR over ownership
Slide 22: Portfolio valuations
Portfolio valuations HY25 HY24 Valuation valuation valuation movement1 HY25 HY24 Movement ($’000) ($’000) ($’000) WACR2 WACR2 WACR2 Like for like portfolio/ 3,784 3,737 47 5.83% 5.79% 0.04% c.56% of the portfolio by value weighted average summary3,4 externally revalued in Acquisitions 8 - 8 5.00% De
Slide 23: CIP ESG highlights
CIP ESG highlights Centuria & CIP nergy and Memberships Climate change emissions • Targeting zero scope 2 emissions by 20281 c.1,420 kW solar across the CIP portfolio.2 Climate esource and resilience aste • FY24 Centuria voluntary climate-related disclosures published. Valued stakeholders Purpose •
Slide 24: Development
ASX:CIP Development SECTION FOUR A TI T’ IMP ION: 15-19 CARIBOU DRIVE, DIREK SA
Slide 25: Development capability
Development capability CIP has established a track record unlocking embedded value from infill sites FY23 completions FY24 completions Committed Future pipeline $m GLA $m GLA $m GLA $m GLA 103 40,544 147 57,722 61 c.27,600 c.1,100 c.200,000 Est. value on completion1 Est. value on completion1 HY25 co
Slide 26: Unlocking embedded value within CIP's portfolio
Unlocking embedded value within CIP’s portfolio $1bn+ development pipeline1 providing short to medium term value-add opportunities Existing landholdings in core Active repositioning projects urban infill markets with limited supply which have experienced 102-128 Bridge Road, strong rental growth. 30
Slide 27: Outlook and guidance
ASX:CIP Outlook and guidance SECTION FIVE 82 RODEO ROAD, GREGORY HILLS NSW
Slide 28: CIP positioned to harness strong market fundamentals
CIP positioned to harness strong market fundamentals 6.4% Like for like income growth in HY25 50% Re-leasing spreads Outlook for infill industrial property remains strong Significant under-renting1 Significant positive rental reversion still to be realised 25% Earnings growth expected to accelerate
Slide 29: FY25 guidance reiterated
FY25 guidance reiterated1 FFO per unit1 17.5c Distribution per unit1 16.3c Drag or click to insert picture here Distributions expected to be paid in quarterly instalments. 69 STUDLEY COURT, DERRIMUT VIC 1. Guidance remains subject to unforeseen circumstances and material changes in operating conditi
Slide 30: Appendices
ASX:CIP Appendices SECTION SIX Appendix A: Sydney and Melbourne industrial land supply Appendix B: Exposure to the major industrial sub-sectors Appendix C: CIP portfolio Appendix D: Lease expiry by state Appendix E: Key vacancies and upcoming expiries Appendix F: Income statement Appendix G: Balance
Slide 31: Appendix A: Sydney and Melbourne industrial land supply
Appendix A Sydney industrial land supply • New land supply concentrated around the new Badgerys Creek Airport precinct, Kemps Creek and Eastern Creek. • Current planning delays and increased infrastructure costs delaying new supply coming to market. CIP’s portfolio is well positioned in supply const
Slide 32: Appendix B: Exposure to the major industrial sub-sectors
Appendix B: Exposure to the major industrial sub-sectors1 A well-balanced portfolio across the major industrial sub-sectors Manufacturing and Distribution centres Transport logistics Data centres Cold storage production 25% portfolio 42% portfolio 14% portfolio 12% portfolio 7% portfolio value value
Slide 33: Appendix C: CIP portfolio
Appendix C: CIP portfolio An active portfolio providing exposure to strong market rental growth and value-add opportunities Active portfolio1,2 Long WALE portfolio 85 2 Active portfolio assets assets • An active portfolio providing exposure to strong market rental growth and value-add opportunities.
Slide 34: Appendix D: Leasing expiry by state
Appendix D: Leasing expiry by state Sub portfolio expiry profile (% by income) WALE OCCUPANCY GLA WALE OCCUPANCY GLA NSW Vic 4.3yrs 97.5% 376,531 sqm 9.6yrs 93.9% 401,866 sqm 63.6 64.7 13.9 9.8 12.4 9.3 6.1 5.5 7.1 2.5 3.8 1.3 Vacant FY25 FY26 FY27 FY28 FY29+ Vacant FY25 FY26 FY27 FY28 FY29+ WALE OC
Slide 35: Appendix E: Key vacancies and upcoming expiries
Appendix E: Key vacancies and upcoming expiries Current key vacancies1 GLA (SQM) % of portfolio area 90 Bolinda Road, Campbellfield 19,848 1.6 164-166 Newton Road, Wetherill Park 6,392 0.5 48-54 Kewdale Road, Welshpool 6,373 0.5 102-128 Bridge Road, Keysborough 4,865 0.4 51 Musgrave Road, Coopers Pl
Slide 36: Appendix F: Income statement
Appendix F: Income statement HY25 HY24 Revenue Gross property income $’000 126,395 110,862 Other income $’000 0 2,026 Share of net profit of equity accounted investments $’000 1,701 3,894 Interest income $’000 832 646 Total revenue $'000 128,928 117,428 Expenses Direct property expenses $’000 (30,25
Slide 37: Appendix G: Balance sheet
Appendix G: Balance sheet HY25 FY24 Cash $’000 23,873 16,536 Investment properties $’000 3,732,950 3,764,000 Equity accounted investments $’000 71,900 71,015 Trade & other receivables $’000 12,947 19,488 Derivative financial instruments $’000 3,137 12,380 Total assets $'000 3,844,807 3,883,419 Inter
Slide 38: Appendix H: Hedging profile
Appendix H: Hedging profile millions % $800 3.8% 3.6% $700 3.6% 3.3% 3.3% 3.4% $600 3.2% 3.2% $500 3.0% $400 2.8% $300 2.6% $200 2.4% $100 2.2% $752 $608 $242 $46 $0 2.0% 2H FY25 FY26 FY27 FY28 Avg. Hedging Avg. Hedge rate Average hedging and hedge rate above excludes the $300m Exchangeable Note iss
Slide 39: Appendix I: Portfolio valuation summary
Appendix I: Portfolio valuation summary1,2 HY25 valuation FY24 valuation Valuation movement3 HY25 WACR4 FY24 WACR4 Movement WACR4 State ($M) ($M) ($M) (%) (%) (%) (BPS) NSW 1,216 1,167 49 8.4% 5.76% 5.72% 0.04% Vic 1,356 1,349 7 0.5% 5.55% 5.49% 0.06% Qld 763 776 (13) (1.6%) 6.00% 5.98% 0.02% WA 352
Slide 40: Appendix J: Investment portfolio
Appendix J: Investment portfolio Property Ownership Book value ($m) Cap rate GLA (SQM) WALE (YRS)1 Occupancy %1 Sub sector NSW 56-88 Lisbon Street, Fairfield East 100% 197.5 5.50% 60,223 0.8 100.0% Distribution Centre 2 Woolworths Way, Warnervale 100% 105.0 6.25% 54,196 6.6 100.0% Distribution Centr
Slide 41: Appendix J: Investment portfolio
Appendix J: Investment portfolio Property Ownership Book value ($m) Cap rate GLA (SQM) WALE (YRS)1 Occupancy %1 Sub sector Vic (continued) 14-17 Dansu Court, Hallam 100% 35.1 5.75% 17,070 4.8 100.0% Transport Logistics 500 Princes Highway, Noble Park 100% 33.3 6.75% 13,943 2.4 100.0% Transport Logis
Slide 42: Appendix J: Investment portfolio
Appendix J: Investment portfolio Property Ownership Book value ($m) Cap rate GLA (SQM) WALE (YRS)1 Occupancy %1 Sub sector Qld (continued) 680 Boundary Road, Richlands 100% 31.0 5.75% 12,633 0.8 100.0% Distribution Centre 21 Jay Street, Townsville 100% 28.3 7.25% 10,291 7.4 100.0% Distribution Centr
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by Centuria Property Funds No.2 Limited (ABN 38 133 363 185, AFSL 340304) (CPF2L) as responsible entity of Centuria Industrial REIT (ARSN 099 680 252) (‘CIP’ or the ‘Trust’). This presentation contains selected summary information and does not purport t
Slide 44: Australia and New Zealand offices
AUSTRALIA Sydney (head office) Melbourne (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 47 2 Chifley Square 101 Collins Street Sydney NSW 2000 Melbourne CIP 3000 Brisbane Perth (07) 3905 7000 (08) 9321 7133 Level 2 Level 27 348 Edward Street 140 St Georges Terrace Brisbane Qld 4000 Pert
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