Centuria Industrial REIT shares as FY26 guidances beats forecasts
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More news: Property investor Centuria Industrial REIT was one of the best performers on the ASX 200 after morning trade, having reported a sharp uptick in full-year profit earlier today.
Shares were up 4.8% to $3.36 at 12:20pm AEST, extending gains to 19% since the turn of the year.
UBS analysts said Centuria's full-year net property income and funds from operations were slightly below its estimates. However, the company's FY26 guidance was generally ahead of market forecasts.
Centuria Industrial REIT posts leap in FY25 profit but misses estimates
The news: Property investor Centuria Industrial REIT reported full-year net profit of $133.1 million, up from $48.1 million in the prior year, but missing average estimates of $159.9 million, according to Visible Alpha data.
The numbers: Centuria grew funds from operations (FFO) by 2% year on year to $110.9 million. This was up from $109.3 million in FY24 but shy of consensus forecasts of $111.2 million.
The company declared a distribution of 16.3 cents per unit, up from 16 cents last year and in line with market expectations.
Centuria provided FFO guidance of between 18 and 18.5 cents per unit in FY26, up to 6% above FY25, and targeted a 3% rise in distribution to 16.8 cents per unit.
The context: The company said it anticipates earnings growth in FY26 and beyond as it seeks to capitalise on "significant" under-renting across its portfolio.
What they said: "Looking ahead, [Centuria Industrial REIT] is well positioned to take advantage of the positive outlook for Australian urban infill industrial real estate," said Grant Nichols, fund manager and head of listed funds.
"Vacancy rates remain very low, while supply is very constrained — despite the strong rental growth we have seen during the past five years, market rents remain below the required economic rent for new development in virtually all markets," he said.
"Coupled with the ongoing industry tailwinds, most notable population growth and increasing e-commerce adoption, the outlook for rental growth over the medium term is compelling."
The source: ASX
