Centuria Industrial returns to full-year profit
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The news: Property investor Centuria Industrial REIT has built on its first-half momentum to swing back to a full-year profit on the back of strong leasing activity.
The numbers: The company reported statutory profit of $48.1 million for the 12 months to June, compared to a $76.6 million loss a year ago.
Funds from operations were 1.1% higher at $109.3 billion, and it paid a full-year distribution of 16 cents per security, in line with the guidance.
The context: Centuria’s head of listed funds Grant Nichols attributed the gains to strong leasing activity during the year, with rental growth more than offsetting the impact of higher interest rates. The property fund continued to benefit from favourable market conditions within urban infill industrial markets, which delivered exceptional re-leasing spreads.
The group has outlined higher guidance for funds from operations (FFO) in FY25 to 17.5 cents per unit, and also expects an improved full year distribution guidance of 16.3 cents a unit.
The company said the domestic industrial real estate market is exhibiting strong tailwinds driven by rising e-commerce adoption, a growing population and a trend towards onshoring supply chains.
The source: ASX announcement
