Centuria Industrial upgrades funds guidance after HY profit

The news: Property investor Centuria Industrial REIT has upgraded its funds guidance after swinging to a first-half profit on the back of strong leasing activity.

The numbers: The company reported statutory profit of $12.2 million for the six months to December, compared to a $45.6 million loss a year ago. Funds from operations were marginally higher at $54.12 billion, and it paid a quarterly distribution of 4 cents per security.

The context: Centuria’s head of industrial Jesse Curtis said the property fund continued to benefit from favourable market conditions within urban infill industrial markets, which delivered record re-leasing spreads. As a result, the group has upgraded its full year guidance for funds from operations to 17.2 cents per unit, from 17 cents previously, and also reaffirmed its full-year distribution guidance of 16 cents a unit.

Curtis said Centuria was entering the second half in a strong position with domestic urban infill industrial market vacancy remaining tight despite a marginal increase in wider industrial market vacancy.