Centuria is being rewarded for its decision to counter-cyclically invest in its Industrial REIT (CIP).
Following a revaluation of its 61 assets, the portfolio is now worth $2.9 billion – up 11 per cent ($285m) on prior book values.
The Weighted Average Capitalisation Rate also firmed – to 4.53pc (from 4.95pc).
Priciest assets get pricier
The trust’s most expensive asset, the Telstra Data Centre at Clayton, was repriced at $505m – an $88.3m increase on what it paid last August.
A Virginia investment rented to Arnott’s, 46 Robinson Rd, increased $29m on its previous book value – a nine pc rise.
The fund acquired this property with a 30 leaseback in December, 2019.
At Warnervale, 2 Woolworths Way (pictured, top) – which CIP recently committed Woolworths to until 2031, was valued at $112m.
Last year, this property was worth $74m (story continues below).
Other NSW portfolio investments to experience capital value increases include the Visy-backed 37-51 Scrivener St, Warwick Farm (to $65m, up 29pc) and 92-98 Cosgrove Rd, Enfield ($63m, 16pc).
Solid investor, tenant demand
“Australia’s industrial real estate market remains a highly sought-after sector attracting investment demand from domestic and international capital,” fund manager, Jesse Curtis, said.
“Within the past six months the market has seen elevated transaction volumes with major asset and portfolio sales setting new benchmarks, which has resulted in significant compression of capitalisation rates compared to previous reporting periods,” he added.
CIP has also benefited from a buoyant leasing market, it said.
“Over the course of FY21, CIP has leased approximately 196,000 sqm demonstrating the increased tenant demand for industrial space, which is expected to continue given limited future land supply in infill markets,” according to Mr Curtis.
The portfolio has a low 1.5pc vacancy rate and 9.7 year Weighted Average Lease Expiry.
“As Australia’s largest domestic pure-play industrial REIT, CIP remains well positioned to continue to benefit from the structural tailwinds and the strength of the Australian industrial market,” the executive added.