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Centuria Industrial REIT
(Sydney:CIP)
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Rating:67Neutral
Price Target:
AU$3.50
▲(9.03% Upside)
Action:Downgraded
Date:08/17/26
The score is primarily tempered by mixed financial quality—volatile earnings history and weaker cash conversion versus reported profits—despite steady revenue growth and moderate leverage. Offsetting this are supportive valuation (moderate P/E and strong yield) and a constructive earnings call with FFO/distribution guidance and leasing-driven upside, while technical signals remain largely neutral.
Positive Factors
Embedded Rent Reversion
The substantial gap between passing rents and market rents provides a durable internal growth pathway as leases expire. Capturing this reversion can support like-for-like income and FFO growth without relying primarily on acquisitions.
Negative Factors
Weak Cash Conversion
Weak conversion of reported earnings into cash reduces confidence in distribution funding and limits internally generated capital. It suggests that non-cash items or working-capital effects remain important, making earnings quality less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Embedded Rent Reversion
The substantial gap between passing rents and market rents provides a durable internal growth pathway as leases expire. Capturing this reversion can support like-for-like income and FFO growth without relying primarily on acquisitions.
Read all positive factors
Centuria Industrial REIT (CIP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.83B
Dividend Yield5.79%
Average Volume (3M)1.86M
Price to Earnings (P/E)11.1
Beta (1Y)0.46
Revenue Growth6.35%
EPS Growth22.57%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.26
Shares Outstanding624,388,060
10 Day Avg. Volume1,461,749
30 Day Avg. Volume1,857,496
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)0.76
Price to Sales (P/S)7.64
P/FCF Ratio19.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.37Price Target Upside4.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$216.76M
Centuria Industrial REIT Business Overview & Revenue Model
Company Description
Centuria Industrial REIT (CIP) stands as Australia's foremost pure-play industrial real estate investment trust, holding a distinguished position within the S&P/ASX 200 Index. Its portfolio comprises premium industrial properties strategically sit...
How the Company Makes Money
CIP makes money primarily by generating rental income from leasing its industrial properties to tenants. Revenue is driven by contractual base rent under lease agreements, with cash flows influenced by factors such as occupancy levels, lease terms...
Centuria Industrial REIT Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
Overall the call presented a predominantly positive operational and strategic position: strong leasing activity, like‑for‑like NOI growth (5.2%), FFO growth (4%), valuation uplift ($116m) and demonstrable divestment premiums (FY '26 $200m at +17%) underpin a constructive outlook. Management highlighted a meaningful embedded earnings runway (portfolio ~17% under‑rented; ~55% of near‑term expiries under‑rented) and a sizable data center pipeline (>250 MW) that could drive future value. Offsetting factors include persistent trading at ~25% discount to NTA, higher finance costs and interest‑rate exposure, elevated incentives/rent‑free costs, and some occupancy/vacancy timing risk (Fairfield and Bundamba critical to FY '27 upside). On balance, the positive operational metrics, capital management actions and optionality materially outweigh the headwinds.Positive Updates
Strong Leasing Activity
Near record-breaking leasing year with nearly 125,000 sqm leased across Melbourne (~29% of portfolio by area) and substantial national leasing volume; FY '26 re-leasing spreads delivered meaningful uplifts (reported net effective re-leasing spreads referenced up to ~30% with adjusted spreads slightly over 20% when including excluded deals).
Negative Updates
Listed Valuation Discount to NTA
CIP continues to trade at approximately a 25% discount to NTA despite repeated direct market evidence (sales at premiums and valuation uplifts), creating a persistent disconnect between book/replacement metrics and listed price.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Leasing Activity
Near record-breaking leasing year with nearly 125,000 sqm leased across Melbourne (~29% of portfolio by area) and substantial national leasing volume; FY '26 re-leasing spreads delivered meaningful uplifts (reported net effective re-leasing spreads referenced up to ~30% with adjusted spreads slightly over 20% when including excluded deals).
Read all positive updates
Company Guidance
Management guided FY'27 FFO of $0.188–$0.192 per unit (budget ~ $0.19) and distributions of $0.173 per unit, implying up to c.5.5% FFO growth on FY'26 (FY'26 FFO was $114.1m or $0.182/unit with distributions of $0.168/unit); guidance is driven by embedded rent reversion (portfolio ~17% under‑rented), leasing execution (55% of leases expiring over the next 3 years are under‑rented), and operational initiatives rather than acquisitions, and is explicitly dependent on leasing Fairfield and Bundamba (assumed in H2 FY'27 to meet budget). Key balance‑sheet and cost assumptions supporting guidance include portfolio occupancy of 95.2% and a 7‑year WALE, all‑in cost of debt forecast ~5.2–5.3% (floating base ~4.7%), ~54% of debt hedged, liquidity >$450m, a $325m exchangeable note at a 3.5% coupon, $450m of refinancing completed with margins tightened 10–20bps and weighted average debt maturity extended to 4 years, gearing around 34.9% (target comfort ~30–35%), and planned maintenance CapEx of ~$9.3m (c.23bps) with >$12m retained in FY'27 cashflows.Centuria Industrial REIT Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 249.58M | 233.32M | 227.93M | 228.61M | 205.36M |
| Gross Profit | 164.32M | 210.29M | 204.84M | 204.40M | 182.89M |
| EBITDA | 226.33M | 192.03M | 150.37M | 150.21M | 135.05M |
| Net Income | 160.38M | 133.06M | 48.15M | -76.61M | 367.48M |
Balance Sheet | |||||
| Total Assets | 3.97B | 3.93B | 3.88B | 3.91B | 4.15B |
| Cash, Cash Equivalents and Short-Term Investments | 12.97M | 15.04M | 16.54M | 20.87M | 26.60M |
| Total Debt | 1.38B | 1.36B | 1.33B | 1.29B | 1.37B |
| Total Liabilities | 1.46B | 1.44B | 1.43B | 1.40B | 1.46B |
| Stockholders Equity | 2.51B | 2.49B | 2.46B | 2.51B | 2.69B |
Cash Flow | |||||
| Free Cash Flow | 95.68M | 95.88M | 95.54M | 14.16M | 111.93M |
| Operating Cash Flow | 95.68M | 95.88M | 95.54M | 97.60M | 111.93M |
| Investing Cash Flow | 40.92M | -6.88M | -40.12M | 83.45M | -822.09M |
| Financing Cash Flow | -138.66M | -90.49M | -59.76M | -186.79M | 631.22M |
Centuria Industrial REIT Technical Analysis
Negative
3.21
Price Trends
3.01
Negative
2.97
Negative
3.06
Negative
Market Momentum
-0.02
Positive
34.08
Neutral
10.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CIP, the sentiment is Negative. The current price of 3.21 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 3.01, and above the 200-day MA of 3.06, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CIP.
Centuria Industrial REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$1.57B | 11.76 | 21.02% | 6.30% | -1.27% | -24.64% | |
69 Neutral | AU$57.70B | 20.71 | 11.41% | 1.05% | 17.33% | 59.19% | |
69 Neutral | AU$2.91B | 6.52 | 12.78% | 4.87% | 2.96% | 50.62% | |
67 Neutral | AU$1.83B | 11.08 | 6.45% | 4.85% | 6.35% | 22.57% | |
67 Neutral | AU$749.97M | 10.08 | 7.93% | 6.83% | -12.18% | -11.49% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
56 Neutral | AU$1.58B | 17.48 | 3.90% | 8.60% | -0.03% | ― |
* Real Estate Sector Average
AU:CIP
Centuria Industrial REIT
2.90
-0.29
-9.03%
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Centuria Industrial REIT Corporate Events
Centuria Industrial REIT Highlights FY26 Results Focused on Industrial and Data Centre Assets
Aug 10, 2026
Centuria Industrial REIT signalled its FY26 results presentation for the industrial portfolio, highlighting a key property at 15-19 Caribou Drive in Direk, South Australia. The session will feature senior managers, including the fund manager for d...
Centuria Industrial REIT lifts earnings, deepens data centre push amid trading discount
Aug 10, 2026
Centuria Industrial REIT reported FY26 Funds From Operations of $114.1 million, a 4 percent increase on a per-unit basis, supported by 5.2 percent like-for-like NOI growth and near record leasing of 226,200 square metres. Distributions of 16.8 cen...
Centuria Industrial REIT lifts profit, revenue and net tangible assets while maintaining cash distributions
Aug 10, 2026
Centuria Industrial REIT reported solid financial growth for the year ended 30 June 2026, with total revenue and other income rising 15.12% to $328.76 million and net profit attributable to members increasing 20.53% to $160.38 million. Funds from ...
Centuria Industrial REIT sets FY26 results release and investor webcast
Jul 30, 2026
Centuria Industrial REIT will release its financial results for the year ended 30 June 2026 on 11 August 2026, providing the market with an update on the performance of Australia’s largest domestic pure play industrial REIT. The announcement...
Centuria Industrial REIT adjusts exchangeable notes’ conversion price after distribution
Jul 1, 2026
CIP Funding Pty Limited, a subsidiary of Centuria Property Funds No. 2 Limited and issuer for Centuria Industrial REIT, has adjusted the exchange price of its A$325 million 3.50% exchangeable notes due 2030. Following an extraordinary distribution...
Centuria Industrial REIT releases Investor Day presentation to market
Jun 16, 2026
Centuria Industrial REIT has released the presentation it will use for its Investor Day in Sydney, providing the market with updated information on its operations and portfolio. The event underscores the REIT’s engagement with investors as i...
Centuria Industrial REIT Sets June Quarter Distribution at 4.20 Cents
Jun 4, 2026
Centuria Industrial REIT has declared a distribution of 4.20 cents per unit for the quarter ending 30 June 2026, maintaining its focus on providing regular income from its industrial property portfolio. The Distribution Reinvestment Plan will rema...
Centuria Industrial REIT Declares Quarterly Distribution for June 2026 Period
Jun 4, 2026
Centuria Industrial REIT has declared a quarterly distribution of AUD 0.042 per fully paid ordinary unit for the period ending 30 June 2026. The units will trade ex-distribution on 29 June, with a record date of 30 June and payment scheduled for 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.