Morningstar lifts Centuria Industrial REIT's fair value estimate on FY26 outlook

Centuria Industrial Reit

06/08/2025 21:44

** Analysts at Morningstar raise fair value estimate of Australia's Centuria Industrial REIT CIP.AX by 3% to A$3.50
** Investment research firm raises fair value estimate citing modestly higher earnings forecasts, time value of money and accretive unit buyback
** Upgrades FY26 funds from operations guidance by 2% to 18.3 Australian cents per unit, which is close to the top-end of co's forecast of 18 AU cents to 18.5 AU cents per unit
** REIT's vacancy rate increased to 4.9% from 1.2% in June 2022 as industrial markets cooled, but rents remain relatively stable — Morningstar

** Expects net operating income growth of nearly 5% per year for the medium term as rents close the gap

** CIP posted FY net income of A$133.1 million ($86.54 million) on Wednesday

** YTD stock up 17.4%

($1 = 1.5380 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.SinghChundawat@thomsonreuters.com))