The property fund’s industrial REIT has benefited from a $47 million valuation gain, with $3 million of that in WA.
Centuria Capital Group’s industrial real estate investment trust has reported a $47 million national valuation gain in the second half of 2024, with $3 million of that in Western Australia.
The REIT owns nine industrial assets in WA, valued at a total of $352 million, up from $349 million in FY24.
Its most recent WA purchase was a Malaga data centre, which it acquired for $39 million in mid-2024.
The Malaga asset aside, in the past 12 months, the properties in Centuria’s industrial REIT have increased in value by $23.6 million, or 8.14 per cent.
The latest weighted average capitalisation rate, or yield, for its WA properties is 6.78 per cent, compared with 5.83 per cent nationally.
Its funds from operations, which represents its statutory net profit adjusted for certain cash and non-cash items, has lifted from $54.4 million in H124 to $56.6 million in the second half.
In WA, the REIT, known as CIP, recorded 96.1 per cent occupancy across 184,233sqm of industrial space, with a 4.9-year weighted average lease expiry.
Its WA assets represent 9 per cent of the REIT’s entire portfolio, which has a 7.3-year WALE and 96.6 per cent occupancy.
Data centres represent 12 per cent of its portfolio, valued at $450 million.
The Malaga asset is leased to Japanese information technology group Fujitsu.
Centuria Capital Group head of funds management Jesse Curtis said that opportune macroeconomic factors were driving demand for urban industrial facilities including data centres.
These include population growth, increasing e-commerce adoption, rising data consumption and onshoring of supply chains.
“CIP’s portfolio is well positioned to capitalise on these trends while demonstrating strong fundamentals including a healthy WALE, high occupancy, considerable scale and reach across Australia," he said.
“The current trading price also provides compelling value in light of CIP’s current net tangible assets against a backdrop of persistent sector tailwinds.”
CIP’s shares were up by 2.37 per cent to $3.02 at the time of writing.
