Centuria Industrial REIT (ASX:CIP), Australia’s preeminent pure-play industrial real estate investment trust, has delivered a set of half-year financial results for the period ended Dec. 31, 2025.
Demonstrating the resilience of the industrial sector, the group reported a statutory profit of $68.9 million, an increase from the $62.6 million recorded in the previous corresponding period.
Funds from operations reached $57.3 million, translating to 9.1 cents per unit, while the trust reaffirmed its upgraded FY26 FFO guidance of 18.2–18.5 cpu.
The REIT’s performance was underpinned by intensive leasing activity and strategic capital management.
CIP negotiated approximately 143,900sqm in lease terms, contributing to a healthy portfolio occupancy of 95.7% and a long-weighted average lease expiry of 7.1 years.
A key driver for future growth remains the portfolio's significant 20% average under-renting, which allows the trust to capture substantial rental reversions as 60% of leases expire over the next three years.
Centuria is pivoting toward high-growth infrastructure, notably increasing its exposure to the data centre sector.
The trust has lodged a Development Application for a new 40MW data centre, capitalising on the surge in AI adoption and digital transformation.
Fund Manager Grant Nichols highlighted that the supply-demand imbalance in urban infill markets continues to drive rental growth, while prudent moves—including a $36 million unit buy-back and the divestment of assets at a premium—ensure the trust remains well-positioned to deliver outsized returns in a competitive landscape.
At the time of reporting, Centuria Industrial REIT’s share price was $3.18.