Centuria Property Funds, a responsible entity (RE) of Centuria Industrial REIT (CIP), has reported that half year 2019 financial results saw a slightly lower net profit, which dropped to $46.1 million from $49.6 million a year before.
At the same time, distributable earnings for the half year stood at $23.3 million compared to $24.2 to the corresponding period last year.
CIP fund manager, Ross Lees, commenting on the results said that industrial markets continued to strengthen, particularly on the east coast as increasing land value along with improved demand put upward pressure on rents.
“With occupancy at 97.1 per cent, lease expiries in FY19 of less than two per cent and balance sheet gearing at a manageable 37 per cent, CIP’s portfolio is well positioned as we continue to execute our investment strategy and create value for our investors,” he said.
The $1.2 billion portfolio, which quality was largely improved thanks to $168.5 million of transactions, also benefitted from the new acquisitions of $112.3 million in high quality properties.
CIP managed to make acquisitions, which were in established industrial precincts or close to key infrastructure amenity, which helped grow the fund’s portfolio with both complimentary assets and an introduction of new national tenant customers, lees said.
“As a result of these acquisitions and selective divestments, CIP’s portfolio is now valued at $1.2 billion, enforcing its position as Australia’s largest ASX-listed income-focused industrial REIT.”
At the same time, occupancy jumped to 97.1 per cent (from 94.5 per cent at FY18) and the fund managed to secure leases for around 65,900 sqm, with 80 of leasing occurring in its Victorian sub-portfolio.
As far as the outlook for 2019 was concerned, Lees said: “Economic tailwinds provided by e-commerce, last mile logistics and manufacturing, continue to drive underlying demand from tenants seeking to be located in infill locations or near core infrastructure facilities”.