Centuria Industrial REIT has reported a strong first half for 2025, with total revenue surging over 20% and net profit rising by 10%, while distributions remain steady.
- Total revenue increased 20.38% to $171.8 million
- Net profit rose 10.12% to $68.9 million
- Funds from operations edged up 1.19% to $57.3 million
- Distributions steady at around 4.2 cents per unit for recent quarters
- Net tangible assets per share increased to $3.95
Robust Revenue and Profit Growth
Centuria Industrial REIT (CIP) has delivered a solid financial performance for the half-year ended 31 December 2025, with total revenue climbing 20.38% to $171.8 million compared to the previous corresponding period. This impressive top-line growth translated into a 10.12% increase in net profit, which reached $68.9 million. The results reflect a continued positive trajectory for the industrial property sector, buoyed by strong demand and effective asset management.
Funds From Operations and Distribution Stability
Funds from operations (FFO), a key metric for real estate investment trusts, showed a modest increase of 1.19% to $57.3 million. This suggests that while revenue and net profit surged, operational cash flow growth was more measured, possibly reflecting timing or non-cash accounting factors. Distributions declared for the June, September, and December 2025 quarters remained stable at just over 4.0 cents per unit, signalling a consistent income stream for investors despite the DRP (Distribution Reinvestment Plan) remaining suspended.
Balance Sheet and Asset Quality
The REIT’s net tangible assets per security increased slightly to $3.95 from $3.89, indicating a modest uplift in underlying asset value or retained earnings. The number of securities on issue saw a small reduction, which may reflect buybacks or consolidation activity. Notably, the financial report was audited without qualification, providing assurance on the integrity of the reported figures.
Operational Footprint and Associates
Centuria Industrial REIT maintains a 51% ownership interest in key associates including AIR Erskine Park Trust, AIR Glendenning 2 Trust, and CIP Sub Trust No. 33, which contribute to its industrial property portfolio. These assets are strategically located in growth corridors, underpinning the REIT’s income stability and potential for capital appreciation.
Looking Ahead
While the half-year results highlight strong growth and steady distributions, the suspension of the DRP leaves some uncertainty around reinvestment options for unitholders. Investors will be watching closely for updates on this front as well as any guidance on future capital management strategies. The broader industrial property market remains competitive, and Centuria’s ability to sustain growth will depend on navigating evolving market dynamics and tenant demand.
Bottom Line?
Centuria Industrial REIT’s solid half-year results set a positive tone, but eyes remain on distribution reinvestment and future growth catalysts.
Questions in the middle?
- What are the drivers behind the strong revenue growth and how sustainable are they?
- When might the Distribution Reinvestment Plan be reinstated, if at all?
- How will Centuria manage capital deployment amid evolving industrial property market conditions?