Centuria Industrial REIT has released its HY26 Property Compendium, detailing a diversified portfolio of industrial assets across Australia valued at nearly $4 billion. The report highlights strong occupancy, long lease terms, and strategic locations near major infrastructure.
- Portfolio valued at approximately $3.9 billion across five states
- High occupancy rates averaging above 95%
- Weighted average lease expiry (WALE) around 7 years by income
- Focus on urban infill locations with strong transport connectivity
- Sustainability initiatives and redevelopment potential highlighted
Overview of Centuria's Industrial Footprint
Centuria Industrial REIT (ASX – CIP) has published its HY26 Property Compendium, providing an extensive and detailed snapshot of its industrial real estate portfolio spanning New South Wales, Victoria, Queensland, Western Australia, and South Australia. With a total book value nearing $3.9 billion, the portfolio comprises 85 assets strategically located in urban infill markets, close to major transport infrastructure such as motorways, ports, and intermodal terminals.
The portfolio’s diversity is notable, encompassing manufacturing facilities, distribution centres, cold storage warehouses, and data centres. This breadth offers resilience against sector-specific risks and aligns with the growing demand for logistics and industrial space driven by e-commerce and supply chain optimisation.
Strong Occupancy and Lease Profile
Occupancy across the portfolio remains robust at approximately 95.7%, underscoring strong tenant demand and effective asset management. The weighted average lease expiry (WALE) by income stands at 7.1 years, indicating a stable income stream and reduced lease rollover risk in the near term. Key tenants include household names such as Telstra, Woolworths, Arnott’s, Amazon, and The Reject Shop, reflecting a high-quality tenant base.
Many assets benefit from recent refurbishments or are newly developed, such as the M80 Connect facility in Campbellfield, Victoria, which offers modern industrial units with sustainability features targeting a Five Star Green Star rating. The Telstra Data Centre Complex in Clayton, Victoria, is a standout asset with a WALE of nearly 25 years, highlighting the long-term nature of some leases within the portfolio.
Strategic Locations and Redevelopment Opportunities
The portfolio’s emphasis on urban infill locations provides tenants with proximity to major population centres and transport corridors, a critical factor for last-mile logistics and manufacturing operations. Properties such as those in Wetherill Park, NSW, and Derrimut, VIC, offer redevelopment potential, with some sites earmarked for future expansions or new developments commencing as early as 2026.
Centuria’s focus on sustainability is evident, with several assets incorporating energy-efficient lighting, ESFR sprinkler systems, and targeting green building certifications. These initiatives not only reduce environmental impact but also enhance asset appeal to tenants increasingly prioritising ESG considerations.
Outlook and Market Positioning
As Australia’s largest domestic pure-play industrial REIT, Centuria is well positioned to capitalise on the structural growth trends in industrial real estate. The HY26 Property Compendium reinforces the REIT’s commitment to maintaining a high-quality, diversified portfolio with stable income and growth prospects through redevelopment and sustainability upgrades.
Investors and analysts will be watching closely how Centuria leverages its scale and strategic asset base to navigate evolving market dynamics, including rental growth potential and tenant retention amid broader economic conditions.
Bottom Line?
Centuria’s HY26 portfolio report sets the stage for continued industrial sector leadership amid evolving logistics demands.
Questions in the middle?
- How will Centuria prioritise redevelopment projects within its portfolio to drive future growth?
- What impact will sustainability initiatives have on tenant attraction and retention?
- How might lease expiries and tenant diversification influence income stability over the next five years?