Centuria Industrial Earnings: Strong Tenant Demand Buoys Rent Growth

Centuria Industrial REIT reported flat funds from operations, or FFO, of AUD 54 million in the first half of fiscal 2024, with like-for-like rental growth of 6% offsetting asset sales and higher debt costs. We increase our fair value estimate by 6% to AUD 3.30 per unit after upgrading earnings forecasts by mid-single-digit percentage, mainly stemming from strong growth in market rents likely to flow through to the trust as leases expire in the medium term. At current prices, no-moat-rated Centuria Industrial REIT is fairly valued.