Centuria Industrial $70m Capital Raising

28 June 2019

Centuria Industrial REIT announced the acquisition of 3 industrial assets for $59.3M and a fully underwritten capital raising of $70m. Approximately $60M of funds from the capital raising will be used to fund the acquisitions and associated transactions costs, with a further $10 million earmarked for capital expenditure to enhance the assets. The capital raising is is fully underwritten by Moelis Australia Advisory Pty. Ltd. and UBS AG, and priced at $3.05 per unit, representing a; 3.0% discount to the distribution-adjusted last close price of 3.14 on 26 June 20193 ; 3.2% discount to the distribution-adjusted 5-day VWAP of 3.15 on 26 June 20194 ; and 6.5% FY20 FFO yield CIP has also independently revalued 9 of its existing 42 properties as at 30 June 2019, resulting in an increase of $24.1 million, or 8.5% on prior valuations, and reflecting 32 bps of capitalisation rate compression. Following completion of the acquisitions and capital raising, CIP expects : FY19 FFO per unit of 19.3 cents; FY19 distributable earnings per unit (EPU) of 18.8 cents per unit, at the mid point of previous guidance7; FY19 distribution per unit (DPU) of 18.4 cents; and FY20 FFO per unit growth of 2–3% over FY19 FFO. CIP‘s forma gearing reduces to 34.9% providing capacity to pursue future opportunities in line with CIP’s strategy #Centuria