Centuria Industrial REIT (ASX: CIP) has completed external valuations on 38 of its 89 investment properties as at 30 June 2023, representing approximately 57% of the portfolio by value. In line with Centuria’s valuation policy, the remaining valuations will be undertaken as Director’s valuations within the FY23 results.
CIP’s completed valuations for 30 June 2023 reflect a like-for-like decrease of $80.6million on prior book values, a portfolio decline of 2.1%. The Weighted Average Capitalisation Rate (WACR) across the total portfolio expanded by 60 basis points from 4.66% at 31 December 2022 to 5.26% at 30 June 2023. The reduced value concentrated on two ultra- long WALE assets, collectively declining 11%.
The remainder of CIP’s active sub-portfolio of 87 assets increased in value by $4.4million or 0.1% on a like-for-like basis with leasing success and market rental growth offsetting capitalisation rate expansion.
Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial, said “CIP provides a portfolio of high-quality industrial assets concentrated within supply-constrained urban infill markets. The portfolio’s infill focus benefitted from strong rental growth and healthy leasing activity which balanced movement in capitalisation rates, resulting in positive valuation gains across the active sub-portfolio. CIP continues to be well positioned to take advantage of the industrial sector’s strong market tailwinds and favourable operating conditions.”
CIP also recently received a MSCI ESG rating of BBB, an improvement from its previous B rating, which is credited to the portfolio’s environmental metrics.
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