Centuria Industrial REIT posts drop in valuations

Oksana Patron

7 July 2023

The completed external valuations for Centuria Industrial REIT, which represented around 57% of its portfolio by value, have revealed a like-for-like decrease of $80.6 million on prior book values and a 2.1% of portfolio decline.

The reduced value was the result to a large degree of two ultra-long WALE (Weighted Average Lease Expiry) assets, collectively declining 11%, the firm said in the announcement to the Australian Securities Exchange (ASX).

The valuations at the end of June included 38 of the fund’s 89 investment properties and were in line with Centuria’s valuation policy, with the remaining valuations to be undertaken as Director’s valuations within the FY23 results.

Jessie Curtis, Centuria Head of Industrial, said that the portfolio’s infill focus benefitted from strong rental growth and healthy leasing activity with balanced movement in capitalisation rates, which resulted in positive valuation gains across the active sub-portfolio.

The firm said that the remainder of the fund’s active sub-portfolio of 87 assets increased in value by $4.4 million or 0.1% on a like-for-like basis with leasing success and market rental growth offsetting capitalisation rate expansion.

Centuria Industrial REIT provides a portfolio of industrial assets concentrated within the supply-constrained urban infill markets.