Centuria Industrial REIT

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

An Australian-based real estate investment trust, Centuria Industrial REIT (ASX: CIP), is engaged in building investment properties portfolio and got listed on ASX in December 2012. The company’s portfolio of industrial assets is located in urban infill throughout Australia and is supported by a diverse tenant base.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~38.49% of the total shareholding. Centuria Capital Group and Vanguard Investments Australia Ltd. are holding a maximum stake in the company at ~14.82% and ~7.62%, respectively.

1.4 Key Metrics: In 1HFY22, CIP recorded an EBITDA margin of 64.6%, compared to the Industry Median figure of 61.3%. The net margin for the period stood at 312.2%, higher than the Industry Median figure of 119.5%. The below picture depicts the net margin and Return on Equity trend since 1HFY20.

Section 2: Business Updates and Financial Highlights

2.1 Recent Developments:

2.2 Results Highlights of 1HFY22: The company recorded better-than-expected leasing activity aided by double-digit rental growth and strategic acquisitions in 1HFY22.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 19, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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