ASX:CIP

Stock Analysis Report

Centuria Industrial REIT

Executive Summary

CIP is Australia’s largest domestic pure play industrial REIT and is included in the S&P/ASX 300 Index.


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Centuria Industrial REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CIP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

CIP

-5.1%

AU REITs

-6.2%

AU Market


1 Year Return

24.1%

CIP

11.7%

AU REITs

7.9%

AU Market

Return vs Industry: CIP exceeded the Australian REITs industry which returned 11.7% over the past year.

Return vs Market: CIP exceeded the Australian Market which returned 7.9% over the past year.


Shareholder returns

CIPIndustryMarket
7 Day-1.6%-5.1%-6.2%
30 Day0%-2.2%-5.9%
90 Day1.7%-1.2%-2.7%
1 Year31.5%24.1%16.9%11.7%12.6%7.9%
3 Year83.9%49.4%45.3%24.5%31.3%13.8%
5 Year106.5%41.3%76.9%37.5%42.6%10.6%

Price Volatility Vs. Market

How volatile is Centuria Industrial REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Centuria Industrial REIT undervalued compared to its fair value and its price relative to the market?

5.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIP (A$3.66) is trading below our estimate of fair value (A$3.88)

Significantly Below Fair Value: CIP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CIP is good value based on its PE Ratio (14.1x) compared to the REITs industry average (14.7x).

PE vs Market: CIP is good value based on its PE Ratio (14.1x) compared to the Australian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CIP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CIP is overvalued based on its PB Ratio (1.3x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is Centuria Industrial REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIP's forecast earnings growth (7% per year) is above the savings rate (1.1%).

Earnings vs Market: CIP's earnings (7% per year) are forecast to grow slower than the Australian market (9.4% per year).

High Growth Earnings: CIP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIP's revenue (7.3% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: CIP's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIP's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Centuria Industrial REIT performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIP has a large one-off gain of A$28.1M impacting its December 31 2019 financial results.

Growing Profit Margin: CIP's current net profit margins (71.9%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CIP's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: CIP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CIP had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the REITs industry average (-5.7%).


Return on Equity

High ROE: CIP's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centuria Industrial REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CIP has a high level of physical assets or inventory.

Debt Coverage by Assets: CIP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: CIP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CIP has a sufficient allowance for bad loans.

Low Risk Liabilities: CIP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CIP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CIP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CIP has an appropriate level of bad loans.


Next Steps

Dividend

What is Centuria Industrial REIT's current dividend yield, its reliability and sustainability?

5.03%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.4%markettop25%5.7%industryaverage4.4%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: CIP's dividend (5.03%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CIP's dividend (5.03%) is low compared to the top 25% of dividend payers in the Australian market (5.72%).


Stability and Growth of Payments

Stable Dividend: CIP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CIP's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79%), CIP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average board tenure


CEO

Jason Huljich 0

0

Mr. Jason C. Huljich, B.Comm, Commercial Law, has been Joint CEO at Centuria Capital Group since June 21, 2019 and served as its Head of Real Estate and Funds Management until June 21, 2019. Mr. Huljich se ...


Board Members

NamePositionTenureCompensationOwnership
Nicholas Collishaw
Independent Non-Executive Director of Centuria Property Funds No. 2 Limited2.3yrsno datano data
Darren Collins
Independent Non-Executive Director of Centuria Property Funds No. 2 Limited2.7yrsno datano data
Peter Done
Chairman of the Board of Centuria Property Funds No. 2 Limited0yrsno datano data
Roger Dobson
Independent Non-Executive Director of Centuria Property Funds No. 2 Limited2.3yrsno datano data
Matthew Hardy
Independent Non-Executive Director of Centuria Property Funds No. 2 Limited2.7yrsno datano data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: CIP's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.9%.


Top Shareholders

Company Information

Centuria Industrial REIT's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Centuria Industrial REIT
  • Chifley Tower
  • Level 41
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIPASX (Australian Securities Exchange)YesOrdinary UnitsAUAUDDec 2012
CIPCHIA (Chi-X Australia)YesOrdinary UnitsAUAUDDec 2012
CIPASX (Australian Securities Exchange)NPVAUAUDJan 2017

Biography

CIP is Australia’s largest domestic pure play industrial REIT and is included in the S&P/ASX 300 Index. CIP’s portfolio of high-quality industrial assets is situated in key metropolitan locations throughout Australia and is underpinned by a quality and diverse tenant base. CIP is overseen by a hands on, active manager and provides investors with income and an opportunity for capital growth from a pure play portfolio of high quality Australian industrial assets. Centuria Property Funds No. 2 Limited (CPF2L), is the Responsible Entity for the ASX-listed Centuria Industrial REIT (CIP). CPF2L, is a wholly owned subsidiary of Centuria Capital Group (CNI). CNI is an ASX-listed specialist investment manager with $7.3 billion13 in total assets under management and strong offerings across listed real estate investment trusts, unlisted real estate funds and investment bonds. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:39
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.