Centuria Industrial REIT has announced several transactions, including the acquisition of two development sites, the acquisition of an asset in Derrimut (VIC) and the divestment of an Eastern Creek (NSW) asset. All up Macquarie estimates 0.5% ultimate earnings accretion.
Despite downgrades and risk from rising rates, the broker remains positive on industrial REIT fundamentals. There is also a risk of a slower economy impacting goods demand, but with Centuria Industrial trading at a -19% discount to net tangible asset value, the broker sticks with Outperform.
An increase in the assumed risk-free rate cuts the target to $3.94 from $4.27.
Sector: Real Estate.
Target price is $3.94.Current Price is $3.40. Difference: $0.54 – (brackets indicate current price is over target). If CIP meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
