Centuria Industrial REIT has launched a $325 raising to help fund $350m in asset purchases. The broker estimates -2.4% dilution to funds from operations, but due to fixed interest expense offsets, guidance has been maintained.
The broker has trimmed earnings forecasts but increased its target price to $4.22 from $4.00 reflecting a risk-free decrease to 2.40% from 2.52%. Upside exists from rental growth, balance sheet deployment and cap-rate compression, the broker suggests.
Outperform retained.
Sector: Real Estate.
Target price is $4.22.Current Price is $4.01. Difference: $0.21 – (brackets indicate current price is over target). If CIP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
