Centuria Industrial REIT will add a further four assets to its portfolio for an acquisition cost of $129.4m, while also selling one minor asset for $10.5m. Credit Suisse notes the transaction will be debt funded and accretive to previous forecasts.
Funds from operations forecasts increase 0.9%, 1.6% and 1.5% through to FY24, with the broker noting the company will retain further capacity for debt-funded acquisitions within target gearing.
The Neutral rating and target price of $3.83 are retained.
Sector: Real Estate.
Target price is $3.83.Current Price is $3.67. Difference: $0.16 – (brackets indicate current price is over target). If CIP meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
