Centuria Office REIT

Good morning.

Thanks for joining Centuria Industrial REIT's half-year 2026 results presentation. My name is Jesse Curtis, Head of Funds Management for Centuria Capital Group. Also presenting today is Grant Nichols, CIP Fund Manager and Head of Listed Funds, and Michael Chim, CIP Assistant Fund Manager. Also in the room today is Tim Mitchell, Centuria's Group Head of Investor Relations. Starting on slide three, I would like to commence today's presentation with an acknowledgement of country. We are joining you from the lands of the Gadigal people of the Eora Nation. Centurion manages property throughout Australia and New Zealand and pays its respects to the traditional owners in each country, to their unique culture and to their elders past and present. Turning to the domestic industrial sector, the Australian market continues to demonstrate strong structural momentum. supported by resilient population growth, sustained public infrastructure investment, and resurging tenant activity. Couple this with constrained long-term national supply, this is underpinning the need for high-quality industrial space. CRP is well positioned to leverage these favourable conditions through our focus on well-connected and strategic assets in urban infill markets. In today's presentation, Grant and Michael will provide an overview of CIP's half-year 2026 financial performance, analysis of the operational performance of the REIT, an update on our development projects and pipeline, an update on our data center projects and opportunities in this space, a summary of market conditions, and conclude with an outlook and guidance statement. Moving now to slide four, Centuria Industrial REIT is managed by Centuria Capital Group. Centuria has over 21 billion of assets under management, and CRP is the largest fund managed by Centuria. CRP unit holders benefit from deep real estate expertise across the Centuria Group, including a fully integrated property facilities and asset management platform, and in-house development capability. Synergies from being part of the group's wider industrial real estate portfolio, which exceeds $6 billion, and strong aligned as Centuria is CRP's largest unit holder, with a 16% co-investment, ensuring the manager's interests are strongly aligned with yours as unit holders. On slide six, CRP's long-standing vision and strategy remains unchanged. We aspire to be Australia's leading domestic pure-play industrial REIT, primary focus on delivering income and capital growth to investors from a portfolio of high-quality industrial assets. Over the long term, we have executed on our strategy, differentiating CIP by growing a portfolio focused on Australian urban infill industrial assets that are relevant to our tenant customers, generating greater levels of tenant demand through cycles. We believe these assets deliver superior returns to unit holders through favourable demand dynamics in markets with persistently limited supply. And the value of the portfolio is not properly reflected by the current trading price. Results that Grant and Mike will present today reflect the benefits of this urban infill strategy, supported by the deep real estate capability of the broader Saturia team to drive value for unit holders. I will now pass over to Grant.

Thanks Jess, and good morning everyone. I'll start on slide seven. CIP has reported a strong interim result for the 2026 financial year, delivering income growth underpinned by strong leasing activity and proactive capital management that has reinforced the CIP balance sheet. During the period, CIP completed approximately 144,000 square metres of leasing, representing about 11% of the portfolio GLA, resulting in average releasing spreads across our active portfolio of 44% and an increased occupancy to 95.7%. The volume of leasing is very encouraging as we witness across our portfolio and here anecdotally across the market, improving levels of tenant inquiry. Pleasingly, we have inquiry across virtually all of our remaining vacant and potential pre-commitment space and we're optimistic of further improved occupancy at full year end. The completed leasing supported a $75 million valuation gain, the fourth consecutive period of valuation gain. While the stabilisation evaluations indicate improving market confidence, they do not yet reflect the strong sales CIP has been achieving. In the first half, CIP sold yet another asset at a significant premium to book value. On the capital management front, CIP refinanced $450 million of debt on competitive terms. with margins secured between 10 to 20 bps lower than previous terms, while the weighted average debt maturity was extended to four years. The REIT also settled $325 million of exchangeable notes at an increasingly attractive fixed annual coupon of 3.5%. Turning to slide eight, the strong portfolio fundamentals and proven capital management enabled CIP to upgrade its FFO guidance range during the period to 18.2 to 18.5 cents per unit, while reiterating distribution guidance of 16.8 cents per unit. Due to the significant under-renting that persists across the CRP portfolio, there is considerable earnings and valuation upside for CRP unit holders, which we've detailed on slide 9. We assess the CRP portfolio to be approximately 20% under-rented on average, and this is the under-renting that has yet to flow into earnings. If we look at CIP's lease expiry profile out to FY29, we estimate about 60% of those leases expiring are under-rented, providing significant opportunity for future positive reversion. Further, the forecast downtime associated with the current vacancy and FY26 expiries are estimated to impede CIP's FY26 FFO by almost two cents per unit. Given the improving leasing activity evident across the CIP portfolio, we are optimistic it is likely to be lower in future years, providing scope for a healthy earnings kick. In addition to the earnings and income upside, we believe CRP retains substantial valuation upside too. Since FY23, CRP has divested around $270 million of non-core assets at an average premium to book value of 8%, including 42 Hope in the Road, which CRP sold for a 10% premium to book value in FY26. The significant premium highlights the ongoing disconnect between CRP's portfolio value and its trading price, which is currently around a 20% discount to NTA. In an effort to bridge the disconnect between the trading price and value, CRP commenced a $60 million buyback in August, with $36 million of units bought back during the period. When you couple the disconnect between CRP's divestment metrics and its trading price, and the positive earnings upside that could be generated, We believe the value CRP is currently offering to be very compelling. I will now hand over to Michael to take you through the financial results and portfolio overview.