From FNArena 12/7/21

CIP - CENTURIA INDUSTRIAL REIT

Morgans rates CIP as Hold (3) - The REIT announced a portfolio revaluation as at June, resulting in a further increase of 11%. This follows from March revaluations, which saw portfolio values rise 8.3%. Morgans suggests the latest increase reflects a strong transactional market in the industrial sector.

The broker notes the portfolio cap rate has compressed -89bps since December 2020, and now sits at 4.53% versus 6.05% at June 2020. The REIT has also acquired a further three assets, increasing the portfolio value to $3bn.

Morgans increases the target price to $3.71 from $3.55 and retains the Hold rating.

Target price is $3.71 Current Price is $3.71 Difference: $0 If CIP meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges). Current consensus price target is $3.79, suggesting upside of 2.2%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 17.00 cents and EPS of 17.70 cents . At the last closing share price the estimated dividend yield is 4.58%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.96. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.5, implying annual growth of -21.2%. Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 21.2.

Forecast for FY22:

Morgans forecasts a full year FY22 dividend of 17.50 cents and EPS of 18.40 cents . At the last closing share price the estimated dividend yield is 4.72%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.16. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of 3.4%. Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 20.5.

Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources