CIP +3.83%: This week we saw a downgrade from Centuria Office REIT (COF) which dragged down Centuria Capital (CNI) in the process, given their 17% holding. Today the Industrial focissed CIP reported full-year earnings that were a touch above expectations, Funds From Operations (FFO) $111.7 million up +22% yoy and ahead of consensus of $110.5 million – on a per unit basis this was $0.182 versus 0.18 expected while the dividend was solid at $0.1730. Total assets jumped by a third to $4.1 billion, reflecting $765 million in acquisitions during the year – a big year for them and this helped to push their Net Tangible Assets up 11% to $4.24 per unit, while their shares were down 28%. There is clearly a lot of bad news baked into this particular cake and while earnings will be lower in FY23, with FFO guidance of $0.17 and a dividend of $0.16, we think the share price has now factored in more than enough pain. NB: CNI which we recently bought in the Income Portfolio owns 14% of CIP.
MM likes CIP around $3
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