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What doesn’t the market like about Centuria Capital Group (ASX: CNI) recent capital raising?

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Question asked 10/07/2026

What doesn’t the market like about Centuria Capital Group (ASX: CNI) recent capital raising?

I generally don’t like buying stocks trending lower, but CNI look good value to me around $1.75. Am I missing something that the rest of the market is aware of? I would be happy to buy at these levels and top up if they fall further, but what are your thoughts on the stock as a longer term investment at these levels? Chris G. Hi MM, After not looking at CNI for some time, I just noticed that it has traded significantly under the recent equity raise price. What is the reason for this - a combination of macroeconomic and company-specific factors? Do you consider it a strong buy at these levels, particularly given the cash injection from the equity raising and reduction in gearing levels? As I have managed to slip this in before the midday cut-off, can you please answer this in this week's Weekend Report if at all possible. Thanks, Darren

Answer

Hi Guys,

For background CNI raised $300mn at $2, which represents a ~18% dilution to existing securities – we thought they did well to get it away after its more than 50% pop from its May low, outperforming most other property stocks in that time frame.

Proceeds will initially be used to reduce debt, strengthening the balance sheet and increasing capacity for future growth. Capital is then expected to be deployed into a potential 50% stake in 680 George/50 Goulburn, larger private credit opportunities, and the expansion of the ResetData AI factory platform, in which Centuria holds a 50% stake.

The raise is structured to be initially NTA dilutive but EPS accretive over time as ResetData capacity is deployed and fee streams from third-party capital grow.

The capital raise and ResetData growth strategy have driven a ~5% upgrade to earnings forecasts.
ResetData is expected to contribute around $5m in annual NPAT (Centuria’s 50% share) from FY27/28.

While risks around securing power and of course customers are real, we like CNI into the current weakness below the $2 raise. While we did not participate in the raise, given the pop in the share price leading into it, and subsequent discount soon after, we still like what they did.

The share price decline is probably more a function of recent outperformance. There was an aggressive buyer of the stock through June, and CNI rightly tapped into that strength. It trades on fairly low volume, so moves can be amplified.

From our perspective, fundamentals have improved post the raise, not deteriorated, though we do view it as a higher risk property play. That was the reason why we switched from CNI into CWY in the Income Portfolio, although we’ve held our position in the Emerging Companies Portfolio.

We think CNI is a buy below $1.80 supported by its ~6% yield.

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Centuria Capital Group (CNI)

LAST UPDATED 10/07/2026 12:06

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