Centuria Industrial REIT announces A$300m exchangeable notes offering

Centuria Industrial REIT (CIP) has launched a fully underwritten A$300m guaranteed exchangeable notes offering, due September 2030, with an initial exchange price of A$4.00-4.03 per security. The new notes will carry a fixed coupon of 3.50% per annum and offer an investor put option in September 2028. Proceeds from the new issue will be used to repurchase up to A$300m of the outstanding 3.95% exchangeable notes due March 2028.

This strategic move aims to lower CIP's average cost of debt and extend the tenure of its exchangeable notes. The transaction is not expected to materially impact CIP's gearing, and the company reaffirms its FY26 funds from operations guidance of 18.0-18.5 cents per unit and distribution guidance of 16.8 cents per unit. The new notes are expected to receive a Baa2 rating from Moody's.

The offering and repurchase are subject to regulatory approvals from ASIC and ASX, with an update expected in due course. The final exchange price is anticipated to be announced on 28 August 2025 following the completion of the offer bookbuild.