Fund Manager Summary
Centuria Industrial Reit (ASX:CIP) has drawn mixed sentiments from fund managers as of September 2025, particularly from PM Capital, which recently trimmed its holdings after a notable rise of over 20% in share price to approximately $3.49. The initial decline in stock value during 2023 and 2024 was largely attributed to escalating interest rates, subsequently increasing yields across the portfolio. Despite this, the underlying portfolio characteristics remain favorable due to strong demand for industrial properties and a scarcity of new supplies in key urban markets like Sydney and Melbourne, resulting in rising rents as leases are renewed. However, the recent decision to reduce exposure indicates a cautious outlook on further upside potential, emphasizing the balance investors must consider between ongoing positive market dynamics and the risks associated with high interest rates impacting overall real estate valuations.
Source: Trading View
Commentary From The Managers
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Commentary From The Managers
PM Capital
30 Sept 2025
$3.49
Summary
- PM Capital trimmed their holding in Centuria Industrial REIT in September.
- They initiated the position in early 2024 and added to it when the stock fell below $3.
- The original de-rating occurred through 2023 and 2024 due to higher interest rates, which increased initial yields across the portfolio.
- The portfolio remains under-rented amidst strong demand for industrial property and limited new supply in key markets.
- Centuria operates in Sydney and Melbourne’s urban infill markets, ensuring rising rents as leases expire.
- While the positive trend in rental growth has further potential, PM Capital chose to trim their position due to reduced upside after a gain of over 20% in 2025.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Centuria Industrial Reit (ASX:CIP)?
Fund managers including PM Capital have invested in Centuria Industrial Reit (ASX:CIP).
Why do fund managers invest in Centuria Industrial Reit?
Fund managers have invested in Centuria Industrial REIT for its under-rented industrial property portfolio concentrated in Sydney and Melbourne urban-infill markets, where strong demand and limited new supply support rent growth as leases reset. Higher interest rates in 2023–24 led to a de-rating and higher initial yields, influencing income expectations. Managers cite solid rent reversion and sector exposure as positives, but some trimmed positions in September 2025 after the stock rose over 20% owing to reduced upside.
What happened to Centuria Industrial Reit (ASX:CIP)?
Fund managers have invested in Centuria Industrial REIT due to its strategic positioning in high-demand urban infill markets like Sydney and Melbourne, where limited supply drives potential rent increases. Despite trimming holdings following significant gains, the strong demand for industrial properties and the portfolio's under-rented status continue to suggest upward rental trends as leases expire.
What is the short interest in Centuria Industrial Reit (ASX:CIP)?
The short interest in Centuria Industrial Reit (ASX:CIP) is 2.78% which makes it the 93rd most shorted stock on the ASX. Of the 624.4M shares that Centuria Industrial Reit has on issue, 17.4M have been sold short.
What does Centuria Industrial Reit (ASX:CIP) do?
Centuria Industrial REIT is a property investment and fund management company focused on industrial properties. It acquires and manages these properties throughout Australia, providing investors with returns linked to the performance of the industrial real estate sector. The company operates within the real estate industry and is headquartered in Sydney.