CIP – Credit Suisse rates the stock as Neutral

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Centuria Industrial has acquired two assets for $236m from Arnott’s via a sale and lease-back on a combined initial yield of 5.9% vs a capitalisation rate of 5.23%. This will be funded via a placement and a new debt facility.

The acquisitions have increased the scale of the company’s portfolio to around $1.5bn and management has indicated the acquisitions provide certainty on cash flow over the long-term.

Neutral rating and $3.27 target maintained.

Sector: Real Estate.

Target price is $3.27.Current Price is $3.55. Difference: ($0.28) – (brackets indicate current price is over target). If CIP meets the Credit Suisse target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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