Macquarie rates CIP as Outperform

I just got this ...Fri, 24 Sept at 9:31 am

Friday, 24 September 2021

CIP - CENTURIA INDUSTRIAL REIT

Macquarie rates CIP as Outperform (1) - Centuria Industrial REIT has launched a $325 raising to help fund $350m in asset purchases. The broker estimates -2.4% dilution to funds from operations, but due to fixed interest expense offsets, guidance has been maintained.

The broker has trimmed earnings forecasts but increased its target price to $4.22 from $4.00 reflecting a risk-free decrease to 2.40% from 2.52%. Upside exists from rental growth, balance sheet deployment and cap-rate compression, the broker suggests.

Outperform retained.

Target price is $4.22 Current Price is $4.01 Difference: $0.21 If CIP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges). Current consensus price target is $3.97, suggesting downside of -1.1%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 17.30 cents and EPS of 18.00 cents . At the last closing share price the estimated dividend yield is 4.31%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.28. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -84.6%. Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 22.2.

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 18.40 cents and EPS of 19.20 cents . At the last closing share price the estimated dividend yield is 4.59%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.9, implying annual growth of 4.4%. Current consensus DPS estimate is 17.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 21.2.

Market Sentiment: 0.4All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources