Why the Centuria Industrial (ASX:CIP) share price is down 8% today

This property company's shares are sinking…

Should you invest $1,000 in St Barbara Limited right now?

Before you buy St Barbara Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and St Barbara Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Thumbs down Facebook icon over dark screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Centuria Industrial Reit (ASX: CIP) share price has been among the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Friday.

In morning trade, the industrial property company's shares are down 8% to $3.69.

Why is the Centuria Industrial share price sinking?

The catalyst for the weakness in the Centuria Industrial share price today has been the completion of an institutional placement.

According to the release, the company has raised $300 million through the issue of approximately 78.9 million shares at $3.80 per new share. This represents a 5.2% discount to the Centuria Industrial share price prior to its trading halt.

The proceeds from the placement will be used to partially fund the acquisition of eight freehold urban infill industrial assets for a total of $351.3 million. This price represents an average initial yield of 4.1% and a weighted average capitalisation rate of 4.23%.

Management notes that the acquisitions expand the company's exposure across key industrial sub-sectors. These include distribution centres, cold storage, and transport logistics. This is a big positive given how these sectors are experiencing strong tailwinds underpinned by accelerating consumer shift to online retail.

Centuria Industrial's Fund Manager, Jesse Curtis, commented: "The Placement received strong demand from new and existing institutional investors, indicating clear endorsement of CIP's strategy and management capability to build scale and amass, off market, a high-quality portfolio of urban infill industrial assets to deliver value to unitholders."

The company will now push ahead with its non-underwritten share purchase plan which is aiming to raise a further $25 million. These funds will be raised at $3.76 per share. This represents the institutional placement issue price adjusted for its 30 September distribution of 4.325 cents per share.

Is it time to invest?

A number of brokers have responded to the news. One that is bullish is Macquarie Group Ltd (ASX: MQG).

Its analysts were pleased with the acquisitions and have retained their outperform rating and lifted their price target to $4.22.

Based on the current Centuria Industrial share price, this represents potential upside of 14% before distributions.

Speaking of which, Macquarie estimates that the company will pay a 17.3 cents per share distribution in FY 2022. This equates to a 4.7% yield at current prices.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »