Centuria Industrial REIT: Screens as Attractive After Changing to Medium Uncertainty

We previously rated Centuria Industrial REIT’s uncertainty as High because of its high financial leverage and slim headroom to its interest coverage debt covenant. However, with strongly growing rents and noncore asset sales, the trust's financial health is improving, and we award it a Medium Uncertainty Rating. We maintain our AUD 3.50 per unit fair value estimate, but the changed uncertainty rating narrows the star rating bands and results in the stock moving into 4-star territory. The stock is relatively attractive, offering a forecast yield of 5.5%.