Core Property has updated its forecasts for CIP.
- CIP benefits from high demand, limited supply, and low vacancy in the Australian infill industrial property sector. During 1H25, occupancy remained high and re-leasing spreads continued to accelerate.
- Over the medium term, CIP’s development pipeline provides the potential to grow earnings, funded by a combination of debt and asset recycling.
- CIP trades at a significant discount to NTA at a time when industrial property valuations appear to have stabilised. We believe this represents an adequate margin of safety, with the potential for a market recovery to narrow the gap between price and NTA.
- With strong dynamics from the industrial sector, potential upside from developments and attractive valuation metrics, we maintain our BUY recommendation.
Download our report for the full details.