Centuria’s AI Factory Launch and $1B Acquisition Target Pose Execution Challenges

FY25 Performance and Platform Strength

Centuria Capital Group (ASX – CNI) closed FY25 with a solid financial performance, delivering operating earnings per stapled security (OEPS) of 12.2 cents, surpassing prior guidance and marking a 4% increase over FY24. The group’s assets under management (AUM) remained robust at $19.7 billion, reflecting a well-diversified portfolio spanning industrial, office, healthcare, retail, agriculture, and real estate finance sectors across Australia and New Zealand.

Despite a challenging macroeconomic environment marked by the most aggressive interest rate hikes in decades, Centuria’s high-margin unlisted funds and strategic asset recycling supported steady earnings and distributions. The group’s balance sheet remains strong, with proactive debt capital management and $347 million in available liquidity to fuel future growth.

Strategic Expansion into AI and Alternatives

A standout highlight from FY25 was Centuria’s entry into the sovereign AI technology space through its ResetData subsidiary. The group completed Australia’s first public sovereign AI Factory, featuring cutting-edge NVIDIA H200 GPU clusters and liquid immersion cooling technology. Customer testing commenced in August 2025, with commercial revenues anticipated from the second quarter of FY26. ResetData also launched an AI marketplace targeting small and medium enterprises, positioning Centuria at the forefront of AI infrastructure innovation in Australia.

Alongside AI, Centuria continued to expand its alternative real estate sectors, which now represent approximately 25% of total real estate AUM. This includes significant growth in healthcare, agriculture, and real estate finance, with Centuria Bass Credit’s AUM increasing 21% year-on-year to $2.3 billion, supported by a $200 million senior secured commitment from UBS and new institutional partnerships.

Outlook and FY26 Guidance

Looking ahead, Centuria is targeting a 10% increase in OEPS to 13.4 cents for FY26, driven by stabilizing real estate markets, anticipated reductions in Australian and New Zealand cash rates, and new revenue streams from ResetData’s AI Factory. The group plans to accelerate real estate acquisitions, aiming for more than $1 billion in transactions excluding real estate finance activity.

Centuria’s listed REITs; Centuria Industrial REIT (CIP) and Centuria Office REIT (COF); are expected to contribute positively, with CIP guiding funds from operations (FFO) of 18.0-18.5 cents per unit and COF targeting FFO of 11.1-11.5 cents per unit. Both REITs are undertaking active portfolio management, including non-core divestments and on-market buy-backs to enhance security prices relative to net tangible assets.

Sustainability and Governance

Centuria continues to embed ESG principles across its operations, targeting zero Scope 2 emissions by 2035 and achieving 100% renewable electricity sourcing for its corporate offices. The group also emphasizes social governance with a 50% female board representation and active community engagement initiatives.

Overall, Centuria’s FY25 results and strategic initiatives position it well to capture emerging opportunities in both traditional real estate and innovative technology sectors, underpinning a confident outlook for FY26 and beyond.