Good morning. I am Jesse Curtis, Centuria Industrial REIT's Fund Manager.

I'm delighted to present CIP's full year FY '21 results presentation today. It's been a successful year for CIP.

We've achieved significant leasing across the portfolio, which supports long-term income, and we secured large-scale strategic acquisitions, which builds on our portfolio quality. Financial year '21's strong performance resulted in growing the portfolio to nearly $3 billion across over 60 assets, inclusion in the S&P/ASX 200 Index and FTSE EPRA NAREIT Global Index and delivery of 2 FFO guidance upgrades throughout the year.

CIP remains Australia's largest listed domestic pure-play industrial REIT. It provides a high-quality portfolio of Australian urban infill industrial assets, diversified by geography, industrial subsector and tenant profile.

With high occupancy, our long WALE and strong balance sheet, CIP is well positioned to deliver reliable income streams and capital growth to unitholders. Earlier today, we published various documents on the ASX platform, including this results presentation, which I will step you through now.

Today, I'll provide an overview of CIP's FY '21 portfolio activities and an FY '22 outlook, along with earnings guidance. Let's begin on Slide 4.

CIP is a real estate investment trust that forms part of the larger Centuria Capital Group family, a leading Australasian real estate fund manager, operating under the ASX ticker code CNI. With more than $17 billion of assets under management, Centuria Capital Group provides its investors with exposure to quality office, industrial, convenience and large format retail, agriculture and health care real estate investments across Australia and New Zealand as well as investment bonds through the Centuria Life business.

CIP accounts for around 18% of Centuria Capital's total assets under management and is the platform's largest industrial fund. Slide 5 highlights the alignment between the broader Centuria Capital business and CIP.

Advantages being managed by Centuria is that the group has a 20-year plus successful track record in property funds management and a broad property platform. With in-house property, facilities and development management, Centuria provides deep leasing capability and hands-on management of the CIP portfolio.

The recent merger with Primewest further enhances Centuria's real estate capability, and now with a much larger industrial portfolio under its management creates synergies for CIP unitholders. Centuria Capital Group remains CIP's largest unitholder and has been a strong supporter in CIP's evolution to now be Australia's largest ASX-listed domestic pure-play industrial REIT.

It's important to note that CIP is externally managed by Centuria, meaning the REIT does not employ any personnel, which is a consideration when assessing sustainability. Looking to Slide 6.

Under Centuria's management, CIP has a proven track record of value creation. We've continued to build increased scale and investor relevance, resulting in inclusion in both the ASX 200 Index and FTSE EPRA Global Index.

Since we began managing the REIT in 2017, NTA growth has grown at an average rate of 11% per annum, while the balance sheet has strengthened substantially. Return on equity has been strong, exceeding 10% each year, with FY '21 return on equity an impressive 41.8%.

Slide 7. CIP's strategy remains unchanged, aiming to deliver investors reliable income and capital growth from a high-quality portfolio of Australian industrial assets located in urban infill locations and a vision to position ourselves as Australia's largest listed domestic pure-play industrial REIT.

Turning to Slide 8. During FY '21, CIP introduced 2 new high-conviction industrial subsectors, data centers and cold storage with substantial investments in both.

CIP is now exposed across all key industrial subsectors of manufacturing, distribution centers, transport logistics, data centers and cold storage, providing further portfolio diversification through asset usage as well as geographic locations and tenant income strengths. Slide 9 outlines CIP's execute -- strategy execution.

CIP delivered a strong full year performance as the Centuria team continued to execute the REIT strategy. Portfolio increased with 18 high-quality industrial acquisitions secured for $966 million, growing the scale of CIP's portfolio to $2.9 billion at 30 June.

These acquisitions transformed the portfolio quality and provided increased exposure to tightly held industrial subsectors, including cold storage and data centers, while adding key urban infill logistics assets to the portfolio. Our team's active management approach continued to drive leasing success with terms agreed for approximately 240,000 square meters during the year, including resolving major near-term lease expiries.

This resulted in continued high occupancy near 97% and a WALE of 9.6 years. Leasing success and investment demand for industrial assets resulted in a valuation uplift of more than $0.5 billion during FY '21, with NTA increasing 36% to $3.83 per unit.

The REIT's gearing at 27.8% continued to trend at the lower end of the target gearing range. With ample headroom to debt covenants and staggered debt maturities, the strength of CIP's balance sheet is reinforced.

Major milestones during the year for inclusion in the ASX 200 index and the FTSE EPRA NAREIT Index, which has increased investor relevance for the REIT. FY '21 funds from operation were delivered in line with twice upgraded guidance with FFO of $0.176 per unit and distributions of $0.17 per unit paid.

Looking forward to FY '22, we are again pleased to be providing guidance with CIP forecasting funds from operation of no less than $0.181 per unit and distributions forecasted at $0.173 per unit. Slide 10 details CIP's key metrics.

The portfolio as at 30 June was valued at $2.9 billion with 62 high-quality industrial assets and strong income stream supported by higher occupancy and WALE. The balance sheet remains robust, providing substantial headroom to debt covenants to facilitate potential growth opportunities.

Turning to the financial results on Slide 12. Total revenue increased as a result of acquisitions and leasing completed during FY '21.

Like-for-like income was up 3.5%, mainly driven by leasing activity and fixed rental increases embedded within our leases. The industrial sector has continued to show resilience through COVID.

Testament to CIP's robust portfolio, its rent collections have remained strong at 99% for the year. Finance costs increased due to portfolio growth, while, with a change in the interest rate environment and new debt secured, the weighted average cost of debt decreased from FY '20.

With CIP's strong full year performance, twice upgraded FFO guidance was met together with distribution guidance. Moving to capital management on Slide 13.

During the year, strength of CIP's balance sheet was maintained. $560 million of new debt facilities were established together with approximately $465 million of new equity raised.

This capital management assisted with further improving the portfolio's quality and providing the opportunity to capitalize on transaction opportunities. Following these initiatives and valuation gains, reported gearing at 30 June was 27.8% at the lower end of the target gearing range of 30% to 40%.

CIP remains well supported from all our lenders and our serviceability remains strong with significant headroom to debt covenants. Weighted average debt maturity sits at 3.1 years with the next maturity in FY '23.

Combined with the staggered debt profile and support from a diversified lender base, CIP's balance sheet continues to be well positioned to support future growth initiatives. Now to the property portfolio on Slide 15, which shows a snapshot of CIP's portfolio composition and the geographic spread of our assets.

The portfolio value at 30 June was $2.9 billion across 62 high-quality industrial assets. We maintained critical mass in each of our core markets and hold a 90% weighting to the strong performing eastern seaboard markets.

With over 1 million square meters of lettable area provided to more than 119 customers, our portfolio is well diversified. Let's move to Slide 16.

Transactions in FY '21 transformed scale and quality of CIP's portfolio. Approximately $1 billion of high-quality acquisitions were executed at an attractive yield spread to prevailing market pricing.

The acquisitions were completed with 100% occupancy and introduced 2 new industrial subsectors to the portfolio. Key acquisitions included the Telstra Data Centre in Clayton, Victoria of $417 million; 4 cold storage assets across New South Wales, Victoria and Queensland for a combined $214 million; 13 high-quality urban infill logistics assets for a combined $335 million.

53% of the acquisitions were completed with triple-net lease structures, removing any maintenance CapEx obligations and generating secure long-term income for unitholders. 100% of the acquisitions were secured in the tightly held eastern seaboard markets of Sydney, Melbourne and Brisbane.

CIP also recycled capital with the divestment of 136 Zillmere Road, Boondall in Queensland for a 22% premium to 30 June book value. The scale of CIP's transactions continues to evidence Centuria's strong market relationships and ability to source attractive acquisition opportunities both on and off market in a highly competitive environment for industrial assets.

Slide 17 outlines our customer base. CIP's key focus is to ensure ongoing reliability of income streams.

CIP's income remains defendable with 51% of income coming from CIP's top 10 blue chip customers. Given our strong customer relationship, most of these top 10 customers have multiple sites within the portfolio and are on long-term leases with a WALE of over 11 years from these 10 customers alone.

Additionally, 25% of total portfolio income is now secured under triple-net lease structures, and 75% of total annual income reviews are fixed, providing further certainty of cash flows and growth. Looking at closer -- looking closer at portfolio leasing and WALE on Slide 18.

CIP experienced significant leasing activity during the year with approximately 240,000 square meters leased, driving high occupancy of 96.9%. 33 leasing deals were completed with major near-term lease expiries successfully secured.

Notably, the renewal of Woolworths of 54,000 square meters at its regional distribution center at Warnervale for a brand-new 10-year term. Renewal of Visy of 27,500 square meters at its Warwick Farm manufacturing facility for a brand-new 10-year term and 10,000 square meters leased to 2 occupiers at our Bibra Lake property in WA with no downtime and extending the assets WALE to 4.7 years.

Having agreed an early surrender of lease at 14-17 Dansu Court in Hallam, CIP has now successfully secured a brand-new 8-year lease over the whole 17,000 square meter building. Following the successful year of leasing and with the acquisition of new assets, CIP's WALE sits at 9.6 years.

The team's focus on derisking, forward leasing and customer relationships has paid off in FY, with FY '22 expiries reducing from 15.4% to 4.7% of the portfolio. The expiry profile is significantly derisked with more than 12 -- with only 12% of the portfolio expiring during the next 2 financial years and no single tenant expiry of more than 2.5% of portfolio income for the next 4 years, providing limited concentration risk.

This result reinforces the strength of the market and the leasing capability of CIP's team. The team will continue to focus on our customers and vacancies to drive leasing outcomes to the benefit of the portfolio.

Moving to our value-add initiatives on Slide 19. With a long WALE and high occupancy, CIP continues to focus on opportunities to leverage Centuria's management capabilities through selective value-add initiatives, through repositioning and developing assets to drive value for investors.

Our approach is to identify and execute opportunities to reposition or refurbish existing assets to take advantage of tenant demand in urban infill markets to increase and secure income streams and valuation uplift across the portfolio. On our most recent acquisition of 160 Newton Road, Wetherill Park, we undertook a strategic leasing approach by repositioning the asset to increase its WALE from less than a year of acquisition to now over 7 years.

Our current active projects include our Bella Vista asset, which is well suited to capitalize on demand from last mile users for urban infill logistics facilities. Moving to Slide 20 and our value-add developments.

Selective development activities provides CIP the opportunity to introduce brand-new sustainable assets into the portfolio to secure long-term reliable income from high-quality customers. These assets are future proofed and built to the highest standard and include the latest sustainability initiatives and technology such as LED lighting, solar panels and recycled water.

Centuria has an experienced industrial development team to deliver these projects for CIP. Recently, CIP completed its first 5 star Green Star - Design & As Built industrial building in Bundamba Queensland, one of the first in Australia under the new rating scheme.

CIP has also undertaken development of a multiunit urban infill industrial estate in Dandenong South, which is due for practical completion in 2022 and is provided with a 2-year rate guarantee. This will also be built to a 5-star Green Star rating.

Turning to valuations on Slide 21. Net tangible assets, or NTA, grew substantially during FY '21, with an increase of 36%.

CIP delivered total valuation gains of $587 million. Valuation uplift was driven by heightened competition and investment demand for industrial and logistics assets, with elevated transaction volumes setting new benchmarks for major asset and portfolio sales.

Major leasing across the portfolio was also a driver of valuation uplift with 22% or $130 million directly attributable to leasing outcomes. Of particular note were the renewal of Visy and Woolworths.

Like-for-like valuation uplift for the portfolio was $424 million, and the remaining $149 million is attributed to the revaluation of new assets acquired throughout the financial year. The industrial real estate sector has shown considerable strength with tailwinds from e-commerce and tenant demand, supporting investor appetite and driving asset values.

Scarcity of investment-grade stock continues to drive investment yield compression with strong competition for these assets. CIP's weighted average capitalization rate now sits at 4.54%.

Looking into sustainability on Slide 22. As CIP is externally managed by Centuria Capital Group, it aligns itself to Centuria's sustainability approach.

Throughout financial year '21, Centuria and CIP implemented various ESG initiatives, including drafting Centuria Capital's first sustainability report, which will be released later this year and includes responses to the Task Force on Climate-related Financial Disclosures recommendations. There has been diversification of CIP's responsible entity Board with the appointment of Roger Dobson as Independent Chair and Natalie Collins and Jennifer Cook as independent non-executive directors.

CIP's Board now has 40% female representation. Other initiatives and sustainability highlights during FY '21 are: the establishment of Centuria's Culture and ESG Board Committee; the release of Centuria's first modern slavery statement, completing employee and tenant engagement surveys, where 94% of employees expressed enjoyment working at Centuria and 91% of tenants recommend Centuria; and retaining Centuria's membership to the Diversity Council Australia.

Specific to the environment on Slide 23, the CIP portfolio has over 5,000 individual solar panels installed, avoiding over 6,000 tons of carbon being released in financial year '21. CIP is also proud to have delivered its first 5-star Green Star Design & As Built industrial development in Queensland.

The development provides sustainability features such as recycled building materials, solar panels, LED lights, on-site rainwater harvesting and natural vegetation. In financial year '22, CIP will be delivering its second 5-star Green Star industrial building in Dandenong South, reinforcing CIP and Centuria's commitment to sustainable industrial development.

On to Slide 25. Since commencing FY '22, CIP has made a strong start, having settled 3 acquisitions with $77.6 million.

On completion of the Dandenong South development, CIP's portfolio increases to 67 high-quality industrial assets skewed to urban infill locations and a portfolio value of $3.1 billion. To conclude on Slide 26, the domestic industrial market has continued to strengthen with strong tailwinds from increased adoption of e-commerce as well as increased demand from tenants onshoring their operations.

On the back of rising e-commerce, there is a shift in consumer expectations for rapid delivery times. This creates strong demand from occupiers for urban infill markets to help manufacture, fulfill or distribute orders quickly.

And these markets are a focus for CIP. With record low vacancy rates across all major markets, particularly urban infill markets, Australian industrial real estate remains a highly sought-after sector, attracting investment demand and creating robust competition for quality industrial and logistics assets.

As Australia's largest listed domestic pure-play industrial REIT, CIP has delivered an exceptional FY '21 result. During the year, CIP executed on its strategy with the acquisition of nearly $1 billion of high-quality assets, and extended the portfolio's exposure to cold storage and data centers, while also growing exposure to urban infill logistics assets.

During FY '21, the portfolio increased from 50 to 62 high-quality industrial assets and now sits at 67 properties. A significant year of leasing and value-add projects drove high occupancy of 96.9%, and the expiry profile is now significantly derisked with near-term major expiry secured and limited concentration risk.

As a result, CIP's WALE now sits at 9.6 years. Valuation gains drove NTA growth and together with acquisitions grew the portfolio to $2.9 billion, while maintaining a suitable capital structure.

CIP's position has been reinforced as a major owner of industrial property, having grown the fund scale and investor relevance. With an active approach to management and dedicated industrial team, the portfolio is well positioned to leverage this scale as investor appetite and tenant demand continues.

Looking to the balance of the year ahead. CIP started the year in a strong position, having transformed the fund's portfolio metrics.

CIP will continue to focus on its strategy to deliver reliable income streams and capital growth for investors. With the strong performance of the portfolio, CIP is forecasting funds from operation guidance of no less than $0.181 per unit and distributions are forecast at $0.173 per unit, absent any unforeseen events.

Thank you for listening and for your support of Centuria Industrial REIT. And at this point, I'll open the call to any questions.

A couple of questions, if I may. Just on guidance, works out to 2.8% growth.

I am just interested in why that's not a little bit stronger. You've delivered like-for-like growth of 3.5%, and you've got minimal expiry.

Plus, you've got obviously the benefits of the acquisition activity in the second half last year and the $77 million you've already acquired this year. Just hoping you can kind of step us through that.

Yes. Sure, Richard.

So our guidance is obviously quoted on a no less than basis. So we've obviously made provisions where we're all here in Sydney and up in Brisbane still in a level of COVID lockdown.

So we've obviously made some provisionings for the impact of COVID. That said, we're not anticipating that to be substantial given the resilience of the industrial portfolio.

We've also made some provisions for some leasing, obviously, across the portfolio. We do -- we have had occupancies high, but we still have a number of vacancies to get through, and so we're obviously making provisions for those vacancies coming through as well.

And that like-for-like is obviously coming off a different base from the prior year, obviously, as a result of the high level of acquisitions we've had throughout the year.

Okay. Just in light of, I guess, the repricing in the sector.

How does that kind of change your thinking? You've obviously been very active over the last couple of years and have done well ahead of what you thought.

I guess, moving forward, does it change how -- what type of assets you target is kind of core real estate well-let key markets. Is that stuff priced out for you?

Or are you still happy to chase some of that and a bit more value add? Just interested in your thinking on portfolio composition moving forward.

I mean you look at our transaction record, Richard, and we've done a pretty good job of finding transactions that represent relative value in an extremely competitive market. And the last 12 months of transactions really is a testament to our relationships and strategy on the acquisitions front.

Every acquisition is, of course, looked at on its merit. Every market has its own micro drivers.

We've certainly -- if you look at our last few acquisitions, we've certainly had a skew towards some of the lower WALE assets where we can deploy our active management and our value-add capability. And the asset I referred to at 160 Newton Road is a really good example of that.

The asset of Bella Vista that we're working through is another good example of that. So we're almost buying core plus assets to put that active management to work.

That said, we've got to focus on sustainable and long-term income growth vehicle. So I wouldn't rule us out from playing on assets where we think it's the right decision for the REIT to put secure income on the right customer on the right asset where we see some rental growth.

Okay. And then just finally, just on the development exposure.

You've obviously got a fund through at Dandenong that you've got with a couple year rent guarantee. You've talked about another couple of opportunities.

Just interested in how much exposure you're kind of willing to take on to development?

We've typically spoken about, about 5% of the portfolio. I'll reiterate the purpose of this vehicle is to deliver secure income to our investors, and so we're an income-focused vehicle.

And so where we do pursue development activities, we're looking to prudently manage that risk in order to undertake those activities because there is obviously great benefits in adding sustainable and modern products to our portfolio. So for us, I wouldn't see us going through around that 5% range, and we'll continue to find the right derisked opportunities to do that.

Jesse, just a couple more from me. First one is just on the EPS growth guidance being a bit less than what you're guiding to on FFO.

Can you give any color about the drivers of this? Has there been maybe a need to retain more capital upcoming?

Or is there a view on the payout ratio historically relative to a free cash or an AFFO type metric?

We've been working over the last few years about attempting to widen that payout ratio. Ideally, we'd be looking to be in the range of 90% to 95% as a payout ratio for the vehicle, but we're also obviously conscious of delivering that distribution growth to our investors as well.

So it's not necessarily an increased need to be holding back more cash. It's just widening that payout ratio to a more sustainable level.

Sure. That's clear.

And obviously, a slight moderation in occupancy. Can you just confirm the particular drivers of that?

And then maybe if there's an update on any lease expiries or expectations on lease-up throughout the year. Obviously, a pretty solid leasing environment in industrial, as you noted.

Yes, absolutely. So we've got a number of vacancies, which will -- which have come on as at 30 June.

The 2 most notable changes from our previous reporting period was the completion of our Bundamba development in Queensland. So that came on as a stabilized asset and came on as vacant.

However, we have significant leasing inquiry on that particular property and confident of being able to resolve that very quickly. The other change to occupancy was the SA Structural building down in Edinburgh, which became vacant as at 30 June, and again, we're well into a marketing campaign on that particular asset.

So those were the 2 major changes we saw from an occupancy perspective and good demand on both of those. Across the portfolio, more generally, we achieved extremely high tenant retention across the portfolio, and that's something we're certainly seeing across the market at the moment is very high tenant retention, given the tight vacancy rates, where we are able to take measured risks.

We took a surrender at our Victorian property in Hallam. Within 9 months of taking that surrender, we were able to fill that facility with a brand-new user, and so essentially, ability to collect double rent for 15 months on that facility by taking that early surrender.

So where there is vacancy in key urban infill markets we're finding there's extremely strong demand. And I think the other example is the Wetherill Park asset we recently acquired, again, acquired with a WALE of less than a year, and we've already resolved that leasing to put that WALE out to 7 years.

So we're certainly seeing strong continued leasing demand from industrial users, particularly across these urban infill markets.

Sure. Are you able to provide like what that tenant retention number was through FY '21?

And then maybe if you can disclose what the group's expectations are for occupancy throughout the year?

Our retention was in the vicinity of 70% to 80%, tenant retention, and we're anticipating that to continue into this financial year.

Okay. So are you able to provide a number as to where you think that 96.9% might end up by the time we get to June next year?

Pretty hard for me to give you a rate given we've only just started the year, but we'll keep the market abreast of how we progress with leasing across the course of the year.

Just a few follow-ups. I think the retention was 81% in the first half from memory.

So that's obviously a bit of a drop-off with those lease expiries you talked about at the end of the period. Would that be correct?

That would be correct, though I think it's important to note, Sholto, that we actually churned a number of tenants with limited or no downtime. So when you take into consideration the fact that we took a surrender from a tenant to leave a property, and we also didn't renew a tenant in order to provide space to an existing tenant expanding, our downtime across the portfolio was less than 25 days for the year.

So average downtime was less than 24 days. So while that retention by number is lower, if you quarantine those particular instances out, our tenant retention would be north of 90%.

Yes. I guess the proof is a good like-for-like 3.5% sort of that's proof in the pudding.

And then just the occupancy follow-on from Caleb's question, the -- I think you were at 98.8% in your March update, and that sort of slipped to 190 bps. Was that because the Bundamba coming on in Queensland in the period and also that occupancy the SA Structural building becoming vacant.

Was that the main driver of that slip to the -- between the last quarter?

Correct. They are the 2 drivers.

All right. Sweet.

And then what was your level -- you don't provide it but you've got a lot of, I think, 92% net or triple-net. What's sort of the dollar value of your leasing and maintenance CapEx for the year?

Can you provide that?

Yes, dollar value. I can give you in a percentage.

It's roughly about 35 bps.

35 basis points. And then just on the gearing, the 27.8%.

That's at 30 June, not a pro forma. So that excludes the deals you talked about that settled post balance date.

Would that be correct on slide...

Correct.

Okay. So I haven't done the math on that.

So it's still probably at the low end, probably circa 30-ish. What's your view?

There's a few portfolios in the market. Your guidance seemed a bit softer than consensus sort of 4%.

Obviously, that's those vacancies in the period coming through and the assumptions on your leasing. But what's your view on the portfolio acquisition in the market and where you see value to buy to get your gearing towards the midpoint of where it's historically been?

Yes. I think we've positioned the balance sheet in order to continue to provide us with the opportunity to find those right growth opportunities for the vehicle.

And whilst it's still a tight market out there, as I alluded to before, this team has some of the best relationships within the industrial market and is able to find deals that some of our competitors are unable to. And so through that, you look at the acquisitions we have undertaken across this year, we've seen about 15% uplift just on the acquisitions we acquired this year alone.

So I think, as I said before, where there is the right opportunities to deploy our balance sheet capacity, we'll certainly look to do that where we think it's the right decision for the REIT.

And then just finally, obviously, you've been in lockdown since June. I know it's a long game here, but have you seen a pickup in tenant demand as retailers have to fulfill more online versus physical in the last sort of 6 to 8 weeks?

Can you sort of -- is there any trend there?

It's a longer-term trend we're really observing there. And I wouldn't say, the last 4 to 8 weeks has seen a material uptick.

We've got a consistent amount of demand coming through the portfolio for these urban infill last-mile logistics facilities. And with vacancy across the eastern seaboard around 2%, what we're certainly anticipating seeing is good rental growth and continued high occupancy across those markets.

Right. And do you provide -- do you have a like-for-like target this year?

Can you provide that or you don't do that?

We don't provide that.

Just wanted to ask a quick one around sort of these record prices we're seeing. Does it provide you with any opportunities to sort of sell or look to sort of engage in portfolio management where you see risk being mispriced by going to buy assets?

Yes. We've certainly demonstrated that, Tom, over the last year with the sale of our Boondall asset, as a bit of context and background.

We extended that lease to over 11 years during the year and then saw an opportunity with market pricing to divest that asset. We'll continue to assess the portfolio for opportunities to divest or recycle capital throughout the year.

And so within the portfolio are there -- have you got a list of assets that you'd sort of be happy to sell for the right price? Is it -- or is it sort of any assets if the price is good enough?

I think where we would want to get is, we want to get a leasing outcome on an asset before we would look to sell to avoid leaving any value on the table. And at the moment, the market is valuing long-term secure income, and that's obviously part of our strategy, too, to deliver long term to secure income.

So again, it's on an asset-by-asset basis, but we would assess that.

Okay. And then the final one for me.

Just on your cost of debt, is there any potential to bring that down just sort of noting it's quite a bit above, for example, cost of debt, albeit you're in arguably a more preferred subsector with lower gearing?

We're working through a number of debt initiatives at the moment to work through our debt structure. So it's probably a bit early for me to give any comment on that.

Just on your leasing in the period. 3.5% growth is pretty good.

Can you give us a sense of where leasing spreads are at the moment?

Yes. So across new deals, we're seeing a marginally positive re-leasing spread.

Across our renewals, we're seeing around flat result.

And what about incentives? How are they trending on both new sales and renewals?

Yes, in line with what we're seeing in the market. So each individual submarket, obviously, has its own drivers that -- where each of those markets are performing to but we're seeing incentives across the portfolio certainly trending in a downward trajectory.

And can I just ask your thoughts on the WA market? It seems like you've got a little bit more expiries coming up there.

But with the Primewest acquisition, Centuria has now got a team on the floor there. Do you see yourself getting now a little more active in WA, or stick to the eastern seaboard for now?

We've always been an active participant in the WA market. Now having an on-the-ground team just bolsters this further really from the active management and leasing perspective on the ground over there.

We've always been supported in the WA market. We have a substantial portfolio over there.

One of the challenges with WA over the last 12 to 18 months has been the limited amount of supply actually trading in that market. And so for us, WA still remains on our radar.

Okay. Cool.

And just final one for me. Are there any markets where you're seeing some elevated supply risk coming on with all the development activities happening at the moment?

Sorry, say that again?

Any markets where you're seeing a bit of, perhaps, oversupply or a lot of speculative development happening that could cause some risks in the future?

A lot of the markets we're seeing any oversupply in industrial is markets we don't have exposure to at this point. And it's -- markets in the near to medium term would be far out Western Sydney and far out Western Melbourne, where we're seeing more supply coming through.

However, looking at our portfolio, we've always been skewed to those infill markets. And so we don't think that they have a bearing or impact on our ability to perform in those infill markets.

Just a quick one for me. Just in terms of the guidance for FY '22.

Can you tell the upcoming expiries for this year? And can you sort of talk through what isn't assumed within your FY '22 FFO guidance?

Sure. So I can really only talk at a high level, obviously, Andy, but there's obviously our current vacancy, which we have provisioning in there for, as I mentioned before.

And we've also got a very minor allocation for any COVID relief that may come through as a result of any unforeseen lockdowns or other disruptions to the economy or our tenant base. But again, the industrial sector has been extremely resilient in that sense.

Just a quick one for me. In the accounts with the reconciliation to FFO, there's an add-back for $5.4 million for rent free in abatements.

Can you just talk through that? Is that primarily related to COVID?

Or is that sort of more in the normal course of business?

That's an add-back in relation to the provisioning we made for FY '20. When we made provisioning in FY '20, we didn't give as much relief as we anticipated in FY '20.

And so that's been an add-back into FY '21.

So you expect that to be much lower this year then?

Correct.

I wanted to thank you all for dialing in today and for your ongoing support of Centuria Industrial REIT. If you have any follow-up questions, please don't hesitate to contact either myself or Tim Mitchell, our Group Head of Investor Relations.

And we look forward to discussing these results with you further over the next few weeks.