Centuria Capital Group (ASX:CNI) is undertaking a AU$300 million equity raising to support its ResetData growth pipeline and strengthen its balance sheet, with the transaction expected to be only modestly dilutive to fiscal year 2027 earnings, Jefferies said in a Monday note.
The equity raising includes a AU$200 million institutional placement and a 1-for-17 entitlement offer, with about 150 million new securities to be issued at AU$2 each.
Jefferies said using the proceeds to repay debt would lift the company's pro forma net asset value by about 2% to AU$1.81 per security, while reducing operating gearing to 3% and look-through gearing to 32%.
The firm noted ResetData's development pipeline has grown to 23 megawatts following the addition of 10 megawatts under heads of agreement and master services agreements, while its AI-F1 facility has 1.1 megawatts of live capacity and is 33% utilized.
It highlighted that 16 megawatts of the expansion pipeline is under non-binding heads of agreement, including 13 megawatts expiring June 30, with the company seeking extensions but no certainty of conversion to binding contracts.
The firm added that the capital raise will support the company's AU$18.3 billion funds platform and fully owned Centuria Bass, with a focus on larger unlisted real estate funds and institutional co-investment opportunities.
The firm sees the equity raise cutting fiscal year 2027 earnings by under 1%, excluding any upside from reinvesting into ResetData's expansion pipeline and growth opportunities.
Jefferies maintained a buy rating on Centuria Capital while raising the price target to AU$2.66 from AU$2.50.