** Morningstar trims fair value estimate for shares of Centuria Industrial REIT CIP.AX by 3% to A$3.40

** Investment research firm flags stronger-than-expected fastening of re-leasing spreads - the rent uplifts on new leases

** Believes lower spreads likely reflect lesser leasing activity in Sydney - Centuria's strongest market - during the quarter

** Morningstar suspects weakening tenant demand hurt by high interest rates and supply increases; says, however, shares look slightly undervalued

** Six of 9 analysts rate the stock "buy" or higher, three "hold"; their median PT is A$3.33, according to data compiled by LSEG

** Shares last closed at A$3.050 after adjustments, up 7.1% YTD

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com;))