Centuria Capital Group · ASX:CNI
Centuria Capital — H1 2024 Earnings Presentation
41 slides from Centuria Capital's earnings presentation, Feb 20, 2024
Slide 1: Centuria Capital Group HY24 results
20 FEBRUARY 2024 | ASX: CNI Centuria Capital Group HY24 results LISTED: 74-94 NEWTON ROAD, WETHERILL PARK NSW | ARTIST’S IMPRESSION
Slide 2: Speakers
Speakers John McBain Jason Huljich Simon Holt Joint CEO – Joint CEO – CFO – Centuria Capital Group Centuria Capital Group Centuria Capital Group Centuria ASX:CNI 2
Slide 3: Agenda
AGENDA 1. Group overview 2. Financial results 3. Divisional overview 4. Appendices Acknowledgement of Country Our group manages property throughout Australia and New Zealand. Centuria pays its respects to the traditional owners of the land in each country, to their unique cultures and to their Elder
Slide 4: Group overview
Group overview SECTION ONE UNLISTED: P’PETUAL GLASSHOUSE, BUCKLAND PARK SA (ACQUIRED HY24)
Slide 5: Centuria Capital Group: A leading Australasian ASX funds manager
Centuria Capital Group: A leading Australasian ASX 200 funds manager $21.1bn GROUP AUM1 $20.3bn REAL ESTATE AUM $6.2bn $14.1bn $0.8bn LISTED REAL ESTATE (31%2) UNLISTED REAL ESTATE (69%2) INVESTMENT BONDS $3.9bn $2.1bn $0.2bn $8.3bn $2.7bn $3.1bn $0.8bn CENTURIA CENTURIA ASSET PLUS SINGLE MULTI-ASSE
Slide 6: Centuria Capital Group: A leading Australasian real estate funds manager
Centuria Capital Group A leading Australasian real estate funds manager Integrated platform Active management Generating investment opportunities Geography Sectors Funds Capital Integrated in-house capability Balance sheet Platform support Australia Office Listed REITS Listed Funds management Asset
Slide 7: HY24 highlights
HY24 highlights $21.1bn $0.8bn $2.3bn $2.1bn Group AUM HY24 total Institutional AUM bolstered by Development pipeline expands transaction activity1 new $0.5bn LMLP mandate3 ($20.3bn real estate AUM) by $1bn of new future projects2 (~30% filled during HY24) Expanded alternative sectors 13.9% HY24 ear
Slide 8: $20.3bn diversified Australasian real estate platform
$20.3bn diversified Australasian real estate platform3,4 WA 23% QLD 17% 417 89 properties and real estate finance loans valued at $4,563m 97 properties and real estate finance loans valued at $3,328m Properties1,2 2,450 Tenants1,2 NSW 23% 118 properties and real estate finance loans valued at $4,448
Slide 9: Flexible and relevant sustainability framework
Flexible and relevant sustainability framework Select initiatives New sustainability targets: - Targeting Zero Scope 2 emissions1 by 100% Centuria is ranked in the Top 10 AFR Best Places electricity sourced from renewables by 2035 to Work in Australia and New Zealand 2023 within - Focused on elimina
Slide 10: Centuria's Platform aligns with surveyed investor capital allocation preferences
Centuria’s Platform aligns with surveyed investor capital allocation preferences1 Australian investor intentions in 20241 Centuria platform activities Preferred Preferred Preferred alternative Preferred strategy of investors strategy1 sectors1 sectors1 targeting debt1 Opportunistic Real Estate Debt
Slide 11: Strategy
Strategy Vision Continue to unlock new alternative financial products Value-add funds, agriculture and real estate finance - Industrial a strong performer at institutional and CIP level A leading Australasian providing diversity and - Sector diversity Centuria funds manager expansion into new sector
Slide 12: Financial results
Financial results SECTION TWO UNLISTED: THE BOND MEDICAL CENTRE, BELLA VISTA NSW (DEVELOPMENT COMPLETED & SETTLED HY24)
Slide 13: Operating earnings and distributions
Operating earnings and distributions HY24 HY23 Statutory NPAT1,2 $m 45.2 74.3 Statutory EPS1,2 cps 5.6 9.3 Operating NPAT3 $m 49.4 58.5 Operating EPS4 (OEPS) cps 6.1 7.4 DPS cps 5.0 5.8 FY24 guidance OEPS cps 11.5-12.0 DPS cps 10.0 1. Attributable to CNI securityholders 2. Includes fair value moveme
Slide 14: Segment results
Segment results HY24 HY23 Operating profit by segment ($m) ($m) 1 Property funds management1 38.3 40.4 Property funds management movement from lower performance fees and 1 Performance fees 4.8 14.6 1 valuation adjustments Co-investment earnings 26.3 26.0 2 Development management 0.6 3.4 Primarily du
Slide 15: Transaction fee income from $831m of total transaction activity
Transaction fee income from $831m of total transaction activity $365m of HY24 gross real estate activity1 Transaction fee income2 from $831m Real estate $222m of total transaction activity finance 13 real estate finance loans $34m Acquisitions exchanged in FY23 that have since settled Industrial $96
Slide 16: Strong balance sheet supports platform activities
Strong balance sheet supports platform activities Revolving loan note extended $1.78 13.9% $184m Operating balance sheet Assets HY24 ($m) FY23 ($m) Cash and cash equivalents 163.6 179.4 Net asset value per security1,2 Operating gearing ratio3 Cash realised from the sale and (FY23: $1.77) recycling o
Slide 17: Actively managing platform debt
Actively managing platform debt HY24 average margins 175bps1 HY241 HY231 Diversification of debt capital sources through the introduction of new lenders Lenders # 25 21 Continued recycling of existing exposures amongst supportive financiers Total lending facilities across platform $bn 8.3 8.2 Stabil
Slide 18: Divisional overview
Divisional overview SECTION THREE CENTURIA BASS UNLISTED: ONE UNLISTED: EXCHANGE RICHARDSON, TOWER, SOUTH PERTH WA 2(ARTIST THE ESPLANADE, PERTH WA IMPRESION)
Slide 19: $20.3bn diversified real estate platform
$20.3bn diversified real estate platform1,2 Daily needs Real estate Large format Office Industrial Healthcare Agriculture retail (‘DNR’) finance retail (‘LFR’) $7.18bn $5.92bn $1.65bn $1.65bn $1.58bn $1.54bn $0.55bn AUM AUM AUM AUM AUM AUM AUM ARTIST IMPRESSION LISTED: LISTED: UNLISTED: UNLISTED: UN
Slide 20: $20.3bn real estate platform
$20.3bn real estate platform Diverse sectors and capital sources to unlock emerging opportunities • Investors remain supportive Sectors1 ($bn) Capital ($bn) Funds ($bn) of expansion into alternatives - healthcare, real estate credit and agriculture • Alignment to de-centralised Unlisted Unlisted mul
Slide 21: $1.6bn real estate finance platform
Real estate finance Centuria Bass Credit grows AUM to $1.6bn platform $222m across 13 real estate finance loans in HY24 $1.6bn $1.6bn AUM 93% 131-131A VICTORIA ROAD, BELLEVUE HILL Loans secured by first ranking NSW | ARTIST’S IMPRESSION mortgages $0.3bn 61% Gross average LVR FY21 HY24 ~$150m Single
Slide 22: Industrial platform
Industrial platform Expanding new industrial development pipeline and mandate partnerships $5.9bn AUM (66% listed, 34% unlisted) $500m mandate 49% • New Last Mile Logistics Partnership avg. re-leasing spreads across $36m mandate with Starwood bolsters Centuria’s institutional AUM Centuria’s Australi
Slide 23: $2.3bn of quality agriculture and healthcare real estate
$2.3bn of quality agriculture and healthcare real estate Agriculture platform Healthcare platform $0.6bn AUM $1.7bn AUM UNLISTED: GUYRA GLASSHOUSE, GUYRACOURT, NSW DERRIMUT (ACQUIRED UNLISTED: SPRINGWOOD HEALTH HUB, 4 PAXTON STREET, SPRINGWOOD QLD STUDLEY VIC FY23) (DEVELOPMENT COMPLETED FY23) • 100
Slide 24: DNR & LFR platform
DNR & LFR platform Retail platform performing strongly through cycle $3.2bn AUM (52% Daily Needs ‘DNR’, Portfolios concentrated on 48% Large format ‘LFR’ retail) convenience based DNR and land 44% rich LFR centres Avg. site coverage of LFR across Australian platform $39m Avg. asset size aids liquidi
Slide 25: Office platform
Office platform Material supply moderation expected in metropolitan office markets $7.2bn AUM (29% listed, 71% unlisted) $93m 95% of portfolio (by NLA) situated 64,230sqm HY24 lease terms agreed Diversified exposure • Ex. COF, largest office fund Avg. asset size aids liquidity outside Sydney and Mel
Slide 26: Unlisted property AUM to $14.1bn
Unlisted property AUM to $14.1bn $Institutional AUM of $2.1bn Bolstered by $500m LMLP mandate ~12,000 Australasian investors $500m LMLP Grow & deploy HY24 unlisted capital • Last Mile Logistics Partnership • Assessing opportunities to $0.3bn raising inflows ‘LMLP’ (Starwood mandate) increase new and
Slide 27: Listed property AUM of $6.2bn
Listed property AUM of $6.2bn CIP and COF – Australia’s largest ASX-listed pure play industrial and office REITs CNI co-investment7 CNI co-investment7 Index inclusions: Index inclusions: ASX: ASX: CIP S&P/ASX 200 Index and FTSE EPRA Nareit 16.1% COF S&P/ASX 300 Index and FTSE EPRA Nareit 18.9% Globa
Slide 28: $2.3bn development pipeline to seed funds
$2.3bn development pipeline to seed funds $0.3bn $2.3bn pipeline1 $1bn industrial pipeline CNI strategically uses its balance Adds to Centuria’s future sheet to seed and expand its HY24 gross development Est. value on completion property funds development pipeline completions Committed: $0.6bn2 ($45
Slide 29: Valuation summary
Valuation summary Value Value Cap Cap 31 Dec 31 Dec movement movement movement movement 2022 2023 12 months to 6 months to 12 months to 6 months to WACR WACR 31 Dec 2023 31 Dec 2023 31 Dec 2023 31 Dec 2023 Office (6.64)% (3.05)% 48 bps 21 bps 5.86% 6.34% Industrial (2.37)% (0.05)% 91 bps 28 bps 4.76
Slide 30: High quality long term income streams
High quality long term income streams Integrated management capabilities lead to strong asset management success Top tenants by income (%)1,2 5.7 year weighted avg. lease expiry (WALE) by income1,2 ~417 Government 12.6% 14.1 Assets1,2 Woolworths Limited 10.1 ~2,450 ASX/NZX Listed 3.7% Tenants1,2 7.0
Slide 31: Appendices
Appendices SECTION FOUR UNLISTED: 208 FORDYCE ROAD, HELENSVILLE NZ
Slide 32: Centuria Life $0.8bn
Centuria Life $0.8bn HY24 FY23 HY24 change Flows HY24 Applications Redemptions AUM Assets under management ($m) ($m) (%) ($M) ($M) Prepaid funeral plans (Guardian)2 543.9 539.7 0.78% 16.8 -24.9 Unitised bonds (Centuria Life) 220.2 222.4 -0.99% 1.7 -10.6 Centuria LifeGoals 69.8 58.1 20.14% 10.9 -2.1
Slide 33: Fund and capital allocation across Centuria's platform
Fund and capital allocation across Centuria’s platform Diversified funds, capital sources and investor profiles across all sectors Daily needs Real estate Large format Sector Office Industrial Healthcare Agriculture retail finance retail Fund type/ AUM $7.2 $5.9 $1.7 $1.7 $1.6 $1.5 $0.6 capital sour
Slide 34: Platform diversification reduces concentration risk
Platform1 diversification reduces concentration risk Daily needs Large format Total Office Industrial Healthcare Agriculture retail retail avg. Aids platform liquidity through Avg. asset $m 93.3 36.4 16.6 40.1 38.3 45.4 42.9 exposure to a wider transaction pool Relatively wider cap rates Weighted av
Slide 35: $2.3bn development pipeline to seed funds
$2.3bn development pipeline to seed funds Committed pipeline Future pipeline HY24 Gross Total (est. value on (est. value on completions pipeline completion)1,2 completion)1,3,4 • Development fees and Sector $M GLA $M GLA $M GLA $M GLA profits provide growing Office 116 15,900 - - - - - - income Indu
Slide 36: COF, CIP and APL portfolio snapshots
COF: Australia’s largest pure play CIP: Australia’s largest domestic APL: Asset Plus office REIT pure play industrial REIT • Delivered HY24 FFO of 7.0 cents per unit • Delivered HY24 FFO of 8.5 cents per unit • Delivered HY24 Distributions of 6.0 cents per unit • Delivered HY24 Distributions of 8.0
Slide 37: Reconciliation of statutory profit to operating profit
Reconciliation of statutory profit to operating profit HY24 ($m) HY23 ($m) Statutory net (loss)/profit after tax 45.2 74.3 Statutory EPS (cents)1,2 5.6 9.3 ADJUSTED FOR NON-OPERATING ITEMS (Gain) on fair value movements in derivatives and investments (4.0) (23.7) Transaction and other costs 1.8 1.7
Slide 38: Co-investments reconciliation
Co-investments reconciliation Carrying value Distribution Carrying value Distribution Strong alignment to Centuria’s 31 DEC 23 income HY24 31 DEC 22 income HY23 Co-investments Fund type ($m) ($m) ($m) ($m) listed REITs Centuria Industrial REIT (ASX: CIP)1 Listed 328.6 8.1 315.4 8.2 CNI is the larges
Slide 39: Definitions
Definitions Operating Segments: Group has six reportable operating segments. AUM: Assets under management EPS: Earnings per stapled security These reportable operating segments are the divisions which report to CAGR: Compound annual growth rate IRR: Internal Rate of Return the Group’s Chief Executiv
Slide 40: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited (‘CFML’) as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). Centuria Property Funds Limited (ABN 11 086 553 639, AFSL 231 149) ('CPFL') and Centuria
Slide 41: Australia and New Zealand offices
AUSTRALIA Sydney (head office) Melbourne (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 47 2 Chifley Square 101 Collins Street Sydney NSW 2000 Melbourne VIC 3000 Brisbane Perth (07) 3905 7000 (08) 9321 7133 Level 2 Level 27 348 Edward Street 140 St Georges Terrace Brisbane QLD 4000 Pert
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