Centuria Capital Group · ASX:CNI
Centuria Capital — 360 Capital Office Fund — FY2015 Earnings Presentation
26 slides from Centuria Capital's earnings presentation, Aug 19, 2015
Slide 1: 2015 Annual Results Presentation
2015 ANNUAL RESULTS PRESENTATION ASX: TOF ARSN: 106 453 196 19 AUGUST 2015 360 Capital Investment Management Limited (ACN 133 363 185) as responsible entity for the 360 Capital Office Fund (ARSN 106 453 196) (ASX code “TOF”) 1
Slide 2: Table of contents
Table of contents ANNUAL RESULTS PRESENTATION APPENDICES 1 At a glance A Balance sheet 2 Year in review B Profit and loss statement 3 ASX trading performance C Operating earnings reconciliation 4 Earnings & distributions D Property details 5 Assets & liabilities E Target market overview 6 Portfolio
Slide 3: At a glance
1 At a glance $226.1m 4.6 year 98.5% 4 PORTFOLIO VALUE WALE OCCUPANCY ASSETS 18.5 cpu 17.0 cpu FY15 28.7% 79.0% FY15 FY15 OPERATING GEARING DISTRIBUTIONS TAX DEFERRED EARNINGS 3
Slide 4: Year in review
2 Year in review • 27.7% or 10,743 Sqm of the portfolio leased or extended1 UNDERLYING PORTFOLIO • 98.5% occupancy; 4.6 year WALE DRIVING RESULTS • Net valuation increases of $6.1m; NTA maintained at $2.14 per Unit • Firming of WACR from 8.7% in Jun-14 to 7.8% in Jun-15 • Sold Burwood for $80.0m , a
Slide 5: ASX trading performance
3 ASX trading performance 140.0 Closing Price 30/6/15: $2.11 130.0 TOF Total Return: 20.6% or 17.1% pa Total Return – 12mths: 15.4% 120.0 110.0 100.0 S&P/ASX 300 AREIT Index Total Return: 25.0% or 20.8% pa Total Return – 12mths: 20.5% IPO Issue Price: 90.0 $2.00 80.0 TOF S&P/ASX300 A-REIT • The Fund
Slide 6: Earnings & distributions
4 Earnings & distributions • Comparison across periods distorted by recapitalisation and significant one-off items in FY14 FY2015 FY2014 • FY15 operating EPU marginally exceeded guidance due to ($000) ($000) CHANGE operational savings OPEARTING INCOME 22,228 15,434 44.0% • FY15 statutory EPU lower t
Slide 7: Assets & liabilities
5 Assets & liabilities • Total assets reduced due to the sale of Burwood partly offset by the acquisition of Botanicca8 FY2015 FY2014 • Liabilities reduced as surplus proceeds from Burwood sale CHANGE ($000) ($000) used to pay down debt Cash 3,421 4,928 • Units on issue reduced as a result of the on
Slide 8: Portfolio management
6 Portfolio management LEASE EXPIRY PROFILE1 RENT REVIEW PROFILE 60.0% Other CPI 3% 14% 39.7% 40.0% 33.8% 20.0% Avg. Fixed Review: 11.0% 11.9% 3.7% 1.5% No Review 0.0% 24% 2.1% 0.0% Fixed Vacancy FY16 FY17 FY18 FY19 FY20 FY21+ 59% FY2017 - LEASE EXPIRIES TENANT ADDRESS AREA INCOME ($m) INCOME (%) EX
Slide 9: Portfolio management
6 Portfolio management TOP 10 TENANTS1 GEOGRAPHIC TENANT TYPE1 RENT % DIVERSIFICATION1 TENANT EXPIRY ($m) TOTAL Retail Federal Government 4% 4.8 23% Dec 16 VIC ACT Listed (Department of Environment) 17% Private 25% 18% 34% Queensland Government 2.2 11% Jun 17 (Queensland Studies Authority) GE Capita
Slide 10: Allara Street update
7 Allara Street update SHORT TERM LEASING STRATEGY • Secured 12 month extension with a 12 month option over 9,200 Sqm • Secured at the current passing rental, providing an additional $5.0 million of Income • Eliminates FY16 expiry; provides clarity around FY16 and FY17 EPU LONG TERM LEASING STRATEGY
Slide 11: Capital management
8 Capital management EQUITY DEBT EVENT PRICE $m DEBT TERMS On market buy back 1h15: $2.06 $0.834 Banks: NAB and Bankwest On market buy back 2h15: $2.06 $8.270 Facility limit: $80.0m Total $2.06 $9.105 Drawn: $68.5m Gearing: 28.7% • Commenced buy-back of up to 15.0% or 11.65m of issued units All in i
Slide 12: Peer comparison
9 Peer comparison FY16 FORECAST EARNINGS YIELD1 FY16 FORECAST DISTRIBUTION YIELD1 Average 8.8% Average 8.0% 10.0% 10.3% 9.2% 8.8% 8.7% 8.1% 8.3% 8.3% 7.4% 7.5% 7.0% 7.0% IOF GMF CMA IDR TOF GDI IOF GMF TOF CMA IDR GDI GEARING2 PREMIUM/(DISCOUNT) TO NTA3 Average 30.1% Average 1.1% 11.1% 6.7% 7.9% 36.
Slide 13: Outlook & guidance
10 Outlook & guidance MARKET OUTLOOK GUIDANCE • New entrants (listed and unlisted) are increasing the competition for metro assets • Subdued tenant demand and macro economic fundamentals at odds with strong investment appetite leading to a FY16 GUIDANCE mispricing of risk • Spread between prime and
Slide 14: Questions?
QUESTIONS? 14
Slide 15: Appendices
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Slide 16: Balance sheet
A Balance sheet 30 Jun 15 30 Jun 14 BALANCE SHEET ($,000) ($,000) ASSETS Cash and cash equivalents 3,421 4,928 Trade and other receivables 988 473 Investment properties held for sale - 80,000 Investment properties 226,100 173,500 TOTAL ASSETS 230,509 258,901 LIABILITIES Trade and other payables 2,39
Slide 17: Profit & loss statement
B Profit & loss statement 30 Jun 15 30 Jun 14 PROFIT AND LOSS STATEMENT ($,000) ($,000) Rental income 20,871 15,127 Finance revenue 119 75 Cash received for rental guarantee 1,237 232 TOTAL INCOME 22,228 15,434 Investment property expenses 3,729 3,014 Management Fees 1,486 1,043 Other expenses 518 3
Slide 18: Operating earnings reconciliation
C Operating earnings reconciliation 30 Jun 15 30 Jun 14 OPERATING EARNINGS RECONCILIATION ($,000) ($,000) STATUTORY NET PROFIT 12,402 56,399 Net (gain)/loss on fair value of investment properties (5,569) (14,845) Net (gain)/loss on fair value of rental guarantee net of cash received 3,651 187 Net (g
Slide 19: Property details
D Property details 154 Melbourne Street, South Brisbane, QLD 485 Kingsford Smith Drive, Hamilton, QLD 574 Swan Street, Melbourne, VIC The property forms part of the Hamilton Harbour The property is situated in the Near City suburb of The property is located in Botanicca Corporate mixed use developme
Slide 20: Property details (cont.)
D Property details (cont.) 33 Allara Street, Canberra, ACT The property comprises an eight level commercial building constructed in 1987 and refurbished at various times including 1997/98 and 2008/09. the building provides retail showroom accommodation on the ground floor level, and conventional off
Slide 21: Target market overview: Brisbane Fringe
E Target market overview Brisbane Fringe Size: Total market size: 1,198,568 sqm; A grade market size: 635,923 sqm Vacancy: Current Market Vacancy: 12.6%; A grade Vacancy: 12.1% A grade vacancy in the Brisbane Fringe at June 2015 was 12.1%, up 260 bps from same period in 2014. The vacancy rate edged
Slide 22: Target market overview: Canberra Civic
E Target market overview Canberra - Civic Size: Total market size: 2,402,674 sqm; A grade market size: 1,083,498 sqm (Civic total market size: 687,950 sqm; Civic A grade: 299,888) Vacancy: Current Market Vacancy: 15.3%; A grade Vacancy 14.1% (Civic Market Vacancy: 14.0%; Civic A grade Vacancy: 8.0%)
Slide 23: Target market overview: East Melbourne
E Target market overview East Melbourne Size: Total market size: 176,361 sqm; A grade market size: 61,352 sqm Vacancy: Current Market Vacancy: 1.5%; A grade Vacancy 1.1% Grade A Market vacancy in East Melbourne was 1.1%, Provide down 150 bps consistent and from Jul-14. Theincome growing vacancy rate
Slide 24: Management team
F Management team JAMES STOREY, FUND MANAGER - TOF James has over nine years' experience in property funds management including such areas as asset management, capital transactions, analytics and valuations. Prior to his current role, James had a wide ranging role at Brookfield Office Properties, wo
Slide 25: Management team
F Management team GLENN BUTTERWORTH, CHIEF FINANCIAL OFFICER – 360 CAPITAL GROUP Glenn is responsible for all 360 Capital’s financial management activities. Prior to joining 360 Capital, Glenn spent 11 years at Mirvac, most recently as Financial Controller of the Investment Division. Glenn was respo
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by 360 Capital Investment Management Limited (ACN 133 363 185, AFSL 340304) as responsible entity of the 360 Capital Office Fund (ARSN 106 453 196) (‘TOF’ or the ‘Fund’) . All information and statistics in this presentation are current as at 19 August 2
360 Capital Office Fund — FY2015 Earnings Presentation on 6ix