Centuria Capital Group · ASX:CNI
Centuria Capital — FY2018 Earnings Presentation
30 slides from Centuria Capital's earnings presentation, Aug 14, 2018
Slide 1: FY18 Results
Centuria Capital Group F Y 1 8 R E S U LT S | A S X : C N I | 14 A U G U S T 2 0 1 8
Slide 2: Contents
Contents 1 Overview and Highlights 2 FY18 Financial Results 3 Divisional Overview 4 Strategy 5 Appendices C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 2
Slide 3: Overview and Highlights
SECTION ONE Overview and Highlights C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 3
Slide 4: Centuria Profile
ASX-LISTED SPECIALIST INVESTMENT MANAGER Centuria Profile Centuria Capital Group $428m Market Capitalisation1 $4.9bn 2 $0.3bn Assets Under Management (AUM) Co-Investments $4.0bn $0.9bn CENTURIA CENTURIA PROPERTYLINK METROPOLITAN INDUSTRIAL REIT 2 REIT (CMA)3 (CIP)3 GROUP Property Funds Management AU
Slide 5: FY18 Highlights
FY18 Highlights Operating Earnings Total FY18 Capital and Distributions Returns AUM Growth Management Operating NPAT1 $45.1m CNI total securityholders return AUM increased 29% Equity raised $98.6m (FY17 $15.5m) 23.3%3 to $4.9bn (FY17 24.3%3) Corporate bonds issuance $25m Delivered operating EPS2 of
Slide 6: Significant uplift in AUM driven from a scalable platform
OPERATING HIGHLIGHTS Significant uplift in AUM driven from a scalable platform ASSETS UNDER MANAGEMENT ($bn) FY18 Group AUM growth of 29% Real estate AUM growth to $4.0 billion $4.9bn $4.9bn ••$1.1 billion increase from acquisitions/revaluations 32.3% 32.3% ••$0.3 billion divestments GROUP GROUP CAG
Slide 7: Recurring revenues contribute significantly to total revenues
OPERATING HIGHLIGHTS Recurring revenues contribute significantly to total revenues $100.8m BELMONT ROAD PERFORMANCE FEES Co-investments provided an increased source of $50.5m recurring income PROPERTY TRANSACTION FEES $44.7m CO-INVESTMENT INCOME $37.2m PROPERTY FUNDS MANAGEMENT FEES Continued underl
Slide 8: FY18 Financial Results
SECTION TWO FY18 Financial Results C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 8
Slide 9: Delivering strong investor returns
GROUP FINANCIAL HIGHLIGHTS Delivering strong investor returns OPERATING EARNINGS PER SECURITY (CPS) 16.3c 14.8c •• Operating EPS 16.3 cps , 1 •• Distribution per above the upper end of stapled security 10.3c revised guidance up 9.3% 8.1c 7.6c •• Recurring revenue streams •• 10 Spring Street after up
Slide 10: Continued growth in operating results
OPERATING SEGMENT RESULTS Continued growth in operating results Property funds management OPERATING PROFIT BY SEGMENT FY18 ($m) FY17 ($m) increased 58.6%1 Property funds management1 22.2 14.0 Increased recurring revenues — Performance fees 26.7 1.8 driving growth Investment bonds management 5.0 4.4
Slide 11: Strong support from capital markets
DEBT AND CAPITAL MANAGEMENT Strong support from capital markets OPERATING BALANCE SHEET 30 JUNE 2018 30 JUNE 2017 ($m) ($m) •• $98.6 million equity raised ASSETS Cash and cash equivalents 76.4 55.7 •• $25.0 million corporate bonds issued in FY18 Receivables 17.1 13.3 Financial assets •• Operating ge
Slide 12: Delivering increased recurring revenues
CO-INVESTMENTS Delivering increased recurring revenues CARRYING VALUE CARRYING VALUE REVENUE 30 JUN 2018 30 JUN 2017 CONTRIBUTION •• Increase in size and scale of co-investments Co-investments $0.3bn ($m) ($m) FY18 ($m) portfolio to $278 million Centuria Industrial REIT (CIP) 124 82 8.6 Centuria Met
Slide 13: Divisional Overview
SECTION THREE Divisional Overview C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 13
Slide 14: $4.0 billion property AUM across Centuria platforms
CENTURIA PROPERTY CONCENTRATED TO EASTERN SEABOARD MARKETS $4.0 billion property AUM across Centuria platforms 1 15 properties valued at $638m CMA: 5 properties 9 properties valued at $400m CIP: 7 properties Unlisted: 3 properties CMA: 2 properties CIP: 5 properties Unlisted: 2 properties NT QLD WA
Slide 15: 20 year track record in unlisted property funds
UNLISTED PROPERTY HIGHLIGHTS 20 year track record in unlisted property funds •• Established three unlisted funds attracting strong investor demand °° $106m Centuria Sandgate Road Fund °° $115m Centuria Geelong Office Fund °° $185m Centuria 80 Grenfell Street Fund, 50% unlisted fund and 50% partnersh
Slide 16: Centuria Diversified Property Fund
UNLISTED PROPERTY HIGHLIGHTS Centuria Diversified Property Fund AUM growth to 10.99%1 $37m 12 month total return (FY17 $13m) Multi-asset open-ended unlisted fund with limited Limited monthly withdrawals2 monthly liquidity facility Diversified asset allocation, mix of CDPF now accepted on eight unlis
Slide 17: Australia's largest ASX-listed metropolitan office REIT
CENTURIA METROPOLITAN REIT (ASX: CMA) Australia’s largest ASX-listed metropolitan office REIT PORTFOLIO SNAPSHOT YTD184 FY17 Number of assets 19 15 Book value $bn 0.9 0.6 WACR % 6.68 7.19 •• Increased Centuria co-investment to 19.9% NLA sqm 184,360 131,011 aligns Centuria with CMA investors Included
Slide 18: Australia's largest ASX-listed income focused industrial REIT
CENTURIA INDUSTRIAL REIT (ASX: CIP) Australia’s largest ASX-listed PORTFOLIO SNAPSHOT YTD18 FY175 income focused industrial REIT Number of assets 39 38 Book value $m 1.0 0.96 WACR % 7.023 7.33 GLA sqm 735,3761 757,944 •• Increased Centuria co-investment to 19.9% Average asset size sqm 19,8751 19,945
Slide 19: Market outperformance in FY18
INVESTMENT BONDS Market outperformance in FY18 •• Centuria Life: five investment options CENTURIA INVESTMENT BOND DIVISIONS GROWTH VS INVESTMENT BOND MARKET1 °° Strongly supported by non-aligned adviser approved product lists •• Guardian Friendly Society: Invests pre-paid funeral plan proceeds distr
Slide 20: Investors continue to search for alternative investment products
MARKET OUTLOOK Investors continue to search for alternative investment products PROPERTY FUND OUTLOOK INVESTMENT BONDS OUTLOOK Continued low interest rate environment Increasing interest in investment bonds 1 1 to supplement investment options 2 Attractive spreads between property yields °° Attracti
Slide 21: Strategy
SECTION FOUR Strategy C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 21
Slide 22: Utilise enhanced balance sheet & distribution capacity
STRATEGY Utilise enhanced balance sheet & distribution capacity Broaden capital sources Utilise scaleable property platform efficiencies e.g. further co-investments/partnerships and in-house management capabilities Generate increase recurring revenues Increased national distribution footprint across
Slide 23: Appendices
SECTION FIVE Appendices C E N T U R I A C A P I TA L G R O U P | A S X : C N I | F Y 1 8 R E S U LT S 2 3
Slide 24: Reconciliation of statutory profit to operating profit
APPENDIX 1 Reconciliation of statutory profit to operating profit FY18 FY17 ($m) ($m) Statutory profit after tax 56.2 26.3 Less non-operating items: Unrealised loss/(gain) on fair value movements in derivatives, property and investments (8.6) (4.4) Impairment charges in relation to seed capital valu
Slide 25: Operating segment balance sheet
APPENDIX 2 Operating segment balance sheet OPERATING BALANCE SHEET PROPERTY FUNDS INVESTMENT BONDS OPERATING BALANCE SHEET MANAGEMENT MANAGEMENT CO-INVESTMENTS CORPORATE 30 JUNE 2018 30 JUNE 2017 ($m) ($m) ($m) ($m) ($m) ($m) Assets Cash and cash equivalents 22.2 6.3 11.5 36.5 76.4 55.7 Receivables
Slide 26: Record sale delivers strong investor returns
APPENDIX 3 UNLISTED FUND CASE STUDY: CENTURIA 10 SPRING STREET FUND Record sale delivers strong investor returns •• B-grade office building located in Sydney CBD •• Average income return to investors of 8.0% p.a. over 4.3 years •• Executed key strategies to maximise value: •• Investor IRR of 35% p.a
Slide 27: Three main unit-linked portfolios rated four and five stars by Morningstar
APPENDIX 4 INVESTMENT BONDS Three main unit-linked portfolios rated four and #1 EQUITY AUSTRALIA #1 MULTISECTOR LARGE BLEND GROWTH five stars by Morningstar 1 Centuria Centuria Australian Shares Growth Bond Total Total Return Return 3 Total Return Morningstar Ranking Morningstar 1 Year (%) Years (%)
Slide 28: Definitions
APPENDIX 5 Definitions Operating Segments: Group has five reportable operating segments. These reportable CAGR: Compound annual growth rate operating segments are the divisions which report to the Group’s Chief Executive CIP: Centuria Industrial REIT comprises the Centuria Industrial REIT ARSN 099 6
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible This presentation is provided for general information purposes only. It is not a prospectus, product disclosure statement, entity of Centuria Capital Fund (together the sta
Slide 30: Thank you
Centura au, ) Thank you
Centuria Capital Group — FY2018 Earnings Presentation on 6ix