Centuria Capital Group · ASX:CNI
Centuria Capital — Investor Presentation (October 2020)
37 slides from Centuria Capital's investor presentation, Oct 22, 2020
Slide 1: Acquisition of NZ$178 million Visy Facility, FY21 Guidance Upgrade and Equity Raising
Acquisition of NZ$178 million Visy Facility, FY21 Guidance Upgrade and Equity Raising ASX:CNI 22 Oct 2020 Centuria Capital Group C E NT URIA C AP IT AL GROUP 1 Not for release to US wire services or distribution in the United AStates S X : C NI VISY FACILITY, PENROSE, AUCKLAND, NEW ZEALAND
Slide 2: Important notices
Important notices This presentation has been prepared, authorised and is issued by Centuria Capital Group (CNI) which is a stapled vehicle comprised of Centuria Capital Limited ACN 095 454 336 and Centuria Funds Management Limited ACN 607 153 588 as responsible entity of Centuria Capital Fund ARSN 6
Slide 3: Important notices
Important notices The retail offer booklet for the Retail Entitlement Offer will be made available to eligible retail securityholders (Eligible Retail Securityholders) following its lodgement with the ASX. Eligible Retail Securityholders wishing to participate in the Retail Entitlement Offer should
Slide 4: Acquisition of NZ$178 million Visy facility, FY21 guidance upgrade and equity raising
Acquisition of NZ$178 million Visy facility, FY21 guidance upgrade and equity raising • Centuria Capital Group (Centuria or CNI) announces a new single asset unlisted fund (New NZ Fund) is to acquire the Visy glass facility at 752 Great South NZ$178 million Road, Penrose, Auckland, New Zealand (Visy
Slide 5: Strong momentum in NZ since the acquisition of Augusta
Strong momentum in NZ since the acquisition of Augusta 17% AUM growth to NZ$2.1bn since Augusta acquisition 1 Acquisition of the Visy Facility in Auckland. Augusta Takeover and integration of Augusta Capital’s Visy Facility 1 (Jul-20) NZ$1.8bn platform 5 (Oct-20) Expected to seed a new single asset
Slide 6: FY21 guidance upgrade and platform expansion
FY21 guidance upgrade and platform expansion 11.5 – 12.5cps 9.0cps FY21 operating EPS guidance FY21 DPS guidance up up 9.1%1,2 5.9%3 $10.0bn $1.2bn Pro forma group AUM4 FY21 YTD group 13.6% growth FY21 YTD real estate acquisitions4 Note: Past performance is not indicative of future performance 1. Op
Slide 7: ASX300-listed funds manager positioned for growth
ASX300-listed funds manager positioned for growth Market capitalisation of $1.2bn1, included in the S&P/ASX300 Index $9.7bn Group AUM2 $0.8bn $8.9bn Real Estate AUM Investment Bonds AUM Centuria $4.4bn LISTED $4.5bn UNLISTED Life Centuria Centuria Asset Plus Ltd Unlisted NZ Industrial Centuria Centu
Slide 8: Continuing AUM growth
Continuing AUM growth ASSETS UNDER MANAGEMENT (A$BN) 10.02 0.3 Assets in exclusive due diligence3 0.2 Visy Facility 34% 8.8 CAGR1 1.8 Augusta Capital Limited 0.8 Centuria Healthcare 6.2 0.4 Unlisted Office Wholesale 1.5 Unlisted Office Retail 4.9 3.8 2.2 Centuria Industrial REIT 2.1 Centuria Office
Slide 9: Centuria delivers on growth strategy
Centuria delivers on growth strategy Ongoing dual strategy of direct real estate acquisitions and corporate expansion OVER $5.5bn OCT 2020 – REAL EST AT E OF TRANSFORMATIONAL INITIATIVES AUG 2020 – REAL EST AT E JUL 2020 – CORPORAT E DEC 2019 – REAL EST AT E MAY 2019 – CORPORAT E OCT 2018 – REAL EST
Slide 10: CNI has been a major acquirer of industrial assets since FY17
CNI has been a major acquirer of industrial assets since FY17 CENTURIA IS WELL POSTIONED TO TAKE ADVANTAGE OF THE INCREASED CENTURIA’S ESTABLISHED INDUSTRIAL PLATFORM DEMAND FOR INDUSTRIAL REAL ESTATE PORTFOLIO VALUE ($BN) Centuria managed Augusta managed Established a $3.1bn Australasian platform V
Slide 11: Sale and leaseback transactions are an important component when sourcing new product opportunities
Sale and leaseback transactions are an important component when sourcing new product opportunities RECENT SALE AND LEASEBACK ACQUISITIONS SALE AND LEASEBACK TRANSACTIONS INCREASE FUND OPPORTUNITIES 14% Over $417m $212m NZ$178m Industrial TELSTRA DATA CENTRE 46 ROBINSON ROAD EAST, VISY FACILITY, $850
Slide 12: Centuria's expanding unlisted real estate platform
Centuria’s expanding unlisted real estate platform Significant unlisted AUM of $4.5bn1 complementing $4.4bn of listed real estate AUM ✓ Unlisted AUM of $4.5bn1 (~45% of total AUM2) AUGUSTA INDUSTRIAL FUND (AIF) ✓ Well established unlisted platform with a successful 23-year track record of raising ca
Slide 13: Equity Raising summary
Equity Raising summary ASX:CNI C E NT URIA C AP IT AL GROUP AS X : C NI 13 VISY FACILITY, PENROSE, AUCKLAND, NEW ZEALAND
Slide 14: Sources and uses of proceeds
Sources and uses of proceeds Sources of proceeds $m Identifiable funding commitments include working capital (including underwriting support for Entitlement offer 80.5 the purchase of the Visy Facility) and the repayment of debt. After the Equity Raising, Placement 19.5 Centuria will have approximat
Slide 15: Equity Raising details
Equity Raising details • The Equity Raising is fully underwritten and comprises: Equity Raising − A 1 for 15 accelerated non-renounceable pro rata entitlement offer to raise $80.5 million; and structure − An institutional placement to raise $19.5 million • The issue price of $2.25 per security repre
Slide 16: Equity Raising indicative timetable
Equity Raising indicative timetable Key event Date1 Trading halt and announcement of the Placement, Institutional Entitlement Offer and Retail Entitlement Offer Thursday, 22 October 2020 Placement and Institutional Entitlement Offer opens and closes Thursday, 22 October 2020 Trading re-commences on
Slide 17: Appendices
Appendices Appendix A: Sale and Purchase of Land Agreement – Key terms Appendix B: Deed of Lease – Key terms Appendix C: Key risks Appendix D: Underwriting agreement Appendix E: International offer restrictions ASX:CNI C E NT URIA C AP IT AL GROUP AS X : C NI 17 VISY FACILITY, PENROSE, AUCKLAND, NEW
Slide 18: Appendix A: Sale and Purchase of Land Agreement – Key terms
Appendix A: Sale and Purchase of Land Agreement – Key terms xx Sale and Purchase of Land Agreement – Key terms Vendor Visy Glass Property (NZ) Limited Purchaser Centuria Platform Investments Pty Limited (and/or nominee) NZ$178.3 million plus GST (if any) Purchase Price The transaction will be zero-r
Slide 19: Appendix A: Sale and Purchase of Land Agreement – Key terms (cont.)
Appendix A: Sale and Purchase of Land Agreement – Key terms xx Sale and Purchase of Land Agreement – Key terms (cont.) The Property will be acquired subject to the Lease granted to Visy Glass Operations (NZ) Limited and Visy Glass Packaging Services Pty Limited (as guarantor). The Lease will commenc
Slide 20: Appendix A: Sale and Purchase of Land Agreement – Key terms (cont.)
Appendix A: Sale and Purchase of Land Agreement – Key terms xx Sale and Purchase of Land Agreement – Key terms (cont.) The Vendor indemnifies the Purchaser against any liability, loss, cost, charge, damage or expense suffered or incurred by the Purchaser as a result of the Purchaser being required t
Slide 21: Appendix B: Deed of Lease – Key terms
Appendix B: Deed of Lease – Key terms Deed of Lease – Key terms Landlord The initial Landlord will be the vendor. Upon settlement the Landlord will be the Purchaser or the entity nominated by the Purchaser to complete settlement Tenant Visy Glass Operations (NZ) Limited Guarantor Visy Glass Packagin
Slide 22: Appendix B: Deed of Lease – Key terms (cont.)
Appendix B: Deed of Lease – Key terms Deed of Lease – Key terms (cont.) Final Expiry Date 70 years from the Initial Commencement Date Initial Annual Rent $8,000,000 plus GST Rent Review Dates Market Reviews: The Rent will be subject to a market review on each renewal date (ratcheted to the Rent paya
Slide 23: Appendix B: Deed of Lease – Key terms (cont.)
Appendix B: Deed of Lease – Key terms Deed of Lease – Key terms (cont.) The Tenant: 1. Must comply at all times with Environmental Laws; 2. Must not knowingly do anything which is or is likely to result in any Contamination occurring in, on or under the Land or any adjacent land; 3. Must ensure that
Slide 24: Appendix B: Deed of Lease – Key terms (cont.)
Appendix B: Deed of Lease – Key terms Deed of Lease – Key terms (cont.) The Landlord is required to hold insurance policies for: 1. All risks property insurance covering the Premises (including cover for the building against damage and destruction by fire, flood, explosion, lightning, storm, earthqu
Slide 25: Appendix B: Deed of Lease – Key terms (cont.)
Appendix B: Deed of Lease – Key terms Deed of Lease – Key terms (cont.) The Lease contains a right of first refusal in favour of the Tenant (on standard terms we would expect to see for a right of first refusal in a Lease of this nature). If the Landlord intends to dispose of its estate in fee simpl
Slide 26: Appendix C: Key risks
Appendix C: Key risks All investments carry risk, including loss of some or all of the capital invested and failure of investments to generate a positive return. You should carefully consider whether an investment in CNI Stapled Securities is a suitable investment for you. Some of the risks of inves
Slide 27: Appendix C: Key risks
Appendix C: Key risks General risks Economic environment • General economic factors such as interest rates, exchange rates, inflation, business and consumer confidence and general market factors may have an adverse impact on CNI's earnings or value of its assets. Aspects of the business that could b
Slide 28: Appendix C: Key risks
Appendix C: Key risks Liquidity and realisation risk • The ongoing value of properties held by funds managed by Centuria may fluctuate due to a number of factors including rental levels, occupancy assumptions, vacancy periods, rental incomes, capitalisation rates and market sentiment, all of which m
Slide 29: Appendix C: Key risks
Appendix C: Key risks Reliance on third party equity • As a fund manager, growth in Centuria’s earnings may be impacted by the ability of Centuria to establish new listed or unlisted funds. Specifically such income growth is dependent on the ability of Centuria to continue to source and maintain equ
Slide 30: Appendix C: Key risks
Appendix C: Key risks Funding • Centuria and funds managed by the Centuria funds management business rely on access to various sources of capital, along with the refinancing and/or variation of existing debt facilities. An inability to obtain the necessary funding or refinancing on acceptable terms
Slide 31: Appendix D: Underwriting Agreement
Appendix D: Underwriting Agreement Centuria Capital Limited ACN 095 454 336 (CNI) and Centuria Funds Management Limited ACN 607 153 588 (CFML) as responsible entity for the Centuria Capital Fund ARSN 613 856 358 (Trust) (together with CNI, the Issuer) has entered into an underwriting agreement with
Slide 32: Appendix D: Underwriting Agreement
Appendix D: Underwriting Agreement 9) any financing or related arrangement referred to in the offer documents is not or will not be refinanced, terminated, amended or entered in to (or a consent or waiver is or will not be given in relation to any such financing or related arrangement) in the manner
Slide 33: Appendix D: Underwriting Agreement
Appendix D: Underwriting Agreement 21) the Underwriter becomes aware of a contravention by an Issuer or any Group Member of an applicable law, or a contravention by an Issuer or a Group Member of an order or request made by or on behalf of any governmental agency and the effect of which has or is li
Slide 34: Appendix E: International offer restrictions
Appendix E: International offer restrictions This document does not constitute an offer of Stapled Securities of the CNI in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Stapled Securities may not be offered or sold, in any
Slide 35: Appendix E: International offer restrictions
Appendix E: International offer restrictions Hong Kong WARNING: This document has not been, and will not be, authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has been taken in
Slide 36: Appendix E: International offer restrictions
Appendix E: International offer restrictions Singapore This document has not been registered as a prospectus with the Monetary Authority of Singapore ("MAS") and, accordingly, statutory liability under the Securities and Futures Act, Chapter 289 (the "SFA") in relation to the content of prospectuses
Slide 37: Centuria Capital Group
C E NT URIA C AP IT AL GROUP AS X : C NI 37
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