Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — Merger or Acquisition (September 2021)
36 slides from Centuria Industrial Reit's merger presentation, Sep 23, 2021
Slide 1: Acquisitions and Equity Raising
Not for release to U.S. wire services or distribution in For personal use only the United States Centuria Industrial REIT Acquisitions and Equity Raising ASX:CIP | 2 3 S E P 2021 CENTURIA INDUSTRIAL REIT ASX:COF 1 56-88 LISBON STREET, FAIRFIELD, NSW
Slide 2: Agenda
Australia’s largest For personal use only domestic pure play industrial REIT Agenda 1. Executive Summary and Acquisitions 2. CIP Post Acquisitions 3. Equity Raising 4. Appendices CENTURIA INDUSTRIAL REIT ASX: CIP 2 56-88 LISBON STREET, FAIRFIELD, NSW
Slide 3: Transaction overview
Transaction overview • Centuria Industrial REIT (CIP), has entered into agreements to acquire four high quality urban infill industrial freehold assets and has completed the For personal use only acquisition of four other freehold assets (together the Acquisitions) for a total purchase price of $351
Slide 4: Investment highlights
Investment highlights Accumulating a high quality portfolio of urban infill industrial assets For personal use only • Aligned with CIP’s portfolio construction objectives to acquire high-quality industrial assets within urban infill locations On strategy 1 acquisitions • Demonstrates CIP’s platform
Slide 5: Sydney centric portfolio acquisitions
Sydney centric portfolio acquisitions Growing CIP's exposure to the tightly held and high performing Sydney industrial market For personal use only GEOGR APHI C EXPOSURE OF ACQUI SI T I ONS 1 ACQUI S I TI ON PORTF O L I O 90% weighting to 4.1% $351m the east coast Initial yield Portfolio value NT 11
Slide 6: Acquisitions overview
Acquisitions overview 100% of Acquisitions secured off-market For personal use only Purchase Initial GLA WALE Occupancy Property Sub-sector State Title Cap rate price 1 yield 1 (sqm) (yrs) 2 2 1 56-88 Lisbon Street, Fairfield Distribution centre NSW Freehold $200.2m 3.6% 3.88% 60,223 4.1 100% 2 164-
Slide 7: $351 million of high quality industrial acquisitions
$351 million of high quality industrial acquisitions1 90% of acquisitions in tightly held eastern seaboard industrial markets 2 For personal use only $351m $200.2m $36.8m $22.0m $11.9m 56-88 LISBON STREET, FAIRFIELD, NSW 164-166 NEWTON ROAD, WETHERILL PARK, NSW 51-65 WHARF ROAD, PORT MELBOURNE, VIC
Slide 8: CIP Post Acquisitions
For personal use only DISTRIBUTION CENTRE SECTION TWO CIP Post Acquisitions ASX: CIP CENTURIA INDUSTRIAL REIT ASX: CIP 8 31 GRAVEL PIT ROAD, DARRA, QLD
Slide 9: Australia's largest domestic pure play industrial REIT
Australia’s largest domestic pure play industrial REIT For personal use only TOTAL PORTFOLIO Pre Post AUSTRALIAN LISTED PEERS 2,3 SNAPSHOT 30 June 2021 Acquisitions 1 Acquisitions Number of assets # 62 67 75 3.8 PORTFOLIO VALUE – EXCL. BUSINESS PARKS ($BN) 100% Book value $m 2,945 3,123 3,474 3.6 IN
Slide 10: Exposure to high quality tenants in attractive sub-sectors
Exposure to high quality tenants in attractive sub-sectors For personal use only TENANT SUB-SECTOR DIVERSIFICATIONS 1 TENANT INDUSTRY SECTOR DIVERSIFICATIONS 2 36% Distribution Centre 24% ASX Listed 25% Manufacturing 4% Listed Multinational 15% Data Centre 23% Multinational 14% Transport Logistics 3
Slide 11: Key metrics
Key metrics – Australia’s largest domestic pure play industrial REIT For personal use only PORTF O LI O FI N ANCI AL No less than 75 $3.5bn 18.1cpu 17.3cpu 4.6% High quality Portfolio FY22 FFO guidance 2 FY22 DPU guidance 2 Forecast FY22 assets value DPU yield 3 97.3% 9.0yrs $2.5bn 30.3% $3.77 Portf
Slide 12: Equity Raising
For personal use only COLD STORE FACILITIES SECTION THREE Equity Raising ASX: CIP CENTURIA INDUSTRIAL REIT ASX: CIP 12 51 DEPOT STREET, BANYO, QLD
Slide 13: Sources and uses of proceeds
Sources and uses of proceeds For personal use only Sources of proceeds $m 1 Placement proceeds 300.0 Drawn debt 79.0 Total sources 379.0 Uses of proceeds $m 2 Acquisitions 351.3 3 Stamp duty 19.8 Other transaction costs 7.9 Total uses 379.0 • The Placement will be fully-underwritten and will raise $
Slide 14: Equity raising details
Equity raising details • For personal use only Fully underwritten institutional placement to raise $300.0 million Equity raising • Non-underwritten UPP to eligible unitholders in Australia and New Zealand to raise up to $25.0 million 1 structure - Eligible unitholders in Australia and New Zealand wi
Slide 15: Equity Raising indicative timetable
Equity Raising indicative timetable For personal use only Key event Date 2021 1 Trading halt and announcement of the Acquisitions and Equity Raising Thursday, 23 September Placement bookbuild Thursday, 23 September Announcement of results of the Placement Friday, 24 September Trading halt lifted and
Slide 16: Appendices
For personal use only DISTRIBUTION CENTRE 56-88 LISBON STREET, FAIRFIELD, NSW SECTION FOUR Appendices Appendix A – Pro forma balance sheet ASX: CIP Appendix B – Acquisitions overview Appendix C – Market research: Vacancy and land supply Appendix D – Key risks Appendix E – International offer restric
Slide 17: A – Pro forma balance sheet
Appendix A – Pro forma balance sheet For personal use only Pro Forma 30 June 2021 Pro Forma 30 June 2021 Post-Balance Date Acquisitions and $m 30 June 2021 (Pre Acquisitions and (Post Acquisitions and Adjustments 5 Placement Placement) Placement) 6 Cash 105.5 105.5 105.5 Investment properties 2,945.
Slide 18: B – 56-88 Lisbon Street, Fairfield NSW
Appendix B – 56-88 Lisbon Street, Fairfield NSW For personal use only ASSET OVERVIEW • The asset is one of the largest high quality distribution centres within infill Sydney, providing 60,223sqm of modern clear span generic warehousing leased to high quality tenants in Fantastic Furniture and DB Sch
Slide 19: B – 56-88 Lisbon Street, Fairfield NSW (cont'd)
Appendix B – 56-88 Lisbon Street, Fairfield NSW (cont’d) For personal use only LOCATION OVERVIEW KEY LANDMARKS • The asset is situated in Fairfield, one of Sydney’s most important infill locations, located 2km from Yennora Terminal, 6km from Parramatta CBD and 22km from Sydney CBD, with excellent pr
Slide 20: B – Acquisitions located in NSW
Appendix B – Acquisitions located in NSW For personal use only 164-166 NEWTON ROAD, WETHERILL PARK, NSW • Newton Road, Wetherill Park comprises two separate and highly functional industrial distribution facilities of 6,392sqm and 5,491sqm, both serviced by office amenities and with separated access
Slide 21: B – Acquisitions located in VIC
Appendix B – Acquisitions located in VIC For personal use only 51-65 WHARF ROAD, PORT MELBOURNE 346 BOUNDARY ROAD, DERRIMUT 31-35 HALLAM ROAD, HALLAM • Wharf Road, Port Melbourne • Boundary Road, Derrimut • Hallam South Road, Hallam comprises 4,410sqm of modern comprises a 4,214sqm of comprises two
Slide 22: B – Acquisitions located in QLD
Appendix B – Acquisitions located in QLD For personal use only 51 DEPOT STREET, BANYO, QLD 31 GRAVEL PIT ROAD, DARRA, QLD • Depot Street, Banyo comprises 4,099sqm of • Gravel Pit Road, Darra comprises 9,089sqm of cold storage warehousing and office space modern generic warehouse and office accommoda
Slide 23: B – Acquisitions located in WA
Appendix B – Acquisitions located in WA For personal use only 48-54 KEWDALE ROAD, WELSHPOOL, WA • The Kewdale Road asset consists of multiple functional buildings, comprising 20,349sqm of gross lettable area on a high-profile corner site of 3.9 ha over three titles • The asset comprises a 2.9 year W
Slide 24: C – Structural tailwinds for the infill industrial real estate market
Appendix C – Structural tailwinds for the infill industrial real estate market SYDNEY’S INNER WEST ANNUAL INDUSTRIAL SUPPLY PIPELINE, 2015 TO 2022F 1 NATIONAL INDUSTRIAL VACANCY LEVELS 4 For personal use only • Prime rental growth in Sydney’s inner west market increased 3.7% y-o-y driven by limited
Slide 25: D – Key risks
Appendix D – Key risks CIP property investments and management operations are by their nature exposed to specific market recession or downturn. These include, but are not limited to: For personal use only risks and those of a general nature. Each of these risks may have some kind of impact on the fi
Slide 26: D – Key risks (cont.)
Appendix D – Key risks (cont.) This will likely adversely impact the financial position of many tenants across the country. The associated Prolonged deterioration in any or all of these conditions, an increase in the cost of capital or a decrease in For personal use only accumulation of rental arrea
Slide 27: D – Key risks (cont.)
Appendix D – Key risks (cont.) Returns from investment The value of assets may reduce if the income from the asset declines and these fixed costs remain For personal use only unchanged. Returns from property investment assets largely depend on the rental income generated from the property and the ex
Slide 28: E – International Offer Restrictions
Appendix E – International Offer Restrictions This document does not constitute an offer of units in the Centuria Industrial REIT (ARSN 099 680 252) Singapore For personal use only (New Units) in any jurisdiction in which it would be unlawful. In particular, this document may not be This document ha
Slide 29: E – International Offer Restrictions (cont.)
Appendix E – International Offer Restrictions (cont.) Switzerland For personal use only The New Units may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange (SIX) or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor an
Slide 30: F – Material Contracts
Appendix F – Material Contracts Underwriting Agreement 7. any financing or related arrangement referred to in the Placement materials is not or will not be For personal use only refinanced, terminated, amended or entered in to (or a consent or waiver is or will not be given in Centuria Property Fund
Slide 31: F – Material Contracts (cont.)
Appendix F – Material Contracts (cont.) 14. ASX makes any official statement to any person, or indicates to CPF2L or the Underwriters 22. there is introduced, or there is a public announcement of a proposal to introduce, into the For personal use only (whether or not by way of an official statement)
Slide 32: F – Material Contracts (cont.)
Appendix F – Material Contracts (cont.) Contract for Acquisition of 56-88 Lisbon Street, Fairfield For personal use only 1. Centuria Property Funds No 2 Limited as custodian for the Centuria Institutional Investment No. 3 Pty Ltd as trustee for CIP Sub Trust No. 1 (a wholly-owned sub-trust of the Ce
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Centuria Property Funds No. 2 Limited (ACN 133 363 185) To the maximum extent permitted by law, CPF2L its related bodies corporate and their respective For personal use only (CPF2L) as responsible entity of the Centuria Industrial REIT (ARSN 099 680
Slide 34: Disclaimer (cont.)
Disclaimer (cont.) This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, The recipient should note that this presentation contains pro forma historical financial information. In For personal use only projections or statements in relation to future matte
Slide 35: Disclaimer (cont.)
Disclaimer (cont.) For personal use only The distribution of this presentation in other jurisdictions outside Australia may also be restricted by law member of the Underwriting Group and each of the CPFL Parties disclaim any liability in respect of the and any person into whose possession this docum
Slide 36: For personal use only
For personal use only CENTURIA INDUSTRIAL REIT ASX: CIP 36
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