Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — 360 Capital Industrial Fund — FY2016 Earnings Presentation
36 slides from Centuria Industrial Reit's earnings presentation, Aug 17, 2016
Slide 1: 2016 Annual Results Presentation
2016 Annual Results Presentation ASX: TIX 17 August 2016 360 Capital Investment Management Limited (ACN 133 363 185) as responsible entity for the 360 Capital Industrial Fund (ARSN 099 680 252) 1
Slide 2: Table of contents
Table of contents 2016 Annual Results Presentation Appendices 1 At a glance A Balance sheet 2 Key achievements B Profit and loss 3 Earnings & distributions C Operating earnings reconciliation 4 Assets & liabilities D Portfolio metrics 5 Portfolio management E Property details 6 Capital management 7
Slide 3: At a glance
1 At a glance $923m 4.7 Total assets 99.4% 37 years Occupancy Assets 48% WALE 21.6cpu $580m 22.7cpu FY16 42.6% Market FY16 Distributions capitalisation Operating earnings Gearing 2.9% 58% 22 Hawkins Road, Bundamba QLD (API) 3
Slide 4: Key achievements
2 Key achievements TIX has consolidated its position as the largest pure industrial rent collecting vehicle on the ASX Achievement • Leased over 68,000sqm; advanced negotiations with a further 14,000sqm • Asset sales of $10.5 million; further $22.8m of asset sales in due diligence Portfolio Manageme
Slide 5: Earnings & distributions
3 Earnings & distributions • Operating Earnings increased by 70.9% to $48.2m 30 June 16 30 June 15 Change ($000) ($000) • Higher property income from portfolio acquisitions and Operating income1 81,065 49,783 62.8% fixed rental increases Property expenses 12,468 8,195 52.1% • Statutory Net Profit in
Slide 6: Assets & liabilities
4 Assets & liabilities • Total assets up 48.1% to $923.3m post portfolio 30 June 16 30 June 15 Change ($000) ($000) acquisition Cash 4,452 6,329 -29.7% • Approximately $30.0m1 of available debt capacity Receivables 3,115 4,164 -25.2% • LVR is 43.2% and gearing of 42.6% and trending down Property hel
Slide 7: Portfolio management
5 Portfolio management Property valuations Geographic exposure – June 16 • Property portfolio valued at $905.21m following WA SA ACT 1% 2% revaluation gains of $38.22m 9% • Value of portfolio acquisition increased by $13.3m; in excess of transaction costs associated with the acquisition NSW 44% • Re
Slide 8: Leasing – earnings risks reduced
5 Leasing – earnings risks reduced Lease expiry profile (by income) 40.4% 40% 35% 30% 25% 18.5% 18.8% 20% 9.5% 15% 13.7% 12.5% 10.5% Asset Sale 10% 7.6% 5.9% 5% 1.0% 0% Vacant FY17 FY18 FY19 FY20 FY21 FY22+ Portfolio leasing • Leased over 68,000sqm in the past 12 months; advanced negotiations with a
Slide 9: Capital management
6 Capital management • Significant work on long term debt strategy Current debt facilities • Indicative offer for a $330m, 10 year, fixed rate facility from overseas Facility amount Drawn1 institutions to be blended with current Australian bank debt Bank Expiry ($m) ($m) • Institutions have inspecte
Slide 10: Long-term track record
7 Long-term track record 230 Closing Price: TIX $2.74 210 Total Unitholder Return: 114% or 23.9% pa Total Unitholder Return - 12mths: 23.8% 190 170 150 130 110 S&P/ASX 300 AREIT Index 90 Issue Price: Total Return: 84% or 18.7% pa $1.80 Total Return – 12mths: 23.0% 70 Dec-12 Apr-13 Aug-13 Dec-13 Apr-
Slide 11: Peer comparison
8 Peer comparison Proximity to ASX 200 Index FY17 EARNINGS YIELD FY17 DISTRIBUTION YIELD Average 7.1% (excl. TIX) Average 6.8% (excl. TIX) 8.8% 8.3% 8.4% 8.0% 7.7% 8.0% 7.6% 7.6% 7.4% 6.9% 7.2% 7.2% 6.6% 6.8% 5.2% 5.3% 4.9% 5.2% FET ARF GOZ GMF TOF IDR TIX CMA PLG FET ARF GOZ GMF IDR TOF CMA TIX PLG
Slide 12: Outlook & guidance
9 Outlook & guidance Market outlook • Cap rates have continued to compress in line with historically low debt costs and increased offshore capital; FY17 Operating earnings • Tightening credit policy and recent global volatility may limit guidance current demand Operating outlook >21.6cpu • Disciplin
Slide 13: Questions?
QUESTIONS? 310 Spearwood Avenue, Bibra Lake, WA (AWH) 13
Slide 14: Appendices
APPENDICES 30 Clay Place, Eastern Creek, NSW (Garmin Australasia) 14
Slide 15: Balance sheet
A Balance sheet 30 June 16 30 June 15 Balance sheet1 ($’000) ($’000) Assets Cash and cash equivalents 4,452 6,329 Trade and other receivables 3,115 4,164 Properties held for sale 22,800 10,500 Investment properties 882,400 533,400 Goodwill 10,501 - ANI investment - 68,807 Total assets 923,268 623,20
Slide 16: Profit and loss statement
B Profit and loss statement 30 JUN 16 30 JUN 15 Statutory profit and loss statement1 ($’000) ($’000) Rental income 75,109 47,293 Finance revenue 152 130 Net gain on fair value of investment properties 28,900 21,719 Distribution from property funds - 2,897 Total income 104,161 72,039 Investment prope
Slide 17: Operating earnings reconciliation
C Operating earnings reconciliation 30 June 16 30 June 15 Operating earnings reconciliation1 ($’000) ($’000) Statutory net profit 49,788 43,916 Net gain on fair value of investment properties (28,900) (21,719) Net loss on derivative financial instruments 7,366 4,599 Amortisation of borrowing costs 8
Slide 18: Leasing update
D Leasing update Total completed leases over 12 months Property Tenant Area (sqm) Term Status Lease extension on passing rent. Tenant will be vacating on expiry as they have outgrown the space. 8 Penelope Crescent, Arndell Park Tyremax 11,420 1.5 Marketing currently underway 102-128 Bridge Road, Key
Slide 19: Upcoming expiries
D Upcoming expiries Major upcoming expiries Area Income Property Tenant Expiry Status (sqm) (%) Partial renewal of ITW across 1,584 sqm. Asset currently 74-94 Newton Road, Wetherill Park NSW Australia Post 15,444 3.1 Jun-16 under active marketing campaign and classified held for sale 49 Temple Drive
Slide 20: Portfolio metrics
D Portfolio metrics Value Last Cap. rate Area Occupancy WALE Property address State ($m) valued (%) (sqm) (%) (years) 1 2 Woolworths Way, Warnervale NSW 80.9 Jun-16 7.25 54,533 100 5.1 2 457 Waterloo Road, Chullora NSW 26.0 Jun-16 6.75 16,051 100 11.7 3 37-51 Scrivener Street, Warwick Farm NSW 26.2
Slide 21: Portfolio metrics
D Portfolio metrics Value Last Cap. rate Area Occupancy WALE Property address State ($m) valued (%) (sqm) (%) (years) 22 9 Fellowes Court, Tullamarine VIC 3.8 Jun-16 7.25 4,072 100 0.5 23 324-332 Frankston-Dandenong Road, Dandenong South VIC 27.1 Jun-16 7.50 28,316 100 4.3 24 49 Temple Drive, Thomas
Slide 22: Portfolio metrics
D Portfolio metrics Top 10 tenants Geographic diversification (by value) SA ACT Proportion of WA Rent 1% 2% Tenant total income Expiry 9% ($m) (%) Woolworths 6.8 8.3 Jul 21, Jun 25 NSW Greens 5.2 6.3 Nov 28, Sep 29 44% QLD Jun 16, Orora 4.5 5.5 19% Jun 22, Aug 28 Visy Industries 4.3 5.3 Jun 18, Aug
Slide 23: Property details
E Property details 2 WOOLWORTHS WAY, WARNERVALE NSW 92-98 COSGROVE ROAD, ENFIELD, NSW 10 WILLIAMSON ROAD, INGLEBURN, NSW The property is located within the Warnervale Enfield is an established industrial and logistics Ingleburn is located approximately 47km south Business Park next to the M1 Freeway
Slide 24: Property details
E Property details 29 GLENDENNING ROAD, GLENDENNING, NSW 12 WILLIAMSON ROAD, INGLEBURN, NSW 37–51 SCRIVENER ST, WARWICK FARM NSW Glendenning is an established industrial precinct in Ingleburn is an established industrial and logistics The property is located at Warwick Farm, 31 north western Sydney
Slide 25: Property details
E Property details 457 WATERLOO ROAD, CHULLORA NSW 74-94 NEWTON ROAD, WETHERILL PARK, NSW 60 MARPLE AVENUE, VILLAWOOD NSW The property comprises a recently refurbished Wetherill Park is strategically situated in Sydney’s traditional freestanding office and warehouse outer central west industrial reg
Slide 26: Property details
E Property details 6 MACDONALD ROAD, INGLEBURN, NSW 30 CLAY PLACE, EASTERN CREEK, NSW 8 PENELOPE CRESCENT, ARNDELL PARK NSW Ingleburn is an established industrial and logistics The property is situated in the M7 Business Hub at area in south western Sydney with access to the Eastern Creek, near the
Slide 27: Property details
E Property details 52-74 QUARRY ROAD, ERSKINE PARK, NSW 75 OWEN STREET, GLENDENNING, NSW 102–128 BRIDGE ROAD, KEYSBOROUGH VIC Erskine Park is an established industrial suburb Glendenning is an established industrial precinct The property is located in the south-eastern approximately 45km west of the
Slide 28: Property details
E Property details 324-332 FRANKSTON-DANDENONG ROAD, 24-32 STANLEY DRIVE, SOMERTON, VIC 6 ALBERT STREET, PRESTON VIC DANDENONG SOUTH, VIC Somerton is a more recently established industrial Dandenong South is a well-established industrial The property is located in the traditional industrial area app
Slide 29: Property details
E Property details 69 STUDLEY COURT, DERRIMUT VIC 500 PRINCES HIGHWAY, NOBLE PARK VIC 14-17 DANSU COURT, HALLAM VIC The property is a modern freestanding office and warehouse facility completed in 2009 comprising The property is situated within the established office accommodation positioned over tw
Slide 30: Property details
E Property details 12–13 DANSU COURT, HALLAM VIC 49 TEMPLE DRIVE, THOMASTOWN, VIC 2 KEON PARADE, KEON PARK, VIC Thomastown is situated in a well-established Keon Park is situated in a well-established The property is situated within the established industrial location, approximately 17km north of in
Slide 31: Property details
E Property details 39–45 WEDGEWOOD ROAD, HALLAM VIC 9 FELLOWES COURT, TULLAMARINE, VIC 22 HAWKINS CRESCENT, BUNDAMBA QLD Tullamarine is an established industrial precinct, The property was completed in 2009 and is The property is situated within the established approximately 16km north west of Melbo
Slide 32: Property details
E Property details 1 ASHBURN ROAD, BUNDAMBA QLD 69 RIVERGATE PLACE, MURARRIE, QLD 136 ZILLMERE ROAD, BOONDALL, QLD The property was completed in 2010 and is The property is located approximately 12 The property is situated within the Australia Trade situated approximately 33 kilometres south west ki
Slide 33: Property details
E Property details 33-37 MICA STREET, CAROLE PARK QLD 21 JAY STREET, TOWNSVILLE QLD 310 SPEARWOOD AVENUE, BIBRA LAKE WA The property is located within the Webb Industrial The property is located in Carole Park near the Estate in Mount St John approximately 11 The property is located within the estab
Slide 34: Property details
E Property details 23 SELKIS ROAD, BIBRA LAKE, WA 99 QUILL WAY, HENDERSON, WA 54 SAWMILL CIRCUIT, HUME ACT Bibra Lake is a newly established industrial precinct Henderson is an established marine port and south west of the Perth CBD. related logistics precinct, south west of the Perth Completed in 2
Slide 35: Property details
E Property details 9-13 CARIBOU DRIVE, DIREK SA Completed in 2009, the property is located 25 kilometres north of Adelaide, 3 kilometres from the Northern expressway and proposed new off ramp and is the state distribution facility for Kimberley Clarke. The building comprises 6,612 sqm of warehouse w
Slide 36: 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 Industrial Fund (ARSN 099 680 252) (‘TIX’ or the ‘Fund’) . All information and statistics in this presentation are current as at 17 Augu
360 Capital Industrial Fund — FY2016 Earnings Presentation on 6ix