Centuria Capital Group · ASX:CNI
Centuria Capital — H1 2017 Earnings Presentation
37 slides from Centuria Capital's earnings presentation, Feb 23, 2017
Slide 1: Centuria Capital Group 1H17 Results Briefing
WWW.CENTURIA.COM.AU Centuria Capital Group For personal use only Results Briefing © CENTURIA CAPITAL LIMITED ABN 22 095 454 336 1H17 (half‑year ended 31 December 2016) 23 February 2017
Slide 2: Contents
CENTURIA CAPITAL GROUP Contents For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017 01 02 03 Group Overview Financial Highlights Property Funds Management Division 04 05 06 Investment Bonds Division Outlook Appendices PAGE 02
Slide 3: Group Overview
Overview Group Section 1 Centuria Capital Group CENTURIA CAPITAL GROUP For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017
Slide 4: Group 1H17 operating highlights
CENTURIA CAPITAL GROUP Group 1H17 operating highlights For personal use only •• Completed acquisition of majority of 360 Capital Group’s real estate funds management platform in January 2017 which contributed to: I 1H17 RESULTS BRIEFING −− An increase in Group FUM of 95% from $1.9 billion to $3.7 bi
Slide 5: Centuria profile
CENTURIA CAPITAL GROUP Centuria profile Centuria has undergone a phase of unprecedented transformational growth For personal use only Centuria Capital Group I 1H17 RESULTS BRIEFING 31 Dec 16 30 Jun 16 FUM $3,731m $1,919m Percentage of recurring revenue 77% 65% Value of co-investments held $129m $51m
Slide 6: Continued growth in FUM
CENTURIA CAPITAL GROUP Continued growth in FUM Transformational FUM growth will drive the next stage of earnings growth For personal use only 4000 ($m) 4,000 I 3,731 •• Continued net FUM growth expected in 2H17 1H17 RESULTS BRIEFING 1,583 •• Expanded distribution channels: 3000 −− Greater access to
Slide 7: Corporate activity
CENTURIA CAPITAL GROUP Corporate activity A busy 6 months investing in our future For personal use only Launched Centuria Scarborough House Fund I 1H17 RESULTS BRIEFING Announced sale of Creek Street, Brisbane Centuria Diversified for $39 million Property Fund launched Successful formation of Centur
Slide 8: Strategy scorecard
CENTURIA CAPITAL GROUP Strategy scorecard Delivering on our strategy For personal use only Creating securityholder value Utilise and recycle balance sheet Expansion of Investment Bond business I 1H17 RESULTS BRIEFING 99Capital raising and 360 Capital platform 99Opportunistic and agile approach – pro
Slide 9: Property portfolio
CENTURIA CAPITAL GROUP Property portfolio Larger platform enhances geographic diversification For personal use only Centuria CNI listed property funds map I Metropolitan REIT 1H17 RESULTS BRIEFING Urban REIT 21 Jay St, Mount St John Industrial REIT City Centre Plaza – Fitzroy & Bolsover St, Rockhamp
Slide 10: Capital platform acquisition
CENTURIA CAPITAL GROUP 360 Capital platform acquisition Increasing scale and recurring revenues For personal use only •• On 23 November 2016, Centuria agreed to acquire the majority of 360 Capital’s real estate funds management I platform including management rights over TIX (now CIP), TOF (now CUA)
Slide 11: Financial Highlights
Highlights Financial Section 2 Centuria Capital Group CENTURIA CAPITAL GROUP For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017
Slide 12: Group operating highlights
CENTURIA CAPITAL GROUP Group operating highlights Half year a stepping stone to increased full year earnings For personal use only 1H17 1H16 I 1H17 RESULTS BRIEFING Operating Net Profit After Tax Operating NPAT 1 $2.9m $4.7m 15 ($m) Operating EPS (basic) 3.79c 6.15c Statutory NPAT 1 $(1.4)m $5.7m St
Slide 13: Operating segment results
CENTURIA CAPITAL GROUP Operating segment results Final pre-acquisition results For personal use only •• Property Funds Management underlying 1H17 1H16 I recurring revenues stronger than prior period 1H17 RESULTS BRIEFING $m $m •• Large non-recurring performance fees received Operating profit by segm
Slide 14: Operating segment balance sheet
CENTURIA CAPITAL GROUP Operating segment balance sheet Delivering easier to understand results For personal use only Operating Operating Capital Platform acquisition was 360 I Property Funds Investment Bonds Reverse Balance Sheet 1 Balance Sheet unconditional as at 31 December, and 1H17 RESULTS BRIE
Slide 15: Sources of operating revenue
CENTURIA CAPITAL GROUP Sources of operating revenue Increased recurring revenue sources enhances earnings stability For personal use only I 1H17 RESULTS BRIEFING 50,000 ($) Significant increase in Minimal performance fee in 1H17 quality recurring revenues Growth in unlisted property 40,000 portfolio
Slide 16: Property Funds Management Division
CENTURIA CAPITAL GROUP Centuria Capital Group For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017 Section 3 Property Funds Management Division 576 Swan Street, Richmond
Slide 17: Property funds management division
CENTURIA CAPITAL GROUP Property funds management division Diversified property portfolio across listed and unlisted funds For personal use only I 1H17 RESULTS BRIEFING Property Funds Management Division Unlisted Property Funds Listed Property Funds I FEBRUARY 2017 •• $1,395 million in FUM •• $1,583
Slide 18: Property highlights
CENTURIA CAPITAL GROUP Property highlights 131% growth in property funds under management For personal use only Centuria Property Funds FUM I 1H17 RESULTS BRIEFING 3000 ($m) 97 2,978 267 34 211 2500 923 I FEBRUARY 2017 2000 1500 287 (40) 1,199 1000 30 June 2016 The Zenith Asset CIP CUA Unlisted 360
Slide 19: Diversification of property funds management platform
CENTURIA CAPITAL GROUP Diversification of property funds management platform Diversifying our footprint For personal use only •• Centuria has significantly rebalanced its real Sector Diversity Capital Source Geographic Diversification I (by FUM) (by Valuation) (by Valuation) estate platform during t
Slide 20: Unlisted property highlights
CENTURIA CAPITAL GROUP Unlisted property highlights Highly profitable core business unit showing strong growth For personal use only •• Added four unlisted funds with $258 million FUM $1,395m I in 360 Capital platform acquisition 1H17 RESULTS BRIEFING Funds under management •• Launched Centuria Zeni
Slide 21: Unlisted property outlook
CENTURIA CAPITAL GROUP Unlisted property outlook Stronger investor demand across all channels For personal use only “Conditions for the unlisted business unit are near I 1H17 RESULTS BRIEFING ideal with bank deposit rates remaining low in the near term and our funds returns exceeding alternatives by
Slide 22: Listed property highlights
CENTURIA CAPITAL GROUP Listed property highlights Unprecedented divisional growth generates improved recurring income For personal use only •• Successful acquisition of management rights over I two listed funds from 360 Capital 1H17 RESULTS BRIEFING •• Funds renamed to Centuria Industrial REIT (ASX:
Slide 23: Centuria Industrial REIT
CENTURIA CAPITAL GROUP Centuria Industrial REIT (ASX: CIP) For personal use only CIP Overview I 1H17 RESULTS BRIEFING •• Largest ASX listed pure rent collecting industrial REIT with a market capitalisation of $530 million as at 17 February 2017 •• Holds an investment portfolio of 37 assets as at 31
Slide 24: Centuria Metropolitan REIT
CENTURIA CAPITAL GROUP Centuria Metropolitan REIT (ASX: CMA) For personal use only CMA Overview I 1H17 RESULTS BRIEFING •• ASX listed REIT with a market capitalisation of $275 million as at 17 February 2017 •• Conservatively managed REIT with a robust tenancy base delivering predictable and growing
Slide 25: Centuria Urban REIT
CENTURIA CAPITAL GROUP Centuria Urban REIT (ASX:CUA) For personal use only CUA Overview I 1H17 RESULTS BRIEFING •• Listed in April 2014 with a strategic focus on acquiring suburban A and CBD B grade office properties •• CUA has a market capitalisation of $163 million as at 17 February 2017, and curr
Slide 26: Listed property strategy
CENTURIA CAPITAL GROUP Listed property strategy Delivering stable and recurring income to investors For personal use only •• Focus on maximising investment return by: I 1H17 RESULTS BRIEFING −− maximising tenant retention −− initiating refurbishment and repositioning strategies −− maintaining a disc
Slide 27: Investment Bonds Division
Investment Division Bonds Section 4 Centuria Capital Group CENTURIA CAPITAL GROUP For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017
Slide 28: Investment bond division
CENTURIA CAPITAL GROUP Investment bond division Continued focus on unitised bonds and prepaid funeral plans is leading to growth For personal use only •• Forecasting FY17 FUM growth for unitised Funds Under Management I Centuria Life book of 9% 1H17 RESULTS BRIEFING 30 Jun 31 Dec 2016 2016 Change ••
Slide 29: Unitised investment bond funds
CENTURIA CAPITAL GROUP Unitised investment bond funds Investment bond provider of choice to non-aligned financial advisers For personal use only •• Building momentum in unitised bonds with increase in FUM of 7.7% I 1H17 RESULTS BRIEFING •• Products rated “Investment Grade” by Lonsec •• Products now
Slide 30: Investment bond strategy
CENTURIA CAPITAL GROUP Investment bond strategy Positioning investment bonds as an investment alternative to superannuation For personal use only •• With limits being placed on concessional superannuation contributions, investment bonds are well placed as I 1H17 RESULTS BRIEFING tax-effective saving
Slide 31: Outlook
Outlook Section 5 Centuria Capital Group CENTURIA CAPITAL GROUP For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017
Slide 32: Outlook
CENTURIA CAPITAL GROUP Outlook For personal use only Market outlook Group outlook I 1H17 RESULTS BRIEFING •• Low interest rate environment likely to continue in near future •• With projected FUM of c. $4 billion by end of FY17, Centuria will focus on building further FUM both organically •• Property
Slide 33: Appendices
Appendices Section Centuria Capital Group CENTURIA CAPITAL GROUP For personal use only I 1H17 RESULTS BRIEFING I FEBRUARY 2017
Slide 34: Reconciliation of operating profit to statutory profit
CENTURIA CAPITAL GROUP Reconciliation of operating profit to statutory profit For personal use only I 1H17 1H16 1H17 RESULTS BRIEFING $m $m Operating profit after tax 1 2.9 4.7 Non-operating adjustments: Fair value movements of financial instruments and property (2.3) 2.3 I FEBRUARY 2017 Transaction
Slide 35: Capital raising
CENTURIA CAPITAL GROUP Capital raising For personal use only •• Centuria raised $150 million capital to partly fund I the acquisition of 360 Capital’s real estate funds 1H17 RESULTS BRIEFING management platform Wholesale Retail Institutional •• The capital raising is the largest in Centuria’s histor
Slide 36: Stapling restructure
CENTURIA CAPITAL GROUP Stapling restructure For personal use only •• On 17 October 2017, Centuria undertook a corporate restructure I to form a stapled Group Centuria Stapled 1H17 RESULTS BRIEFING Securityholders •• Stapled Securities comprise one share in Centuria Capital Limited stapled to one uni
Slide 37: Disclaimer
CENTURIA CAPITAL GROUP Disclaimer For personal use only This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). I 1H17 RESULTS BRIEFING All information and statistic
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