Centuria Capital Group · ASX:CNI
Centuria Capital — Debt Investor Presentation (March 2021)
31 slides from Centuria Capital's debt investor presentation, Mar 22, 2021
Slide 1: Centuria Capital No. 2 Fund Secured Redeemable Notes Offer
22 March 2021 CHPF: 1521 FOREST ROAD, ORANGE, NSW CIP: 60-80 SOUTHLINK ST, PARKINSON, QLD Centuria Capital No. 2 Fund Secured Redeemable Notes Offer CENTURIA CAPITAL No.2 FUND 1 CDPF: 25 MONTPELIER ROAD, BOWEN HILLS,QLD CIP: TELSTRA DATA CENTRE COMPLEX, CLAYTON, VIC
Slide 2: Important notices
Important notices Important information This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States and may not be distributed or released in the United States. The Prospectus, the Notes offered under the Offer and the irrevocab
Slide 3: Agenda
Centuria Capital No. 2 Fund $100 million Secured Redeemable Notes (Notes) Offer Agenda 1. Group Overview 2. Issuer Overview 3. Guarantor Overview 4. Key Offer Details 5. Appendices CENTURIA CAPITAL No.2 FUND 3 CIP: 1 ASHBURN ROAD, BUNDAMBA, QLD
Slide 4: Group Overview
SECTION ONE Group Overview CENTURIA CAPITAL No.2 FUND 4 CIP: 23-41 CHPF: GALWAY 645-647 AVENUE, BURWOOD MARLESTON, HWY, VERMONT SA SOUTH, VIC
Slide 5: Centuria Capital Group: A leading Australasian property funds manager
Centuria Capital Group: A leading Australasian property funds manager Market capitalisation1 of $1.6bn Included in the S&P/ASX300 Index $0.6bn CNI Co-Investments $10.2bn GROUP AUM on balance sheet $219m4 (19.9%) Centuria Office REIT ASX:COF $254m4 (15.1%) INVESTMENT Centuria Industrial REIT LISTED R
Slide 6: A $9.3bn leading Australasian real estate platform
UNLISTED A $9.3bn1 leading Australasian real estate platform ~80% Australia and ~20% New Zealand geographic diversification QLD 23% 58 properties valued at $2,094m NSW 21% 41 properties valued at $1,873m AUCKLAND 16% 28 properties valued at $1,069m ACT 4% NT 5 properties valued at $389m QLD OTHER 6%
Slide 7: A $9.3bn Australasian real estate platform
A $9.3bn Australasian real estate platform Compelling sectors, diverse fund types and capital sources G E O G R AP H I E S AS S E T S E C T O R S FUND TYPES C AP I T A L S O U R C E S Unlisted multi- Institutional 1 asset open 5% Other 5% ended New Zealand Healthcare 11% 9% 21% Office 48% Listed Lis
Slide 8: Platform expansion to $10.2bn (+16% in HY21)
Platform expansion to $10.2bn (+16% in HY21) Dual growth strategy of direct real estate & corporate acquisitions WHOLESALE NOTE 1 $100m issued $25m issued $80m issued $34m issued $29m issued ISSUANCE ASSETS UNDER $10.2bn MANAGEMENT $8.8bn UNLISTED & INSTITUTIONAL $6.2bn 4.5 REAL ESTATE 33% $3.8bn $4
Slide 9: Issuer Overview
SECTION TWO Issuer Overview CENTURIA CAPITAL No.2 FUND 9 COF: 201-203 PACIFIC HIGHWAY, ST LEONARDS NSW
Slide 10: Centuria Capital No. 2 Fund (Issuer) and Centuria Capital Group
Centuria Capital No. 2 Fund (Issuer) and Centuria Capital Group Centuria Capital Group Centuria Capital No.2 Fund is a 100% owned Guarantor (ASX: CNI) (Unsecured Centuria Capital Centuria Capital subsidiary of Centuria Capital Fund, which is Guarantee) Limited Fund Stapled Entities one of the staple
Slide 11: Issuer Balance Sheet and Investments
Issuer Balance Sheet and Investments Pro forma Historical Balance Sheet Impact of equity issuance Repayment 31 Dec 20 Pro Equity 31 Dec 20 31 Dec-20 of ($m) Notes Issue5 Forma Issuance Post Post Equity (Actual)4 Wholesale Historical 31 Dec 207 Issuance Notes6 Assets Assets Cash and cash equivalents
Slide 12: Issuer Security Pool Asset Reconciliation
Issuer Security Pool Asset Reconciliation Notes secured by c.$800 million of Tangible Assets Ownership Units Held Unit Price Carrying Value Indicative Distribution Co-Investment ($m) (%) (m) ($) 31-Dec-20 Income Prior 12 months Financial Assets 618.6 39.5 1 Centuria Industrial REIT 10.59% 58.3 $3.09
Slide 13: Listed real estate: A platform of pure-play and value-add REITs
Listed real estate: A platform of pure-play and value-add REITs ASX: ASX: COF CIP Australia’s largest Australia’s largest CENTURIA domestic pure-play Office CENTURIA domestic pure-play OFFICE REIT REIT INDUSTRIAL REIT Industrial REIT A quality portfolio of de-centralised, A quality portfolio of fit
Slide 14: Australia's largest domestic pure-play office and industrial REITs
COF: CIP: Australia’s Australia’s largest domestic largest pure pure play industrial play office REIT REIT • HY21 FFO of 11.2cpu, distributions of 8.3cpu delivered • HY21 FFO of 8.8cpu, distributions 8.5cpu delivered • FY21 FFO guidance of 19.4-19.9 cpu, distribution • FY21 FFO guidance increased to
Slide 15: Guarantor Overview
SECTION THREE Guarantor Overview CENTURIA CAPITAL No.2 FUND 15 CENTURIA UNLISTED: 111 ST GEORGES TERRACE, PERTH, WA
Slide 16: Centuria Capital Group HY21 earnings and distributions
Centuria Capital Group HY21 earnings and distributions FY21 Distribution guidance upgraded to 10.0cps EARNINGS AND DISTRIBUTIONS (CENTS PER SECURITY) OPERATING NPAT1 STATUTORY NPAT3 $34.0m $41.4m OPERATING EPS2 STATUTORY EPS3 6.2cps 7.5cps HY21 16.30 14.80 12.70 11.5-12.5 PERFORMANCE 12.00 Distribut
Slide 17: Expanded platform enhances fee generation
Expanded platform enhances fee generation for the Centuria Capital Group HY21 operating recurring revenue of 83% HY21 HY20 Operating Profit by Segment ($m) ($m) Property funds management1 20.6 17.6 Profit increase of 17% reflects larger real estate platform Performance fees 13.6 21.5 Co-investments
Slide 18: Recycling larger Balance Sheet to grow platform
Recycling larger Centuria Capital Group Balance Sheet to grow platform Operating Balance Sheet HY21 ($m) FY20 ($m) As s e t s Cash and cash equivalents 168.0 149.5 Receivables 124.6 65.5 Financial assets 584.8 523.1 Other assets 10.3 12.4 Deferred tax assets 37.6 39.5 Property held for development 3
Slide 19: Key Offer Details
SECTION FOUR Key Offer Details CENTURIA CAPITAL No.2 FUND 19 CIP: 45 FULTON DRIVE, DERRIMUT, VIC
Slide 20: Key Secured Redeemable Note Terms
Key Secured Redeemable Note Terms Applicants should read the Prospectus in full for all the offer terms and risk factors Issuer Centuria Funds Management Limited as trustee of the Centuria Capital No. 2 Fund Centuria Investment Holdings Pty Ltd as trustee of the Centuria Capital No.2 Office Fund; an
Slide 21: Key Dates
Key Dates KEY DATES FOR THE OFFER DATE Record Date for Eligible Securityholders 7.00pm on 12 March 2021 Prospectus Date 22 March 2021 Bookbuild to determine the Margin 29 March 2021 Announcement of the Margin 29 March 2021 Lodgement of Replacement Prospectus with ASIC 30 March 2021 Opening Date for
Slide 22: Key Risks associated with Notes
Key Risks associated with Notes Applicants should read the Prospectus in full including Section 6 – Risks for more information on Risks associate with the Notes Topic Summary Topic Summary • There may be a shortfall of funds to pay all amounts ranking senior to or equally with • The market price of
Slide 23: Key Risks associated with the Issuer and Centuria Capital Group
Key Risks associated with the Issuer and Centuria Capital Group Applicants should read the Prospectus in full including Section 6 – Risks for more information on Risks associate with the Issuer and Centuria Capital Group Topic Summary Topic Summary • Centuria Capital Group manages a number of funds
Slide 24: Appendices
SECTION FIVE Appendices CENTURIA CAPITAL No.2 FUND 24 CIP: 1 LAHRS ROAD, ORMEAU, QLD
Slide 25: Quality assets generating broad Group income streams
Quality assets generating broad Group income streams Integrated management capabilities lead to strong asset management success FUNDS ASSET LEASING FACILITIES PROPERTY TRANSACTION DEVELOPMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT TOP TENANTS BY INCOME (%) 1 WAL
Slide 26: Unlisted real estate: Expanding platform for our investor networks
Unlisted real estate: Expanding platform for our investor networks HY 21 UNLIST ED FUND INIT IAT IV ES 63 4 5 Single Multi asset Institutional funds asset funds open-ended funds & mandates LAUNCH LAUNCH UNDERWAY UNDERWAY LAUNCHED LAUNCHED ESTABLISHED ESTABLISHED 97% 3-6 AUGUSTA PROPERTY FUND (APF) C
Slide 27: A record half year of Group expansion
A record half year of Group expansion Strong performance despite COVID-19 global pandemic C O R P O R AT E • HY21 operating EPS of 6.2cps (FY21 guidance1 11.5-12.5cps) HY21 EARNINGS & DISTRIBUTIONS DELIVERED • HY21 DPS of 4.5cps (FY21 guidance upgraded to 10.0cps, +17.6% on initial2 guidance) • Cent
Slide 28: Investment bonds: Transforming contemporary bond options
BONDS DIVISION Investment bonds: Transforming contemporary bond options LIFEGOALS ACTIVE MANAGED FUNDS PERFORMANCE VS. INDEX 3 $0.9bn 10% TOTAL AUSTRALIAN Two out of three AUM INVESTMENT BOND MARKET SHARE1 Five out of six active international funds active domestic funds outperformed the outperformed
Slide 29: Continuing to build out Centuria LifeGoals
Continuing to build out Centuria LifeGoals ASSETS UNDER MANAGEMENT FLOWS HY21 HY21 HY21 FY20 HY20 APPLICATIONS REDEMPTIONS CHANGE (%) Prepaid funeral plans (Guardian)1 551.0 520.9 5.8% 550.0 14.9 -18.8 Capital Guaranteed (Centuria Life) 159.8 166.8 -4.2% 182.4 0.6 -7.3 Unitised Bonds (Centuria Life)
Slide 30: Select ESG commitments across Centuria's platform
ESG Select ESG commitments across Centuria’s platform • 26% of COF’s portfolio produces solar electricity • Solar panels at 4 healthcare assets – annual emission reduction equivalent to removing 370 cars or planting ~85,200 trees • Assessing opportunities for healthcare portfolio – further solar pan
Slide 31: CENTURIA CAPITAL No.2 FUND
CENTURIA CAPITAL No.2 FUND 31
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