Centuria Capital Group · ASX:CNI

Centuria Capital — 360 Capital Office Fund — FY2014 Earnings Presentation

24 slides from Centuria Capital's earnings presentation, Aug 21, 2014

  1. Slide 1: 360 Capital Office Fund 2014 Full Year Financial Results Presentation

    360 CAPITAL OFFICE FUND ARSN 106 453 196 2014 Full Year Financial Results Presentation | 21 August 2014

  2. Slide 2: Table of Contents

    Table of Contents Section Appendices 1 Highlights A Balance sheet 2 Key achievements B Profit and loss 3 Results overview C Operating earnings reconciliation 4 Portfolio overview D Target market overviews 5 Portfolio metrics excluding Burwood E Investment portfolio details 6 Property update F Invest

  3. Slide 3: Highlights

    1 Highlights P Apr 14 recapitalisation and listing of the unlisted 360 Capital Office Fund via $155.0m IPO P Acquisitions of $135.5m as part of the IPO P Exchanged unconditional contracts for the disposal of Railway Parade, Burwood for $80.0m a 32.7% premium above the Jun 13 book value P Core Portfo

  4. Slide 4: Key achievements

    2 Key achievements • 99.6%1 occupancy (100.0%1 post settlement of Burwood2) Underlying • 4.2 year3 WALE (increasing to 4.6 years3 post settlement of Burwood2) portfolio driving • No expiries in FY15 (post Burwood2) results • Portfolio values increased by 2.0% or $3.5m since the Apr-14 IPO • Underlyi

  5. Slide 5: Results overview

    3 Results overview • Recapitalisation and ASX listing was FY14 FY13 transformational for the Fund Statutory net profit ($) 56.4 6.3 • Fund stabilised and ready for growth Statutory EPU1 ($) 3.49 31.42 • Total assets significantly increased Operating earnings2 4,675 (175) ($’000) • Statutory EPU dist

  6. Slide 6: Portfolio overview

    4 Portfolio overview  Quality office portfolio with four assets, Portfolio metrics as at 30 Jun 14 valued at $253.5 million Number of assets 4  Located on the Australian east coast: Queensland (2), NSW (1) and ACT(1) Portfolio value ($m) 253.5 Net lettable area (sqm) 46,470 WACR (%) 8.7 Weighted a

  7. Slide 7: Portfolio metrics excluding Burwood

    5 Portfolio metrics excluding Burwood Top 10 tenants as at 30 Jun 143  The sale of Burwood: Company Rent ($m). % total  Eliminates the Fund’s FY15 lease expiry Commonwealth of Australia 1 4.6 27.8 QLD State Government (Qld Studies) 2.2 13.0  Reduces FY16 expiry to 28.8% from 38.6% QLD State Gover

  8. Slide 8: Property update – Burwood

    6 Property update – Burwood Update:  Value added to asset with 6,700sqm of forward leasing (42% of the asset) during FY14 to Pacific Brands, Telstra & NSW Government  Executed sales campaign with unconditional contracts signed for $80.0m  Expected settlement 2 October 2014  Profit of $19.7m or 3

  9. Slide 9: Property update – 33 Allara Street

    6 Property update – 33 Allara Street Update:  Proposal issued to the Department of Environment  Contractors appointed on NABERS upgrade, targeted rating of 5-Stars by Nov 15  Total cost of sustainability works $875k  Department of Education have relocated sub- departments to 51 Allara Street, th

  10. Slide 10: Property update – Kingsford Smith Drive

    6 Property update – Kingsford Smith Drive Update:  Smooth settlement/transition of asset into Fund  Leasing proposal issued on Level 3 (1,300sqm)  Lease documents issued on retail shop T14 (74sqm)  Actively marketing the remaining retail and office tenancies under guarantee Focus:  Convert rent

  11. Slide 11: Property update – 154 Melbourne Street

    6 Property update – 154 Melbourne Street Update:  Achieved early renewal in Apr 14 of the Queensland Studies Authority over 3,699sqm  Smooth settlement/transition of asset into Fund Focus:  Where possible:  Convert sub-lease tenants to direct leases  Proactively manage lease expiries within the

  12. Slide 12: Capital management

    7 Capital management Debt Jun 14 • New three year $100.0m facility with Bankwest and NAB Drawn senior debt ($m) 86.6 • Drawn to $86.6m ($13.4m undrawn) LVR1 (%) 36.3 • Interest costs fixed with $86.5m hedged for three years Weighted average duration (years) 2.8 • All-in debt cost is 4.66% “All-in” d

  13. Slide 13: Strategy

    8 Strategy Provide consistent and growing income returns and capital growth from a diverse portfolio of office assets owned within a simple capital structure Acquisitions, disposals and portfolio Capital management Philosophy management • Continue disciplined approach to • Recognise low interest rat

  14. Slide 14: Outlook

    9 Outlook Market:  Leasing markets appear to be improving in line with the broader economy  Demand for institutional grade office property investments expected to continue to remain strong, resulting in further cap rate compression and capital growth over the medium term Operational:  At the port

  15. Slide 15: Appendices

    360 an Grou Appendices 15

  16. Slide 16: A Balance Sheet

    A Balance Sheet 30 Jun 14 30 Jun 13 Balance Sheet ($,000) ($,000) Assets Cash and cash equivalents 4,928 2,467 Trade and other receivables 473 244 Investment properties held for sale 80,000 - Investment properties 173,500 94,800 Total Assets 258,901 97,511 Liabilities Trade and other payables 2,433

  17. Slide 17: B Profit & Loss

    B Profit & Loss 30 Jun 14 30 Jun 13 Operating Profit & Loss Statement ($,000) ($,000) Rental income 15,127 12,083 Finance revenue 75 108 Cash received for rental guarantee 232 - Total Income 15,434 12,191 Investment property expenses 3,014 3,043 Management Fees 1,043 915 Other expenses 370 259 Finan

  18. Slide 18: C Operating earnings reconciliation

    C Operating earnings reconciliation 30 Jun 14 30 Jun 13 Operating earnings reconciliation ($,000) ($,000) Statutory net profit 56,399 6,253 Net (gain) on fair value of investment properties (14,845) (933) Net fair value gain of rental guarantee net of cash received 187 - Net loss/(gain) on fair valu

  19. Slide 19: D Target market overview – Brisbane Fringe

    D Target market overview – Brisbane Fringe Size: Total market size: 1,189,877 sqm; A grade market size: 598,790 sqm Vacancy: Current Market Vacancy: 12.2%; A grade Vacancy: 9.9% In the first half of 2014, A grade vacancy in the Brisbane Fringe was 9.9%, up 60 bps from Dec-13. The vacancy rate edged

  20. Slide 20: D Target market overview – Canberra CBD

    D Target market overview – Canberra CBD Size: Total market size: 2,369,200 sqm; A grade market size: 1,031,175 sqm (Civic total market size: 673,084 sqm; Civic A grade: 279,874) Vacancy: Current Market Vacancy: 13.6%; A grade Vacancy 12.6% (Civic Market Vacancy: 11.5%; Civic A grade Vacancy: 5.7%) I

  21. Slide 21: E Investment portfolio details

    E Investment portfolio details 154 Melbourne Street, South Brisbane, QLD 485 Kingsford Smith Drive, Hamilton, QLD 33 Allara Street, Canberra, ACT The property is situated in the Near City suburb of South The property forms part of the Hamilton Harbour mixed use The property comprises an eight level

  22. Slide 22: F Investment property held for sale

    F Investment property held for sale 52-60 Railway Parade, Burwood, NSW Completed in 1989, the property comprises two office buildings which consist of ground floor retail and office accommodation together with seven upper levels of office accommodation within each tower. The combined total Net Letta

  23. Slide 23: G Portfolio summary

    G Portfolio summary Ownership Cap. Initial NABERS Valuation Valuation NLA Occupancy WALE Property interest State Rate yield rating ($m) date (sqm) (%) (years) (%) (%) (%) (Star) 154 Melbourne St, 100.0 QLD 75.0 Jun 14 8.00 11,277 8.16 100.0 3.7 5.0 South Brisbane 438-517 Kingsford 100.0 QLD 64.0 Jun

  24. Slide 24: 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 Office Fund (ARSN 106 453 196) (‘TOF’ or the ‘Fund’) . All information and statistics in this presentation are current as at 21 August 2

360 Capital Office Fund — FY2014 Earnings Presentation on 6ix