Slide 1: Centuria Capital Group 1H18 Results
Centuria Capital Group For personal use only 1H18 Results | ASX:CNI | 15 February 2018
Slide 2: 1H18 Results
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 1 2 3 4 5 6 For personal use only Overview 1H18 Financial Property Funds Investment Outlook Appendices & Highlights Results Management Bonds 1H18 Results
Slide 3: Overview & Highlights
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 1 Overview & Highlights
Slide 4: Centuria Profile
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 Centuria Profile ASX-listed specialist investment manager For personal use only Centuria Capital Group $434m Market Capitalisation 1 $ 4.6b Assets under management (AUM) 2,3 $ 0.3b Co-investments Property Funds Management Investment
Slide 5: Highlights for 1H18
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 Highlights for 1H18 For personal use only Operating –– Operating NPAT of $30.2 million Earnings –– Reaffirm FY18 earnings per stapled security guidance of 15.8 – 16.2 cps –– Recurring revenue grew to $32.1 million, up $18.9 million –
Slide 6: Operating Highlights
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 Operating Highlights Operating earnings growth supports distributions For personal use only Operating net profit after tax Distribution per stapled security 35.0 ($m) 9 (cents per stapled security) 8.20 30.2 8 30.0 7.50 7 25.0 6 12.1
Slide 7: Operating Highlights: $0.8 billion of organic AUM growth
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 Operating Highlights $0.8 billion 1 of organic AUM growth over 1H18 For personal use only Assets under management ($ million) –– Ten A-grade properties acquired, adding $655 million 1 AUM 4,583 –– $115 million in revaluations –– Inve
Slide 8: 1H18 Financial Results
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 2 1H18 Financial Results
Slide 9: Group Financial Highlights
CENTURIA CAPITAL GROUP I 1H18 RESULTS Group Financial Highlights Delivering strong investor returns For personal use only Operating earnings per stapled security 18 (cents per stapled security) 16.0 1 15 14.8 1H18 1H17 12 Operating NPAT $m 30.2 2.9 10.3 12.1 9 Operating EPS cps 12.1 3.8 7.6 8.1 6 St
Slide 10: Operating Segment Results
CENTURIA CAPITAL GROUP I 1H18 RESULTS Operating Segment Results Continued growth in operating results For personal use only Operating profit by segment 1H18 ($m) 1H17 ($m) Property Funds Management 1 10.9 4.1 166% increase in Property Funds Management 1 – Performance fees 25.8 0.2 Investment Bonds M
Slide 11: Debt and Capital Management
CENTURIA CAPITAL GROUP I 1H18 RESULTS Debt and Capital Management Strong support from capital markets For personal use only 31 Dec 2017 30 Jun 2017 Operating balance sheet ($’000) ($’000) Assets –– $98.6 million equity raised Cash and cash equivalents 67,025 55,734 –– $25 million corporate bonds iss
Slide 12: Co-investments
CENTURIA CAPITAL GROUP I 1H18 RESULTS Co-investments Supporting predictable recurring revenues For personal use only –– Increase in size and scale of co-investments portfolio Carrying Revenue to $277 million (83% increase on 30 June 2017) value contribution 31 Dec 17 1H18 –– Stable source of recurri
Slide 13: Sources of Operating Revenue
CENTURIA CAPITAL GROUP I 1H18 RESULTS Sources of Operating Revenue Increased recurring revenue For personal use only Sources of operating revenue 100 ($m) 90 Continued upward trend in 10 Spring Street Fund recurring revenue performance fee in 80 1H18 70 60 Co-investments provide an 50 increased sour
Slide 14: Property Funds Management
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 3 Property Funds Management
Slide 15: Property Funds Management
CENTURIA CAPITAL GROUP I 1H18 RESULTS Property Funds Management Unlisted Property Funds Listed Property Funds For personal use only $ 1.7b 17 $ 28m $ 2.0b 41 17 AUM 1 Unlisted AUM in AUM 3 Industrial Office fixed term funds 1 Centuria Diversified assets assets Property Fund –– Market leader with a 2
Slide 16: Geographically Diversified Portfolio
CENTURIA CAPITAL GROUP I 1H18 RESULTS Geographically Diversified Portfolio A $3.7 billion portfolio of high-quality property1,2 For personal use only 15 properties valued at $ 638m CMA: 5 properties at $269m 10 414m CIP: 7 properties at $185m properties valued at $ Unlisted: 3 properties at $184m CM
Slide 17: Unlisted Property Highlights
CENTURIA CAPITAL GROUP I 1H18 RESULTS Unlisted Property Highlights Delivering market-leading returns for investors For personal use only 60 BROUGHAM STREET, GEELONG, VIC –– Completed Centuria 10 Spring Street Fund >> 35% investor IRR 1, $25.8 million net performance fee before tax –– Established two
Slide 18: Unlisted Fund Case Study: Centuria Spring Street Fund
CENTURIA CAPITAL GROUP I 1H18 RESULTS Unlisted Fund Case Study: Centuria 10 Spring Street Fund Record sale delivers strong investor returns For personal use only –– B-grade office building located in Sydney CBD October 2017 June 2013 –– Executed key strategies to maximise value: WALE 2 years 3.2 3.7
Slide 19: Unlisted Property Outlook
CENTURIA CAPITAL GROUP I 1H18 RESULTS Unlisted Property Outlook Strong investor demand continues For personal use only –– Investor demand >> Investor demand for unlisted products continues to grow >> Adviser distribution network growing strongly, delivering healthy inflows for Centuria Diversified P
Slide 20: Listed Property Highlights
CENTURIA CAPITAL GROUP I 1H18 RESULTS Listed Property Highlights Two leading ASX listed specialist REITs For personal use only $ 2.0b AUM 1 $ 5.2m Recurring revenues 11k Institutional and for group in 1H18 retail investors –– Centuria Metropolitan REIT (ASX: CMA) –– Centuria Industrial REIT (ASX: CI
Slide 21: Centuria Metropolitan REIT
CENTURIA CAPITAL GROUP I 1H18 RESULTS Centuria Metropolitan REIT (ASX: CMA) Australia’s largest ASX-listed metropolitan office REIT For personal use only Geographically diverse institutional grade portfolio Portfolio snapshot 1H18 1H17 Number of assets 19 13 –– 19 fit-for-purpose, quality metropolit
Slide 22: Centuria Industrial REIT
CENTURIA CAPITAL GROUP I 1H18 RESULTS Centuria Industrial REIT (ASX: CIP) Australia’s largest ASX-listed income focused industrial REIT For personal use only Geographically diverse high-quality portfolio Portfolio snapshot 1H18 1H17 Number of assets 39 37 –– Maximising portfolio value through fit-fo
Slide 23: Investment Bonds
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 4 Investment Bonds
Slide 24: Investment Bonds
CENTURIA CAPITAL GROUP I 1H18 RESULTS Investment Bonds Centuria Life Over Fifty Guardian For personal use only Friendly Society $ 0.4b 50% 13k $ 0.5b 11% 75k AUM Access to non‑aligned Customers AUM AUM growth Customers advisers via APLs –– Offering flexible, tax-effective ways to create, transfer ––
Slide 25: Investment Bonds: Outperforming market with double digit growth
CENTURIA CAPITAL GROUP I 1H18 RESULTS Investment Bonds Outperforming market with double digit growth in six months For personal use only –– Fourth largest friendly society/insurance bond issuer Centuria investment bond AUM growth vs investment >> 10.9% share of $7.4 billion Australian market bond ma
Slide 26: Strong performance returns recognised by ratings agencies
CENTURIA CAPITAL GROUP I 1H18 RESULTS Investment Bonds Strong performance returns recognised by ratings agencies For personal use only –– Three main unit-linked portfolios rated five star Total Return Total Return Total Return Morningstar Ranking Morningstar by Morningstar 1 Bond 1 Year (%) 3 Years
Slide 27: Investment Bonds Outlook
CENTURIA CAPITAL GROUP I 1H18 RESULTS Investment Bonds Outlook For personal use only Regulatory change –– 1 July 2017 super changes introduced to cap superannuation balances and limit the transfer of wealth Distribution strategy “ “ Centuria’s Investment Bonds provide our advisers with an important
Slide 28: Outlook
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 5 Outlook
Slide 29: Strategy/Outlook
CENTURIA CAPITAL GROUP I 1H18 RESULTS Strategy/Outlook For personal use only Delivering investment opportunities Access to capital –– Leverage Centuria’s strong real estate credentials to isolate –– CNI enjoys good access to both equity (supportive investor base) and “pockets of value” and create fu
Slide 30: Appendices
CENTURIA CAPITAL GROUP I 1H18 RESULTS I ASX:CNI I 15 FEBRUARY 2018 For personal use only Section 6 Appendices
Slide 31: Reconciliation of statutory profit to operating profit
CENTURIA CAPITAL GROUP I 1H18 RESULTS Appendix 1 Reconciliation of statutory profit to operating profit For personal use only 1H18 1H17 $’000 $’000 Statutory profit after tax 36,342 (1,375) Less non-operating items: Unrealised loss/(gain) on fair value movements in derivatives, property and investme
Slide 32: Operating segment balance sheet
CENTURIA CAPITAL GROUP I 1H18 RESULTS Appendix 2 Operating segment balance sheet For personal use only Operating balance sheet Property Funds Investment Bonds Management Management Co- Investments Reverse Mortgages Corporate 31 Dec 2017 30 Jun 2017 ($’000) ($’000) ($’000) ($’000) ($’000) ($’000) ($’
Slide 33: Definitions
CENTURIA CAPITAL GROUP I 1H18 RESULTS Appendix 3 Definitions For personal use only Operating Segments: Group has five reportable operating segments. These reportable AUM: Assets under management operating segments are the divisions which report to the Group’s Chief Executive Officer and Board of Dir
Slide 34: Disclaimer
CENTURIA CAPITAL GROUP I 1H18 RESULTS Disclaimer For personal use only This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible entity This presentation is provided for general information purposes only. It is not a prospectus, product disc