Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — 360 Capital Industrial Fund — FY2015 Earnings Presentation
33 slides from Centuria Industrial Reit's earnings presentation, Aug 19, 2015
Slide 1: 2015 Annual Results Presentation
2015 ANNUAL RESULTS PRESENTATION ASX: TIX ARSN: 099 680 252 19 AUGUST 2015 360 Capital Investment Management Limited (ACN 133 363 185) as responsible entity for the 360 Capital Industrial Fund (ARSN 099 680 252) (ASX code “TIX”)
Slide 2: Table of contents
Table of contents ANNUAL RESULTS PRESENTATION APPENDICES 1 At a glance A Balance sheet 2 Strategy B Profit and loss 3 ASX trading performance C Operating earnings reconciliation 4 Year in review D Portfolio metrics 5 Earnings & distributions E Property details 6 Assets & liabilities F Management tea
Slide 3: At a glance
1 At a glance $623m 5.3 year 99.7% 22 TOTAL ASSETS WALE OCCUPANCY ASSETS 70% 22.8 cpu 21.0 cpu 40% 70% FY15 FY15 GEARING TAX DEFERRED OPERATING DISTRIBUTIONS FY15 EARNINGS 11% 13% 2% 3
Slide 4: Strategy
2 Strategy STATED STRATEGY OUTCOME • 11 assets acquired since Jun-12 for $273m with average 9.1 year WALE, yield of 8.3% and 100% occupancy FOCUS ON PASSIVE • Gross assets increased from $366m in FY14 to $623m in FY15 ASSETS • Organic growth achieved through fixed rent reviews and actively managing
Slide 5: ASX trading performance
3 ASX trading performance RELATIVE TOTAL UNITHOLDER RETURN SINCE LISTING Closing Price: TIX 15 Jul 14 - Acquisition & Placement & Entitlement Offer @ $2.16 $2.41 190.0 Total Unitholder Return: 73% or 28.7% pa Total Unitholder Return -12mths: 18.2% 170.0 12 Dec 12 – TIX lists on ASX @ $1.80 26 Mar 13
Slide 6: Year in review
4 Year in review • 99.7% occupancy (by income) UNDERLYING • 5.3 years WALE (by income) PORTFOLIO • 48,753 sqm leased (11.5% of the portfolio by income) and further clarity around FY16 expiries DRIVING RESULTS • Tenant retention of 99.5% • Portfolio values increased by $23.3m or 6.6% on a like-for-li
Slide 7: Year in review (cont.)
4 Year in review (cont.) STRONG • FY15 operating EPU up 10.7% on pcp • FY15 DPU up 12.9% on pcp FINANCIAL • NTA per unit increased 5.9% to $2.34 per Unit from $2.21 in pcp RESULTS • MER of 76bp and reducing as the Fund grows • Market capitalisation increased over the period from $204m to $368m ATTRA
Slide 8: Earnings & distributions
5 Earnings & distributions Material EPU and DPU growth • 5% increase in Statutory net profit primarily driven by FY2015 FY2014 CHANGE ($000) ($000) valuation gains and acquisitions OPERATING INCOME 49, 783 37, 419 • FY2015 operating earnings up significantly on pcp through: Property expenses 8, 195
Slide 9: Assets & liabilities
6 Assets & liabilities Significant growth in total assets • Investment properties increased with $155.0m of FY2015 FY2014 CHANGE acquisitions and valuation gains of $35.0m ($000) ($000) • Total assets up 70.3% to $623.2m including $68.8m Cash 6, 329 5, 749 investment in ANI Receivables 4, 169 1, 830
Slide 10: Portfolio management
7 Portfolio management Manageable lease expiry profile with track record of mitigating pending expiry LEASE EXPIRY PROFILE (by income) RENT REVIEW PROFILE1 (by income) 50% 43.6% Market CPI 3% 13% 40% CPI+ 30% 10% Average 11% (excl. FY21+) 20.6% 20% 12.1% 9.1% 10.0% 10% 4.4% 0.2% 0% Vacant FY16 FY17
Slide 11: Portfolio management (cont.)
7 Portfolio management (cont.) Disciplined acquisition strategy driving asset values and income security ACQUISITIONS ADDRESS DATE PURCHASE INCOME YIELD WALE OCCUP- CURRENT % VALUE PRICE ($m) ($m) (yrs) ANCY VALUE ($m) UPLIFT 2 Woolworths Way, Warnervale NSW Jul-14 69.8 5.8 8.25% 7.1 100% 76.5 +9.6%
Slide 12: Capital management
8 Capital management Prudent capital management and efficient use of equity EQUITY DEBT EQUITY RAISING IN FY15 DEBT TERMS 70 67.2 61.0 Banks NAB and Bankwest 60 Facility limit $305.0m 50 Total: $141.2m Facility expiry Dec 17 40 $(m) Drawn $253.0m 30 Gearing 40.0% 20 All in cost of debt 3.95% 10 5.7
Slide 13: ANI takeover
9 ANI takeover Compelling strategic benefits and value for TIX and ANI unitholders BENEFITS FOR TIX UNITHOLDERS TIX EXISTING COMBINED GROUP2 • 360 Capital remains committed to acting in the best $623m ~$910m interests of TIX and ANI Unitholders total assets total assets • The TIX Offer is accretive
Slide 14: Peer comparison
10 Peer comparison Attractive investment proposition FY16 FORECAST EARNINGS YIELD FY16 FORECAST DISTRIBUTION YIELD Average 8.2% (excl. TIX) Average 7.6% (excl. TIX) 10.0% 8.9% 8.9% 9.2% 9.2% 8.3% 8.4% 8.7% 8.1% 8.3% 7.4% 7.5% 6.8% 6.3% 6.5% 6.5% FET GOZ GMF CMA ANI IDR TIX TOF FET GOZ GMF TOF CMA ID
Slide 15: Outlook & guidance
11 Outlook & guidance MARKET OUTLOOK FY2016 GUIDANCE • Low interest rate environment and offshore capital driving asset values • Patchy tenant demand and macro economic factors at odds with strong investment demand FY16 GUIDANCE • Portfolio opportunities continue to attract a premium as institutions
Slide 16: Questions?
QUESTIONS? 16
Slide 17: Appendices
APPENDICES 22 Hawkins Road, Bundamba QLD (API) 17
Slide 18: Balance sheet
A Balance sheet FY15 FY14 BALANCE SHEET 1 ($’000) ($’000) ASSETS Cash and cash equivalents 6,329 5,749 Trade and other receivables 4,164 1,830 Properties held for sale 10,500 4,500 Investment properties 533,400 353,800 ANI investment 68,807 - TOTAL ASSETS 623,200 365,879 LIABILITIES Trade and other
Slide 19: Profit and loss
B Profit and loss FY15 FY 14 STATUTORY PROFIT & LOSS STATEMENT 1 ($’000) ($’000) Rental income 47,293 37,993 Finance revenue 130 150 Net gain on fair value of investment properties 21,719 24,416 ANI distributions 2,897 - TOTAL INCOME 72,039 62,559 Investment property expenses 8,195 7,490 Management
Slide 20: Operating earnings reconciliation
C Operating earnings reconciliation FY15 FY 14 OPERATING EARNINGS RECONCILIATION 1 ($’000) ($’000) STATUTORY NET PROFIT 43,916 41,940 Net gain on fair value of investment properties (21,719) (24,416) Net loss on fair value of derivative financial instruments 4,599 782 Amortisation of borrowing costs
Slide 21: Portfolio metrics
D Portfolio metrics TOP 10 TENANTS GEOGRAPHIC DIVERSIFICATION (by value) RENT SA ACT TENANT % TOTAL EXPIRY ($m) 2% 3% WA Woolworths 6.6 13.3 Jul 21, Jun 25 9% NSW AWH 3.6 7.3 Jul 19 29% API 3.4 6.8 Nov 24 The Reject Shop 3.4 6.8 Feb 20 Visy Industries 2.6 5.1 Jun 18 VIC Bradnams 2.6 5.1 Sep 23 27% Y
Slide 22: Portfolio metrics (cont.)
D Portfolio metrics (cont.) OCCUPANCY PROPERTY ADDRESS STATE VALUE ($m) LAST VALUED WACR % AREA (sqm) WALE(yrs) % 1 136 Zillmere Road, Boondall QLD 26.3 Mar-15 8.25 16,053 100 8.2 2 69 Rivergate Place, Murrarie QLD 28.3 Mar-15 7.25 11,522 100 7.9 3 33-37 Mica Street, Carole Park QLD 25.5 Mar-15 7.50
Slide 23: Property details
E Property details 136 ZILLMERE ROAD, BOONDALL, QLD 69 RIVERGATE PLACE, MURARRIE, QLD 33-37 MICA STREET, CAROLE PARK QLD The property is located approximately 12 The property is situated within the Australia Trade kilometres north of the Brisbane CBD, in a well- Coast suburb of Murarrie, approximate
Slide 24: Property details (cont.)
E Property details (cont.) 21 JAY STREET, TOWNSVILLE QLD 2 WOOLWORTHS WAY, WARNERVALE NSW 69 STUDLEY COURT, DERRIMUT VIC The property is a modern freestanding office and The property is located within the Warnervale warehouse facility completed in 2009 comprising The property is located within the W
Slide 25: Property details (cont.)
E Property details (cont.) 457 WATERLOO ROAD, CHULLORA NSW 9-13 CARIBOU DRIVE, DIREK SA 54 SAWMILL CIRCUIT, HUME ACT Completed in 2009, the property is located 25 The property comprises a recently refurbished kilometres north of Adelaide, 3 kilometres from traditional freestanding office and warehou
Slide 26: Property details (cont.)
E Property details (cont.) 22 HAWKINS CRESCENT, BUNDAMBA QLD 1 ASHBURN ROAD, BUNDAMBA QLD 60 MARPLE AVENUE, VILLAWOOD NSW The property was completed in 2010 and is The property was completed in 2009 and is situated approximately 33 kilometres south west The property is located in the traditional ind
Slide 27: Property details (cont.)
E Property details (cont.) 37–51 SCRIVENER ST, WARWICK FARM NSW 8 PENELOPE CRESCENT, ARNDELL PARK NSW 102–128 BRIDGE ROAD, KEYSBOROUGH VIC The property is located at Warwick Farm, 31 The property is located in the south-eastern kilometres south west of the Sydney CBD. Warwick The Property is located
Slide 28: Property details (cont.)
E Property details (cont.) 500 PRINCES HIGHWAY, NOBLE PARK VIC 6 ALBERT STREET, PRESTON VIC 12–13 DANSU COURT, HALLAM VIC The property is located in the traditional industrial The property is located on the north side of Princes The property is situated within the established precinct of Preston app
Slide 29: Property details (cont.)
E Property details (cont.) 14-17 DANSU COURT, HALLAM VIC 39–45 WEDGEWOOD ROAD, HALLAM VIC 33-59 CLARINDA ROAD, OAKLEIGH SOUTH VIC The property is situated within the established The property is situated within the established south eastern industrial precinct of Hallam, The property is situated appr
Slide 30: Property details (cont.)
E Property details (cont.) 310 SPEARWOOD AVENUE, BIBRA LAKE WA The property is located within the established Bibra Lake Industrial Area, approximately 17 kilometres south of the Perth CBD. The property comprises four warehouses with between 7.5 and 9.5 metre internal clearance. The site has drive a
Slide 31: Management team
F Management team BEN BUTLER, FUND MANAGER - TIX Ben is responsible for the overall performance of TIX and has over 16 years experience in the property industry. Prior to joining 360 Capital Ben was the Senior Portfolio Manager at Centuria Property Funds Limited. Prior to that Ben spent 7 years at I
Slide 32: Management team
F Management team GLENN BUTTERWORTH, CHIEF FINANCIAL OFFICER – 360 CAPITAL GROUP Glenn is responsible for all 360 Capital’s financial management activities. Prior to joining 360 Capital, Glenn spent 11 years at Mirvac, most recently as Financial Controller of the Investment Division. Glenn was respo
Slide 33: 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 19 Augu
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