Slide 1: Centuria Capital Group HY22 Results
09 FEBRUARY 2022 ASX: CNI LISTED: 101 MORAY STREET, SOUTH MELBOURNE, VIC LISTED: 56-88 LISBON STREET, FAIRFIELD, NSW Centuria Capital Group HY22 RESULTS UNLISTED: (HERITAGE PORTFOLIO) CARTERHOUSE LIFECARE, NZ UNLISTED: OMNIA SHOPPING CENTRE, POTTS POINT, NSW UNLISTED: ROBINA HOME + LIFE CENTRE, VARS
Slide 2: Agenda
AGENDA 74 NEWTON ROAD, WETHERILL PARK, NSW 1. Group Overview 2. Financial Results 164 NEWTON ROAD, WETHERILL PARK, NSW 3. Divisional Overview 160 NEWTON ROAD, WETHERILL PARK, NSW 8 HEXHAM PLACE, WETHERILL PARK, NSW 4. Strategy & Outlook 5. Appendices ACKNOWLEDGEMENT OF COUNTRY Our group manages prop
Slide 3: Group Overview
ASX:CNI Group Overview SECTION ONE UNLISTED: FLAVORITE GLASSHOUSE, WARRAGUL, VIC
Slide 4: A leading Australasian real estate funds manager
A leading Australasian real estate funds manager Included in the S&P/ASX200 Index $1.1bn $20.2bn GROUP AUM1 ON BALANCE SHEET $241m CASH & UNDRAWN DEBT $19.3bn REAL ESTATE AUM CENTURIA OFFICE (ASX:COF) INVESTMENTS $264m (19.0%)2 LISTED CO- CENTURIA INDUSTRIAL (ASX:CIP) $6.7bn $12.6bn $0.9bn $429m (16
Slide 5: Delivering strong growth and creating value across the platform
Delivering strong growth and creating value across the platform $20.2bn 14.5cps 11.0cps 37.9% Group Upgraded FY22 FY22 DPS 12 month total AUM OEPS guidance1 guidance securityholder return2 16% above FY21 +20.8% increase +10% increase S&P/ASX200 Index +17.2% above FY21 OEPS above FY21 DPS S&P/ASX200
Slide 6: Organic real estate growth lifts Group AUM to $20.2bn
Organic real estate growth lifts Group AUM to $20.2bn Executing on strategy • $2.5bn1 HY22 gross real estate acquisition activity, $0.6bn Group valuation uplift • Acquisition activity: $1.6bn unlisted real estate, $0.9bn listed real estate • Seven specialist asset classes including industrial ($6.0b
Slide 7: AUM momentum from organic growth and select mergers
AUM momentum from organic growth and select mergers ASSETS UNDER MANAGEMENT $20.2bn $17.4bn 12.6 UNLISTED REAL ESTATE 45% $8.8bn 11.0 CAGR1 $6.2bn $4.9bn 4.0 $3.8bn 2.6 LISTED 1.9 5.5 6.7 1.5 4.0 REAL ESTATE 1.5 2.1 2.7 0.8 0.9 0.9 0.8 0.9 0.9 INVESTMENT BONDS FY17 FY18 FY19 FY20 FY21 HY22 CORPORATE
Slide 8: Proven growth through corporate initiatives
Proven growth through corporate initiatives CENTURIA INDUSTRIAL REIT (ASX:CIP) CENTURIA HEALTHCARE CENTURIA NZ PRIMEWEST CENTURIA BASS CREDIT ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT $6.0bn $4.0bn $2.6bn $5.0bn 31
Slide 9: 165% CNI total securityholder return
165% CNI total securityholder return (TSR1,2) 31-Dec-18 to 31-Jan-22 compared to the S&P/ASX200 and S&P/ASX200 A-REIT Indexes 225% 200% 175% +165.4% CNI 150% 125% 100% 75% 50% +37.4% S&P/ASX200 25% +29.9% S&P/ASX200 A-REIT - (25%) (50%) Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
Slide 10: Sustainability at Centuria Capital
Sustainability at Centuria Capital Developing a flexible and relevant sustainability framework CONSCIOUS OF CLIMATE CHANGE Industry Participation ENVIRONMENT NABERS Accelerate programme Climate Resilience for Warehouses and Cold Stores Climate Action Ongoing high level physical Ongoing solar install
Slide 11: Financial Results
ASX:CNI Financial Results SECTION TWO LISTED: TELSTRA DATA CENTRE COMPLEX, CLAYTON VIC
Slide 12: Operating earnings and distributions
Operating earnings and distributions OPERATING NPAT1 STATUTORY NPAT3 EARNINGS AND DISTRIBUTIONS (CENTS PER SECURITY) $58.7m $109.3m 16.30 OEPS2 STATUTORY EPS3 14.5 7.4cps 13.8cps HY22 12.70 12.00 12.00 PERFORMANCE 10.30 DPS 5.5 cents Underpinned by 87% recurring revenues 11.0 9.70 10.00 Upgraded4 OE
Slide 13: Expanded platform enhances fee generation for the Group
Expanded platform enhances fee generation for the Group 133% increase in HY22 property funds management and transaction fee profit HY22 HY21 OPERATING PROFIT BY SEGMENT Profit increases by 133% due to organic ($m) ($m) 1 growth and Primewest merger Property funds management1 40.1 17.2 1 HY22 increas
Slide 14: Significant growth in recurring revenues
Significant growth in recurring revenues HY22 transaction 87% $ MILLIONS fee income3 up $19.1m 160 recurring revenue 400% on HY21 HY22 recognised 88% performance fees1 140 recurring revenue Performance fees Transaction fee income from 120 Other income $3.5bn Group Revenues $4.7m 100 Distribution inc
Slide 15: Balance sheet positioned to capitalise on more growth opportunities
Balance sheet positioned to capitalise on more growth opportunities Increased funding optionality, access to new finance instruments OPERATING BALANCE SHEET HY22 ($m) FY21 ($m) ASSETS Cash and cash equivalents 151.1 249.6 Receivables 141.4 120.8 Financial assets 838.2 750.2 Other assets 11.2 8.7 $2.
Slide 16: Managing debt across the platform
Managing debt across the platform1 21 7 $7.5bn Quality lenders New lenders added Total lending facilities across over 150 funds 2.8yrs 2.6yrs 53% Weighted avg. Weighted avg. Weighted average debt duration hedge duration hedging profile LISTED: 2 WOOLWORTHS WAY, WARNERVALE, NSW 1. Not representative
Slide 17: Divisional Overview
ASX: CNI 2 CORNWALLIS STREET CSIRO DATA61 BUILDING, 13 GARDEN STREET Divisional Overview SECTION THREE BIOMEDICAL BUILDING, 3 CENTRAL AVENUE UNLISTED: AUSTRALIAN TECHNOLOGY PARK, SOUTH EVELEIGH, NSW
Slide 18: Real estate platform expansion to $19.3bn
Real estate platform expansion to $19.3bn1 (+17% above FY21) Compelling sectors, diverse fund types and capital sources across Australasia GEOGRAPHY SECTORS3 AUSTRALIA OFFICE 0.1 0.3 0.1 NEW ZEALAND 0.1 0.5 0.3 0.3 INDUSTRIAL 0.6 OTHER2 HEALTHCARE 2.2 2.6 1.3 1.5 DAILY NEEDS 1.3 1.5 7.4 RETAIL FY21
Slide 19: Strong organic growth across all real estate sectors
Strong organic growth across all real estate sectors $19.3bn Real Estate Platform1,2 DAILY NEEDS LARGE FORMAT REAL ESTATE OFFICE INDUSTRIAL HEALTHCARE RETAIL (“DNR”) RETAIL (“LFR”) FINANCE AGRICULTURE $7.4bn $6.0bn $1.7bn $1.5bn $1.5bn $0.6bn $0.3bn AUM AUM AUM AUM AUM AUM AUM (FY21: $7.1bn) (FY21:
Slide 20: $2.5bn of HY22 real estate acquisition activity
$2.5bn of HY22 real estate acquisition activity GROSS REAL ESTATE ACQUISITIONS HY22 GROSS REAL ESTATE ACQUISITIONS3 $2.5bn $2.5bn INDUSTRIAL $674m Real Estate 21 PROPERTIES Finance HEALTHCARE $605m 48 PROPERTIES HY22 Exchanged OFFICE $411m 4 PROPERTIES yet to be $1.2bn settled REAL ESTATE FINANCE $3
Slide 21: High quality long-term income streams
High quality long-term income streams Integrated management capabilities lead to strong asset management success TOP TENANTS BY INCOME (%) 1 5.9 YEAR WEIGHTED AVG LEASE EXPIRY (WALE) BY INCOME 1 ~384 ASSETS1 9.8 Government 12.0% 7.9 8.2 ~2,490 Woolworths Limited 4.9 5.3 TENANTS1 ASX/NZX Listed 3.6%
Slide 22: $2.2bn development pipeline to seed funds
$2.2bn development pipeline to seed funds HY22 Completions Committed Pipeline1,2,3 Future Pipeline1,5 Total Pipeline SECTOR $m GLA $m GLA $m GLA $m GLA Development fees Office - - 204 25,600 125 26,000 330 51,600 and profits provide Industrial 3 260 243 115,378 100 17,300 343 132,678 growing income
Slide 23: Unlisted property: AUM grows to $12.6bn
Unlisted property: AUM grows to $12.6bn (+15% above FY21) >12,000 3-6 $19.1m $4.7m $24.8m 32% 62% Australasian Funds in the HY22 recognised HY22 performance fee HY22 Latent underlying Unlisted AUM with no fund Unlisted AUM with expiry review investors top 10 index1 performance fees2 cash collected2
Slide 24: 12,000 active retail investors grow support for unlisted funds
12,000 active retail investors grow support for unlisted funds M ULTI ASSET CLOSED -ENDED SI NGLE ASSET I NI TI ATI VES & OPEN-ENDED FUND I NI TI ATI VES $287m $83m $71m $563m $181m $574m CENTURIA GOVERNMENT CENTURIA CENTURIA CENTURIA NZ CENTURIA NZ NORTHGATE INCOME PROPERTY FUND 25 GRENFELL HEALTHC
Slide 25: Mandates and real estate finance expand unlisted opportunities
Mandates and real estate finance expand unlisted opportunities I NSTI TUTI ONAL I NI TI ATI VES CENTURI A BASS CREDI T ARTIST IMPRESSION Dangar Street, Wickham, Newcastle, NSW $930m $604m $500m $276m $422m $207m DAILY NEEDS RETAIL OFFICE HEALTHCARE 140 ST GEORGES OPEN-ENDED FUNDS1 GROSS LOAN BOOK MA
Slide 26: Listed property: AUM grows to $6.7bn
Listed property: AUM grows to $6.7bn (+22% above FY21) ASX: ASX: NZX: COF CIP APL Australia’s largest Australia’s largest pure- Targeting long term CENTURIA pure-play Office REIT CENTURIA play Industrial REIT ASSET total returns OFFICE REIT INDUSTRIAL REIT PLUS A quality portfolio of de-centralised,
Slide 27: Strategy & Outlook
ASX:CNI ASX:CNI Strategy & Outlook SECTION FOUR UNLISTED: VARSITY LAKES DAY HOSPITAL, VARSITY LAKES, QLD
Slide 28: Strategy and Markets
Strategy and Markets Consolidate position as a leading Australasian funds manager Remain focussed on the property sector via equity and debt funds in defined asset classes STRATEGIC Diversification into emerging Healthcare and Agriculture markets is timely, intention to grow by VISION leveraging our
Slide 29: Executing CNI's Strategy
Executing CNI’s Strategy CLEAR AND SIMPLE THEMES EXECUTION Use platform scale to build organic momentum A leading Australasian funds management platform ($2.5bn real estate acquisitions, 127 properties in HY22) 7 specialist real estate asset classes Increased platform size, geographies and capital t
Slide 30: Appendices
ASX: CNI Appendices SECTION FIVE LISTED: 870 870 LORIMER LORIMER STREET, PORTSTREET, PORT MELBOURNE, VICMELBOURNE, VIC
Slide 31: Centuria Capital Group – a leading Australasian real estate funds manager
Centuria Capital Group – a leading Australasian real estate funds manager GENERATING INVESTMENT INTEGRATED PLATFORM ACTIVE MANAGEMENT OPPORTUNITIES ASSET FUND CAPITAL BALANCE PLATFORM GEOGRAPHY MANAGEMENT CLASSES TYPES SOURCES SHEET SUPPORT Listed Funds Asset Australia Office Listed Cash on hand Co-
Slide 32: Sustainability, ESG approach
Sustainability, ESG approach CENTURIA CAPITAL (ASX:CNI) The Group’s approach to UNLISTED Sustainability is overseen by CPFL CPF2L ASSET PLUS CNI BOARD BOARD BOARD FUNDS & Centuria Capital (ASX:CNI), BOARD ASX:COF ASX:CIP NZX:APL OPERATIONS its Board, Committees and Executive Management team. All of
Slide 33: Group AUM movement
Group AUM movement ($bn) $ billions UNLISTED: 1 MCNAB AVENUE, FOOTSCRAY, VIC ASX:CNI | 33
Slide 34: A $19.3bn leading Australasian real estate platform
A $19.3bn leading Australasian real estate platform1 WA 22% 109 properties valued at $4,077m NSW 21% 96 properties valued at $3,893m AUCKLAND 9% VIC 19% 40 properties valued at $1,714m NT 83 properties valued at $3,658m QLD OTHER NZ 4% QLD 18% 62 properties valued at $843m WA 96 properties valued at
Slide 35: COF, CIP and APL listed vehicles
COF: Australia’s CIP: Australia’s largest APL: Targeting largest pure play domestic pure play long term total office REIT industrial REIT returns • HY22 FFO of 9.8cpu, distributions of 8.3cpu delivered • HY22 FFO of 9.1cpu, distributions of 8.7cpu delivered • Upgraded FY22 FFO guidance of 18.3cpu, r
Slide 36: Continuing to build out Centuria LifeGoals
Continuing to build out Centuria LifeGoals $0.9bn 9.2% ASSETS UNDER MANAGEMENT FLOWS HY22 TOTAL AUSTRALIAN AUM INVESTMENT BOND MARKET SHARE1 HY22 ($m) FY21 ($m) HY22 CHANGE (%) APPLICATIONS ($m) REDEMPTIONS ($m) Prepaid funeral plans (Guardian)2 593.4 582.0 2.0% 11.0 -28.6 Approved by a wide range o
Slide 37: Reconciliation of statutory profit to operating profit
Reconciliation of statutory profit to operating profit HY22 ($m) HY21 ($m) Statutory net profit after tax 112.7 42.7 Statutory EPS (cents)1 13.8 7.5 ADJUSTED FOR NON-OPERATING ITEMS (Gain) on fair value movements in derivatives and investments (47.8) (9.0) Transaction and other costs 0.9 1.0 (Profit
Slide 38: Co-investments reconciliation
Co-investments reconciliation CARRYING VALUE DISTRIBUTION CARRYING VALUE DISTRIBUTION FUND CO-INVESTMENTS TYPE 31 DEC 21 INCOME HY22 31 DEC 20 INCOME HY21 ($m) ($m) ($m) ($m) Strong alignment to Centuria Industrial REIT (ASX: CIP)1 Listed 423.6 8.6 253.6 6.9 Centuria’s listed REITs Centuria Office R
Slide 39: Definitions
Definitions Operating Segments: Group has six reportable operating segments Entity of COF is Centuria Property Funds Limited ACN 086 segments. These reportable operating segments are the 553 639 divisions which report to the Group’s Chief Executive Officers Non-operating segments: Non-operating item
Slide 40: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management This presentation has been prepared without taking account of any person’s individual investment Limited as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). o
Slide 41: Office contact details
AUSTRALIA Sydney Head Office Melbourne Office (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 32 2 Chifley Square 120 Collins Street Sydney NSW 2000 Melbourne VIC 3000 Brisbane Office Perth Office (07) 3905 7000 (08) 9321 7133 Level 2 Level 1 348 Edward Street 307 Murray Street Brisbane