Centuria Capital Group · ASX:CNI
Centuria Capital — Centuria Agriculture Fund — Investor Presentation (February 2023)
34 slides from Centuria Capital's investor presentation, February 2023
Slide 1: Centuria Agriculture Fund QUANTUM Presentation
FEBRUARY 2023 UNLISTED Centuria Agriculture Fund SUNDROP GLASSHOUSE, PORT AUGUSTA SA QUANTUM Presentation Note: This fund has been registered with ASIC. A Product Disclosure Statement (PDS) has been issued dated 13 June 2022. This document is strictly for the use QUANTUM investors and must not be di
Slide 2: Important notice
Important notice This document is issued by Centuria Property Funds Limited (ABN 11 086 553 AFSL 231 149) (Centuria) as the Responsible Entity of the Centuria Agriculture Fund (Fund, CAF): a stapled fund comprising the Centuria Agriculture Fund I (ARSN 653 947 892) (CAF I) and the Centuria Agricultu
Slide 3: Agenda
1. Fund Objective 2. Agricultural Real Estate Sector 3. ESG Credentials 4. New Acquisitions 5. How to Invest 6. Appendices FLAVORITE WARRAGUL, VIC
Slide 4: Fund objectives
Fund objectives Centuria is pleased to provide investors the opportunity to participate in the Centuria Agriculture Fund (CAF, Fund), a new open-ended investment targeting high quality sustainable agricultural investments with strong tenant covenants, which are well positioned to benefit from the co
Slide 5: CAF strategic vision
CAF strategic vision VISION To create Australia’s leading agriculture real estate fund. A CLEAR, SIMPLE Aims to provide investors with stable income returns and the potential for capital growth by investing in properties in the STRATEGY agriculture sector underpinned by leases to a range of reputabl
Slide 6: Agriculture Real Estate Sector
Agriculture Real Estate Sector SECTION TWO FLAVORITE WARRAGUL, VIC
Slide 7: Attractive underlying thematic
Investment thesis Attractive underlying Demand for Australian grown fresh thematic food and other quality agricultural products is forecast to increase materially over the next 10 years, High quality and reliability of Australian agricultural products has created demand in high valued global markets
Slide 8: Australia's position
Australia’s position Investment in Australian agricultural real estate offers exposure to an asset class with strong underlying fundamentals TECHNOLOGY AUSTRALIA LAND VALUE COMMODITY OUTLOOKS ADVANCEMENTS • Strategically located for key • Historical steady growth in • Promotes efficiency at the • St
Slide 9: Global consumption trends driving demand
Global consumption trends driving demand Population growth and the associated growth of the new middle class income will increase food consumption, diversify diets and consequently increase the demand for Australian food and fibre. Much of this growth will be in markets adjacent to, and with strong
Slide 10: ESG
ESG SECTION THREE Centuria CAF 10
Slide 11: ESG opportunities
ESG opportunities Agricultural real estate offers disproportionately higher ESG credentials compared to traditional asset classes. Controlled farming Carbon absorption Reduced waste Water efficiencies Ability to control how the farming Ability to influence carbon outcomes through Advancements in tec
Slide 12: Protected cropping benefits
Protected cropping benefits Year-round production Ability to produce all year round at a consistent quality and quantity to meet consumer needs as a result of control over the growing conditions within a glasshouse. Controlled growing techniques using glasshouses are Water risk significant, with the
Slide 13: Protected cropping ESG benefits
Protected cropping ESG benefits Controlled growing techniques from using glasshouses provide significant ESG benefits over open field growing techniques. KEY ESG BENEFITS • All year-round production and increased yields - ability to produce all year round at a consistent quality and quantity. The Gl
Slide 14: The New Acquisitions
The 2 New Acquisitions SECTION FOUR FLAVORITE WARRAGUL, VIC
Slide 15: Capital raise of ~$80m to finance two acquisitions
Capital raise of ~$80m to help finance the acquisition of two additional high-quality and accretive agricultural real estate assets Acquisitions Properties State Valuation Cap rate Hectares1 WALE (yrs)2 Occupancy 1. Sundrop Glasshouse, Port Augusta SA $70.0m 6.50% 20.0 19.8 100.0% 2. Costa Glasshous
Slide 16: Acquisitions improve portfolio diversification
Acquisitions improve portfolio diversification, Geographic diversification - Australia while supporting WALE and TAS NSW 0% 0% TAS distributions 0% SA SA NSW 28% 22% 23% CURRENT PORTFOLIO AFTER QLD 0% PORTFOLIO PORTFOLIO1 ACQUISITION2 WA Number of properties 2 3 QLD 0% 0% Portfolio value $247.0m $32
Slide 17: Pro forma financial information
Pro forma financial information1 SOURCES AND APPLICATION OF FUNDS2 DEBT SUMMARY2 Source of funds Amount ($) Total facility limit $164.8m Total cash subscribed by investors $193.2m Weighted average facility term 3.3 years Debt facility from financier $153.4m Weighted average margin 1.55% p.a. Total f
Slide 18: Sundrop asset overview
Sundrop asset overview Highlights: World first integration of renewable inputs and glasshouse technology. Centuria CAF 18
Slide 19: Sundrop asset overview
Sundrop asset overview Key characteristics ● The property is located 13 kilometers south of Port Augusta and the opportunity is to Site area 362.80 ha invest in the land, existing glasshouse, solar energy system and substrate farming operations known as Sundrop Farms. Title Freehold ● 362.8 hectare
Slide 20: Tenant overview
Tenant overview Sundrop overview Key customer ● Sundrop Farms is a leading sustainable horticultural player in Australia producing high value tomatoes using renewable inputs. ● Sundrop grows approximately 14% of Australia’s truss tomatoes. ● The company has a 10 year take or pay agreement with Coles
Slide 21: Costa Guyra asset overview
Costa Guyra asset overview Key characteristics ● The property is located at 160 Elm Street, Guyra, NSW, 40km north of Armidale at the top Site area 40.46 ha of the Northern Tablelands in the New England region. The opportunity is to invest in the land, existing glasshouse and substrate farming opera
Slide 22: Tenant overview
Tenant overview Costa overview Key customers ● Costa is Australia’s largest grower, packer and marketer of fresh fruit and vegetables. ● Listed on the Australian Securities Exchange, the company has a market capitalisation of more than $1.25 billion. ● Costa Group has long standing relationships wit
Slide 23: Prudent risk management
Prudent risk management Risk What is it? How is it managed? A fall in fund revenue as the result of CAF has a robust leasing profile with 100%1 occupancy, 18.1yr1 WALE, and Income/tenancy risk a fall in rental income. quality agricultural operators reducing the risk of a fall in rental income. While
Slide 24: How to Access the Fund
How to Access the Fund SECTION FIVE Centuria CAF 24
Slide 25: Capital raise timetable
Capital raise timetable1 Total additional equity raise of $80 million (Approx.)2 ITEM DATE Fund reopens for applications 20 February 2023 Offer closes Once fully subscribed Note: Once a completed application has been received units will be allotted on a daily basis 1. The Fund timetable dates are es
Slide 26: QUANTUM Relationship Management Team
QUANTUM Relationship Management Team Ben Harrop Aidan Whyte Head of Distribution Senior Relationship Manager M: 0431 133 058 M: 0424 305 879 T: (02) 8923 8923 T: (02) 9122 2143 E: ben.harrop@centuria.com.au E: aidan.whyte@centuria.com.au Anthony Hewett Jason Battaglia Senior Relationship Manager, WA
Slide 27: Disclaimer
Disclaimer Confidential This presentation is not financial product or investment advice, a recommendation This presentation is strictly confidential and is intended for the exclusive benefit of to acquire securities or accounting, legal or tax advice and should not be relied on the person to which i
Slide 28: Appendices
Appendices SECTION SIX FLAVORITE WARRAGUL, VIC
Slide 29: Warragul asset overview
Warragul asset overview Key characteristics ● The property is located at 264 Copelands Rd, Warragul VIC 3820 and the opportunity is Site area 76.88 ha to invest in the land and existing glasshouse and substrate farming operations known as Flavorite Warragul. Title Freehold ● 76.88 ha site that compr
Slide 30: Tenant overview
Tenant overview Flavorite overview Key customers ● Flavorite grows, markets, distributes and supplies premium fresh produce both nationally and internationally. ● Employs more than 530 staff during summer (c.380 in winter). ● The company has sustainably been able to achieve strong levels of profitab
Slide 31: Fund services and fee schedule
Fund services and Acquisition 2.0% (of gross asset purchase price) fee schedule Base management 0.60% p.a. (of GAV1) Performance 20% over 8% total return Custodian 0.015% p.a. (of GAV1) or $15,000 p.a. Disposal 1.0% (of gross asset disposal price)2 Leasing 6.5% (renewal); 20.0% (new lease)3 1. Gross
Slide 32: Centuria Capital Group
Centuria Capital Group A leading Australasian ASX 200 funds manager $21.2bn GROUP AUM1,2 $20.4bn REAL ESTATE AUM $6.5bn $13.9bn $0.8bn LISTED REAL ESTATE UNLISTED REAL ESTATE INVESTMENT BONDS $3.9bn $2.4bn $0.2bn $8.5bn $2.8bn $2.6bn CENTURIA LIFE CENTURIA CENTURIA ASSET PLUS SINGLE MULTI ASSET MULT
Slide 33: Other agricultural assets under management
Other agricultural assets under management ‘Moora’, VIC ‘Mornington Peninsula’, VIC ‘Pinegatta’, NSW 15 assets1 Across three states Development upside Triple net-leases Leased to high quality tenants providing geographical spread and further expansion across all assets providing secure income stream
Slide 34: Office locations
AUSTRALIA Sydney Head Office Melbourne Office (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 47 2 Chifley Square 101 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
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