Centuria Capital Group · ASX:CNI
Centuria Capital — Investor Presentation (October 2018)
32 slides from Centuria Capital's investor presentation, Oct 10, 2018
Slide 1: CNI Platform Acquisition & $100m Equity Raising
For personal use only Centuria Capital Group CNI Platform Acquisition & $100m Equity Raising ASX:CNI 10 October 2018 CENTURIA CAPITAL GROUP ASX:CNI 1
Slide 2: Important Notices
IMPORTANT NOTICES This presentation has been prepared and is issued by Centuria Capital Group (CNI) which is a stapled vehicle comprised of Centuria Capital Limited ACN 095 454 336 and Centuria Funds Management Limited ACN 607 153 588 as responsible entity of Centuria Capital Fund ARSN 613 856 358 i
Slide 3: Important Notices
IMPORTANT NOTICES An investment in CNI securities is subject to investment and other known and unknown risks, some of which are beyond the control of CNI. CNI does not guarantee any particular rate of return on the performance of CNI nor does it guarantee any particular tax treatment. Prospective in
Slide 4: Section One: Overview of the Offer
For personal use only SECTION ONE Overview of the Offer CENTURIA CAPITAL GROUP ASX:CNI 4
Slide 5: Background to the Offer
OVERVIEW OF THE OFFER Background to the Offer • Centuria Metropolitan REIT (ASX: CMA) in conjunction with the Lederer Group have entered into agreements to acquire a $645 million portfolio 1 of four high quality For personal use only office assets from a subsidiary of Hines Global REIT, Inc. (Hines
Slide 6: Key Offer Metrics
OVERVIEW OF THE OFFER Key Offer Metrics For personal use only $5.5bn 10.2 cents 9.25 cents 90% Recurring revenue % operating Assets Under Management FY19 Operating EPS guidance1 FY19 DPS guidance revenue guidance (+12% since FY18) (+7% on FY18) (+13% on FY18) (+23% on FY18) 16.0% 7.8% 7.1% $160m FY1
Slide 7: Strategic Rationale for Centuria
OVERVIEW OF THE OFFER Strategic Rationale for Centuria For personal use only • Substantial increase in group AUM from $4.9 billion to $5.5 billion making Centuria one of the ASX’s largest real estate investment managers 12% increase in AUM • AUM growth targets for CMA exceeded during first half of F
Slide 8: Significant uplift in AUM driven by CMA transaction
OVERVIEW OF THE OFFER Significant uplift in AUM driven by CMA transaction For personal use only Assets Under Management ($bn) • CMA’s Hines Portfolio acquisition to increase Centuria’s group AUM by 12% over the four months from 30 June 2018 • Follows strong FY18 AUM growth with CNI increasing AUM by
Slide 9: AUM growth and co-investments underpin recurring revenues
OVERVIEW OF THE OFFER AUM growth and co-investments underpin recurring revenues For personal use only CNI Revenue Composition Key Movements • Continued growth in recurring revenues $100.8m support increased securityholder distribution • CNI’s FY19 payout ratio is anticipated to be ~91% of Operating
Slide 10: CNI supports ongoing transformation of CMA as a leading office REIT
OVERVIEW OF THE OFFER CNI supports ongoing transformation of CMA as a leading office REIT • Materially enhanced CMA portfolio quality through selective acquisitions and divestments culminating in the Hines Portfolio acquisition For personal use only • In order to help facilitate a step change in CMA
Slide 11: CNI supports ongoing transformation of CMA as a leading office REIT
OVERVIEW OF THE OFFER CNI supports ongoing transformation of CMA as a leading office REIT • CMA has been repositioned as a leading pure-play office A-REIT, in line with its strategy to acquire quality, fit for purpose office assets For personal use only • Broader investor appeal given CMA’s renewed
Slide 12: The Lederer Group is a major investor across CNI's platform
OVERVIEW OF THE OFFER The Lederer Group is a major investor across CNI’s real estate funds management platform For personal use only • Cornerstone investor in CMA’s December 2014 Initial Public Offering • Centuria manages over $300 million on behalf of the Lederer Group with partnerships across both
Slide 13: Section Two: Market Update
For personal use only SECTION TWO Market Update CENTURIA CAPITAL GROUP ASX:CNI 13
Slide 14: Centuria is an established ASX-listed specialist investment manager
MARKET UPDATE Centuria is an established ASX-listed specialist investment manager For personal use only Centuria Capital Group $500m Market Capitalisation1 $5.5bn $0.4bn Assets Under Management (AUM) Co-Investments $4.6bn $0.9bn Centuria Metropolitan REIT (CMA) Centuria Industrial REIT (CIP) Propert
Slide 15: Major property acquisitions by Centuria entities over the past 5 years
MARKET UPDATE Major property acquisitions by Centuria entities over the past 5 years Listing of Centuria 8 Central Ave. ATP Centuria Diversified CIP2 acquires Noble CIP acquires CIP acquires CMA acquires 50% Centuria Geelong 80 Grenfell Street For personal use only Metropolitan REIT Eveleigh, NSW Ev
Slide 16: Continued growth in operating results
MARKET UPDATE Continued growth in operating results For personal use only Operating EPS Assets Under Management Guidance Performance fee 27.9% Historical 47.9% CAGR1 CAGR $5.5bn 16.3¢ 14.8¢ $4.9bn 6.8¢ $3.8bn 10.3¢ 8.1¢ 0.6¢ 14.4¢ $1.9bn 4.3¢ $1.5bn 9.7¢ 9.5¢ 10.2¢ 3.8¢ 0.4¢ FY15 FY16 FY17 FY18 FY19
Slide 17: Update on corporate activity in FY19
MARKET UPDATE Update on corporate activity in FY19 • On 13 September 2018, Propertylink Group announced to the market an unsolicited, non-binding and indicative proposal to acquire all of the For personal use only outstanding units in CIP (PLG Proposal) • Centuria is the largest unitholder in CIP, w
Slide 18: Section Three: Equity Raising Details
For personal use only SECTION THREE Equity Raising Details CENTURIA CAPITAL GROUP ASX:CNI 18
Slide 19: Sources and uses of the proceeds
EQUITY RAISING DETAILS Sources and uses of the proceeds For personal use only Use of proceeds • CNI’s $20 million contribution to the acquisition of the Hines Portfolio1 and $78 million Sources $m commitment to participate in the CMA Equity Raising (by taking up its entitlement and sub- underwriting
Slide 20: Additional details of the Equity Raising
EQUITY RAISING DETAILS Additional details of the Equity Raising For personal use only Equity Raising Details • Issue of approximately 76.9 million new Securities to raise approximately $100 million • $79.7 million 1-for-5 accelerated non-renounceable entitlement offer and $20.3 million institutional
Slide 21: Indicative timetable
EQUITY RAISING DETAILS Indicative timetable Key event Date1 For personal use only Trading halt and announcement of the Entitlement Offer and Institutional Placement 10 October 2018 Institutional Entitlement Offer and Institutional Placement opens and closes 10 October 2018 Trading re-commences on an
Slide 22: Section Four: Conclusion
For personal use only SECTION FOUR Conclusion CENTURIA CAPITAL GROUP ASX:CNI 22
Slide 23: Benefits to Centuria Recapped
CONCLUSION Benefits to Centuria Recapped For personal use only 12% increase in group AUM to $5.5 billion in the four months since 30 June 2018 Accelerates growth in recurring revenue from co-investments Supports step change transformation in CMA’s asset profile Further strengthens relationsh
Slide 24: Section Five: Appendices
For personal use only SECTION FIVE Appendices CENTURIA CAPITAL GROUP ASX:CNI 24
Slide 25: Appendix A: Underwriting, Director Sub-underwriting Commitments and CNI Contribution
APPENDICIES Appendix A: Underwriting, Director Sub-underwriting Commitments and CNI Contribution For personal use only Underwriting Agreement Moelis Australia Advisory Pty Ltd (Underwriter) is acting as lead manager, bookrunner and underwriter to the Equity Raising. Centuria has entered into an Unde
Slide 26: Appendix A: CNI Contribution
APPENDICIES Appendix A: Underwriting, Director Sub-underwriting Commitments and CNI Contribution For personal use only CNI Contribution The responsible entity of CMA, Centuria Property Funds Limited (CPFL), is wholly-owned by CNI. CNI has agreed to subscribe $20 million for ordinary fully paid share
Slide 27: Appendix B: Risks
APPENDICIES Appendix B: Risks All investments carry risk, including loss of some or all of the capital invested and failure of investments to generate a positive return. You should carefully consider whether an investment in CNI Securities is a suitable investment for you. Some of the risks investin
Slide 28: Appendix B: Industry Specific Risks
APPENDICIES Appendix B: Risks Industry Specific Risks For personal use only Property Sector Risks • Centuria is subject to the prevailing property market conditions in the sectors in which each of the funds under the control of Centuria operate and the jurisdiction in which each of its funds’ assets
Slide 29: Appendix B: Risks Specific To Centuria
APPENDICIES Appendix B: Risks Risks Specific To Centuria For personal use only Funds Management • Centuria manages a number of funds on behalf of third party investors. The majority of Centuria’s income is derived from fees calculated with reference to the value of funds under the control of the Cen
Slide 30: Appendix B: Risks
APPENDICIES Appendix B: Risks Dilution risk • For personal use only Centuria’s securityholders who do not participate in the equity raising, or do not take up all of their entitlements under the equity raising, will have their investment in Centuria diluted and receive no value for their entitlement
Slide 31: Appendix C: International Offer Restrictions
APPENDICIES Appendix C: International Offer Restrictions This document does not constitute an offer of Securities in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Securities may not be offered or sold, in any country outsid
Slide 32: Thank You
For personal use only Thank You CENTURIA CAPITAL GROUP ASX:CNI 32
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