Slide 1: HY21 Results
HY21 RESULTS A S X:CNI 10 Feb 2021 CHPF: 1521 FOREST ROAD, ORANGE, NSW CIP: 60-80 SOUTHLINK ST, PARKINSON, QLD Centuria Capital Group CENTURIA CAPITAL GROUP ASX:CNI 1 ARTIST IMPRESSION CIP: TELSTRA DATA CENTRE COMPLEX, CLAYTON, VIC APL: 6-8 MUNROE LANE, ALBANY, AUCKLAND, NZ
Slide 2: Agenda
TRANSFORMING OPPORTUNITIES INTO MEANINGFUL INVESTMENTS Agenda 1. Group Overview 2. Financial Results 3. Divisional Overview 4. Strategy & Outlook 5. Appendices CENTURIA CAPITAL GROUP ASX:CNI 2 VISY FACILITY, PENROSE AUCKLAND, NZ
Slide 3: Group Overview
SECTION ONE Group Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 3 CIP: 23-41 CHPF: GALWAY 645-647 AVENUE, BURWOOD MARLESTON, HWY, VERMONT SA SOUTH, VIC
Slide 4: A leading Australasian property funds manager
A leading Australasian property funds manager Market capitalisation1 of $1.6bn Included in the S&P/ASX300 Index $0.6bn CNI Co-Investments $10.2bn GROUP AUM on balance sheet $219m4 (19.9%) Centuria Office REIT ASX:COF $254m4 (15.1%) INVESTMENT Centuria Industrial REIT LISTED REAL ESTATE UNLISTED REAL
Slide 5: Delivering strong growth and creating value across the platform
Delivering strong growth and creating value across the platform $10.2bn $1.5bn $2.1bn $0.9bn Group HY21 gross real estate New Zealand Centuria AUM acquisitions1 AUM1,2 Healthcare AUM 16% growth in HY21 Record six month period 24% growth in HY21 29% growth in HY21 6.2cps 10.0cps $1.6bn 22.0% HY21 Ope
Slide 6: A record half year of Group expansion
A record half year of Group expansion Strong performance despite COVID-19 global pandemic C O R P O R AT E • HY21 operating EPS of 6.2cps (FY21 guidance1 11.5-12.5cps) HY21 EARNINGS & DISTRIBUTIONS DELIVERED • HY21 DPS of 4.5cps (FY21 guidance upgraded to 10.0cps, +17.6% on initial2 guidance) • Cent
Slide 7: Platform expansion to $10.2bn (+16% in HY21)
Platform expansion to $10.2bn (+16% in HY21) Dual growth strategy of direct real estate & corporate acquisitions ASSETS UNDER MANAGEMENT $10.2bn $8.8bn UNLISTED 4.5 & INSTITUTIONAL $6.2bn 4.2 REAL ESTATE 33% $3.8bn $4.9bn 2.6 CAGR1 1.9 FY17 to HY21 1.5 4.8 LISTED 2.7 3.8 REAL ESTATE 1.5 2.1 0.9 0.9
Slide 8: Proven growth through corporate initiatives
Proven growth through corporate initiatives CENTURIA INDUSTRIAL REIT (ASX:CIP) CENTURIA HEALTHCARE NEW ZEALAND ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT $2.4bn $2.1bn 32% 31% $1.7bn 24% CAGR CAGR increase $0.9bn $0.9bn $0.6bn HY17 HY21 FY19 HY21 FY20 HY21 A R T I S T I
Slide 9: Financial Results
SECTION TW O Financial Results A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 9 CIP: 45 FULTON DRIVE, DERRIMUT, VIC
Slide 10: HY21 earnings and distributions
HY21 earnings and distributions FY21 Distribution guidance upgraded to 10.0cps EARNINGS AND DISTRIBUTIONS (CENTS PER SECURITY) OPERATING NPAT1 STATUTORY NPAT3 $34.0m $41.4m OPERATING EPS2 STATUTORY EPS3 6.2cps 7.5cps 14.80 16.30 HY21 PERFORMANCE 12.70 12.00 11.5-12.5 Distributions per stapled securi
Slide 11: Expanded platform enhances fee generation for the Group
Expanded platform enhances fee generation for the Group HY21 operating recurring revenue of 83% HY21 HY20 OPERATING PROFIT BY SEGMENT ($m) ($m) Property funds management1 20.6 17.6 Profit increase of 17% reflects larger real estate platform Performance fees 13.6 21.5 Co-investments earnings 17.4 15.
Slide 12: Recycling larger balance sheet to grow platform
Recycling larger balance sheet to grow platform OPERATING BALANCE SHEET HY21 ($m) FY20 ($m) ASSETS Cash and cash equivalents 168.0 149.5 Receivables 124.6 65.5 Financial assets 584.8 523.1 Other assets 10.3 12.4 Deferred tax assets 37.6 39.5 $1.54 7.5 times 2.4% Property held for development Equity
Slide 13: Select ESG commitments across Centuria's platform
ESG Select ESG commitments across Centuria’s platform • 26% of COF’s portfolio produces solar electricity • Solar panels at 4 healthcare assets – annual emission reduction equivalent to removing 370 cars or planting ~85,200 trees • Assessing opportunities for healthcare portfolio – further solar pan
Slide 14: Divisional Overview
SECTION THREE Divisional Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 14 CENTURIA HEALTHCARE: 32 MORROW STREET, TARINGA, QLD
Slide 15: A $9.3bn Australasian real estate platform
A $9.3bn Australasian real estate platform Compelling sectors, diverse fund types and capital sources GEOGRAPHIES ASSET SECTORS FUND TYPES CAPITAL SOURCES Other1 Unlisted 5% Institutional multi-asset 5% New open Zealand Healthcare ended 21% 11% 9% Office Listed Listed 53% REITs Unlisted REITs Unlist
Slide 16: A record period of gross real estate acquisitions for the Group
A record period of gross real estate acquisitions for the Group 25% 24 ASSETS $1.5bn INDUSTRIAL, HEALTHCARE ~47% SALE & LEASEBACK ~57% TRIPLE NET LEASE & NZ DEVELOPMENT ABOVE FY20 ACQUIRED ACQUISITIONS ACQUISITIONS ACQUISITIONS PERIOD HY21 GROSS REAL ESTATE TRANSACTIONS $1.5bn LISTED INDUSTRIAL $693
Slide 17: Quality assets generating broad income streams
Quality assets generating broad income streams Integrated management capabilities lead to strong asset management success FUNDS ASSET LEASING FACILITIES PROPERTY TRANSACTION DEVELOPMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT TOP TENANTS BY INCOME (%) 1 WALE BY I
Slide 18: Expanding development pipeline
Expanding development pipeline EST. VALUE AT LETTABLE PROJECTS COMPLETION1,2 AREA COMMITTED (AUD $M) (SQM) • The group is utilising its NZ Commercial $327 35,900 development expertise NZ Social Infrastructure and Tourism 3 $312 31,600 across a $1.6bn pipeline AU Social Infrastructure $82 27,500 CIP:
Slide 19: Unlisted real estate: Expanding platform for our investor networks
Unlisted real estate: Expanding platform for our investor networks HY21 UNLI STED FUND I NI TI ATI VES 63 4 5 Single Multi asset Institutional funds asset funds open-ended funds & mandates LAUNCH LAUNCH UNDERWAY UNDERWAY LAUNCHED LAUNCHED ESTABLISHED ESTABLISHED 97% 3-6 AUGUSTA PROPERTY FUND (APF) C
Slide 20: Listed real estate: A platform of pure-play and value-add REITs
Listed real estate: A platform of pure-play and value-add REITs ASX: ASX: NZX: Artist Impression COF CIP APL Australia’s largest Australia’s largest Targeting long term CENTURIA domestic pure-play CENTURIA domestic pure-play ASSET PLUS total returns OFFICE REIT Office REIT INDUSTRIAL REIT Industrial
Slide 21: Strategy & Outlook
SECTION FOUR Strategy & Outlook A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 21 CIP: 1 LAHRS ROAD, ORMEAU, QLD
Slide 22: Markets and Strategic Vision
Markets and Strategic Vision • Industrial and healthcare property markets outperformance expected to continue into FY22 and beyond • De-centralised office portfolios underpinned by government, global and ASX tenants have maintained strong cashflows ▪ COF conforms to these metrics with high occupancy
Slide 23: Executing Strategic Vision
Executing Strategic Vision • Dual growth strategy – real estate acquisitions plus corporate expansion CLEAR AND SIMPLE • Committed to building Centuria brand and portfolios in Australia and NZ THEMES • Alignment to favoured Healthcare, Industrial and Office sectors • Strong focus on returns to CNI s
Slide 24: Appendices
SECTION FIVE Appendices A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 24 COF & CENTURIA UNLISTED: 201-203 PACIFIC HIGHWAY, ST LEONARDS NSW
Slide 25: Group AUM movement
Group AUM movement $1.5bn $0.1bn $0.1bn $10.2bn $8.8bn ($0.3bn) CIP: ARNOTTS 46 ROBINSON ROAD, EAST VIRGINIA, QLD Note: All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0705). Numbers presented may not add up precisely to the totals provided due to rounding CENTU
Slide 26: A $9.3bn leading Australasian real estate platform
UNLISTED A $9.3bn1 leading Australasian real estate platform ~80% Australia and ~20% New Zealand geographic diversification QLD 23% 58 properties valued at $2,094m NSW 21% 41 properties valued at $1,873m AUCKLAND 16% 28 properties valued at $1,069m ACT 4% NT 5 properties valued at $389m QLD OTHER 6%
Slide 27: COF, CIP and APL portfolio snapshots
CIP: Australia’s APL: COF: Australia’s largest domestic Targeting largest pure play pure play industrial long term office REIT REIT total returns • HY21 FFO of 11.2cpu, distributions of 8.3cpu delivered • HY21 FFO of 8.8cpu, distributions 8.5cpu delivered • FY21 FFO guidance of 19.5-20.0cpu, distrib
Slide 28: Bonds Division: Transforming contemporary bond options
BONDS DIVISION Investment bonds: Transforming contemporary bond options LIFEGOALS ACTIVE MANAGED FUNDS PERFORMANCE VS. INDEX 3 $0.9bn 10% TOTAL AUSTRALIAN Two out of three AUM INVESTMENT BOND MARKET SHARE1 Five out of six active international funds active domestic funds outperformed the outperformed
Slide 29: Continuing to build out Centuria LifeGoals
Continuing to build out Centuria LifeGoals ASSETS UNDER MANAGEMENT FLOWS HY21 HY21 HY21 FY20 HY20 APPLICATIONS REDEMPTIONS CHANGE (%) Prepaid funeral plans (Guardian)1 551.0 520.9 5.8% 550.0 14.9 -18.8 Capital Guaranteed (Centuria Life) 159.8 166.8 -4.2% 182.4 0.6 -7.3 Unitised Bonds (Centuria Life)
Slide 30: Reconciliation of statutory profit to operating profit
UNLISTED Reconciliation of statutory profit to operating profit HY21 ($m) HY20 ($m) Statutory net profit after tax 42.7 78.0 Statutory EPS (cents)1 7.5 18.6 ADJUSTED FOR NON-OPERATING ITEMS (Gain)/loss on fair value movements in derivatives and investments (9.0) (38.3) Transaction and other costs 1.
Slide 31: Co-investments reconciliation
Co-investments reconciliation CARRYING VALUE DISTRIBUTION CARRYING VALUE DISTRIBUTION CO-INVESTMENTS 31 DEC 2020 INCOME HY21 31 DEC 2019 INCOME HY20 ($m) ($m) ($m) ($m) Strong alignment to Centuria’s listed REITs Centuria Industrial REIT (ASX: CIP)1 253.6 6.9 227.4 6.4 Centuria Office REIT (ASX: COF
Slide 32: Definitions
Definitions Operating Segments: Group has five reportable Non-operating segments: Non-operating items CNI, CCG or the Group: Centuria Capital Group operating segments. These reportable operating comprises transaction costs, mark-to-market comprises of Centuria Capital Limited ABN 22 095 454 segments
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited This presentation has been prepared without taking account of any person’s individual investment as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). o
Slide 34: Centuria Metropolitan REIT ASX:CMA
CENTURIA METROPOLITAN REIT ASX:CMA 34