Centuria Capital Group · ASX:CNI
Centuria Capital — H1 2016 Earnings Presentation
37 slides from Centuria Capital's earnings presentation, Feb 18, 2016
Slide 1: Amended: Centuria Capital Announces 1H16 Interim Results
Australian Securities Exchange - Company Announcements Platform For personal use only Centuria Capital Limited Amended: Centuria Capital Announces 1H16 Interim Results Sydney, 18 February 2016: Specialist investment manager Centuria Capital (ASX: CNI) today announced results for the half year ended
Slide 2: Press release continuation and About Us
The period also saw the sale of 175 Castlereagh Street, Sydney for $98 million and the conditional sale of Macquarie Park properties for $101 million, both transactions resulting in For personal use only excellent return for investors and substantial profits and performance fees for Centuria. Mr McB
Slide 3: Results Briefing 1H16
Centuria Capital For personal use only Centuria Capital Limited Results Briefing 1H16 (Half-year ended 31 December 2015) 18 February 2016 www.centuria.com.au Centuria Capital | CNI : ASX | 1H16 Results Briefing 1
Slide 4: Contents Directory
Centuria Capital Contents Directory For personal use only 3. 1H16 Review Group Chief Executive John McBain 12. Property Funds Management Division CEO Unlisted Property Funds Jason Huljich 20. Investment Bonds Division CEO Listed Property Funds Nicholas Collishaw 23. Strategy and Outlook GM – Investm
Slide 5: Centuria Capital Limited
Centuria Capital Centuria Capital Limited For personal use only Centuria Capital Limited (ASX ticker code: CNI) Market capitalisation $75.1m Statutory NPAT (1H16) $5.7m Underlying NPAT (1H16) $4.4m Funds Under Management $1.8bn • Centuria is an experienced Fund Manager • 35 years experience in Inves
Slide 6: Group Operating Highlights
Centuria Capital Group Operating Highlights For personal use only Executing on our stated strategy Group Performance • Net tangible assets (NTA) per share up 5.5% to $0.91 • Interim dividend of 2.25 cents per share (cps) up 12.5% on 1H15 • 1H16 underlying profit $4.4 million1 • FY16 underlying profi
Slide 7: Divisional Operating Highlights
Centuria Capital Divisional Operating Highlights For personal use only During the period the experience of the property team has lead to the successful conclusion of two highly profitable funds and we continue to find value in acquisitions Property Funds Management Successful completion of major unl
Slide 8: Divisional Operating Highlights
Centuria Capital Divisional Operating Highlights For personal use only Investment Bonds • Gross inflows into Centuria Life of $14.5 million from July – December 2015, up from $2.0 million in July – December 2014 • Guardian inflows of $20.5 million from July – December 2015, up from $19.2 million fro
Slide 9: Financial Summary
Centuria Capital Financial Summary For personal use only 1H16 1H15 Change Statutory NPAT ($'000) 5,668 7,604 (25.5%) Statutory EPS (basic) 7.4c 9.8c (24.5%) Underlying NPAT ($'000) (1) 4,448 5,376 (17.3%) Underlying EPS (basic) 5.8c 6.9c (15.9%) Dividend per share (fully franked) 2.25c 2.0c 12.5% St
Slide 10: Underlying Segment Results
Centuria Capital Underlying Segment Results For personal use only 1H16 1H15 Commentary Property Funds Management $'000 $'000 Underlying Profit Before Tax ($’000) 7,608 8000 6,772 Underlying profit by segment (1) (2) 6000 Property funds management 7,608 6,772 Reflects increased performance fees and F
Slide 11: Growth in Assets and Funds Under Management
Centuria Capital Growth in Assets and Funds Under Management For personal use only • Growth in assets produced a 5.5% increase in NTA per share • 14.6% growth in funds under management across property and investment bond Net tangible assets per share ($) portfolios 1 0.86 0.91 0.8 0.65 • Investment
Slide 12: Source of Operating Revenue
Centuria Capital Source of Operating Revenue For personal use only 35,000 FY13 FY14 FY15 1H16 30,000 25,000 20,000 15,000 10,000 5,000 - 1H13 FY13 1H14 FY14 1H15 FY15 1H16 Property Fund Management Fees Benefit Fund Management Fees Property Services and Other Revenue Development fees Sales and Acquis
Slide 13: FY16 Guidance
Centuria Capital FY16 Guidance For personal use only FY16 underlying NPAT guidance announced in the range of $9.0 million to $10.5 million Underlying Net Profit After Tax ($'000) FY16 Guidance 12,000 10,000 $10.5m $9.0m 8,000 $'000 6,000 904 3,038 4,000 2,405 5,376 2,000 4,448 2,932 2,866 - FY13 FY1
Slide 14: Property Funds Management Division
Centuria Capital For personal use only Property Funds Management Division Centuria Capital | CNI : ASX | 1H16 Results Briefing 12
Slide 15: Property Funds Management Division
Centuria Capital Property Funds Management Division For personal use only Property Funds Management Division Unlisted Property Funds Listed Property Funds • $720 million in FUM • $379 million in FUM – ASX Listed CMA • 16 years experience • Specialist Metropolitan market investor • Successfully manag
Slide 16: Unlisted Property Highlights
Centuria Capital Unlisted Property Highlights For personal use only • 32% Growth in Unlisted Property FUM Unlisted Property FUM Growth to $720 million over the 6 months to 800 31 December 2015 750 64 75 • Belmont Road development on track 24 700 3 43 • Appointment of senior property fund sales 650 a
Slide 17: Unlisted Property Highlights
Centuria Capital Unlisted Property Highlights For personal use only Belmont Road, Mosman, NSW Active transaction flow ensures steady increase in FUM triggering substantial investor profits and fees to Centuria • Completed the sale of 175 Castlereagh Street, Sydney for $98 million • Announced sale of
Slide 18: Realising Value - Unlisted Property Fund Asset Sales
Centuria Capital Realising Value - Unlisted Property Fund Asset Sales For personal use only 175 Castlereagh St, Sydney 80 Waterloo Rd & 16 Byfield St, North Ryde Macquarie Park Purchase date April 2013 Purchase date 2001 & 2002 Acquisition price $56.0m Acquisition price $25.3m Sale price $98.0m Sale
Slide 19: Building Unlisted Property Fund Pipeline
Centuria Capital Building Unlisted Property Fund Pipeline For personal use only 203 Pacific Highway, St Leonards Australian Technology Park, Eveleigh Purchase price (50% share) $43.0 m Purchase price $104.0 m Valuation (50% share) $43.5 m Valuation $108.8 m Equity raised $61.8 m Equity raised $30.0
Slide 20: Listed Property Funds Management Highlights
Centuria Capital Listed Property Funds Management Highlights For personal use only • Centuria Metropolitan REIT (ASX: CMA) listed on the ASX on 10 December 2014 • CMA utilises Centuria’s capabilities in property management, development and accounting, generating additional recurring income for the G
Slide 21: Listed Property Funds Management
Centuria Capital Listed Property Funds Management For personal use only • CMA announced a 3.9%1 increase in portfolio CMA Portfolio Metrics 1H16 valuation to $379.2 million as at 31 December 2015 Portfolio snapshot 1H15 1H16 • CMA delivered on its financial forecast distributing Number of assets 8 1
Slide 22: Investment Bonds Division
Centuria Capital For personal use only Investment Bonds Division Centuria Capital | CNI : ASX | 1H16 Results Briefing 20
Slide 23: Investment Bond Division
Centuria Capital Investment Bond Division For personal use only $374m + $350m = $724m Total FUM of Centuria Life Total FUM of Over Fifty Guardian Total FUM Investment Bonds Friendly Society Bonds • Transformed the business to create a platform for sustainable growth in FY16 • 1H16 inflows $35.0 mill
Slide 24: Investment Bond Division
Centuria Capital Investment Bond Division For personal use only • Built capability in the Business Development and Call Centre Teams • Appointed Senior Business Development Manager NSW/QLD 20 years’ experience in retail financial services • Closed and merged funds where there is no longer customer o
Slide 25: Group Strategy
Centuria Capital For personal use only Group Strategy Centuria Capital | CNI : ASX | 1H16 Results Briefing 23
Slide 26: Group Strategy
Centuria Capital Group Strategy For personal use only Strategic objectives Centuria will continue to focus on its core operations to drive increased shareholder wealth, specifically: • Expand core business activities in scale and profitability • Provide reliable, growing dividends • Generate increas
Slide 27: Group Strategy
Centuria Capital Group Strategy For personal use only Unlisted Property Strategy • Expectation of strong demand for unlisted property funds due to low interest rate environment • Continued strong investment from HNW investors, family offices and unaligned financial planning groups. • Appointment of
Slide 28: Strategy for Investment Bond division
Centuria Capital Group Strategy For personal use only Strategy for Investment Bond division • Centuria Life’s focus is to build long-term, sustainable relationships in the retail advice market and to position the Investment Bond Division as the investment bond provider of choice for third party dist
Slide 29: Outlook
Centuria Capital Outlook For personal use only • Centuria remains firmly focussed on growing core business units. • Listed and unlisted property funds management divisions demonstrated strong growth in 1H16 with an impressive acquisitions pipeline • Expand Unlisted Property Funds product offering to
Slide 30: Appendices
Centuria Capital For personal use only Appendices Centuria Capital | CNI : ASX | 1H16 Results Briefing 28
Slide 31: Statutory Account Reconciliation
Centuria Capital Statutory Account Reconciliation For personal use only General comment on statutory accounts reconciliation • The “Statutory Accounts” show the consolidated results of the Company and its controlled entities, including the Benefit Funds of Centuria Life, which Centuria is required t
Slide 32: Reconciliation of Statutory NPAT to Underlying NPAT
Centuria Capital Reconciliation of Statutory NPAT to Underlying NPAT For personal use only $’000 $’000 Underlying net profit after tax (1) 4,448 5,376 Non-underlying adjustments: Unrealised gain on fair value of derivatives 2,597 1,126 Accounting valuation of Reverse Mortgage interest swaps Centuria
Slide 33: Appendix 1: Income Statement for half-year ended December 2015
Centuria Capital Appendix 1: (1) Income Statement for half-year ended 31 December 2015 For personal use only Statutory Accounts Benefit Funds Statutory Accounts excluding Benefit Funds $’000 $’000 $’000 Property funds management revenue 12,958 - 12,958 Investment bond revenue 19,528 (14,542) 4,986 R
Slide 34: Appendix 2: Summary Balance Sheet as at December 15
Centuria Capital Appendix 2: (1) Summary Balance Sheet as at 31 December 2015 For personal use only Statutory Accounts Benefit Funds Statutory Accounts excluding Benefit Funds $’000 $’000 $’000 Assets Cash and cash equivalents (2) 29,015 - 29,015 Other financial assets – reverse mortgage portfolio (
Slide 35: Appendix 3: Summary Cash Flow Statement
Centuria Capital Appendix 3: Summary Cash Flow Statement for the half-year ended 31 December 2015(1) For personal use only Statutory Accounts Benefit Funds Statutory Accounts excluding Benefit Funds $’000 $’000 $’000 Cash flows from operating activities Management fees received 15,805 - 15,805 Payme
Slide 36: Disclaimer
Centuria Capital Disclaimer For personal use only This document has been issued by Centuria Capital Limited ABN 22 095 454 336 and contains general information about Centuria Capital Limited and its related bodies corporate (“Centuria”) which is current as at 18 February 2016. The information in thi
Slide 37: For personal use only
Centuria Capital For personal use only www.centuria.com.au Follow us: Centuria Capital | CNI : ASX | 1H16 Results Briefing 35
Centuria Capital Group — H1 2016 Earnings Presentation on 6ix