Centuria Capital Group · ASX:CNI
Centuria Capital — FY2024 Earnings Presentation
51 slides from Centuria Capital's earnings presentation, Aug 22, 2024
Slide 1: Centuria Capital Group FY24 results
22 AUGUST 2024 | ASX: CNI Centuria Capital Group FY24 results UNLISTED: KATUNGA FRESH GLASSHOUSE, KATUNGA VIC (ACQUIRED FY24)
Slide 2: Speakers
Speakers John McBain Simon Holt Joint CEO – Centuria Capital Group CFO – Centuria Capital Group Centuria ASX:CNI 2
Slide 3: Agenda
Acknowledgement of Country Our Group manages property throughout Australia and New Zealand. Accordingly, Centuria pays its respects to the traditional owners of the land in each country, to their unique cultures and to their Elders past and present. AGENDA 1. Group overview 2. Financial results 3. D
Slide 4: Group overview
Group overview SECTION ONE UNLISTED: HALLS HEAD CENTRAL, MANDURAH WA (ACQUIRED FY24)
Slide 5: Centuria Capital Group: A leading Australasian real estate funds manager
Centuria Capital Group: A leading Australasian real estate funds manager Included in the S&P/ASX200 Index Group AUM1 $21.1bn Centuria Real estate $20.2bn Life Limited Investment Listed (30%2) $6.0bn Unlisted (70%2) $14.2bn bonds $3.9bn $2.0bn $0.2bn $6.6bn $3.2bn $2.5bn $1.9bn $0.9bn CENTURIA CENTUR
Slide 6: FY24 highlights
FY24 highlights $21.1bn $1.9bn $1.15bn $2.2bn Group AUM Real estate finance AUM Unlisted capital raised Development pipeline expanded (FY23: $21.0bn) (FY23: $1.3bn) by $1bn of new future projects2 • $0.6bn institutional capital • $0.55bn gross inflows FY24 earnings and $2.3bn 12.1% Corporate activit
Slide 7: Delivering growth priorities
Delivering growth priorities • $1.3bn of gross acquisition and real estate finance activity1 Organic • Real estate finance vertical to $1.9bn AUM (+46%) activity • Agriculture vertical to $0.64bn AUM (+21%) • $1bn of future industrial projects added to Group development pipeline • $0.55bn of gross e
Slide 8: Group AUM
Group AUM $21.1bn $21.0bn $20.6bn AUM CAGR1 $17.4bn 28% 12.2 12.5 12.3 Unlisted real estate Total CAGR 40% 10.7 Unlisted real estate and real estate finance 23% $8.8bn Unlisted ex. corporate initiatives $6.2bn 17% 4.0 6.0 Listed real Listed real estate 6.4 estate 2.6 6.8 5.5 4.0 2.7 Real estate 1.9
Slide 9: Growth in alternatives
Growth in alternatives Daily needs and large format retail to $4.2bn 16% Office 33% REAL ESTATE FINANCE Alternatives: healthcare, real AUM estate, finance, $0.6bn 21% agriculture 21% Alternative property related CNI’s real estate AUM AUM added in FY24 represented by alternatives Industrial 30% HEALT
Slide 10: Growing Centuria Bass demonstrates M&A philosophy
Growing Centuria Bass demonstrates M&A philosophy Centuria Bass targets >20% EBIT AUM ($bn) Operating profit before tax ($m)2 growth in FY25 $1.9bn CNI’s 80% interest in Centuria Bass has been $24.7m acquired for $81 million (FY24 earnings multiple of ~4x) Centuria was an early mover into real estat
Slide 11: Centuria's innovative entry into data centres
Centuria’s innovative entry into data centres Establishing new revenue and rental streams for CNI and real estate funds PROPCO OPCO • Higher rent from suitable • Digital infrastructure services underutilised real estate space via LIC data servers • Liquid Immersion Cooled (LIC) • Multiple revenue so
Slide 12: FY24 ESG highlights: CNI
FY24 ESG highlights: CNI LISTED: 2 PHILLIP LAW STREET, CANBERRA ACT Our memberships and industry participation Member of the Supporting partner Diversity Council of Healthy Heads7 Responsible business of Australia Conscious of climate change Valued stakeholders practices Centuria New Zealand release
Slide 13: Vision and Execution
Vision Execution As financial markets Grow alternative real estate offerings that stabilise in FY25/26, appeal to Centuria’s unlisted investors A leading Australasian relative attractiveness of funds manager Centuria’s core and alternative sectors improve Accelerate LIC Edge Data Centre rollout acro
Slide 14: FY25 guidance
FY25 guidance 12.0c (+2.5% over FY24) Operating earnings per security 10.4c (+4% over FY24) Distribution per security UNLISTED: KATUNGA FRESH GLASSHOUSE, KATUNGA VIC (ACQUIRED FY24) Centuria ASX:CNI 14
Slide 15: Financial results
Financial results SECTION TWO UNLISTED: NORTH LAKES LFR CENTRE, NORTH LAKES QLD
Slide 16: Operating earnings and distributions
Operating earnings and distributions FY24 FY23 Statutory NPAT1,2 $m 102.2 105.9 Statutory EPS1,2 cps 12.6 13.3 Operating NPAT3 $m 94.7 115.6 Operating EPS4 (OEPS) cps 11.7 14.5 DPS cps 10.0 11.6 FY25 guidance OEPS cps 12.0 DPS cps 10.4 1. Attributable to CNI securityholders 2. Includes fair value mo
Slide 17: Segment results
Segment results FY24 FY23 Operating profit by segment ($m) ($m) Property funds management movement due to reduced transaction fees, lower Property funds management1 76.6 84.1 1 performance fees and valuation adjustments 1 1 Performance fees 6.0 28.5 Primarily due to completion of projects and timing
Slide 18: $2.3bn of total transaction activity
$2.3bn of total transaction activity FY24 Transaction fee income of $21.4m includes acquisition, financing, underwriting and sales fees $34m $1.3bn $1.0bn FY23 acquisition FY24 gross real estate activity FY24 divestments and repayments activity settled in FY24 • $780m real estate finance • $635m rea
Slide 19: Strong balance sheet supports platform activities
Strong balance sheet supports platform activities FY24 FY23 Operating balance sheet ($m) ($m) $1.79 12.1% $289.1m Assets Cash and cash equivalents 184.3 179.4 Net asset value per security1,2 Operating gearing3 Cash realised from the sale and (FY23: $1.77) (HY24: 13.9%) recycling of balance sheet ass
Slide 20: Active debt capital management
Active debt capital management FY24 average margins 175bps1 Variation and extension across 40% of all FY241 FY231 funds leading to strong relationships and understanding of lender appetite Lenders # 24 24 Debt refinanced across 68% of office platform with positive outcomes Total lending facilities a
Slide 21: CNI co-investments
CNI co-investments $675m of financial assets and interests in associates / JVs1 ~62% ($419m) aligns CNI as the largest Primary Capital Source (%) unitholder in listed funds CIP, COF and APL Listed assets are held as simple investments recorded at balance date share price of each fund Listed Retail/W
Slide 22: Centuria's Liquid Immersion Cooled Edge Data Centre ecosystem
Centuria’s Liquid Immersion Cooled (LIC) Edge Data Centre ecosystem Unique value chain to deliver a network of LIC Edge Data Centres Underutilised Liquid immersion Bespoke Proprietary Software assets with cooling hardware stack cloud platform partnerships that excess power require bespoke hardware &
Slide 23: Liquid immersion cooling supports low cost and viable alternatives
Liquid immersion cooling supports low cost and viable alternatives to traditional offsite data warehousing solutions 95% 10X 50% 30% 60% 99% +40% Reduction in Increase in Reduction in Increase in Reduction in Heat captured Reduction in cooling OPEX computing CAPEX build hardware hardware and recycle
Slide 24: Divisional overview
Divisional overview SECTION THREE CENTURIA BASS UNLISTED: ONE RICHARDSON, SOUTH PERTH WA (ARTIST UNLISTED: 90-118 BOLINDA ROAD, CAMPBELLFIELD VIC IMPRESION)
Slide 25: $20.2bn diversified real estate platform
$20.2bn diversified real estate platform1,2 REAL ESTATE DAILY NEEDS LARGE FORMAT OFFICE INDUSTRIAL FINANCE RETAIL (‘DNR’) RETAIL (‘LFR’) HEALTHCARE AGRICULTURE $6.71bn $6.02bn $1.90bn $1.63bn $1.59bn $1.51bn $0.64bn AUM AUM AUM AUM AUM AUM AUM ARTIST IMPRESSION LISTED: UNLISTED: UNLISTED: UNLISTED:
Slide 26: Office platform
Office platform Active management and deep sector expertise $6.7bn 2.8% 4.1yrs AUM (30% listed, 70% unlisted) Largest unlisted office fund 2.8% of Office platform WALE Group AUM $93m $154m $1.7bn Avg. asset size aids exposure to a FY24 divestments Debt refinanced across 68% of office wider transacti
Slide 27: Industrial platform
Industrial platform Expanding new industrial development pipeline and mandate partnerships $500m mandate 42% $6.0bn Last Mile Logistics Partnership mandate Avg. re-leasing spreads across Centuria’s Australian industrial properties in FY24 AUM (65% listed, 35% unlisted) with Starwood bolsters Centuri
Slide 28: Retail platform
Retail platform Performing strongly through cycle Portfolios concentrated on 44% $3.2bn convenience based DNR and land rich LFR centres Avg. site coverage of LFR across Australian platform AUM (50% Daily Needs ‘DNR’ and 50% Large format ‘LFR’ retail) 53% 5% DNR income derived from FY24 avg. re-leasi
Slide 29: Real estate finance platform
Real estate finance Centuria Bass Credit grows AUM to $1.9bn platform $150m new warehouse facility with initial $100 million senior secured Industrial Other commitment from UBS 4% 2% Second NZ lien 1% WA 7% Commercial 2 diversified wholesale funds ACT 5% 6% 8% and 135+ originated loans since QLD Mix
Slide 30: Healthcare platform
Healthcare platform Aligned with sustainable models of care $320m1 $1.5bn Committed development pipeline provides access to new generation Progressing Kew and Alexandria private hospitals as part of the MSREI partnership AUM healthcare assets for Centuria funds $18m $161m 10,600sqm+ Avg. asset size
Slide 31: Agriculture platform
Agriculture platform Ongoing investor appetite for protected cropping thematic $446m $22m $0.6bn Centuria Agriculture Fund continues strong AUM growth in FY24 Centuria NZ Agriculture Fund AUM $42m 100% $124m Net or triple net Three glasshouse and protected Avg. asset size aids exposure to a leases c
Slide 32: Unlisted property of $14.2bn
Unlisted property of $14.2bn Servicing 14,000+ unlisted investors 7 $0.6bn $0.55bn $6m $112m 47% 34% Funds in the New institutional FY24 unlisted capital FY24 recognised FY24 Latent underlying Unlisted AUM with no expiry Unlisted AUM with no fund top 10 index1 capital raising inflows performance fee
Slide 33: Listed property AUM of $6.0bn
Listed property AUM of $6.0bn CIP and COF – Australia’s largest ASX-listed pure play industrial and office REITs 16.1% 18.9% CNI co-investment5 CNI co-investment5 highly aligned to an highly aligned to an experienced real experienced real estate funds manager estate funds manager 310 SPEARWOOD AVE &
Slide 34: Appendices
Appendices SECTION FOUR LISTED: 235 WILLIAM STREET, NORTHBRIDGE WA
Slide 35: Centuria Capital Group
Centuria Capital Group A leading Australasian real estate funds manager Integrated platform Geography Sectors Funds Capital Australia Office Listed REITs Listed New Zealand Industrial Unlisted single asset Unlisted institutional Healthcare funds Unlisted retail Multi-asset closed- Unlisted wholesale
Slide 36: Group AUM movement
Group AUM movement ($bn)1 UNLISTED: 208 FORDYCE ROAD, HELENSVILLE NZ Note: Assets under management (AUM) as at 30 June 2024. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0927 as at 30 June 2024). Numbers presented may not add up precisely to the totals provid
Slide 37: Valuation summary
Valuation summary1 Value Value Cap Cap movement movement movement movement 12 months to 6 months to 12 months to 6 months to WACR WACR 30 Jun 2024 30 Jun 2024 30 Jun 2024 30 Jun 2024 30 June 2023 30 June 2024 Office (5.74)% (2.86)% 48 bps 28 bps 6.12% 6.60% Industrial (1.16)% (0.91)% 56 bps 28 bps 5
Slide 38: Platform diversification reduces concentration risk
Platform1 diversification reduces concentration risk Daily needs Large format Total Office Industrial Healthcare Agriculture retail retail avg. Aids platform liquidity through Avg. asset 94 36 18 37 37 42 43 exposure to a wider $m transaction pool Occupancy High occupancies, strong 90 98 97 97 97 10
Slide 39: Fund and capital allocation across Centuria's platform
Fund and capital allocation across Centuria’s platform Diversified funds, capital sources and investor profiles across all sectors Real estate Daily needs Large format Sector Office Industrial Healthcare Agriculture finance retail retail Fund type/ AUM $6.7 $6.0 $1.9 $1.6 $1.6 $1.5 $0.6 capital sour
Slide 40: Edge Data Centres are highly efficient
Edge Data Centres are highly efficient Immersion cooling technology affords high density CAPACITY PER POD: NUMBER OF PODS: 140kw 7 POD SIZE: CAPACITY: 2.4sqm c.1.0MW REQUIRED AREA: c.60sqm1 1. Required area inclusive of estimated circulation space Centuria ASX:CNI 40
Slide 41: $2.2bn development pipeline to seed funds
$2.2bn development pipeline to seed funds $0.3bn $2.2bn pipeline1 $1bn industrial pipeline CNI strategically uses its balance Adds to Centuria’s future development sheet to seed and expand its FY24 gross development Est. value on completion pipeline completions Committed: $0.6bn2 property funds Futu
Slide 42: $2.2bn development pipeline to seed funds
$2.2bn development pipeline to seed funds Committed pipeline Future pipeline FY24 Gross Total (est. value on (est. value on completions pipeline completion)1,2 completion)1,3,4 Development fees and Sector $M GLA $M GLA $M GLA $M GLA profits contribute to income Office 116 15,900 - - - - - - Industri
Slide 43: $20.2bn diversified Australasian real estate platform
$20.2bn diversified Australasian real estate platform1,2 Top tenants by income (%)3,4 Government 12.8% WA 23% QLD 16% 86 properties and real estate finance loans valued at $4,490m 88 properties and real estate finance loans valued at $3,162m Woolworths Limited ASX/NZX Listed 3.5% Coles Group 1.8% AS
Slide 44: Integrated management capabilities lead to strong asset management success
Integrated management capabilities lead to strong 400 asset management success Properties1,2 Weighted average lease expiry (yrs) by income1,2 13.3 2,449 10.2 Tenants1,2 6.9 5.8 4.0 4.1 96.2% Average occupancy1,2 Large format retail Office Daily needs retail Industrial Healthcare Agriculture 5.7yrs A
Slide 45: ASX COF, ASX CIP and NZX APL
ASX COF: Australia’s largest pure play ASX CIP: Australia’s largest NZX APL: Asset Plus office REIT domestic pure play industrial REIT • Delivered FY24 FFO of 13.8 cents per unit • Delivered FY24 FFO of 17.2 cents per unit • Delivered FY24 Distributions of 12.0 cents per unit • Delivered FY24 Distri
Slide 46: Centuria Life
Centuria Life $0.9bn FY24 FY23 FY24 change Flows FY24 Applications Redemptions AUM Assets under management ($m) ($m) (%) ($M) ($M) Prepaid funeral plans (Guardian)2 543.5 539.7 -0.70% 35.5 -48..2 Unitised bonds (Centuria Life) 216.7 222.4 -2.56% 3.6 -20.9 Centuria LifeGoals 94.9 58.1 63.33% 33.5 -3.
Slide 47: Reconciliation of statutory profit to operating profit
Reconciliation of statutory profit to operating profit FY24 ($m) FY23 ($m) Statutory net (loss)/profit after tax 102.2 105.9 Statutory EPS (cents)1,2 12.6 13.3 ADJUSTED FOR NON-OPERATING ITEMS (Gain) on fair value movements in derivatives and investments (19.7) 0.3 Transaction and other costs 4.7 3.
Slide 48: Co-investments reconciliation
Co-investments reconciliation Carrying value Distribution Carrying value Distribution Strong alignment to Centuria’s 30 JUN 24 income FY24 30 JUN 23 income FY23 Co-investments Fund type ($m) ($m) ($m) ($m) listed REITs Centuria Industrial REIT (ASX: CIP)1 Listed 304.3 16.2 313.4 16.2 CNI is the larg
Slide 49: Definitions
Definitions Operating Segments: Group has six reportable operating segments. AUM: Assets under management EPS: Earnings per stapled security These reportable operating segments are the divisions which report to CAGR: Compound annual growth rate IRR: Internal Rate of Return the Group’s Chief Executiv
Slide 50: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited (‘CFML’) as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). Centuria Property Funds Limited (ABN 11 086 553 639, AFSL 231 149) ('CPFL') and Centuria
Slide 51: Office locations
AUSTRALIA Sydney (head office) Melbourne (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 Perth (07) 3905 7000 (08) 9321 7133 Level 2 Level 27 348 Edward Street 140 St Georges Terrace Brisbane QLD 4000 Pert
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