Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — Merger or Acquisition (June 2019)
26 slides from Centuria Industrial Reit's merger presentation, Jun 27, 2019
Slide 1: Strategic Acquisitions and Equity Raising
For personal use only Centuria Industrial REIT Strategic Acquisitions and Equity Raising A S X : C I P | 27 J u n e 2 0 1 9 680 BOUNDARY ROAD, RICHLANDS QLD Not for release to U.S. wire services or distribution in the United States CENTURIA INDUSTRIAL REIT ASX:CIP 1
Slide 2: Contents
For personal use only Contents 1 Executive summary 2 Acquisitions overview 3 Centuria's track record 4 Equity raising overview 680 BOUNDARY ROAD, RICHLANDS QLD CENTURIA INDUSTRIAL REIT ASX:CIP 2
Slide 3: Executive summary: Strategic acquisitions and equity raising overview
EXECUTIVE SUMMARY Strategic acquisitions and equity raising overview For personal use only Acquisitions • Centuria Property Funds No.2 Limited (CPF2L), as Responsible Entity of Centuria Industrial REIT (CIP), has entered into agreements to acquire three high quality industrial assets (the Acquisitio
Slide 4: Executive summary: Capital management initiatives and financial impact
EXECUTIVE SUMMARY Capital management initiatives and financial impact For personal use only Capital • As part of ongoing capital management, CIP has agreed to: management - Refinance $160m of its overall $520m facility to two new 3 year and 5 year tranches, increasing the tenor of that tranche by 2.
Slide 5: Acquisitions overview: 75-95 & Corio Quay Road, North Geelong, VIC
ACQUISITIONS OVERVIEW 75-95 & 105 Corio Quay Road, North Geelong, VIC For personal use only ● Asset comprises two buildings on a 3.8 hectare site ● Leased to a subsidiary of Boardriders Inc. ● Strategic location for Boardriders, which has occupied the property since the early 1990s and has invested
Slide 6: Acquisitions overview: Boundary Road, Richlands, QLD
ACQUISITIONS OVERVIEW 680 Boundary Road, Richlands, QLD For personal use only ● High quality asset completed in 2008, occupying a total area of 2.2 hectares ● Fully leased to MDI, a specialist developer and distributor of gifts, toys and homewares, and Independent Liquor Group, Australia's largest l
Slide 7: Acquisitions overview: Hemmant, QLD
ACQUISITIONS OVERVIEW Hemmant, QLD For personal use only ● Acquired as vacant possession with an opportunity to immediately reposition through capital works and leasing ● CIP has commenced marketing the site to prospective tenants ahead of settlement and expects low vacancy in the precinct to drive
Slide 8: Centuria's track record: Case studies
CENTURIA'S TRACK RECORD Case studies For personal use only Lot 14 Sudlow Rd, Bibra Lake, WA ● Acquired in September 2017 at a purchase price of $28.0m with a WALE1 of 2.7 years ● Adjoins 310 Spearwood Avenue, Bibra Lake, WA, with both assets occupied by same tenant – Australian Wool Handlers (AWH) ●
Slide 9: Equity raising overview: Sources and uses of proceeds
EQUITY RAISING OVERVIEW Sources and uses of proceeds For personal use only SOURCES OF PROCEEDS $m ● The Acquisitions, capital works and associated transactions costs will be funded by a $70 million Placement and $8.2 million of existing debt Placement proceeds 70.0 facilities Drawn debt 8.2 ● Any pr
Slide 10: Equity raising overview: Equity raising details
EQUITY RAISING OVERVIEW Equity raising details For personal use only • Fully underwritten institutional placement to raise $70 million Equity raising structure • Non-underwritten unit purchase plan to eligible unitholders in Australia and New Zealand to raise up to $5 million1 • Issue price of $3.05
Slide 11: Equity raising overview: Indicative timetable
EQUITY RAISING OVERVIEW Indicative timetable For personal use only KEY EVENT DATE1 Record date for UPP 7:00pm, Wednesday, 26 June 2019 Trading halt and announcement of the Acquisitions and Equity Raising Thursday, 27 June 2019 Trading re-commences Friday, 28 June 2019 June 2019 quarter distribution
Slide 12: Australia's largest domestic pure-play industrial REIT
Australia's largest domestic pure-play industrial REIT For personal use only 45 $1.3bn 95.7% 4.3 years High quality assets Occupancy1 Portfolio WALE1 Portfolio value 34.9% $2.74 $934m 6.5% Pro forma NTA3 Pro forma gearing2 Market capitalisation4 FY20 FFO yield5 1. Pro forma occupancy and WALE calcul
Slide 13: Appendices
For personal use only Appendices A Portfolio metrics B Pro forma balance sheet and capital management initiatives C Key risks D International offer jurisdictions HEMMANT, QLD CENTURIA INDUSTRIAL REIT ASX:CIP 13
Slide 14: Appendix A: Portfolio metrics
For personal use only APPENDIX A Portfolio metrics 75-79 & 105 CORIO QUAY ROAD, NORTH GEELONG CENTURIA INDUSTRIAL REIT ASX:CIP 14
Slide 15: Portfolio metrics
Portfolio metrics For personal use only GEOGRAPHIC DIVERSIFICATION PORTFOLIO PRE ACQUISITIONS1 POST ACQUISITIONS Pre Acqusitions1 Post Acquisitions Number of properties 42 45 ACT SA ACT SA WA 1% 1% WA 1% 1% 14% 14% Portfolio valuation $1,197m $1,256m NSW NSW 39% 36% Weighted average 6.46% 6.50% capi
Slide 16: Appendix B: Pro forma balance sheet and capital management initiatives
For personal use only APPENDIX B Pro forma balance sheet and capital management initiatives 75-79 & 105 CORIO QUAY ROAD, NORTH GEELONG CENTURIA INDUSTRIAL REIT ASX:CIP 16
Slide 17: Pro forma balance sheet
Pro forma balance sheet CAPITAL For personal use only POST-BALANCE DATE PRO FORMA ACQUISITIONS & PRO FORMA $m 31 DEC 2018 DRP MANAGEMENT & ACQUISITION AND REVALS1 31 DEC 2018 (PRE) EQUITY RAISING 31 DEC 2018 (POST) EXPENDITURE Cash 25.5 25.5 25.5 Investment properties 1,154.7 42.2 1,196.9 59.3 10.0
Slide 18: Capital management initiatives
Capital management initiatives For personal use only ● As part of ongoing capital management initiatives, CIP has agreed to: - Refinance $160m of its overall $520m facility to two new 3 year and 5 year tranches, increasing the tenor of that tranche by 2.7 years - Reset $110m of existing interest rat
Slide 19: Appendix C: Key risks
For personal use only APPENDIX C Key risks 680 BOUNDARY ROAD, RICHLANDS QLD CENTURIA INDUSTRIAL REIT ASX:CIP 19
Slide 20: Key risks
Key risks For personal use only Underwriting risk CPF2L as responsible entity of CIP has entered into an underwriting agreement with the Underwriters for the Offer (Underwriting Agreement). The Underwriters’ obligation to underwrite the Offer is subject to customary terms and conditions, including t
Slide 21: Key risks
Key risks For personal use only Leasing terms and tenant defaults The future financial performance of CIP will largely depend on its ability to lease properties that become vacant on expiry of leases, on economically favourable terms. Insolvency or financial distress of any of the tenants may reduce
Slide 22: Appendix D: International offer jurisdictions
For personal use only APPENDIX D International offer jurisdictions 75-79 & 105 CORIO QUAY ROAD, NORTH GEELONG, VIC CENTURIA INDUSTRIAL REIT ASX:CIP 22
Slide 23: International offer restrictions
International offer restrictions For personal use only This document does not constitute an offer of Units in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Units may not be offered or sold, in any country outside Australia
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Centuria Property Funds No. 2 Limited (ACN 133 363 185) (CPF2L or Responsible Entity) as responsible entity of Centuria Industrial REIT (ARSN 099 680 252) (CIP or REIT) in relation to an offer of New Units in CIP made to eligibl
Slide 25: Disclaimer
Disclaimer For personal use only CIP statutory results are prepared in accordance with International Financial Reporting Standards ("IFRS"). This presentation also includes certain non-IFRS measures in presenting CIP's results. Any additional financial information in this presentation which is not i
Slide 26: For personal use only
For personal use only CENTURIA INDUSTRIAL REIT ASX:CIP 26
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