Centuria Industrial Reit · ASX:CIP

Centuria Industrial Reit — Non-Deal Roadshow (September 2018)

25 slides from Centuria Industrial Reit's roadshow presentation, Sep 18, 2018

  1. Slide 1: Asia Roadshow Presentation - ASX announcement

    Australian Securities Exchange – Company Announcements Platform Centuria Property Funds No. 2 Limited For personal use only CENTURIA INDUSTRIAL REIT Asia Roadshow Presentation Tuesday, 18 September 2018 Centuria Property Funds No. 2 Limited (CPF2L), as Responsible Entity of Centuria Industrial REIT

  2. Slide 2: Centuria Industrial REIT Asia Roadshow

    For personal use only Centuria Industrial REIT ASIA R OAD SHOW | ASX:CIP | 18 -20 SEP TEMBER 2018

  3. Slide 3: Contents

    For personal use only Contents 1 Introduction 2 Market Indicators 3 Financial Results 4 Portfolio Overview 5 Guidance & Strategy C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 2

  4. Slide 4: Introduction

    For personal use only SECTION ONE Introduction WOOLWORTHS WAY, WARNERVALE, NSW C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 3

  5. Slide 5: Centuria Profile

    ASX-LISTED SPECIALIST INVESTMENT MANAGER Centuria Profile Centuria Capital Group For personal use only $428m Market Capitalisation1 $4.9bn 2 $0.3bn Assets Under Management (AUM) Co-Investments $4.0bn $0.9bn CENTURIA CENTURIA PROPERTYLINK METROPOLITAN INDUSTRIAL REIT 2 REIT (CMA)3 (CIP)3 GROUP Proper

  6. Slide 6: Key metrics

    CIP, AUSTRALIA’S LARGEST ASX LISTED INCOME FOCUSED INDUSTRIAL REIT Key metrics For personal use only 37 $1.0bn 94.5% 5.1yrs High quality assets Portfolio value Portfolio occupancy1 Portfolio wale1 $638m 38.4% 17.2% 12.3% Market capitalisation2 Gearing3 Return on equity4 12 month total return5 1 By i

  7. Slide 7: Market Indicators

    For personal use only SECTION TWO Market Indicators 69 STUDELY COURT, DERRIMUT, VIC C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 6

  8. Slide 8: Economic Indicators: GDP and CPI

    For personal use only 1.0 1.0 4.0 4.0 3.0 3.0 2.0 2.0 5.0 5.0 0.0 0.0 6.0 6.0 DEC 06 DEC 06 2 Source: IMF 1 Source: ABS DEC 07 DEC 07 DEC 08 DEC 08 DEC 09 DEC 09 AUSTRALIAN GDP AND CPI1 ECONOMIC INDICATORS DEC 10 DEC 10 DEC 11 DEC 11 DEC 12 DEC 12 DEC 13 DEC 13 DEC 14 DEC 14 GDPGDP DEC 15 DEC 15 Und

  9. Slide 9: Economic Indicators: Positive for industrial occupiers

    ECONOMIC INDICATORS Underlying conditions remain positive for industrial occupiers For personal use only AUSTRALIAN MANUFACTURING PURCHASING MANAGERS INDEX1 (3 MONTHS AVERAGE) DRIVERS TRANSFORMING DEMAND REQUIREMENTS 65 60 55 Manufacturing has experienced 50 POSITIVE CLIMATE sustained positive momen

  10. Slide 10: Competition for assets drives transaction volumes

    MARKET INDICATORS Competition for assets drives transaction volumes For personal use only TRANSACTION VOLUMES AND AVERAGE CAP RATE1 AVERAGE INDUSTRIAL YIELD BY CITY (2017)1 5.0% 4.7% 6.0% 4.5% Transaction Volume ($Billions) Average Cap Rate (%) CHICAGO FRANKFURT SHANGHAI 8 10 VANCOUVER 4.6% BEIJING

  11. Slide 11: Market Indicators: Market Supply

    0 For personal use only 0 APR-11 0 200 200 200 400 400 400 600 600 600 800 800 800 JUL-11 10001000 1000 12001200 1200 APR-11 OCT-11 JUL-11 JAN-12 APR-11 PRIME OCT-11 APR-12 JUL-11 JAN-12 SYDNEY JUL-12 OCT-11 APR-12 OCT-12 JAN-12 JUL-12 JAN-13 APR-12 OCT-12 APR-13 JUL-12 JAN-13 JUL-13 OCT-12 APR-13 1

  12. Slide 12: Portfolio indicators

    AUSTRALIA'S LARGEST ASX LISTED INCOME FOCUSED INDUSTRIAL REIT Potfolio indicators VALUE OF OWNED INDUSTRIAL PORTFOLIO (EX BUSINESS PARKS)1 For personal use only $2.0bn 100% $2.0bn 100% $1.6bn $1.6bn $1.5bn $1.5bn 1.5 $1.6bn $1.6bn 75 1.5 $1.5bn $1.5bn 75 $1.1bn $1.0bn $1.1bn •• Only ASX listed REIT

  13. Slide 13: Financial Results

    For personal use only SECTION THREE Financial Results ASHBURN ROAD, BUNDAMBA, QLD C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 12

  14. Slide 14: Financial Overview – Income Statement

    FINANCIAL OVERVIEW – INCOME STATEMENT Delivered on FY18 guidance and focused on maximising return on equity For personal use only REVENUE 30 JUN 2018 30 JUN 2017 VARIANCE Gross property income ($’000) 83,998 78,127 5,871 Other income ($’000) 3,398 320 3,078 Interest income ($’000) 132 117 15 Reflect

  15. Slide 15: Capital Management

    CAPITAL MANAGEMENT Accelerated de-leveraging and NTA uplift strengthens balance sheet 150 GEARING AND HEDGING PROFILES 1 For personal use only 110% •• First time gearing has reduced below 40% since HEDGING CIP became a Centuria managed REIT IPO. Significant reduction driven by equity funded 100%80 a

  16. Slide 16: Portfolio Overview

    For personal use only SECTION FOUR Portfolio Overview ASHBURN ROAD, BUNDAMBA, QLD C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 15

  17. Slide 17: Portfolio Composition

    PORTFOLIO COMPOSITION 100% exposure to high quality Australian industrial assets PORTFOLIO SNAPSHOT FY181 FY172 GEOGRAPHIC DIVERSIFICATION (BY VALUE) For personal use only Number of assets 37 38 Book value $m 999.0 961.2 WACR % 6.76 7.33 WA GLA sqm 735,384 757,944 QLD 13% 4.7yrs Average asset size s

  18. Slide 18: Portfolio Overview: Record leasing volume

    PORTFOLIO OVERVIEW Active management generates record leasing volume For personal use only WEIGHTED AVERAGE LEASE EXPIRY (BY INCOME) 30 JUNE 2017 30 JUNE 2018 •• Record leasing volumes of 238,189sqm 0% (WALE 4.4YRS) (WALE 5.1YRS) 57.5 achieved (32.4% of portfolio GLA) Leased sqm AWH (WA) 83,781 0% R

  19. Slide 19: Valuations and Leasing

    VALUATIONS AND LEASING NTA uplift driven by leasing success PORTFOLIO VALUATION SUMMARY For personal use only FY18 FY17 VALUATION FY18 FY17 MOVEMENT •• 100% of portfolio revalued in October 2017 STATE VALUATION VALUATION2 MOVEMENT WACR2 WACR WACR NSW 418.5 381.2 37.3 6.51% 7.03% (0.52%) VIC 239.4 23

  20. Slide 20: Capital Transactions - Acquisitions and Divestments

    CAPITAL TRANSACTIONS - ACQUISITIONS AND DIVESTMENTS Over $160million transacted to improve portfolio quality For personal use only Acquisitions – $122.6m1 Divestments – $40.1m 207-219 BROWNS ROAD LOT 14 SUDLOW ROAD 92 ROBINSON AVENUE 39-45 WEDGEWOOD DRIVE 6 ALBERT STREET NOBLE PARK, VIC BIBRA LAKE,

  21. Slide 21: Guidance & Strategy

    For personal use only SECTION FIVE Guidance & Strategy 6 MACDONALD ROAD, INGELBURN, NSW C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S 2 0

  22. Slide 22: FY19 Priorities

    FY19 PRIORITIES Continue to build Australia’s dominant income focused industrial REIT For personal use only 1 Maintain leasing momentum through FY19 2 Maintain Victoria leasing momentum engaging known upcoming expiries 3 Prudently manage debt book including renegotiation of FY19 debt maturity 4 Cont

  23. Slide 23: Strategy & Guidance

    STRATEGY & GUIDANCE Continue to build Australia’s dominant income focused industrial REIT For personal use only CIP has a simple Strategy – to deliver income and capital growth to investors from a portfolio of high quality Australian industrial assets; by STRATEGY ••Focusing on ‘fit for purpose’ ass

  24. Slide 24: Disclaimer

    Disclaimer This presentation has been prepared by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185, AFSL 340 This presentation may contain forward-looking statements, guidance, forecasts, estimates , prospects, projections For personal use only 304) (‘CPF2L’) as responsible entity of the Ce

  25. Slide 25: Thank you

    For personal use only Thank you C E N T U R I A I N D U S T R I A L R E I T | A S I A R O A D S H O W | A S X : C I P | F Y 1 8 R E S U LT S

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