Centuria Office Reit · ASX:COF
Centuria Office Reit — Centuria Metropolitan REIT — H1 2018 Earnings Presentation
30 slides from Centuria Office Reit's earnings presentation, Feb 8, 2018
Slide 1: Centuria Metropolitan REIT 1H18 Interim Results
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Centuria Metropolitan REIT 1H18 Interim Results 201 & 203 PACIFIC HIGHWAY, ST LEONARDS, NSW
Slide 2: Introduction Results Overview Portfolio Overview Guidance & Strategy Appendicies
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 1 Introduction 2 Results Overview 3 Portfolio Overview 4 Guidance & Strategy 5 Appendicies PAGE 2 144 STIRLING STREET, PERTH, WA
Slide 3: Introduction
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 1 Introduction
Slide 4: Centuria Capital
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Centuria Capital ASX listed specialist investment manager Centuria Capital Group $ 4.6b Funds Under Management Funds Management Property fund management Investment Bonds Listed Property $2.0b $ 0.9b Unlisted Property $1.7b
Slide 5: CMA, Australia's largest ASX listed metropolitan office REIT
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 CMA, Australia’s largest ASX listed metropolitan office REIT Key Metrics 19 High quality assets $ 900m Portfolio value $ 579m Market capitalisation1 29.6% Gearing3 97.8% Portfolio occupancy5 1,2 20.9% 12 month total return
Slide 6: Results Overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 2 Results Overview
Slide 7: Continuing to deliver on strategy
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Highlights Continuing to deliver on strategy Delivered on stable earnings Active management driving portfolio performance Reaffirm FY18 distributable earnings guidance of 18.6 cps 1 Positive track record of delivering on e
Slide 8: Financial overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Financial overview Financial snapshot 1H18 1H17 Statutory profit/(loss) $m 39.2 27.1 Distributable earnings 1 Distributable earnings per security $m cps 19.9 9.4 10.9 9.2 20.9% 1,2 12 month total return Distribution $m 20.
Slide 9: Maintained a disciplined balance sheet
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Capital management Maintained a disciplined balance sheet 29.6% 3.7% Gearing All in cost of debt2 − Multi-bank debt facilities provides diversity of funding sources and enhanced balance sheet capacity Debt Maturity Profile
Slide 10: Acquired quality income generating metropolitan office assets
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Capital transactions – acquisitions and disposals Acquired quality income generating metropolitan office assets − Acquisition of four metropolitan office assets, totalling $210.9 million; assets are highly complimentary to
Slide 11: Portfolio Overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 3 Portfolio Overview
Slide 12: Geographically diversified portfolio weighted to eastern seaboard markets
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio composition Geographically diversified portfolio weighted to eastern seaboard markets Portfolio Snapshot QLD 1H181 1H17 35 Robina Town Centre Drive, Robina 555 Coronation Drive, Brisbane Number of assets # 18 15
Slide 13: Leasing overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Leasing overview Focus on leasing to maximise occupancy and income − Secured 20 lease transactions in 1H18 across 9,234sqm − 12 new leases across 3,913sqm 5.0% Portfolio NLA leased in 1H18 − 8 renewals across 5,321sqm − 16
Slide 14: Tenancy profile
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Tenancy profile Earnings growth underpinned by high quality tenants and contracted rental growth − Well diversified rent roll with 42.8% of gross Tenancy profile by size cohort (by no. tenant) 1 Tenant diversification (top
Slide 15: Portfolio metrics
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio metrics Portfolio positioned to drive ongoing performance − Low forward lease expiry profile ensures visibility of future earnings Weighted Average Lease Expiry 1,3 − Minimal expiries of 1.2% 1,2 remaining in FY1
Slide 16: Portfolio valuations
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio valuations Robust market fundamentals and active management driving valuation growth − 100% of portfolio externally valued at 30 November 2017 − Book value adjusted for December capital expenditure spend − Like f
Slide 17: Guidance & Strategy
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 4 Guidance & Strategy
Slide 18: FY18 Guidance
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 FY18 Guidance − FY18 distributable earnings guidance of 18.6 cps − FY18 distribution guidance of 18.1 cps − Paid in equal installments of 4.525 cps per quarter − 9.05 cps paid in 1H18 − 9.05 cps remaining to be paid in 2H1
Slide 19: CMA's strategy and focus remains unchanged
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Strategy CMA’s strategy and focus remains unchanged Fund strategy − Acquire quality ‘fit for purpose’ metropolitan real estate In Australia’s metropolitan office markets, assets delivering stable and secure income streams
Slide 20: Appendices
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 6 Appendices Appendix A – History of Centuria Metropolitan REIT Appendix B – Market Outlook Appendix C – Income Statement Appendix D – Distribution Statement Appendix E – Balance Sheet Appendix F – NTA Movement App
Slide 21: Appendix A – History of Centuria Metropolitan REIT
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix A – History of Centuria Metropolitan REIT 1) Based on restated guidance in the CMA acquisition and entitlement offer presentation – 29 April 2015 Source: Company filings, IRESS, Factset as at 31 December 2017 PAGE
Slide 22: Appendix B – Market outlook
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix B – Market outlook Robust supply and demand fundamentals in metropolitan office markets Yield spread – A-grade metro vs CBD A-grade Source: ColliersEdge − Non-CBD market supply is generally trending below historic
Slide 23: Appendix C – Income Statement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix C – Income Statement $’000 30 December 2017 Revenue Gross property income 33,503 Interest Income 96 Total revenue 33,599 Expenses Direct property expenses (7,243) Responsible entity fees (1,959) Finance costs (3,7
Slide 24: Appendix D – Distribution Statement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix D – Distribution Statement $’000 30 June 2017 Statutory net profit 39,174 Straight lining of rental income 1 (2,659) Amortisation of Leasing fees 889 (Gain) / loss on fair value of investment properties (18,600) L
Slide 25: Appendix E – Balance Sheet
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix E – Balance Sheet $’000 31 December 2017 Cash 46,273 Investment properties 841,441 Goodwill 6,356 Trade and other receivables 5,535 Other assets 2,912 Total assets 902,517 Interest bearing liabilities 1 295,793 Tr
Slide 26: Appendix F – NTA movement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix F – NTA movement Strong NTA growth 1) Other includes movement in cash, payables, receivables and DRP impact PAGE 26
Slide 27: Appendix G – FFO Reconciliation
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix G – FFO Reconciliation CMA Distributable Difference Property Earnings ($’000) PCA FFO ($’000) ($’000) Statutory Net Profit 39,174 39,174 0 Straight lining of rental income 1 (2,659) (2,659) 0 Amortisation of leasi
Slide 28: Appendix H – Investment Portfolio
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix H – Investment Portfolio 31 Dec 17 NLA WALE2 Property State Ownership Book value Caprate (sqm) (sqm) Occupancy3 Office 9 Help Street, Chatswood NSW 100% 68.5 6.50% 9,394 3.0 100.0% 203 Pacific Highway St Leonards
Slide 29: Disclaimer
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Disclaimer This presentation has been prepared by Centuria Property Funds Limited Limited (ABN 11 086 553 639, AFSL 231 149) (CPFL) as responsible entity of Centuria Metropolitan REIT (‘CMA’ or the ‘Trust’). All informatio
Slide 30: Thank you
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Thank you Further Information: Nicholas Blake Trust Manager – CMA +61 2 8923 8923 nicholas.blake@centuria.com.au Hengky Widjaja Senior Analyst, Listed Property +61 2 8923 8923 hengky.widjaja@centuria.com.au
Centuria Metropolitan REIT — H1 2018 Earnings Presentation on 6ix