Centuria Industrial Reit · ASX:CIP

Centuria Industrial Reit — Investor Presentation (June 2017)

30 slides from Centuria Industrial Reit's investor presentation, Jun 29, 2017

  1. Slide 1: Strategic Acquisitions and Capital Raising

    Centuria Industrial REIT For personal use only Strategic Acquisitions and Capital Raising 29 June 2017 207-219 Browns Road, Noble Park, VIC 29 JUNE 2017 PAGE 1

  2. Slide 2: Disclaimer

    DISCLAIMER For personal use only This presentation has been prepared by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185) ('CPF2L') as responsible entity of Centuria Industrial REIT (ARSN 099 680 252) (‘CIP‘ or the ‘Trust’). All information and statistics in this presentation are current as

  3. Slide 3: Disclaimer

    DISCLAIMER For personal use only An investment in CIP units is subject to investment and other known and unknown risks, some of which are beyond the control of CPF2L. CPF2L does not guarantee any particular rate of return on the performance of CIP nor does it guarantee any particular tax treatment.

  4. Slide 4: Contents

    CONTENTS For personal use only Section Description Page no. 1 Transaction Overview 5 2 Asset Overview 9 3 Portfolio Metrics 12 4 Capital Raising 16 5 Key Risks 21 6 Appendices 27 29 JUNE 2017 PAGE 4

  5. Slide 5: Section 1: Transaction Overview

    For personal use only SECTION 1: TRANSACTION OVERVIEW 29 JUNE 2017 PAGE 5

  6. Slide 6: Transaction Overview

    Transaction Overview For personal use only  Centuria Property Funds No. 2 Limited (CPF2L), as Responsible Entity of the Centuria Industrial REIT (CIP or the Trust) today announced that it has:  entered into an agreement for the acquisition of 207-219 Browns Road, Noble Park in VIC (Noble Park Prop

  7. Slide 7: Transaction Rationale

    Transaction Rationale For personal use only  207-219 Browns Road, Noble Park, VIC:  The property adjoins an existing asset owned by the Trust at 500 Princes Highway, Noble Park  This 5.8ha property, when combined with the existing 4.0ha property on Princes Highway, consolidates a long-term strate

  8. Slide 8: Transaction Highlights

    Transaction Highlights For personal use only Opportunity to acquire quality assets which complement and enhance the strategic value of the existing portfolio  at an attractive price  9.4% initial yield and 7.6% cap rate on acquired assets on a weighted average basis1  Acquisitions are 100% occupi

  9. Slide 9: Section 2: Asset Overview

    For personal use only SECTION 2: ASSET OVERVIEW 29 JUNE 2017 PAGE 9

  10. Slide 10: 207-219 Browns Road, Noble Park

    207-219 Browns Road, Noble Park For personal use only Property details Address 207-219 Browns Road, Noble Park, VIC Built / Redeveloped 1970’s/2014 Site area 58,140sqm Title Freehold GLA 43,331sqm Occupancy 100% Number of tenants 4 Major Tenants (by GLA) E&S Trading (68%)1, Patron Wine Distribution

  11. Slide 11: Sudlow Road, Bibra Lake, WA

    Sudlow Road, Bibra Lake, WA For personal use only Property details Proposed Acquisition Address Lot 14, Sudlow Road, Bibra Lake, WA Built 1970’s Site area 9.1ha Title Freehold GLA 39,485sqm Existing Occupancy 100% CIP asset Number of tenants 1 Tenant Australian Wool Handlers (AWH) WALE 2.7 years (by

  12. Slide 12: Section 3: Portfolio Metrics

    For personal use only SECTION 3: PORTFOLIO METRICS 29 JUNE 2017 PAGE 12

  13. Slide 13: Portfolio Overview

    Portfolio Overview For personal use only CIP Standalone1 Acquisitions2 Pro forma2 # of properties 36 2 38 Portfolio valuation $891.9 million $65.0 million $956.9 million WACR3 7.39% 7.64% 7.41% GLA4 (sqm) 675,128 82,816 757,944 Occupancy (by GLA) 94.9% 100.0% 95.5% WALE5 (years) 4.3 6.06 4.5 2% 1% 2

  14. Slide 14: Property Summary

    Property Summary For personal use only Valuation WALE Occupancy Pro forma portfolio metrics1 State Capitalisation Rate GLA2 (sqm) ($m) (by GLA) (by GLA) 2 Woolworths Way, Warnervale NSW 80.9 7.25% 54,533 4.6 100.0% 457 Waterloo Road, Chullora NSW 26.0 6.75% 16,051 11.2 100.0% 37–51 Scrivener St, War

  15. Slide 15: Property Summary (cont.)

    Property Summary (cont.) For personal use only Valuation WALE Occupancy Pro forma portfolio metrics1 State Capitalisation Rate GLA2 (sqm) ($m) (by GLA) (by GLA) 49 Temple Drive, Thomastown VIC 13.0 8.00% 13,438 - 0.0% 2 Keon Parade, Keon Park VIC 20.8 7.00% 19,527 13.6 100.0% 69 Studley Court, Derri

  16. Slide 16: Section 4: Capital Raising

    For personal use only SECTION 4: CAPITAL RAISING 29 JUNE 2017 PAGE 16

  17. Slide 17: Details of the Offer

    Details of the Offer For personal use only  Fully underwritten institutional placement (Placement) to raise approximately $35 million including a $25 million investment by the Lederer Group Placement  Offer price of $2.45 per unit which represents:  2.1% discount to the distribution-adjusted last

  18. Slide 18: Sources and Uses of Funds

    Sources and Uses of Funds For personal use only Sources and Uses of Funds Commentary Sources Total ($ million) Uses Total ($ million)  Any proceeds raised under the non-underwritten UPP, which is Placement 35.0 Acquisitions 65.0 capped at $7.5 million2, will be utilised to reduce debt Debt 34.2 Tra

  19. Slide 19: Pro Forma December 2016 Balance Sheet

    Pro Forma 31 December 2016 Balance Sheet For personal use only Pro Forma 31 December 2016 Balance Sheet ($ million) Commentary 31 Dec 16 Sale of 60 31 Dec 16 Acquisitions Actual Marple Ave1 Refinancing2 Adjusted & Offer3 Pro Forma  Assumes transaction consideration of $69.2 million (including acqui

  20. Slide 20: Indicative Timetable

    Indicative Timetable For personal use only Event1 Date Record date for UPP 7.00pm Wednesday, 28 June 2017 June 2017 quarter distribution ex-date Thursday, 29 June 2017 Trading halt and announcement of Placement and UPP Before market on Thursday, 29 June 2017 Trading halt lifted and recommencement of

  21. Slide 21: Section 5: Key Risks

    For personal use only SECTION 5: KEY RISKS 29 JUNE 2017 PAGE 21

  22. Slide 22: Key Risks

    Key Risks For personal use only  As with all investments, an investment in CIP will be subject to risks, many of which are outside the control of CPF2L as the Responsible Entity. If they eventuate, these risks may adversely affect the value and the return of an investment in CIP  It is the Respons

  23. Slide 23: Key Risks (cont.)

    Key Risks (cont.) For personal use only • Bibra Lake Property: The financial information provided in this presentation assumes the entry into a binding agreement for the purchase of the Bibra Lake Property. If the Trust does not acquire the Bibra Lake Property the financial information is likely to

  24. Slide 24: Key Risks (cont.)

    Key Risks (cont.) For personal use only • Trading price of units: The market price of units will fluctuate due to numerous factors including general movements in interest rates, the Australian and international general investment markets, economic conditions, global geo-political events and hostilit

  25. Slide 25: Key Risks (cont.)

    Key Risks (cont.) • Interest rates: There is a risk that a debt facility or an interest rate hedge (i.e. fixing the interest rate) may not be available on the same terms upon extension or For personal use only refinancing, or when new finance or hedging strategies are sought. There is also a risk th

  26. Slide 26: Key Risks (cont.)

    Key Risks (cont.) For personal use only • Due diligence: It is possible that the due diligence undertaken to date in connection with the proposed acquisitions has not revealed issues that will later have a materially adverse impact on the expected benefits to CIP. For example, if such due diligence

  27. Slide 27: Section 6: Appendices

    For personal use only SECTION 6: APPENDICES 29 JUNE 2017 PAGE 27

  28. Slide 28: Overview of Centuria Capital Group

    Overview of Centuria Capital Group For personal use only ˃ Centuria is one of Australia’s leading property fund managers, with four key differentiating factors (1) Established & Successful Track Record (2) End-to-End Internal Property Capability 19 years Centuria has been successfully managed throug

  29. Slide 29: CPF2L Board of Directors biographies

    CPF2L Board of Directors biographies For personal use only Peter Done Darren Collins Chairman (Non-Executive Director) Independent Non-Executive Director  Peter was appointed to the Board of CPF2L as Independent Chairman in  Darren was appointed to the Board of CPF2L in 2017; also Non-Executive 20

  30. Slide 30: Key management biographies

    Key management biographies For personal use only Nicholas Collishaw Victor Georos CEO, Listed Property Funds Head of Portfolio and Asset Management  Nicholas is Chief Executive Officer at Centuria Property Funds Limited;  Victor is responsible for overseeing portfolio and asset management at Previ

Centuria Industrial REIT — Investor Presentation (June 2017) on 6ix