Centuria Office Reit · ASX:COF
Centuria Office Reit — Investor Presentation (September 2021)
31 slides from Centuria Office Reit's investor presentation, Sep 6, 2021
Slide 1: Acquisitions and Equity Raising
Not for distribution or release in the United States Centuria 101 MORAY STREET, SOUTH MELBOURNE, VIC Office REIT Acquisitions and Equity Raising ASX:COF | 6 September 2021 CENTURIA OFFICE REIT ASX:COF 1 203 PACIFIC HIGHWAY, ST LEONARDS, NSW
Slide 2: Agenda
Agenda 1. Executive Summary and Acquisitions 2. COF Post Acquisitions 3. Equity Raising 4. Appendices CENTURIA OFFICE REIT ASX:COF 2
Slide 3: Transaction overview
Transaction overview • Centuria Property Funds Limited (CPFL), as Responsible Entity of Centuria Office REIT (COF), proposes to acquire interests in two high quality office properties, strategically located in key Melbourne and Sydney near city and metropolitan locations (the Acquisitions) for a tot
Slide 4: Strategic Rationale
Strategic Rationale • Continued execution of strategy with the Acquisitions generating sustainable rents from high quality income streams On strategy acquisitions 1 • Occupancy of 99.8% and in markets where COF has substantial existing experience • Assets have experienced recent leasing success with
Slide 5: 101 Moray Street, South Melbourne VIC
101 Moray Street, South Melbourne VIC New asset completed in 2020 that was entirely leased through COVID-19 DESCRIPTION • Prime A-Grade office asset completed in 2020, 100% occupancy and 6.3 year WALE (by income) • The Property comprises meeting rooms, collaborative workspaces, cafes, restaurants, 6
Slide 6: Moray Street, South Melbourne VIC (cont.)
101 Moray Street, South Melbourne VIC (cont.) LOCATION THE KETTLE BLACK ROCKPOOL • South Melbourne is a well-known Melbourne metropolitan office market located just 1 kilometre south of the Melbourne CBD • Situated in Melbourne’s fastest growing inner-city location SOUTH MELBOURNE AMENITIES • Access
Slide 7: 203 Pacific Highway, St Leonards NSW
203 Pacific Highway, St Leonards NSW Consolidation of existing interest in the St Leonards business precinct DESCRIPTION • Modern A-Grade office asset, completed in 2000, 99.3% occupancy and 3.9 year WALE (by income) • The Property comprises a modern 11 level commercial office building with seven re
Slide 8: Pacific Highway, St Leonards NSW (cont.)
203 Pacific Highway, St Leonards NSW (cont.) LOCATION • Located in the St Leonards business precinct, directly above the entrance to the railway station and bus interchange • ~4km north of the Sydney CBD ACTIVE PRECINCT LOCATED ABOVE ST LEONARDS TRAIN STATION • AND IN CLOSE PROXIMITY TO Adjoins COF’
Slide 9: COF Post Acquisitions
A PORTFOLIO EXPOSED TO AFFORDABLE MARKETS SECTION TWO COF Post Acquisitions ASX:COF CENTURIA OFFICE REIT ASX:COF 9 203 PACIFIC HIGHWAY, ST LEONARDS, NSW
Slide 10: Enhanced portfolio scale and WALE
Enhanced portfolio scale and WALE Australia's largest listed pure play office REIT with a $2.3 billion portfolio PORTFOLIO SNAPSHOT Pre Acquisitions 1 Post Acquisitions 2 WEIGHTED AVERAGE LEASE EXPIRY Number of assets # 22 23 5 Income WALE (pre-acquisitions) 4.3 yrs 46.7% Book value $m 2,014 2,287 4
Slide 11: Equity Raising
A YOUNG PORTFOLIO OF QUALITY ASSETS SECTION THREE Equity Raising ASX:COF CENTURIA OFFICE REIT ASX:COF 11 101 MORAY STREET, SOUTH MELBOURNE, VIC
Slide 12: Sources and Uses of Proceeds
Sources and Uses of Proceeds Sources of proceeds $m • The Equity Raising will raise approximately $201 million Equity Raising proceeds 201 • In addition to the Equity Raising, the Acquisitions and associated transaction costs Drawn debt 94 will be funded with existing debt facilities Total sources 2
Slide 13: Equity raising details
Equity raising details Equity raising • Fully underwritten 1 for 6.4 accelerated non-renounceable entitlement offer to raise approximately $201 million structure • Equity Raising will comprise an accelerated Institutional Entitlement Offer and a Retail Entitlement Offer • Fixed Issue Price of $2.50
Slide 14: Indicative timetable
Indicative timetable Key event Date 2021 1 Trading halt and announcement of the Acquisitions and Equity Raising Monday, 6 September Institutional Entitlement Offer Monday, 6 September Announcement of results of Institutional Entitlement Offer Tuesday, 7 September Trading halt lifted and trading re-c
Slide 15: Key metrics – Australia’s largest ASX listed pure play office REIT
CENTURIA MANAGEMENT Key metrics – Australia’s largest ASX listed pure play office REIT PORTF O LI O 1 FI N ANCI AL 1 23 $2.3bn 18.0cpu 16.6cpu 6.6% High quality Portfolio book value FY22 FFO 3 FY22 DPU Forecast FY22 assets DPU yield 4 93.7% 4.5yrs $1.5bn 33.7% $2.44 Portfolio occupancy 2 Portfolio W
Slide 16: Appendices
CLOSE PROXIMITY TO KEY AMENITY SECTION FOUR Appendices A S X : C O F A – Pro Forma Balance Sheet Appendix Appendix B – Key Risks Appendix C – International Offer Restrictions Appendix D – Material Contracts CENTURIA OFFICE REIT ASX:COF 16 MELBOURNE VIC 101 MORAY STREET, SOUTH MELBOURNE, VIC
Slide 17: Appendix A – Pro Forma Balance Sheet
Appendix A – Pro Forma Balance Sheet 101 Moray acquisition 30-Jun-21 203 Pacific Highway 30-Jun-21 $m 30-Jun-21 and Equity Raising (pro forma) acquisition (50%) 5 (conditional pro forma) Cash 16 16 16 1 Investment properties 2,046 205 2,251 68 2,319 Trade and other receivables 5 5 5 Other assets 2 2
Slide 18: Appendix B – Key Risks
Appendix B – Key Risks 203 Pacific Highway Acquisition identify appropriate assets or successfully acquire such assets could materially adversely affect the growth prospects and financial performance of COF. While it is COF's policy to conduct a thorough due COF presently owns a 50% leasehold intere
Slide 19: Appendix B – Key Risks (cont.)
Appendix B – Key Risks (cont.) Given the uncertainty surrounding the extent and duration of COVID-19, it is not currently possible to non-essential services will likely result in a significant reduction in foot traffic for many retail businesses, assess the full impact of COVID-19 on COF’s business.
Slide 20: Appendix B – Key Risks (cont.)
Appendix B – Key Risks (cont.) Liquidity of property investments uninsurable, and if such events occur they may have materially adverse effects on COF. The nature of investments in property assets may make it difficult to generate liquidity in the short term if Funding there is a need to respond to
Slide 21: Appendix B – Key Risks (cont.)
Appendix B – Key Risks (cont.) Returns from investment • changes in government fiscal, monetary and regulatory policies; and Returns from property investment assets largely depend on the rental income generated from the • the demand for COF securities. property and the expenses incurred in the opera
Slide 22: Appendix C – International Offer Restrictions
Appendix C – International Offer Restrictions Canada Certain Canadian income tax considerations. Prospective purchasers of the New Units should consult their own tax adviser with respect to any taxes payable in connection with the acquisition, holding or This document constitutes an offering of new
Slide 23: Appendix C – International Offer Restrictions (cont.)
Appendix C – International Offer Restrictions (cont.) New Zealand Switzerland This document has not been registered, filed with or approved by any New Zealand regulatory authority The New Units may not be distributed in Switzerland and will not be listed on the SIX Swiss Exchange under the Financial
Slide 24: Appendix D – Material Contracts
Appendix D – Material Contracts Underwriting Agreement suspended from official quotation, unless requested by the Issuer with the consent of the Underwriters; Centuria Property Funds Limited (ACN 086 553 639) (CPFL or the Issuer) as responsible entity for the Centuria Office REIT (ARSN 124 364 718)
Slide 25: Appendix D – Material Contracts (cont.)
Appendix D – Material Contracts (cont.) 18. either Jason Huljich (Joint CEO), Ross Lees (Head of Funds Management) or Grant Nichols (Fund relation to any such financing or related arrangement) in the manner or by the time described in Manager) is removed from office or is replaced in their role; the
Slide 26: Appendix D – Material Contracts (cont.)
Appendix D – Material Contracts (cont.) 36. any information supplied by or on behalf of a Group member to the Underwriters in respect of the Acquisition Contract – 101 Moray Street, South Melbourne Equity Raising or the Group is, or is found to be, misleading or deceptive, or likely to mislead or Un
Slide 27: Appendix D – Material Contracts (cont.)
Appendix D – Material Contracts (cont.) Part of the purchase price will be withheld on settlement and deposited in the vendor's legal 4. The purchase price for the 50% interest in the Property being acquired is $68,000,000 (Purchase representative's trust account for the purposes of a monthly draw-d
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by Centuria Property Funds Limited (ACN 086 553 639) (CPFL) as sources believed by CPFL to be reliable. Past performance is not an indication of future performance. responsible entity of the Centuria Office REIT (ARSN 124 364 718) (COF) in relation to a
Slide 29: Disclaimer (cont.)
Disclaimer (cont.) This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, The recipient should note that this presentation contains pro forma historical financial information. In projections or statements in relation to future matters (Forward Statements
Slide 30: Disclaimer (cont.)
Disclaimer (cont.) The distribution of this presentation in other jurisdictions outside Australia may also be restricted by law • exclude and disclaim all liability, including for negligence, or for any expenses, losses, damages or and any person into whose possession this document comes should obse
Slide 31: Centuria Office REIT ASX:COF
CENTURIA OFFICE REIT ASX:COF 31
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