Slide 1: FY17 Annual Results
Centuria Capital Group CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 FY17 Annual Results
Slide 2: Agenda
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 1 2 Overview FY17 financial 3 Property funds 4 Unlisted property 5 Listed property 6 Investment 7 Conclusion 8 Appendices highlights management funds funds bonds 1. a PAGE 02
Slide 3: Overview
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Overview
Slide 4: Centuria profile
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Centuria profile ASX-listed specialist investment manager Centuria Capital Group $4.2b FUM 1 Listed Property Unlisted Investment Industrial REIT (CIP) Centuria Diversified Centuria Life Funds $998m FUM Property Funds Property F
Slide 5: Operating highlights
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Operating highlights Operating − Operating NPAT of 10.3 cps, in line with guidance earnings − Recurring revenue contribution increased from 55% to 75% over FY17 − Final distribution of 5.2 cps Distributions − Total distribution
Slide 6: Operating earnings and distributions per security
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Operating highlights Operating earnings and distributions continue to trend upwards Operating earnings per security Distribution per security 16 8 14 14.8 7 7.50 Cents per security Cents per security 12 6 10 5 5.25 10.3 4.75 8
Slide 7: Strong growth appetite: increased FUM by organic growth and platform acquisition
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Strong growth appetite Increased FUM by organic growth and platform acquisition 4,187 ― Acquisition of 360 Capital platform added $1.4b of FUM 3,851 998 ― Strong organic growth with acquisition of 10 assets adding 921 $731m of
Slide 8: Transformational FUM growth
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Transformational FUM growth Setting a strong foundation for FY18 earnings FY16 1H17 FY17 $1.9b FUM $3.7b FUM $4.2b FUM1 19% 20% 25% 24% 22% 41% 37% 18%2 19% 37% 38% 1. Includes post 30 June 2017 acquisitions 2. Includes Centuri
Slide 9: FY17 corporate activity: Centuria milestone timeline
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 FY17 corporate activity Centuria milestone timeline Launched $72m Merger of Centuria Scarborough CMA and CUA House Fund CIP acquisition of Launched Centuria 2 properties for $65m Diversified Property $100m corporate CMA acquisi
Slide 10: Strategy scorecard
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Strategy scorecard An important milestone year in Centuria’s progress Strategy Initiative Action Develop Corporate activity supporting growth and − Successful formation of CNI as a stapled security encouraging co-investment − M
Slide 11: Outlook
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Outlook ― Greater scale and wider market recognition should lead to ASX 300 inclusion for Centuria in the near term ― Continue to support growth across all three property platforms (CMA, CIP and unlisted property) ― Greater acc
Slide 12: FY17 financial highlights
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 FY17 financial highlights
Slide 13: Group operating highlights
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Group operating highlights Operating Net Profit After Tax 20 Increased full year earnings 15.5 15 FY17 FY16 % change 11.3 $m Operating NPAT $15.5m $11.3m 37% 10 5.9 6.3 Operating EPS 10.3cps 14.8cps1 (31%) 5.3 5 Statutory NPAT
Slide 14: Operating segment results
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Operating segment results Significant increase in recurring earnings FY17 ($m) FY16 ($m) ― Operating EPS in line with guidance Operating profit by segment ― Significant growth in recurring revenue Property Funds Management 14.0
Slide 15: Operating segment balance sheet
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Operating segment balance sheet Stronger balance sheet – a platform to support growth Property Funds Investment Bonds Co-investments Reverse Corporate Operating Balance Operating Balance Management Management $’000 Mortgage $’0
Slide 16: Sources of operating revenue
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Sources of operating revenue Increased recurring revenue 55,000 Significant increase in recurring revenues 50,000 Minimal performance 45,000 fee in FY17 40,000 Growth in unlisted property portfolios to deliver consistent 35,000
Slide 17: Property funds management
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Property funds management
Slide 18: Property funds management division
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Property funds management division Unlisted property funds Listed property funds Centuria’s unlisted property business has a 20 year history Centuria’s listed property business offers investments in of arranging the syndicated
Slide 19: 183% growth in total property funds under management
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Property highlights 183% growth in total property funds under management1 Centuria Property Funds Gross Asset Value 4000 4,000 3500 3,500 76 3,387 150 109 212 3,052 63 3000 3,000 72 FUM ($m) 262 211 (169) 2500 2,500 923 2000 2,
Slide 20: Increased geographic diversification
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Growing our property footprint nationally Increased geographic diversification ― Acquired Australia’s largest pure 9 Properties valued at $392m 14 Properties valued at $622m CMA Office: 2 properties at $92m income-focused Indus
Slide 21: Unlisted property funds
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Unlisted property funds
Slide 22: Unlisted property highlights
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Unlisted property highlights Acquisition: Strong FUM growth of 106% to $1.6b in FY17 1 The Zenith $279m July 2016 ― Launched six new funds adding $517m FUM1, highlights include: − Record transaction with The Zenith2 at $279m −
Slide 23: Centuria Diversified Property Fund
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Centuria Diversified Property Fund Diversified, platform-friendly property fund The Zenith, 8 Central Ave, Chatswood Eveleigh ― Currently invested in 9 quality office funds ― Daily unit pricing and applications ― Offers liquidi
Slide 24: Unlisted fund case study: The Zenith
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Unlisted fund case study: The Zenith Total return of 28.6%1 in 12 months ― Iconic institutional-grade office building located 12km north of Sydney CBD July 17 Purchase ― Acquired in July 2016 in partnership with BlackRock WALE
Slide 25: Unlisted fund case study: Belmont Road
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Unlisted fund case study: Belmont Road Adding value to deliver superior returns for investors ― High-end, boutique 62 apartment residential development in prestigious Fund overview Mosman, Sydney Fund launch Feb 2015 ― Redevelo
Slide 26: Unlisted property outlook
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Unlisted property outlook Strong investor demand continues ― Investor demand “Conditions continue to be optimal for the ― Investor demand for unlisted products continues to grow unlisted property business. In a market facing ―
Slide 27: Listed property funds
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Listed property funds
Slide 28: Listed property highlights
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Listed property highlights Significant growth since launch of initial REIT in December 2014 $ 1.8b ― Centuria Metropolitan REIT – $779m FUM1 − Market leading office REIT with 18 assets FUM1 − Over 3,150 institutional and retail
Slide 29: Centuria Industrial REIT (CIP)
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Centuria Industrial REIT (CIP) Portfolio snapshot FY173 FY16 ― Australia’s largest pure-play industrial REIT Number of assets 38 37 – Market capitalisation of $563m1 – included in S&P ASX 300 Index Book value $m 961.2 905.2 – D
Slide 30: Centuria Metropolitan REIT (CMA)
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Centuria Metropolitan REIT (CMA) ― Australia’s dominant metropolitan office REIT Portfolio snapshot FY171 FY16 – Market capitalisation in excess of $492m1 primed for inclusion in Number of assets 18 13 S&P ASX 300 Index Book va
Slide 31: Investment Bonds
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Investment Bonds
Slide 32: Investment Bonds
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Investment Bonds Centuria Life Over Fifty Guardian Friendly Society With a 35-year heritage, Centuria Life offers flexible, The Over Fifty Guardian Friendly Society invests the proceeds tax-effective ways to create, transfer an
Slide 33: Fourth largest friendly society/insurance bond issuer in Australia
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Investment Bonds Fourth largest friendly society/insurance bond issuer in Australia ― 10.8% market share of $7.4b total market Centuria Investment bond division growth v ― Unitised investment bonds grew 28% from asset investmen
Slide 34: Investment Bonds outlook
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Investment Bonds Outlook Regulatory change “With over 700 Australians turning 65 every day, Centuria’s Investment Bonds act as a structure ― 1 July 2017 super changes introduced to cap superannuation for my clients to efficient
Slide 35: Conclusion
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Conclusion
Slide 36: A strong foundation for FY18 growth
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Conclusion A strong foundation for FY18 growth ― A transformational year for Centuria Capital, with group FUM increasing 118% to $4.2b ― Acquisition of 360 Capital platform was a step-change for the group, bringing the business
Slide 37: Appendices
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Appendices
Slide 38: Appendix
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Appendix Past performance is not indicative of future performance: a) The total return figures for CNI and CMA on page 5 and 22 are based on the movement in security price from ASX opening on 1 July 2017 to ASX closing on 30 Ju
Slide 39: Definitions
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Definitions Operating Segments - Group has five reportable operating segments. These reportable operating segments are the divisions which report to the Group's Chief Executive Officer and Board of Directors for the purpose of
Slide 40: Disclaimer
CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017 Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). All information and stati