Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — H1 2017 Earnings Presentation
27 slides from Centuria Industrial Reit's earnings presentation, Feb 16, 2017
Slide 1: Centuria Industrial REIT 1H17 Interim Results
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Centuria Industrial REIT 75 OWEN STREET, GLENDENNING, NSW PAGE 01
Slide 2: Agenda
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only 01. Results Overview 02. Porfolio Overview 03. Capital Mangement 04. Strategy & Guidance 05. Appendices
Slide 3: Results Overview
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Section 1 Results Overview
Slide 4: Financial Highlights
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Financial Highlights Financial Snapshot 1H17 FY16 1H16 Earnings generated by quality, Statutory profit/(loss) $m 31.4 49.8 1.6 well located industrial assets Distributable earnings 1 $m 22.9 48.2 24.9
Slide 5: Operating Highlights
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Operating Highlights Asset quality drives leasing momentum 95.1% Portfolio occupancy 1 • Significant leasing success reducing vacancy & near term expiry – Secured 77,245 sqm across 7 key transactions (
Slide 6: NTA Movement
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only NTA Movement Investor demand for quality industrial assets driving NTA uplift Movements in NTA 2.40 ($) 0.02 0.03 (0.01) 2.36 2.30 2.32 NTA 2.20 4 cps +1.7% 2.10 2.00 FY16 Revaluation MTM Hedge Other 1
Slide 7: Portfolio Overview
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Section 2 Portfolio Overview
Slide 8: Portfolio Metrics
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Portfolio Metrics Quality portfolio underpinned by strong rental covenants Portfolio Snapshot 1H17 FY16 1H16 Geographic Weighted Average Lease Expiry 1,2 Number of assets 1 # 37 37 37 Diversification 1
Slide 9: Leasing Overview
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Leasing Overview Focus on proactive asset management strategies to mitigate expiry risk • Secured 7 lease transactions in 1H17 across Lease Transactions by Property Tenant sqm Type Term 77,245 sqm 74-9
Slide 10: Tenancy Profile
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Tenancy Profile Quality industrial assets occupied by tenants with strong leasing covenants • Transport, consumer goods Tenancy Profile Rental Reviews Tenant Diversification and manufacturing tenants (
Slide 11: Portfolio Valuations
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Portfolio Valuations 74-92, NEWTON ROAD, WETHERILL PARK, NSW Key Valuation Metrics 1H17 FY16 1H16 Book value 1 $m 911.9 905.2 867.0 Portfolio WACR % 7.42 7.45 7.91 Average capital value $psm 1,315 1,30
Slide 12: Capital Management
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Section 3 Capital Management
Slide 13: Debt Management
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Debt Management Focus on refinancing and de-leveraging the balance sheet 42.9% 3.8% Gearing All in cost of debt 1 • CIP’s existing facilities totaling $420m expire June 2017 1 Key Debt Metrics 1H17 • C
Slide 14: Capital Transactions
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Capital Transactions Divest vacancy and near term expiry to de-leverage the balance sheet 60 Marple Avenue, Villawood, NSW On 5 January 2017 CIP entered into a contract to sell 60 Marple Avenue, Villaw
Slide 15: Strategy & Guidance
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Section 4 Strategy & Guidance
Slide 16: Strategy
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Strategy CIP’s strategy and ongoing focus remains unchanged Fund Strategy Portfolio Strategy • Focus on achieving sustainable earnings • Continued focus on portfolio leasing to ensure • Continued delev
Slide 17: Guidance
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Guidance 24-32 STANLEY DRIVE, SOMERTON, VIC • On 9 August 2016 prior management provided earnings and distribution guidance of greater than 21.6 cps • Since taking management on 9 January 2017, Centuri
Slide 18: Appendices
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendices
Slide 19: Appendix A – Income Statement
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix A – Income Statement 31 Dec 2016 Revenue Gross property income ($’000) 39,882 Other income ($’000) 319 Interest income ($’000) 53 Total revenue ($’000) 40,254 Expenses Direct property expenses
Slide 20: Appendix B – Distribution Statement
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix B – Distribution Statement $m 31 Dec 2016 Statutory net profit ($’000) 31,362 Straight lining of rental income 1 ($’000) (716) Investment properties revaluation (gain) / loss ($’000) (2,918) L
Slide 21: Appendix C – Balance Sheet
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix C – Balance Sheet $m 31 Dec 2016 Cash ($’000) 5,014 Investment properties ($’000) 911,850 Other assets ($’000) 2,344 Goodwill ($’000) 10,501 Total assets ($’000) 929,709 Interest bearing liabi
Slide 22: Appendix D – Key Vacancies
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix D – Key Vacancies Property NLA (sqm) % of Portfolio Vacant Since Status Area 49 Temple Dr, Thomastown, VIC 13,438 2.0 20 Jun 16 Part temperature controlled. Would suit food or pharmaceutical.
Slide 23: Appendix E – Upcoming Expiries
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix E – Upcoming Expiries Property Tenant NLA % of Expiry Status (sqm) Portfolio Area 310 Spearwood Ave, CTI Freight System 15,212 2.2 28 Feb 17 Tenant vacating due to consolidation. Marketing und
Slide 24: Appendix F – Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix F – Investment Portfolio Property State Book Value $/sqm Cap Rate % NLA (sqm) WALE 1 (yrs) Occupancy % 2 Woolworths Way, Warnervale NSW 80.9 1,483 7.25 54,533 4.6 100.0 457 Waterloo Road, Chul
Slide 25: Appendix F – Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix F – Investment Portfolio Property State Book Value $/sqm Cap Rate NLA (sqm) WALE 1 (yrs) Occupancy % 14-17 Dansu Court, Hallam VIC 17.6 1,031 7.50 17,070 2.3 100.0 12–13 Dansu Court, Hallam VI
Slide 26: Appendix F – Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Appendix F – Investment Portfolio Property State Book Value $/sqm Cap Rate % NLA (sqm) WALE 1 (yrs) Occupancy % 22 Hawkins Crescent, Bundamba, QLD QLD 43.5 2,295 7.25 18,956 7.9 100.0 1 Ashburn Road, B
Slide 27: Disclaimer
CENTURIA INDUSTRIAL REIT I 1H17 INTERIM RESULTS I CIP:ASX I 16 FEBRUARY 2017 For personal use only Disclaimer This presentation has been prepared by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185, AFSL 340 304) (‘CPF2L’) as responsible entity of the Centuria Industrial REIT (ARSN 099 680
Centuria Industrial REIT — H1 2017 Earnings Presentation on 6ix