Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — FY2017 Earnings Presentation
32 slides from Centuria Industrial Reit's earnings presentation, Aug 14, 2017
Slide 1: Centuria Industrial REIT FY17 Annual Results
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Centuria Industrial REIT FY17 Annual Results 24-32 STANLEY DRIVE, SOMERTON, VIC
Slide 2: Introduction
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Introduction Australia’s largest income focused industrial REIT, with a portfolio approaching $1bn A geographically diverse portfolio of 38 high quality fit for purpose assets Market capitalisation of $55
Slide 3: Agenda
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only 1 Overview 2 Results Overview 3 Portfolio Overview 4 5 6 Capital Management Guidance & Strategy Appendices 52-74 QUARRY ROAD, ERSKINE PARK, NSW
Slide 4: Overview
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Section 1 Overview
Slide 5: Highlights
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Highlights Seamless transition of management from 360 Capital to Centuria in January 2017 Delivered FY17 EPU and DPU of 20.5c, in line with revised guidance Acquired two assets for $65m in June 2017 with
Slide 6: Results Overview
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Section 2 Results Overview
Slide 7: Financial overview
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Financial overview Financial snapshot FY17 FY16 – Statutory net profit of $50.8m – FY17 Distributable earnings 1 of 20.5 cps Statutory profit/(loss) $m 50.8 49.8 Distributable earnings 1 $m 43.5 48.2 – Ma
Slide 8: Portfolio Overview
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Section 2 Portfolio Overview
Slide 9: Portfolio composition
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Portfolio composition Fit for purpose assets in key metropolitan markets – Portfolio value approaching $1 billion Geographic Diversification (by value) – Well diversified to accommodate national customers
Slide 10: Leasing overview
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Leasing overview Active management approach drives leasing volume – Secured 11 lease transactions in FY17 across 134,080sqm Lease transactions by property Tenant sqm Term Type – 4 new leases across 48,268
Slide 11: Portfolio Metrics
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Portfolio Metrics Ongoing focus on reducing vacancy and de-risking near term expiries – Vacancy has increased year on year due to: Portfolio snapshot (by income) 1 FY17 FY16 – Significant expiry in Q3 FY2
Slide 12: Capital Management
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Section 3 Capital Management
Slide 13: Capital management
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Capital management Debt refinancing Key debt metrics FY17 – Completed the refinancing of $420m bank debt facility Facility limit $m 450.0 – New common terms facility for $450m settled in June 2017 Drawn a
Slide 14: Capital transactions – acquisitions
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Capital transactions – acquisitions Growing the portfolio with complementary assets 207-219 Browns Road, Noble Park, VIC – Settled in July 2017 for $37.0m 1, providing an initial yield of 7.0%¹ – 100% lea
Slide 15: Capital transactions – divestments
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Capital transactions – divestments Improving portfolio quality by divesting ageing assets with leasing risk 60 Marple Avenue, Villawood, NSW – Settled in February 2017 for $20.0 million representing an 8.
Slide 16: Guidance & Strategy
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Section 4 Guidance & Strategy
Slide 17: Guidance
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Guidance – FY18 distributable earnings guidance of 19.5-20.0cpu – FY18 distribution guidance of 19.4cpu – Paid in quarterly installments of 4.85cpu – in line with Q3 & Q4 FY17 – Payout ratio of 97%-99% –
Slide 18: Strategy
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Strategy CIP’s strategy and ongoing focus remains unchanged Fund Strategy – Create a portfolio of industrial assets that are relevant to our key customers – Continue deleveraging of the balance sheet – Ac
Slide 19: Appendices
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendices Appendix A – Income Statement Appendix B – Distribution Statement Appendix C – Balance Sheet Appendix D – FFO Reconciliation Appendix E – Key Vacancies Appendix F – Upcoming Expiries (FY18) App
Slide 20: Appendix A – Income Statement
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix A – Income Statement Revenue 30 Jun 2017 Gross property income ($’000) 78,127 Other income ($’000) 320 Interest income ($’000) 117 Total revenue ($’000) 78,564 Expenses Direct property expenses (
Slide 21: Appendix B – Distribution Statement
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix B – Distribution Statement 30 Jun 2017 Statutory net profit ($’000) 50,817 Straight lining of rental income ($’000) (2,298) Amortisation of leasing commissions and tenant incentives ($’000) 1,219
Slide 22: Appendix C – Balance Sheet
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix C – Balance Sheet 30 Jun 2017 Cash ($’000) 8,189 Investment properties ($’000) 896,150 Other assets ($’000) 6,641 Goodwill ($’000) 10,501 Total assets ($’000) 921,481 Interest bearing liabilities
Slide 23: Appendix D – FFO Reconciliation
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix D – FFO Reconciliation CIP Distributable Earnings PCA FFO Difference FY17 Distributable earnings and FFO Reconcilliation ($’000) ($’000) ($’000) Net Profit 50,817 50,817 0 Gains from sales of inv
Slide 24: Appendix E – Key vacancies
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix E – Key vacancies Property GLA (sqm) % of Portfolio Area Vacant Since Status 457 Waterloo Road, Chullora, NSW 16,051 2.1% 4 May 17 Bank guarantee until mid August 2017, agents appointed in May 20
Slide 25: Appendix F – Upcoming Expiries (FY18)
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix F – Upcoming Expiries (FY18) Property Tenant NLA (sqm) % of Portfolio Area Expiry Status 99 Quill Way, Henderson, WA Chevron 16,419 2.2% Feb 18 Tenant will vacate on expiry 12 – 13 Dansu Court, H
Slide 26: Appendix G – 30 June 2017 pro forma Balance Sheet
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix G – 30 June 2017 pro forma Balance Sheet 1 $m 30 Jun 17 Acquisitions & Offer 30 Jun 17 pro forma Cash 8,189 3,250 11,439 Investment properties 896,150 65,000 961,150 Other assets 6,641 (3,250) 3,
Slide 27: Appendix H – Top 10 tenant & tenant industry sector diversification
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix H – Top 10 tenant & tenant industry sector diversification Top 10 tenants (by Income) Tenant industry sector diversification (by income) Woolworths Limited 8.7% Transport Logistics: 26.7% Consume
Slide 28: Appendix I – Investment Portfolio
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix I – Investment Portfolio Property State Book value $/sqm Cap rate NLA (sqm) WALE (yrs) Occupancy % 2 Woolworths Way NSW 81.0 1,485 7.25% 54,533 4.1 100.0% 457 Waterloo Road NSW 22.6 1,408 6.75% 1
Slide 29: Appendix I – Investment Portfolio
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix I – Investment Portfolio Property State Book value $/sqm Cap rate NLA (sqm) WALE (yrs) Occupancy % 12-13 Dansu Court VIC 14.3 1,239 7.50% 11,541 0.6 95.1% 500 Princes Highway VIC 20.3 1,472 8.00%
Slide 30: Appendix I – Investment Portfolio
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Appendix I – Investment Portfolio Property State Book value $/sqm Cap rate NLA (sqm) WALE (yrs) Occupancy % Lot 69 Jay Street QLD 11.0 2,328 8.00% 4,726 8.0 100.0% 22 Hawkins Crescent QLD 44.0 2,321 7.25%
Slide 31: Disclaimer
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 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 099 680 252
Slide 32: Thank you
CENTURIA INDUSTRIAL REIT I FY17 ANNUAL RESULTS I CIP:ASX I 14 AUGUST 2017 For personal use only Thank you
Centuria Industrial REIT — FY2017 Earnings Presentation on 6ix