Centuria Office Reit · ASX:COF
Centuria Office Reit — Centuria Metropolitan REIT — FY2015 Earnings Presentation
30 slides from Centuria Office Reit's earnings presentation, Aug 12, 2015
Slide 1: Centuria Metropolitan REIT FY15 Results Briefing
Centuria Metropolitan REIT FY15 Results Briefing 9 HELP STREET, CHATSWOOD NSW 12 AUGUST 2015 ASX:CMA
Slide 2: Contents
FY15 Contents Section 1 FY15 Review Section 2 Operating Update Section 3 Strategy & Outlook Section 4 Appendices CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 1
Slide 3: FY15 Review
FY15 REVIEW CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 2
Slide 4: Achievements & Performance Since Listing
FY15 Achievements & Performance Since Listing > Statutory net profit of $8.9 million1 > Distributable earnings of 10.5 cents per stapled security 2,3 > Paid distribution totalling 9.2 cents per stapled security in line with guidance > Completed the acquisition of four assets valued at $129.3 million
Slide 5: Overview
FY15 Overview Allotment to Financial snapshot 1 30 June 2015 PDS Forecast 2 Change Statutory profit/(loss) 3 ($m) 8.9 4.8 Distributable earnings 4 ($m) 8.2 7.5 Distributable earnings per stapled security 4,5 (cents) 10.5 10.5 Annualised distributable earnings yield 4,5 (%) 9.37 9.37 Distribution ($m
Slide 6: Operating Update
OPERATING UPDATE CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 5
Slide 7: Key Metrics
FY15 Key Metrics Portfolio snapshot 1 Geographic diversification Asset type diversification Number of assets (#) 12 Book value ($m) 323.1 SA 14% Industrial 18% Independent valuation ($m) 322.1 NSW Weighted average capitalisation rate 2 (%) 8.43 ACT 35% 20% Occupancy 3 (%) 96.7 Office 82% Weighted av
Slide 8: Portfolio
FY15 Portfolio > Portfolio occupancy of 96.7 per cent 1 > Portfolio WALE of 4.8 years 1 > Portfolio rental growth is underpinned by 92 per cent of leases containing average fixed rental reviews of 3.6 per cent per annum Weighted Average Lease Expiry 1 Tenant diversification 2 80% Austar Entertainmen
Slide 9: Leasing
FY15 Leasing > Executed 12 lease transactions over 5,116 square metres since listing to 30 June 2015 1 > 3 new leases across 988 square metres of vacant space > 9 renewals across 4,128 square metres > De-risked ~2,900 square metre FY16 expiry at 9 Help Street, Chatswood, NSW > Agreed renewal over 1,
Slide 10: Asset Valuations
FY15 Asset Valuations > Since listing, 2 assets have been independently valued > 9 Help Street, Chatswood – substantial leasing success and the early renewal of C2HM Hill has resulted in an uplift in value of $5.5 million (12.8 per cent) to $48.5 million > 3 Carlingford Road, Epping – CMA and the ow
Slide 11: Capital Management
FY15 Capital Management > As at 30 June 2015 the Fund had two secured domestic bank debt Key debt metrics 1 facilities totalling $95 million Facility limit ($m) 95.0 > 99 per cent of drawn debt is hedged through maturity at a total Amount drawn ($m) 84.6 cost of 4.0 per cent 2 Undrawn capacity ($m)
Slide 12: Capital Transactions
FY15 Capital Transactions > Over the period the Fund completed four strategic acquisitions totalling $129.3 million, funded through a combination of bank debt ($29.3 million) and an entitlement offer (approximately $100 million) > The acquisitions were in line with the Funds strategy to invest in of
Slide 13: Post June 2015
FY15 Post 30 June 2015 > Post 30 June 2015, 7 lease commitments have been agreed or executed totalling 2,536 square metres > 4 new leases totalling 1,220 square metres > 3 renewals totalling 1,316 square metres > Key leases included: > 60 Marcus Clarke Street, Canberra – commitments have been secure
Slide 14: Key Asset Update: Help Street
FY15 Key Asset Update : 9 Help Street > Asset acquired with near term expiry risk associated with ~2,900 square metre C2HM Hill tenancy > Agreed early surrender with C2HM Hill over ~1,090 square metres in exchange for an upfront payment > Renewed the balance 1,815 square metre tenancy for a further
Slide 15: Key Asset Update: Carlingford Road
FY15 Key Asset Update : 3 Carlingford Road > The Fund and the owners of adjoining properties lodged a draft master plan with Parramatta City Council to pursue a redevelopment of the Epping Town Centre > Expectation of a positive outcome and recent sales in the area has resulted in an uplift in valua
Slide 16: Key Asset Update: Marcus Clarke Street
FY15 Key Asset Update : 54 & 60 Marcus Clarke Street > Adjoining assets acquired in May 2015 on a combined passing yield of 8.5 per cent with approximately 76 per cent occupancy > The Fund will undertake refurbishments over the near to medium term to modernise the building and enhance its already st
Slide 17: Strategy & Outlook
STRATEGY & OUTLOOK CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 16
Slide 18: Strategy
FY15 Strategy Fund > Pursue strategic acquisitions that fit CMA’s strategy and provide meaningful benefits to securityholders > Established suburban and fringe CBD markets, particularly those markets where competing supply is being withdrawn for alternate use > Seek assets that provide secure income
Slide 19: Outlook
FY15 Outlook > FY16 distributable earnings guidance of 17.9 cents per stapled security 1 > FY16 distribution guidance of 17.0 cents per stapled security in line with PDS forecasts > Indicative quarterly distribution of 4.25 cents per stapled security > Distribution yield of 8.25 per cent based on $2
Slide 20: Overview
FY15 Overview > Acquire quality ‘fit for purpose’ metropolitan real estate assets delivering a stable and secure income stream > Execute initiatives to generate income and value uplift through active asset management, risk mitigation and repositioning strategies > Emphasis on tenant retention to ens
Slide 21: Appendices
APPENDICES CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 20
Slide 22: Appendix contents
FY15 Appendix A Income Statement Appendix B Distribution Statement Appendix C Balance Sheet Appendix D Investment Portfolio Overview CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 21
Slide 23: A: Income Statement
FY15 A : Income Statement 1 Allotment to PDS 2 $m 30 June 2015 Forecast Gross property income 13.0 11.5 Straight lining of rental income 3 0.1 (0.1) Interest Income 0.1 — Total revenue 13.3 11.5 Direct property expenses (2.7) (2.2) Responsible entity fees (0.6) (0.6) Finance costs (1.2) (1.2) Manage
Slide 24: B: Distribution Statement
FY15 B : Distribution Statement Allotment to PDS $m 30 Jun 15 Forecast 1 Statutory net profit 11.2 7.4 Straight lining of rental income 2 (0.1) 0.1 Investment properties revaluation gain / (loss) (2.8) — Distributable earnings 8.2 7.5 Distribution 8.6 6.6 Distributable Earnings per stapled security
Slide 25: C: Balance Sheet
FY15 C : Balance Sheet $m 30 June 2015 PDS Cash 6.3 2.0 Investment properties 323.1 182.9 Other assets 0.6 0.4 Total assets 330.0 185.2 Interest bearing liabilities 83.9 47.7 Derivative financial instruments 0.7 — Other liabilities 10.1 1.3 Total liabilities 94.7 49.0 Net assets 235.3 136.2 Stapled
Slide 26: D: Investment Portfolio Overview
FY15 D : Investment Portfolio Overview Book Independent NLA WALE3 Property State value ($m) Valuation ($m) 1 Passing yield 2 Cap rate (sqm) (years) Occupancy 3 Office 60 Marcus Clarke, Canberra ACT 49.1 49.1 8.7% 8.4% 12,215 2.1 87.6% 9 Help Street, Chatswood NSW 48.5 48.5 7.5% 8.3% 9,401 1.8 94.5%
Slide 27: About Centuria
ABOUT CENTURIA CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015 PAGE 26
Slide 28: Centuria Capital
FY15 Centuria Capital Centuria Capital (CNI) is an Centuria Property Fund Limited Centuria Investment Bonds offers a range of unit-linked, tax ASX-listed specialist investment (CPFL) currently owns and manages effective investment bonds which can be used to meet a range of manager with $1.7 billion
Slide 29: Thank you
Centuria Metropolitan REIT Thank you Further Information: Shalome Mielewska Investor Relations +61 2 8923 8962 Nicholas Blake Trust Manager +61 2 8923 8923 www.centuria.com.au/listed-property CENTURIA METROPOLITAN REIT I ASX:CMA I 12 AUGUST 2015
Slide 30: Important Information
FY15 Important Information This presentation has been prepared by Centuria Property Funds Limited Limited (ABN 11 086 553 639, AFSL 231 149) (‘CPFL’) as responsible entity of the stapled entities Centuria Metropolitan REIT No.1 (ARSN 124 364 718) and Centuria Metropolitan REIT No.2 (ARSN 124 364 656
Centuria Metropolitan REIT — FY2015 Earnings Presentation on 6ix