Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — H1 2018 Earnings Presentation
32 slides from Centuria Industrial Reit's earnings presentation, Feb 8, 2018
Slide 1: Centuria Industrial REIT 1H18 Interim Results
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Centuria Industrial REIT 1H18 Interim Results 1 ASHBURN ROAD , BUNDAMEA, QLD
Slide 2: Centuria Capital: ASX listed specialist investment manager
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Centuria Capital ASX listed specialist investment manager Centuria Capital Group $ 4.6b Funds Under Management Funds Management Property fund management Investment Bonds $ 3.7b Funds Under Management $
Slide 3: CIP, Australia's largest ASX listed income focused industrial REIT
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only CIP, Australia’s largest ASX listed income focused industrial REIT Key Metrics 39 High quality assets $ 1.0b Portfolio value $ 630m Market capitalisation 1 40.6% Gearing 3 95.9%Portfolio occupancy 4 9.2
Slide 4: Results Overview
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 1 2 3 4 5 For personal use only Results Overview Financial Results Portfolio Overview Guidance & Strategy Appendices Overview 1 ASHBURN ROAD, BUNDAMBA, QLD
Slide 5: Overview
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Section 1 Overview
Slide 6: Highlights
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Highlights Continuing to build Australia’s dominant income focused industrial REIT Record leasing volumes – increasing occupancy to 95.9% and WALE to 4.9 years 100% tenant retention rate in 1H18 Continu
Slide 7: Financial Results
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Section 2 Financial Results
Slide 8: Financial Overview
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Financial Overview Financial snapshot 1H18 1H17 − Statutory net profit of $49.6m Statutory profit/(loss) $m 49.6 31.4 − 1H18 Distributable earnings 1 of 10.1cpu Distributable earnings 1 $m 24.2 22.9 − M
Slide 9: Capital Management
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Capital Management Continued deleveraging of balance sheet Key debt metrics 1H18 – Gearing reduced by 2.5% since June 2017 to 40.6% Facility limit $m 460.0 – Refinanced December 2017 maturity, no furthe
Slide 10: Portfolio Overview
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Section 3 Portfolio Overview
Slide 11: Portfolio composition
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Portfolio composition High quality assets accommodating quality tenants Portfolio Snapshot 1H18 FY17 1 1H17 Geographic Diversification Number of assets 39 38 37 (by value) Book value $m 1,005.2 961.2 91
Slide 12: Leasing overview
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Leasing overview Active management generates record leasing volume − Secured 18 lease transactions in 1H18 across 159,502sqm, Weighted Average Lease Expiry (by income) 20.8% of portfolio GLA 70 (%) − Ei
Slide 13: Valuations and leasing
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Valuations and leasing Revaluations underpin increase in NTA Lot 14 Sudlow Road and 310 Spearwood Avenue, Bibra Lake, WA – 100% of portfolio revalued in 1H18 – $31 million increase on prior book value 1
Slide 14: Portfolio enhancement – value add
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Portfolio enhancement – value add Unlocking value through expansions and re-zoning 457 Waterloo Road Chullora, NSW Portfolio review has identified various projects embedded with CIP’s portfolio with pot
Slide 15: Capital transactions – acquisitions and divestments
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Capital transactions – acquisitions and divestments Continuing to grow the portfolio with complementary assets Acquisitions 92 Robinson Ave, Belmont, WA − Invested $122.6 million since June 2017 – $67.2
Slide 16: Guidance & Strategy
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Section 4 Guidance & Strategy
Slide 17: Strategy & Guidance
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Strategy & Guidance CIP has a simple strategy - to deliver income and capital growth to investors from a portfolio of high quality Australian industrial 24-32 Stanley Drive Somerton, VIC assets; by – fo
Slide 18: Appendices
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Section 5 Appendices Appendix A – Leasing Expiry by State Appendix B – Market Supply Appendix C – Income Statement Appendix D – Distribution Statement Appendix E – Balance Sheet Appendix F – NTA Movemen
Slide 19: Appendix A - Leasing expiry by state
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix A - Leasing expiry by state 1 NSW Subportfolio Expiry Profile (by income) VIC Subportfolio Expiry Profile (by income) 100 (%) 100 (%) 80 80 WALE Occupancy GLA WALE Occupancy GLA 4.7 years 99.4%
Slide 20: Appendix B – Market supply
For personal use only 0 200 400 800 600 1,200 1,000 Apr 11 Prime Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Secondary Jan 13 CENTURIA INDUSTRIAL REIT Apr 13 1) Source: Knight Frank Research Jul 13 Oct 13 Available Space – Sydney Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Appendix
Slide 21: Appendix C Income Statement
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix C Income Statement Revenue 31 Dec 2017 Gross property income ($’000) 41,719 Other income ($’000) 1,676 Interest income ($’000) 82 Total revenue ($’000) 43,477 Expenses ($’000) Direct property e
Slide 22: Appendix D Distribution Statement
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix D Distribution Statement 31 Dec 2017 Statutory net profit ($’000) 49,608 Straight lining of rental income ($’000) 720 Amortisation of leasing commissions & tenant incentives ($’000) 1,051 Inves
Slide 23: Appendix E Balance Sheet
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix E Balance Sheet 31 Dec 2017 Cash ($’000) 7,537 Investment properties ($’000) 1,005,221 Trade & other receivables ($’000) 4,999 Other assets ($’000) 46,544 Goodwill ($’000) 10,501 Derivative fin
Slide 24: Appendix F – NTA movement
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix F – NTA movement Strong NTA growth NTA Growth 2.5 0.2 0.12 2.46 2.45 0.15 2.4 0.1 2.35 0.01 2.35 0.05 (0.01) (0.01) 2.3 0 2.25 (0.05) 2.2 (0.1) 2.15 (0.15) 2.1 (0.2) 30 Jun 17 Transactions Impa
Slide 25: Appendix G FFO Reconciliation
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix G FFO Reconciliation 1H18 Distributable earnings and FFO Reconciliation CIP Distributable Earnings ($’000) PCA FFO ($’000) Difference ($’000) Statutory Net Profit 49,608 49,608 0 Straight linin
Slide 26: Appendix H Key Vacancies
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix H Key Vacancies Property GLA (sqm) % Portfolio Area Vacant Since Status W4, 310 Spearwood Ave, Bibra Lake, WA 15,212 2.0 28 Feb 17 Actively being marketed for 2,500sqm to 15,000sqm 49 Temple Dr
Slide 27: Appendix I Upcoming Expiries (CY18)
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix I Upcoming Expiries (CY18) GLA % Portfolio Expiry Expiry Property Tenant (sqm) Area Date Period Status 99 Quill Way, Henderson, WA Chevron 16,419 2.1 28 Feb 18 1HCY18 Tenant will vacate on expi
Slide 28: Appendix J Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix J Investment Portfolio Property State Book value $/sqm Cap rate GLA (sqm) WALE (yrs) 1 Occupancy % 1 2 Woolworths Way, Warnervale NSW 81.0 1,485 7.50% 54,533 3.6 100.0% 29 Glendenning Road, Gle
Slide 29: Appendix J Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix J Investment Portfolio Property State Book value $/sqm Cap rate GLA (sqm) WALE (yrs) 1 Occupancy % 1 6 Albert Street, Preston VIC 27.2 1,325 7.50% 20,532 2.5 100.0% 24-32 Stanley Drive, Somerto
Slide 30: Appendix J Investment Portfolio
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Appendix J Investment Portfolio Property State Book value $/sqm Cap rate GLA (sqm) WALE (yrs) 1 Occupancy % 1 69 Rivergate Place, Murarrie QLD 30.0 2,604 6.50% 11,522 5.4 100.0% 21 Jay Street, Townsvill
Slide 31: Disclaimer
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 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 2
Slide 32: Thank you
CENTURIA INDUSTRIAL REIT I 1H18 INTERIM RESULTS I ASX:CIP I 8 FEBRUARY 2018 For personal use only Thank you
Centuria Industrial REIT — H1 2018 Earnings Presentation on 6ix