Centuria Capital Group · ASX:CNI
Centuria Capital — 360 Capital Office Fund — HY16 Earnings Presentation
21 slides from Centuria Capital's earnings presentation, Feb 18, 2016
Slide 1: 2016 Half Year Results Presentation
2016 HALF YEAR RESULTS PRESENTATION ASX: TOF 18 FEBRUARY 2016 360 Capital Investment Management Limited (ACN 133 363 185) as responsible entity for the 360 Capital Office Fund (ARSN 106 453 196)
Slide 2: Table of contents
Table of contents 2016 HALF YEAR RESULTS PRESENTATION APPENDICES 1 At a glance A Balance sheet 2 Key achievements B Profit &loss statement 3 Earnings & distributions C Operating earnings reconciliation 4 Assets & liabilities D Portfolio metrics 5 Asset recycling E Property details 6 Portfolio manage
Slide 3: At a glance
1 At a glance $196.1m 5.1 year 98.7% 3 PORTFOLIO VALUE WALE OCCUPANCY ASSETS 9.9 cpu 8.5 cpu HY16 18.3% ~70% HY16 FORECAST FY16 OPERATING GEARING DISTRIBUTIONS TAX DEFERRED EARNINGS 3
Slide 4: Key Achievements
2 Key Achievements TOF continues its focus on creating Unitholder value and sustainable EPU and DPU growth ACHIEVEMENT • 9,500 sqm of the portfolio leased or extended • Increased WALE from 4.6 to 5.1 years; maintained strong occupancy of 98.7% Portfolio management • WACR firmed 40bp to 7.4% as a res
Slide 5: Earnings & distributions
3 Earnings & distributions • Operating EPU skewed to first half FY16 due to sale of Allara Street 1H16 ($m) 1H15 ($m) CHANGE • Statutory EPU lower than Operating EPU due to OPEARTING INCOME 11,214 10,906 2.8% • loss on sale including transaction costs for Allara St; and Property expenses (1,775) (1,
Slide 6: Assets & liabilities
4 Assets & liabilities • Total assets reduced due to the sale of Allara St for $29.0m 31 DEC 15 30 JUNE CHANGE ($m) 15 ($m) • Liabilities reduced as net proceeds from sale used to repay debt Cash 3,645 3,421 • $40.3m debt capacity to pursue suitable acquisitions Receivables 497 988 • NTA down 1.4% d
Slide 7: Asset recycling
5 Asset recycling Apr-2014 Jun-2014 Dec-2014 Oct-2015 Apr-2016 Portfolio at ASX listing Non-core disposal: Core acquisition: Non-core disposal: Proposed acquisition: Burwood Botanicca 8 Allara St 111 St George’s Tce Purchase Equity $30.4m Value: $235.0 Sale Price: $80.0 $46.5 Sale Price: $29.0 Price
Slide 8: Portfolio management
6 Portfolio management LEASE EXPIRY PROFILE1 TOP 10 TENANTS1 44.6% GE Capital Finance 13.9% 40.0% QLD Govt (QLD Studies) 12.90% QLD Govt (DOJ) 12.4% Dominos 9.4% Forever New 9.1% 20.0% 15.7% Devine 13.9% 9.0% 12.9% 9.9% SMEC Australia 8.7% 1.9% Frasers 4.5% 1.1% 0.0% Collins Foods 4.5% Vacant FY16 F
Slide 9: Capital management
7 Capital management • Over-hedging will remain in place as proposed acquisition DEBT FACILITIES will be debt funded FACILITY DRAWN • Post proposed acquisition hedging in line with hedging BANK AMOUNT ($m) EXPIRY policy of 70% - 100% ($m) • Weighted average hedge term 4.1 years; weighted average NAB
Slide 10: Peer comparison
8 Peer comparison FY16 earnings yield1 FY16 distribution yield1 Average 8.4% Average 7.6% 9.8% 8.9% 9.0% 8.5% 8.6% 7.3% 7.4% 8.2% 8.0% 7.8% 7.2% 5.0% IOF GMF IDR CMA TOF GDI IOF GMF IDR CMA TOF GDI Gearing2 Premium/(discount) to NTA3 Average 27.7% Average -3.2% 32.0% 32.8% 1.5% 2.5% 26.7% 28.2% 28.3
Slide 11: Proposed acquisition
9 Proposed acquisition 111 St George’s Terrace, Perth, WA – Agreed terms (subject to Unitholder and other approvals) • Accretive to EPU and DPU • Stamp duty effective acquisition • Offer price $3.73 per Unit being Dec-15 NTA • Distribution yield 8.6% on offer price • Potential to increase ownership
Slide 12: Key focus and outlook
10 Key focus and outlook KEY FOCUS • Leasing current retail vacancy and FY17 expiry • Reinvest Allara St proceeds FY16 GUIDANCE • Investigate alternate debt funding structures with longer tenure 18.0 cpu • Close price gap to NTA OPEARTING EARNINGS • Achieve greater relevance via S&P/ASX 300 AREIT In
Slide 13: Questions?
QUESTIONS?
Slide 14: Appendices
~—. Capital Gaieo U p APPENDICES
Slide 15: Balance sheet
A Balance sheet 31 Dec 15 30 Jun 15 BALANCE SHEET ($,000) ($,000) ASSETS Cash and cash equivalents 3,645 3,421 Trade and other receivables 497 988 Investment properties held for sale - - Investment properties 196,100 226,100 TOTAL ASSETS 200,242 230,509 LIABILITIES Trade and other payables 2,015 2,3
Slide 16: Profit & loss statement
B Profit & loss statement 31 Dec 15 31 Dec 14 PROFIT AND LOSS STATEMENT ($,000) ($,000) Rental income 10,689 10,202 Finance revenue 40 72 Net gain on fair value of rental guarantee 54 311 TOTAL INCOME 10,783 10,585 Investment property expenses (1,775) (1,868) Management Fees (767) (736) Other expens
Slide 17: Operating earnings reconciliation
C Operating earnings reconciliation 31 Dec 15 31 Dec 14 OPERATING EARNINGS RECONCILIATION ($,000) ($,000) STATUTORY NET PROFIT 4,366 3,652 Specific non-cash items Net loss on fair value of investment properties 200 741 Gain on fair value of rental guarantee (54) (311) Rental guarantee cash received
Slide 18: Portfolio metrics
D Portfolio metrics VALUE LAST AREA OCCUPANCY WALE PROPERTY ADDRESS STATE CAP % ($m) VALUED (sqm) % (yrs) 1 154 Melbourne Street QLD 77.5 Mar-15 7.50% 11,282 98% 2.3 2 483 Kingsford Smith Drive QLD 70.0 Mar-15 7.42% 9,322 98% 8.0 3 576 Swan Street VIC 48.6 Mar-15 7.25% 8,331 100% 6.2 Portfolio Total
Slide 19: Portfolio metrics
D Portfolio metrics TOP 10 TENANTS GEOGRAPHIC DIVERSIFICATION (by value) RENT % TENANT EXPIRY VIC ($m) TOTAL 25% GE Capital Finance 2.2 13.9% Aug 21 Queensland Government 2.1 12.9% Jun 17 (Queensland Studies Authority) Queensland Government 2.0 12.4% Aug 18 (Department of Education) Domino's Pizza 1
Slide 20: Property details
E Property details 154 Melbourne Street, South Brisbane, QLD 483 Kingsford Smith Drive, Hamilton, QLD 574 Swan Street, Melbourne, VIC The property forms part of the Hamilton Harbour The property is located in Botanicca Corporate The property is situated in the Near City suburb of mixed use developme
Slide 21: Disclaimer
Disclaimer This presentation has been prepared by 360 Capital Investment Management Limited (ACN 133 363 185, AFSL 340304) as responsible entity of the 360 Capital Office Fund (ARSN 106 453 196) (‘TOF’ or the ‘Fund’) . All information and statistics in this presentation are current as at 18 February