Centuria Capital Group · ASX:CNI
Centuria Capital — FY2021 Earnings Presentation
40 slides from Centuria Capital's earnings presentation, Aug 11, 2021
Slide 1: Centuria Capital Group FY21 Results
UNLISTED: BLOOMFIELD MEDICAL CENTRE, ORANGE, NSW LISTED: 2 WOOLWORTHS WAY, WARNERVALE, NSW UNLISTED: CENTURIA GOVERNMENT INCOME PROPERTY FUND, FOOTSCRAY, VIC Centuria UNLISTED: 27 NEALES ROAD, Capital Group EAST TAMAKI, AUCKLAND UNLISTED: EXCHANGE TOWER, 2 THE ESPLANADE, FY21 RESULTS PERTH, WA A S
Slide 2: Agenda
Acknowledgement of Country Our group manages property throughout Australia and New Zealand. Accordingly, Centuria pays its respects to the traditional owners of the land in each country, to their unique cultures and to their elders past and present. Agenda 1. Group Overview 2. Financial Results 3. D
Slide 3: Group Overview
SECTION ONE Group Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 3 CIP: 23-411 GALWAY UNLISTED: AVENUE, WILLIAM STREET, MARLESTON, PERTH, WA SA
Slide 4: A leading Australasian real estate funds manager
A leading Australasian real estate funds manager Included in the S&P/ASX200 Index $1.1bn $17.4bn GROUP AUM ON BALANCE SHEET $250m CASH ON HAND $16.5bn REAL ESTATE AUM 1 CENTURIA OFFICE (ASX:COF) INVESTMENTS $240m (19.9%)2 LISTED CO- CENTURIA INDUSTRIAL (ASX:CIP) $5.5bn $11.0bn $0.9bn INVESTMENT BOND
Slide 5: Delivering strong growth and creating value across the platform
Delivering strong growth and creating value across the platform $17.4bn 13.2cps 11.0cps 61.8% Group FY22 OEPS FY22 DPS 12 month total AUM guidance guidance securityholder return1 98% growth over FY21 +10% increase +10% increase S&P/ASX200 Index +27.8% above FY21 OEPS above FY21 DPS S&P/ASX200 AREIT
Slide 6: A record year of Group expansion
A record year of Group expansion Strong performance in COVID-19 backdrop C O R P O R AT E • Operating earnings: 12.0cps (FY20: 12.0cps) CNI FY21 EARNINGS & DISTRIBUTIONS • Distributions: 10.0cps (FY20: 9.7cps) • Completed off market acquisitions of Augusta & Primewest • Centuria Industrial REIT to $
Slide 7: Major direct real estate and corporate acquisitions
Major direct real estate and corporate acquisitions ASSETS UNDER MANAGEMENT $17.4bn 11.0 UNLISTED REAL ESTATE $8.8bn $6.2bn 46% $3.8bn $4.9bn 2.6 4.0 CAGR1 1.9 5.5 LISTED REAL ESTATE 1.5 4.0 1.5 2.1 2.7 0.8 0.9 0.9 0.8 0.9 INVESTMENT BONDS FY17 FY18 FY19 FY20 FY21 $11bn+ OF CORPORATE $1.4bn CORPORAT
Slide 8: Proven growth through corporate initiatives
Proven growth through corporate initiatives CENTURIA INDUSTRIAL REIT (ASX:CIP) CENT URIA HEALT HCARE CENT URIA NZ PRIMEWEST ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 ASSETS UNDER MANAGEMENT 1 $5.6bn 32% $3.1bn 35% 35% INCREASE $2.3bn 12% CAGR CAGR $1.1bn $1.7bn IN
Slide 9: 161% CNI total securityholder return since the start of FY19
161% CNI total securityholder return (TSR1,2) since the start of FY19 Compared to major A-REIT peers and the S&P/ASX200 A-REIT Index 30-Jun-21 16-Jul-21 (end of FY21) (CNI’s ASX200 CNI TSR: 130% index inclusion) TSR to 6-Aug-211,2 175% +184% +161% CNI 150% +159% 125% 100% 75% 50% +52% +35% 25% +29%
Slide 10: Sustainability at Centuria Capital
Sustainability at Centuria Capital Developing a flexible and relevant sustainability framework Centuria Capital will be releasing its first Sustainability Report later this year. Highlights to be featured in this report are summarised here. Centuria Capital’s sustainability framework flows through t
Slide 11: Financial Results
SECTION TW O Financial Results A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 11 LISTED: TELSTRA DATA CENTRE COMPLEX, CLAYTON VIC
Slide 12: Operating earnings and distributions
Operating earnings and distributions EARNINGS AND DISTRIBUTIONS (CENTS PER SECURITY) OPERATING NPAT1 STATUTORY NPAT3 $70.2m $143.5m 16.30 OPERATING EPS2 STATUTORY EPS3 13.2 12.0cps 24.6cps 12.70 12.00 12.00 FY21 PERFORMANCE 10.30 Distributions per stapled security 10.0 cents Underpinned by 92% recur
Slide 13: Expanded platform enhances fee generation for the Group
Expanded platform enhances fee generation for the Group FY21 operating recurring revenue of 92% FY21 FY20 OPERATING PROFIT BY SEGMENT ($m) ($m) Profit increase of 40% reflects Property funds management1 45.9 32.7 1 1 larger real estate platform Performance fees 17.9 21.5 2 FY21 performance fee incom
Slide 14: Balance sheet positioned to capitalise on more growth opportunities
Balance sheet positioned to capitalise on more growth opportunities Increased funding optionality, access to new finance instruments OPERATING BALANCE SHEET FY21 ($m) FY20 ($m) ASSETS Cash and cash equivalents 249.6 149.5 Receivables 120.8 65.5 Financial assets 750.2 523.1 Other assets 8.7 12.4 Defe
Slide 15: Integration, systems and processes
Integration, systems and processes Scalable systems and processes delivered to support platform growth DELIVERED CURRENT FOCUS Successful history of corporate integrations building out scalable systems and processes Allocating top talent to enhance our integration processes Agile transition methodol
Slide 16: Divisional Overview
SECTION THREE Divisional Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 16 UNLISTED: VERMONT PRIVATE HOSPITAL, BURWOOD HWY, VIC
Slide 17: Real estate platform expansion to $16.5bn
Real estate platform expansion to $16.5bn1 (+106% over FY21) Compelling sectors, diverse fund types and capital sources FY21 GEOGRAPHIES FY21 ASSET SECTORS $16.5bn 0.1 $16.5bn AGRICULTURE 0.1 OTHER2 0.8 OTHER3 2.2 NEW ZEALAND 1.1 HEALTHCARE 1.3 LARGE FORMAT RETAIL 1.3 DAILY NEEDS RETAIL FY20 FY20 $8
Slide 18: Enhanced sector diversification creates new growth opportunities
UNLISTED Enhanced sector diversification creates new growth opportunities $16.5bn Real Estate Platform1,2 DAILY NEEDS LARGE FORMAT OFFICE INDUSTRIAL HEALTHCARE AGRICULTURE RETAIL (“DNR”) RETAIL (“LFR”) $7.1bn $4.8bn $1.3bn $1.3bn $1.1bn $0.1bn AUM AUM AUM AUM AUM AUM 43% 29% 8% 8% 7% 1% (FY20: 58%)
Slide 19: FY21 record of $2.5bn gross real estate acquisitions
FY21 record of $2.5bn gross real estate acquisitions1 50 assets acquired, 75% via off market or select campaigns FY21 REAL ESTATE GROSS ACQUISITIONS 1,2 108% ABOVE FY20 PERIOD INDUSTRIAL $1,377m 28 ACQUISITIONS $2.5bn OFFICE $536m 4 ACQUISITIONS HEALTHCARE $416m 12 ACQUISITIONS $1.2bn $0.9bn DAILY N
Slide 20: High quality long-term income streams
High quality long-term income streams Integrated management capabilities lead to strong asset management success FY20 FY21 TOP TENANTS BY INCOME (%) 2 6.0 YEAR WEIGHTED AVG LEASE EXPIRY (WALE) BY INCOME 1,2 ~140 ~340 10.0 9.1 ASSETS ASSETS1 Government 15.0% 8.3 7.1 ~600 ~2,280 Woolworths Limited 5.5
Slide 21: $1.9bn pipeline to seed funds
$1.9bn pipeline to seed funds $442m Development fees CNI will selectively use its $53.7m est. value on completion of CNI and profits provide balance sheet to seed and Carrying value of CNI balance balance sheet development assets. growing income expand its property funds sheet development assets 6 c
Slide 22: Unlisted property: AUM growth to $11.0bn
Unlisted property: AUM growth to $11.0bn (+175% for FY21) >12,000 3-6 $2.0m $17.9m $21.4m 31% 57% Australasian Funds in the FY21 performance fee FY21 recognised FY21 Latent underlying Unlisted AUM with no fund Unlisted AUM with expiry review investors top 10 index1 cash collected performance fees pe
Slide 23: Unlisted property: Servicing a distribution network of over 12,000 investors
Unlisted property: Servicing a distribution network of over 12,000 investors SELECT SI NGLE ASSET I NI TI ATI VES SELECT M ULTI ASSET CLOSED -ENDED & OPEN-ENDED FUND I NI TI ATI VES $224m NZ$178m NZ$547m $190m $63m NZ$55m CENTURIA GOVERNMENT VISY PENROSE AUGUSTA INDUSTRIAL CENTURIA HEALTHCARE CENTUR
Slide 24: Unlisted property: Servicing a distribution network of over 12,000 investors
Unlisted property: Servicing a distribution network of over 12,000 investors I NSTI TUTI ONAL I NI TI ATI VES CENTURI A BASS CREDI T Lutwyche, Queensland Rockbank, Victoria $930m $587m $500m $272m $448m $176m DAILY NEEDS RETAIL OFFICE HEALTHCARE 140 ST GEORGES TOTAL COMMITTED OPEN-ENDED FUND MANDATE
Slide 25: Listed property: AUM growth to $5.5bn
Listed property: AUM growth to $5.5bn (+37% for FY21) ASX: ASX: NZX: Artist Impression COF CIP APL Australia’s largest Australia’s largest pure- Targeting long term CENTURIA pure-play Office REIT CENTURIA play Industrial REIT ASSET total returns OFFICE REIT INDUSTRIAL REIT PLUS A quality portfolio o
Slide 26: Strategy & Outlook
SECTION FOUR Strategy & Outlook A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 26 UNLISTED: EXCHANGE TOWER, 2 THE ESPLANADE PERTH, WA
Slide 27: Strategy and Markets
Strategy and Markets CENTURIA CAPITAL – A LEADING AUSTRALASIAN PROPERTY FUNDS MANAGER Our people are leaders in their field throughout Australia and New Zealand Deliver income and capital growth from carefully selected, high-growth asset sectors STRATEGIC to a broad range of Centuria investor profil
Slide 28: Refining Our Strategy
Refining Our Strategy • Committed to building Centuria brand and portfolios throughout Australia and NZ • CNI platform now highly scalable with ASX 200 index inclusion CLEAR AND SIMPLE • Focus on long term, predictable earnings growth THEMES • Increased alignment to alternative’s including Healthcar
Slide 29: Appendices
SECTION FIVE Appendices A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 29 LISTED: 6 McDONALD ROAD, INGLEBURN, NSW
Slide 30: Centuria Capital Group – a leading Australasian real estate funds manager
Centuria Capital Group – a leading Australasian real estate funds manager GENERATING INVESTMENT INTEGRATED PLATFORM ACTIVE MANAGEMENT OPPORTUNITIES ASSET FUND CAPITAL BALANCE PLATFORM GEOGRAPHY MANAGEMENT CLASSES TYPES SOURCES SHEET SUPPORT Listed Funds Australia Office Listed Cash on hand Co-invest
Slide 31: Sustainability (including ESG) approach
Sustainability (including ESG) approach The Group’s approach to Sustainability is overseen by Centuria Capital (ASX:CNI), its Board, Committees and Executive Management team. Regular monitoring and review of the Group’s Sustainability initiatives is undertaken by Centuria’s ESG Management Committee1
Slide 32: Group AUM movement ($bn)
Group AUM movement ($bn) $ billions 1 2 3 LISTED: 825 ANN STREET, FORTITUDE VALLEY, QLD 1. Includes Primewest acquisitions post April 2021 merger announcement 2. Includes Primewest assets CENTURIA CAPITAL GROUP ASX:CNI 32 3. Divestment of 465 Victoria Avenue, Chatswood, NSW reflected as 100% interes
Slide 33: A $16.5bn leading Australasian real estate platform
UNLISTED A $16.5bn leading Australasian real estate platform1 WA 24% 111 properties valued at $3,992m NSW 18% 70 properties valued at $2,990m AUCKLAND 10% QLD 17% 39 properties valued at $1,581m NT 82 properties valued at $2,845m QLD OTHER NZ 3% VIC 17% 28 properties valued at $580m WA 56 properties
Slide 34: CIP, COF and APL portfolio snapshots
CIP: Australia’s APL: COF: Australia’s largest domestic Targeting largest pure play pure play industrial long term office REIT REIT total returns • Delivered FY21 FFO of 19.9 cents per unit • Delivered FY21 upgraded FFO guidance of 17.6 cents per unit • Delivered FY21 Distributions of 16.5 cents per
Slide 35: Continuing to build out Centuria LifeGoals
Continuing to build out Centuria LifeGoals $0.9bn 10% ASSETS UNDER MANAGEMENT FLOWS FY21 TOTAL AUSTRALIAN AUM INVESTMENT BOND MARKET SHARE1 FY21 ($m) FY20 ($m) FY21 CHANGE (%) APPLICATIONS ($m) REDEMPTIONS ($m) Prepaid funeral plans (Guardian)2 582.0 520.9 11.7% 29.1 -39.3 52 31 Capital Guaranteed (
Slide 36: Reconciliation of statutory profit to operating profit
UNLISTED Reconciliation of statutory profit to operating profit FY21 ($m) FY20 ($m) Statutory net profit after tax 149.6 22.1 Statutory EPS (cents)1 24.6 4.7 ADJUSTED FOR NON-OPERATING ITEMS (Gain)/loss on fair value movements in derivatives and investments (79.8) 34.8 Transaction and other costs 4.
Slide 37: Co-investments reconciliation
Co-investments reconciliation CARRYING DISTRIBUTION CARRYING VALUE DISTRIBUTION FUND VALUE CO-INVESTMENTS TYPE 30 JUN 2021 INCOME FY21 30 JUN 2020 INCOME FY20 Strong alignment to ($m) ($m) ($m) ($m) Centuria’s listed REITs Centuria Industrial REIT (ASX: CIP)1 Listed 345.0 14.4 215.8 12.6 CNI is the
Slide 38: Definitions
Definitions Operating Segments: Group has six reportable operating • Corporate: Overheads supporting the Group’s operating Responsible Entity of CCF is Centuria Funds Management segments. These reportable operating segments are the segments Limited ACN 607 153 588, a wholly owned subsidiary division
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited This presentation has been prepared without taking account of any person’s individual investment as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI). o
Slide 40: Centuria Metropolitan REIT
CENTURIA METROPOLITAN REIT ASX:CMA 40
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