Centuria Capital Group · ASX:CNI
Centuria Capital — FY2020 Earnings Presentation
41 slides from Centuria Capital's earnings presentation, Aug 12, 2020
Slide 1: FY20 Results
FY20 RESULTS A S X:CNI 12 Aug 2020 AUGUSTA INDUSTRIAL FUND: THE HUB, SEAVIEW, WELLINGTON COF: NISHI, 2 PHILLIP LAW STREET, CANBERRA, ACT ……………. Centuria Capital Group CENTURIA CAPITAL GROUP ASX:CNI 1 CENTURIA HEALTHCARE: 32 MORROW STREET, TARINGA, QLD CIP: TELSTRA DATA CENTRE COMPLEX, CLAYTON, VIC
Slide 2: Agenda
Agenda 1. Group Overview 2. Financial Results 3. Divisional Overview 4. Strategy & Outlook 5. Appendices CENTURIA CAPITAL GROUP ASX:CNI 2 CIP: 1 ASHBURN ROAD, BUNDAMBA, QLD
Slide 3: Group Overview
SECTION ONE Group Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 3 CIP: ARNOTT’S, CIP: 23-41 GALWAY AVENUE, 23-41 GALWAYMARLESTON, SA AVENUE, MARLESTON, SA
Slide 4: ASX300-listed funds manager positioned for growth
ASX300-listed funds manager positioned for growth Market capitalisation1 of $0.88bn, included in the S&P/ASX300 Index $0.6bn $9.4bn 52% $6.2bn AUM growth on FY19 Current Group AUM2 CNI Co-Investments FY19 AUM on balance sheet $0.8bn $191.2m3 (19.9%) $8.6bn Real Estate AUM Investment Bonds AUM Centur
Slide 5: A proven business model
A proven business model Sector diversity and recurring revenues weather volatility CENTURIA UNLISTED: 13 GARDEN STREET, EVELEIGH, NSW FY20 • FY20 operating eps 12.0 cps delivered ahead of 11.5 cps FY20 guidance Performance • Prudent management and strong performance through COVID-19 benefitting from
Slide 6: Australasian real estate platform
Australasian real estate platform Compelling sectors, diverse fund types and capital sources GEOGRAPHIES1 ASSET SEC T O R S 1,2 FUND TYPES1 CAPITAL SOURCES1 SA APL CDPF 5% 2% 1% Other NZ 6% Other Institutional 5% AIF 6% NSW Health 4% CH COF ACT 23% 9% 9% 24% 6% WA 8% NZSAF Listed Office 16% Unlisted
Slide 7: Delivering strong growth and creating value across the platform
Delivering strong growth and creating value across the platform 12.00cps $1.2bn $1.8bn $9.4bn FY20 Operating Augusta Capital Group AUM Earnings per security1 FY20 Group delivered ahead of real estate acquisitions Limited AUM 52% growth on FY19 96.4% acceptances received 11.50cps FY20 guidance 6.1% 9
Slide 8: Platform expansion to $9.4bn (+52% since FY19)
Platform expansion to $9.4bn (+52% since FY19) ASSETS UNDER MANAGEMENT (AU$BN) FY20 • Group AUM expanded to $8.8bn (+42%) 9.4 • Real estate AUM grew to $8.0bn (+51%) • $1.3bn of gross acquisitions and 34% 8.8 1.8 Augusta Capital Limited revaluations support platform growth CAGR1 1.7 FY17 to FY21 Cur
Slide 9: Centuria delivers on growth strategy
Centuria delivers on growth strategy Ongoing dual strategy of direct real estate acquisitions and corporate expansion OVER $5.0bn AUG 2020 – REAL ESTATE OF TRANSFORMATIONAL INITIATIVES JUL 2020 – CORPORATE DEC 2019 – REAL ESTATE MAY 2019 – CORPORATE OCT 2018 – REAL ESTATE JAN 2017 – CORPORATE $417m
Slide 10: Augusta Capital Limited: A new growth opportunity
Augusta Capital Limited: A new growth opportunity G EO G R APH IES 1,2 ASSET SEC T O R S 1,3 Creates Centuria’s SA Trans-Tasman presence 5% Other NZ 6% Other 5% Health NSW 9% Aligned to Centuria’s ACT 6% 23% sectors of expertise WA 8% Office 53% Industrial Established distribution and Auckland NZ Me
Slide 11: Augusta Capital Limited: A new growth opportunity
Augusta Capital Limited: A new growth opportunity NZ to benefit as one of the earliest countries to recover from COVID-19 pandemic 96.4% ACCEPTANCES RECEIVED 12 August 2020 Centuria NZ will issue a formal notice of its intention to compulsorily acquire the remaining Augusta shares under New Zealand’
Slide 12: Financial Results
SECTION TW O Financial Results A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 12 CIP: ARNOTT’S, 46 ROBINSON ROAD EAST, VIRGINIA, QLD
Slide 13: FY20 EPS guidance exceeded; FY21 guidance
FY20 EPS guidance exceeded; FY21 guidance Distributions per stapled security EARNINGS AND DISTRIBUTIONS (CENTS PER SECURITY) of 9.7 cents, a 4.9% increase on FY19 UNDERPINNED BY 86% RECURRING REVENUES FY20 14.80 16.30 PERFORMANCE Operating NPAT1 Statutory NPAT3 12.70 12.00 $53.3m; $21.1m; 10.30 8.10
Slide 14: Expanded platform enhances fee generation for the Group
Expanded platform enhances fee generation for the Group Profit increased 37.4% reflecting significant FY20 FY19 OPERATING PROFIT BY SEGMENT ($m) ($m) expansion in recurring revenue contribution and transaction fees Property funds management1 34.5 25.1 Performance fees 21.5 22.5 FY20 performance fee
Slide 15: FY20 total revenues underpinned by recurring revenues
RECURRING REVENUES FY20 total revenues underpinned by recurring revenues $ MILLIONS 86% recurring 160 revenue NON-RECURRING REVENUE Performance fees 140 86% 56% 120 73% 80% recurring Investment bonds management FY20 operating Property funds revenue fees and other revenue recurring recurring revenue
Slide 16: Recycling larger balance sheet to grow platform
Recycling larger balance sheet to grow platform OPERATING BALANCE SHEET FY20 ($m) FY19 ($m) ASSETS Cash and cash equivalents 149.5 87.8 $1.44 6.3 times 3.1% Receivables Financial assets 65.5 523.1 65.7 112.2 Net Asset Value Operating interest Operating Other assets 12.4 5.7 per security1 cover ratio
Slide 17: Delivering on ESG
ESG Delivering on ESG ENERGY • 72% increased in the number of solar panel installations, from 856 to 1,476 panels, 537t reduction in CO 2 emissions • 4.66 average NABERS Energy Rating1 WASTE MANAGEMENT REDUCTIONS (Jan - May 2020) Environmental • 280t of CO2 emissions, 385 kWh of energy, 2,170kl of w
Slide 18: Governance, systems and processes
Governance, systems and processes How Centuria has managed over 50% of growth in AUM1 since FY20 start FY20 INITIATIVES CURRENT FOCUS Restructured Centuria Responsible Entity Boards Integration of Augusta Capital Limited Integration of Centuria Heathley Solid relationships have been established (now
Slide 19: Divisional Overview
SECTION THREE Divisional Overview A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 19 COF: 201-203 PACIFIC HIGHWAY, ST LEONARDS, NSW
Slide 20: Prudent management and strong performance through COVID-19
Prudent management and strong performance through COVID-19 Internal property management (CPS) pays major dividends through direct tenant relationships and access to timely data CENTURIA HEALTHCARE: 18 PROWSE STREET, WEST PERTH, WA In house Task force management facilitate greater tenant engagement e
Slide 21: Strong capital transaction capabilities
Strong capital transaction capabilities $1.7bn across 20 acquisitions1 ACT IVE IN CAPIT ALT RANSACT IONS COF $637m 3 ACQUISITIONS FY20/21 REAL ESTATE TRANSACTIONS CIP $757m 10 ACQUISITIONS 1 2nd Largest acquirer of Australian industrial DIRECT PROPERTY $216m assets in CY20192 2 ACQUISITIONS CDPF $93
Slide 22: Strong active asset management capabilities
Strong active asset management capabilities SECTORS 1 (% BY GROSS INCOME) TOP TENANTS 1 WALE BY INCOME (YRS) 1 Healthcare 10.2 11% State & Federal Government - Government 16.5% 0.7% 8.0 Office 58% 5.0 Telstra Corporation Limited - ASX Listed 4.1% Industrial Arnott's - Multinational 3.1% 31% Healius
Slide 23: Listed: $1.4bn of office and industrial acquisitions since FY20 start
Listed: $1.4bn of office and industrial acquisitions since FY20 start COF CIP Australia’s largest Australia’s largest domestic CENTURIA CENTURIA OFFICE REIT pure-play Office REIT INDUSTRIAL REIT pure-play Industrial REIT A quality portfolio of de-centralised, A quality portfolio of fit for purpose i
Slide 24: Unlisted: Compelling opportunities for our deep distribution network
UNLISTED Unlisted: Compelling opportunities for our deep distribution network ATTRACTIVE INITIAL YIELD SPREAD IN DECREASING TERM DEPOSIT AND RATE CLIMATE 4 FTOF 12 4-6 10.00% CLOSED END FIXED TERM $1.7bn FIXED TERM FUNDS, WHOLESALE FUNDS IN THE TOP 10 INDEX1 OFFICE FUNDS AUM RELATIONSHIPS 8.00% 250b
Slide 25: Unlisted: Expanding open-ended funds
UNLISTED Unlisted: Expanding open-ended funds CDPF CENTURIA DIVERSIFIED PROPERTY FUND CHPF CENTURIA HEALTHCARE PROPERTY FUND ~$130m $205m AUM expansion +72% over FY20 $93m Two real estate acquisitions in FY20 4 Imminent Investing in healthcare real estate underpinned by leases to a range of reputabl
Slide 26: Unlisted: Healthcare real estate for institutional and retail investors
CENTURIA CAPITAL GROUP UNLISTED Unlisted: Healthcare real estate for institutional and retail investors CENTURIA HEALTHCARE: 734 ALBANY HIGHWAY, EAST VICTORIA PARK, WA CH Specialist healthcare real estate focused CENTURIA HEALTHCARE on cost-effective models of care $0.7bn 45 10 $300m $500m CHPF STRO
Slide 27: Investment bonds: Transforming contemporary bond options
BONDS DIVISION Investment bonds: Transforming contemporary bond options $0.8bn 11% +3,900 28 AUM TOTAL AUSTRALIAN ACCESS TO ACTIVE APLs INVESTMENT BOND UP 64% ON FY19 FINANCIAL PLANNERS MARKET SHARE1 LifeGoals Ratings BY LONSEC, ZENITH AND 29 7 3 LIFT AUSTRALIA RATINGS LIFEGOAL FUND NEW FUND NEW FUN
Slide 28: Strategy & Outlook
SECTION FOUR Strategy & Outlook A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 28 AUGUSTA INDUSTRIAL FUND: 12 BRICK STREET, HENDERSON, AUCKLAND, NZ
Slide 29: Strategy & Outlook
Strategy & Outlook • Industrial and healthcare markets compelling and well supported. De-centralised commercial markets to outperform • Investor demand for unlisted funds strong - capital seeking higher relative returns • Equity markets – real estate funds trending into favoured asset sectors MARKET
Slide 30: Appendices
SECTION FIVE Appendices A S X:CNI CENTURIA CAPITAL GROUP ASX:CNI 30 CENTURIA HEALTHCARE: 42-44 ORD STREET, WEST PERTH, WA
Slide 31: Reconciliation of statutory profit to operating profit
UNLISTED Reconciliation of statutory profit to operating profit FY20 FY19 ($m) ($m) Statutory net profit after tax 22.1 50.9 Statutory EPS (cents)1 4.7 14.2 Adjusted for non-operating items: Loss/(gain) on fair value movements in derivatives and investments 34.8 (4.6) Transaction and other costs 6.2
Slide 32: Co-investments reconciliation
CO-INVESTMENTS Co-investments reconciliation CARRYING VALUE DISTRIBUTION CARRYING VALUE DISTRIBUTION CO-INVESTMENTS 30 JUN 2020 INCOME FY20 30 JUN 19 INCOME FY19 ($m) ($m) ($m) ($m) Centuria Industrial REIT (ASX: CIP) 1,2 215.8 12.6 180.3 11.4 Centuria Office REIT (ASX: COF)1,2 158.2 13.3 180.2 10.0
Slide 33: Property AUM movement
Property AUM movement COF: 235 WILLIAM STREET, NORTHBRIDGE, WA $ BILLIONS CENTURIA CAPITAL GROUP ASX:CNI 33
Slide 34: $6.8 billion of Australian real estate accounts for ~80% of AUM
UNLISTED $6.8 billion of Australian real estate accounts for ~80% of AUM1 54 properties valued at $1,804m (FY19: $1,317m) COF: 6 properties CIP: 14 properties Unlisted: 2 properties CDPF: 2 property Healthcare: 18 properties, Augusta: 12 properties 21 properties valued at $717m NT QLD 22% 39 propert
Slide 35: $1.8 billion of NZ real estate accounts for ~20% of AUM
UNLISTED $1.8 billion1 of NZ real estate accounts for ~20% of AUM 29 properties valued at $1,069m 1 property valued at $25m AUCKLAND NORTHLAND 6 properties valued at $103m 2 property valued at $9m BAY OF PLENTY WAIKATO 4 properties valued at $50m 1 properties valued at $43m TARANAKI HAWKES BAY 2 pro
Slide 36: COF and CIP: Australia's largest pure play REITs
COF: Australia’s largest CIP: Australia’s largest domestic pure play office REIT pure play industrial REIT • FY20 FFO of 18.6cpu, distributions of 17.8cpu delivered • FY20 FFO of 18.9cpu, distributions 18.7cpu delivered • FY21 Distribution guidance of 16.5cpu • FY21 FFO guidance of 17.4cpu, distribu
Slide 37: Social and Affordable Housing
UNLISTED Social and Affordable Housing PARTNERING WITH FOUR PROJECTS, COMPASS HOUSING 190 DWELLINGS (TIER 1 SERVICE PROVIDER) AND TETRIS CAPITAL Construction for all 45 Pendlebury Road, Cardiff, NSW 316 Maitland Road, Mayfield, NSW CNI equity contribution projects progressing in circa $20 million li
Slide 38: Continuing to build out Centuria LifeGoals
UNLISTED Continuing to build out Centuria LifeGoals FY20 PRE-PAID TOTAL AUM ($m) FY20 FY19 FLOWS BREAKDOWN ($m) CENTURIA UNITISED CAP CHANGE (%) FUNERAL TOTAL FY20 LIFEGOALS BONDS GUAR PLANS Prepaid funeral plans (Guardian)2 520.9 534.0 (2.5)% Capital Guaranteed (Centuria Life) 166.8 194.0 (14.0)% A
Slide 39: Definitions
Definitions Operating Segments: Group has five reportable Non-operating segments: Non-operating items CNI, CCG or the Group: Centuria Capital Group operating segments. These reportable operating comprises transaction costs, mark-to-market comprises of Centuria Capital Limited ABN 22 segments are the
Slide 40: 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 41: Centuria Metropolitan REIT ASX:CMA
CENTURIA METROPOLITAN REIT ASX:CMA 41
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