Centuria Industrial Reit · ASX:CIP
Centuria Industrial Reit — H1 FY2015 Earnings Presentation
30 slides from Centuria Industrial Reit's earnings presentation, Feb 11, 2016
Slide 1: 2015 Half Year Financial Results Presentation
360 CAPITAL INDUSTRIAL FUND ARSN 099 680 252 69 Rivergate Place, Murarrie QLD (Yamaha) 2015 Half Year Financial Results Presentation | 3 February 2015 1
Slide 2: Table of contents
Table of contents Section A: TIX HY15 financial results Section B: Proposed ANI acquisition 1 Highlights 1 Rationale 2 Key achievements 2 Transaction overview 3 Results overview 3 Timetable 4 Portfolio overview 5 Acquisitions and disposals 6 Capital management 7 Strategy 8 Outlook Appendices A Balan
Slide 3: Highlights
1 Highlights P Total H1FY15 Unitholder return of 17.3% P H1FY15 operating earnings per unit of 10.0cpu – full year guidance increased to 21.2 cpu P H1FY15 distributions per unit of 9.9cpu in line with full year guidance of 20.0 cpu P Debt facility increased, term extended and interest costs reduced
Slide 4: Key achievements
2 Key achievements • 99.9%1 occupancy Underlying • 5.8 years WALE2 portfolio driving • 38,751 sqm leased (9.2% of the portfolio) with an average term of 3.4 years results • No major FY15 expiry remaining • Portfolio values increased by 5.5%3 • Gearing of 44.4%4 Responsible capital • Lower debt margi
Slide 5: Key achievements (cont.)
2 Key achievements (cont.) • H1FY15 operating EPU in line with full year guidance Strong financial • DPU up 6.5% on pcp results • NTA per unit decreased slightly from $2.21 in pcp to $2.19 per Unit • FY15 forecast tax deferred component of approximately 58% • Market capitalisation increased over the
Slide 6: Results overview
3 Results overview • 70.9% increase in Statutory net profit driven by H1FY15 PCP1 Change valuation gains and acquisitions Statutory net profit $14.7m $8.6m 70.9% • H1FY15 operating earnings up 17.3% through: Statutory EPU 12.8cpu 9.1cpu 40.7% • higher property income from acquisitions Operating earn
Slide 7: Portfolio overview
4 Portfolio overview HY15 Leasing activity Continued leasing success with 99% tenant retention1 has resulted in high occupancy of 99.9%1 and no material expiry in FY15 Tenant Address Area (sqm) Term Rent ($’m pa) Silk Contract Logistics2 69 Studley Ct, Derrimut 14,365 5.0 years 1.4 Dana Australia Pt
Slide 8: Portfolio overview (cont.)
4 Portfolio overview (cont.) FY16 Major Lease Expiries • No major expiries until October 2015 • Lease renewal discussions well progressed on most expiries Tenant Address Area (sqm) Income ($m) % Income Expiry Newell Rubbermaid 500 Princes Hwy, Noble Park 3,679 1.25 2.5% Oct 15 Bidvest Australia Limi
Slide 9: Disposals & acquisitions
5 Disposals & acquisitions Disposals • 5-9 Woomera Avenue, Edinburgh Parks SA sold for $4.5m • building sold with vacant possession to owner occupier – accretive to sell • proceeds deployed to acquire larger income producing assets • No further asset sales forecast for FY15 and FY16 Acquisitions • F
Slide 10: Disposals & acquisitions (cont.)
5 Disposals & acquisitions (cont.) July 2014 August 2014 November 2014 December 2014 Wyong Regional Townsville Distribution 33-37 Mica Street, 69 Rivergate Place, 136 Zillmere Road, Distribution Centre, Centre, Carole Park QLD Murarrie QLD Boondall QLD1 Warnervale NSW Townsville QLD Price: $69.8m Pr
Slide 11: Capital management
6 Capital management Debt facility • The fund was proactive on debt management to enhance debt funding terms Facility Limit Interest Cost Hedge Term $230m $305m 4.5% 4.0% 2.6yrs 4.9yrs • Bankwest has joined NAB in the Syndicated Facility Agreement to provide future debt capacity • Loan term extended
Slide 12: Strategy
7 Strategy Provide consistent and growing income returns and capital growth from a diverse portfolio of industrial assets owned by a Trust with a simple capital structure Acquisitions, disposals and portfolio Capital management Philosophy management • Continue disciplined approach to • Recognise low
Slide 13: Outlook
8 Outlook Market • Capitalisation rates to firm continuing to drive TIX’s NTA per unit growth • More acquisition opportunities expected in FY15 • Increase in pre-commitment activity may provide fund through opportunities Operational • Opportunistic disposal of smaller assets taking advantage of more
Slide 14: Proposed ANI acquisition
Proposed ANI acquisition 23 Selkis Road Bibra Lake WA (Amcor). ANI portfolio. 14
Slide 15: Rationale for Proposed Acquisition of ANI
1 Rational for Proposed Acquisition for ANI Formal off market take over offer to acquire Units in Australian Industrial REIT • Strategic Rationale • Stated strategy of TIX to be in S&P/ASX 200 index within 1-2 years • M & A activity part of TIX’s acquisition strategy • TIX acquisition of ANI creates
Slide 16: Transaction Overview
2 Transaction Overview • The TIX Offer provides for a scrip consideration of 0.89 TIX Units per ANI unit • Implies a value of $2.48 per ANI Unit based on the closing price of TIX Units of $2.75 as at 2 February 2015 • If greater than 50% of ANI unitholders accept into the offer, TGP will pay accepti
Slide 17: Timetable
3 Timetable EVENT DATE Announcement of the TIX Offer Friday, 19 December 2014 Date of the Bidders Statement Tuesday, 3 February 2015 Date of TIX Offer Tuesday 17 February 2015 Date of ANI Target Statement Thursday, 5 March 2015 Closing Date (unless extended or withdrawn) 7.00pm (Sydney time) Tuesday
Slide 18: Appendices
Appendices Section 1: Key achievements 136 Zillmere Road, Boondall QLD (Bradnams Windows & Doors) 18
Slide 19: A Balance sheet
A Balance sheet 31 Dec 14 30 Jun 14 Balance Sheet 1 ($’000) ($’000) Assets Cash and cash equivalents 3,041 5,749 Trade and other receivables 3,446 1,830 Investment properties held for sale - 4,500 Investment Properties 500,970 353,800 Total Assets 507,457 365,879 Liabilities Trade and other payables
Slide 20: B Profit and loss
B Profit and loss 31 Dec 14 31 Dec 13 Operating Profit & Loss Statement 1 ($’000) ($’000) Rental income2 21,420 18,978 Finance revenue 64 68 Total Income 21,484 19,046 Investment property expenses 3,807 3,706 Management Fees 1,528 1,165 Other expenses3 241 342 Finance costs4 4,382 4,024 Net Operatin
Slide 21: C Operating earnings reconciliation
C Operating earnings reconciliation 31 Dec 14 31 Dec 13 Operating earnings reconciliation ($’000) ($’000) Statutory net profit 14,743 8,550 Net (gain)/loss on fair value of investment properties (6,916) 561 Net loss on fair value of derivative financial instruments 2,999 179 Amortisation of borrowin
Slide 22: D Property details
D Property details 60 Marple Avenue, Villawood NSW 37–51 Scrivener Street, Warwick Farm NSW 8 Penelope Crescent, Arndell Park NSW The Property is located approximately 40 kilometres west of The property is located in the traditional industrial precinct The property is located at Warwick Farm, 31 kil
Slide 23: D Property details (cont.)
D Property details (cont.) 54 Sawmill Circuit, Hume ACT 22 Hawkins Crescent, Bundamba QLD 1 Ashburn Road, Bundamba QLD Completed in 2010, the property is located in the industrial The property was completed in 2009 and is situated The property was completed in 2010 and is situated precinct of Hume,
Slide 24: D Property details (cont.)
D Property details (cont.) 9-13 Caribou Drive, Direk SA 102–128 Bridge Road, Keysborough VIC Completed in 2009, the property is located 25 kilometres The property is located in the south-eastern suburb of north of Adelaide, 3 kilometres from the Northern Keysborough, approximately 30 kilometres sout
Slide 25: D Property details (cont.)
D Property details (cont.) 500 Princes Highway, Noble Park VIC 6 Albert Street, Preston VIC 14-17 Dansu Court, Hallam VIC The property is located in the traditional industrial precinct The property is situated within the established south eastern The property is located on the north side of Princes
Slide 26: D Property details (cont.)
D Property details (cont.) 12–13 Dansu Court, Hallam VIC 33-59 Clarinda Road, Oakleigh South VIC 39–45 Wedgewood Road, Hallam VIC The property is situated within the established south eastern The property is situated approximately 17 kilometres south- The property is situated within the established
Slide 27: D Property details (cont.)
D Property details (cont.) 310 Spearwood Avenue, Bibra Lake WA 457 Waterloo Road, Chullora NSW 69 Studley Court, Derrimut VIC The property is located within the established Bibra Lake The property comprises a recently refurbished traditional The property is a modern freestanding office and warehouse
Slide 28: D Property details (cont.)
D Property details (cont.) 2 Woolworths Way, Warnervale NSW 21 Jay Street, Mount St John, Townsville QLD 33-37 Mica Street, Carole Park QLD The property is located within the Warnervale Business Park The property is located within the Webb Industrial Estate in The property is located in Carole Park
Slide 29: D Property details (cont.)
D Property details (cont.) 69 Rivergate Place, Murarrie, QLD 136 Zillmere Road, Boondall, QLD The property is situated within the Australia Trade Coast The property is located approximately 12 kilometres north of suburb of Murarrie, approximately 8 kilometres east of the the Brisbane CBD, in a well-
Slide 30: 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 Industrial Fund (ARSN 099 680 252) (‘TIX’ or the ‘Fund’) . All information and statistics in this presentation are current as at 3rd Feb
Centuria Industrial Reit — H1 FY2015 Earnings Presentation on 6ix