Centuria Capital Group · ASX:CNI
Centuria Capital — Centuria Metropolitan REIT — H1 2018 Earnings Presentation
30 slides from Centuria Capital's earnings presentation, Feb 8, 2018
Slide 1: Centuria Metropolitan REIT 1H18 Interim Results
Centuria Metropolitan REIT 1H18 Interim Results
Slide 2: Agenda
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 1 Introduction 2 Results Overview 3 Portfolio Overview 4 Guidance & Strategy 5 Appendices PAGE 2 77 MARKET ST, WOLLONGONG, NSW
Slide 3: Introduction
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 1 Introduction
Slide 4: Centuria Capital Group overview
CENTURIA METROPOLITAN REIT | 4Hi8 INTERIM RESULTS | ASX:CMA I 8 FEBRUARY 2018 Centuria’ Centuria Capital ASX listed specialist investment manager . . Centuria Capital Group s4.6b Funds Under Management v Funds Management Property fund management v Investment Bonds 33. fb Funds Under Management Liste
Slide 5: CMA, Australia's largest ASX listed metropolitan office REIT
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 CMA, Australia’s largest ASX listed metropolitan office REIT Key Metrics 19 High quality assets $ 900m Portfolio value $ 579m Market capitalisation 1 29.6% Gearing 3 97.8% Portfolio occupancy 5 20.9% 1,2 4.3 yrs Portfolio
Slide 6: Results Overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 2 Results Overview
Slide 7: Continuing to deliver on strategy
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Highlights Continuing to deliver on strategy Delivering stable earnings Active management driving portfolio performance Reaffirm FY18 distributable earnings guidance of 18.6 cps 1 Positive track record of delivering on ear
Slide 8: Financial overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Financial overview Financial snapshot 1H18 1H17 20.9% 1,2 Statutory profit/(loss) $m 39.2 27.1 Distributable earnings 1 $m 19.9 10.9 12 month total return Distributable earnings per security cps 9.4 9.2 at 31 December 2017
Slide 9: Maintained a disciplined balance sheet
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Capital management Maintained a disciplined balance sheet − Multi-bank debt facilities provides diversity of funding sources and enhanced balance sheet capacity − Staggered debt tranches with no single 29.6 % 3.7% Gearing1
Slide 10: Acquired quality income generating metropolitan office assets
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Capital transactions – acquisitions and disposals Acquired quality income generating metropolitan office assets – Acquisition of four metropolitan office assets, totalling $210.9 million; assets are highly complimentary to
Slide 11: Portfolio Overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 3 Portfolio Overview
Slide 12: Geographically diversified portfolio weighted to eastern seaboard markets
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio composition Geographically diversified portfolio weighted to eastern seaboard markets QLD Portfolio Snapshot 1H18 1 1H17 35 Robina Town Centre Drive, Robina 555 Coronation Drive, Brisbane 438-517 Kingsford Smith
Slide 13: Leasing overview
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Leasing overview Focus on leasing to maximise occupancy and income 5.0% Portfolio NLA leased in 1H18 – Secured 20 lease transactions in 1H18 across 9,234sqm – 12 new leases across 3,913sqm 9,324sqm – 8 renewals across 5,32
Slide 14: Tenancy profile
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Tenancy profile Earnings growth underpinned by high quality tenants and contractual rental growth – Well diversified rent roll with 42.8% of gross Tenancy profile by size cohort (by no.tenant) 1 Tenant diversification (top
Slide 15: Portfolio positioned to drive ongoing performance
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio metrics Portfolio positioned to drive ongoing performance − Low forward lease expiry profile ensures visibility of future earnings Weighted Average Lease Expiry 1,3 − Minimal expiries of 1.2% 1,2 remaining in FY1
Slide 16: Portfolio valuations
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Portfolio valuations Robust market fundamentals and active management driving valuation growth − 100% of portfolio externally valued at 30 November 2017 – Book value adjusted for December capital expenditure spend − Like f
Slide 17: Guidance & Strategy
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 4 Guidance & Strategy
Slide 18: FY18 guidance
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 FY18 guidance – FY18 distributable earnings guidance of 18.6 cps – FY18 distribution guidance of 18.1 cps – Paid in equal installments of 4.525 cps per quarter – 9.05 cps paid in 1H18 – 9.05 cps remaining to be paid in 2H1
Slide 19: CMA's strategy and focus remains unchanged
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Strategy CMA’s strategy and focus remains unchanged Fund strategy – Acquire quality ‘fit for purpose’ metropolitan real estate assets delivering In Australia’s metropolitan office markets, stable and secure income streams
Slide 20: Appendices
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Section 5 Appendices Appendix A – History of Centuria Metropolitan REIT Appendix B – Market Outlook Appendix C – Income Statement Appendix D – Distribution Statement Appendix E – Balance Sheet Appendix F – NTA Movement App
Slide 21: Appendix A – History of Centuria Metropolitan REIT
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix A – History of Centuria Metropolitan REIT $2.80 CMA is added to the S&P/ASX 300 CUA unitholders approve A-REIT Index CMA successfully merger. Implementation on lists on the ASX at $2.00 29 June 2017 per security S
Slide 22: Appendix B – Market outlook
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix B – Market outlook Robust supply and demand fundamentals in metropolitan office markets – Non-CBD market supply is generally trending below historic averages Yield spread – A-grade metro vs CBD A-grade Source: Col
Slide 23: Appendix C – Income Statement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix C – Income Statement $’000 31 December 2017 Revenue Gross property income 33,503 Interest income 96 Total revenue 33,599 Expenses Direct property expenses (7,243) Responsible entity fees (1,959) Finance costs (3,7
Slide 24: Appendix D – Distribution Statement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix D – Distribution Statement $’000 31 December 2017 Statutory net profit 39,174 Straight lining of rental income (2,659) Amortisation of leasing fees and tenant incentives 889 (Gain) / loss on fair value of investme
Slide 25: Appendix E – Balance Sheet
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix E – Balance Sheet $’000 31 December 2017 Cash 46,273 Investment properties 841,441 Goodwill 6,356 Trade and other receivables 5,535 Other assets 2,912 Total assets 902,517 Interest bearing liabilities 1 295,793 Tr
Slide 26: Appendix F – NTA movement
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix F – NTA movement Strong NTA growth $2.50 $2.40 0.14 (0.01) (0.00) (0.03) (0.03) $2.30 (0.00) $2.20 $2.10 $2.39 $2.00 $2.32 $1.90 $1.80 30 Jun 17 Swaps Reset Jul Dec Asset Revaluation Others 31 Dec 17 & MTM Acquisi
Slide 27: Appendix G – FFO Reconciliation
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix G – FFO Reconciliation CMA Distributable PCA FFO Difference Property Earnings ($’000) ($’000) ($’000) Statutory net profit 39,174 39,174 0 Straight lining of rental income 1 (2,659) (2,659) 0 Amortisation of leasi
Slide 28: Appendix F – Investment Portfolio
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Appendix F – Investment Portfolio 31 Dec 17 NLA WALE 2 Property State Ownership Book value Cap rate (sqm) (years) Occupancy 3 Office 9 Help Street, Chatswood NSW 100% 68.5 6.50% 9,394 3.0 100.0% 203 Pacific Highway, St Leo
Slide 29: Disclaimer
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Disclaimer This presentation has been prepared by Centuria Property Funds Limited (ABN 11 086 553 639, AFSL 231 149) (‘CPFL’) as responsible entity of Centuria Metropolitan REIT (‘CMA’ or the ‘Trust’). All information and
Slide 30: Thank you
CENTURIA METROPOLITAN REIT I 1H18 INTERIM RESULTS I ASX:CMA I 8 FEBRUARY 2018 Thank you Further Information: Nicholas Blake Trust Manager – CMA +61 2 8923 8923 [email protected] Hengky Widjaja Senior Analyst, Listed Property +61 2 8923 8923 [email protected]
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