Centuria Capital Grows 27% to $6.2bn


The Centuria Capital platform grew 27% in FY19 to $6.2bn in funds under management producing impressive results across their office, industrial and now healthcare portfolios.

John McBain, Joint CEO, said “Centuria’s footprint has grown substantially through FY19 with a market capitalisation of over $750 million and recording an FY19 total securityholder return of 34%. Moreover, our funds management platform is well positioned in the attractive office, industrial and healthcare real estate sectors and we expect continued healthy growth in these markets through FY20.”

“Centuria continued to execute on its growth strategy through increased real estate acquisitions of $1.7 billion and its entry into the healthcare real estate sector. In May 2019, Centuria reported the acquisition of a 63% economic interest in leading healthcare real estate funds manager Heathley Limited which will be re-named Centuria Heathley on settlement of the transaction, expected to be in August 2019.”

HIGHLIGHTS

  • Strong AUM growth increases platform to $6.2bn (+27% from FY18)

  • FY19 Distribution 9.25 cents per stapled security (cps) (+12.7% from FY18)

  • FY19 Operating earnings per stapled security 12.7 cps (FY19 16.3 cps)

  • Entry into healthcare real estate sector through formation of Centuria Heathley

  • FY 20 Distribution forecast of 9.7 cps (+4.9% from FY19)

  • Statutory profit of $50.9m was recorded for FY19.

Operating NPAT of $45.7m generated an operating EPS of 12.7 cents and a distribution per stapled security of 9.25 cents. The FY19 Operating EPS was skewed relative to the FY18 Operating EPS (16.3 cps) arising from the abnormally high-performance fee generated by the sale of 10 Spring Street, Sydney. Recurring revenues accounted for 77% of total Group revenues in FY19 and Centuria’s co-investments contributed $27.6m towards FY19 recurring revenues while providing a total annualised return of 26.6%.

Centuria’s balance sheet continues to strengthen with $87.7m of cash on hand as at 30 June 2019. Centuria is utilising its cash surpluses to fund the acquisition of Heathley Limited securities, for deposits and co-investments in relation to managed funds and to fund future growth opportunities.

Real Estate

CNI’s Real Estate division expanded to $5.3bn (+33% from FY18) with acquisitions across both listed and unlisted divisions. Centuria’s listed vehicles added 13 assets across both Centuria Metropolitan REIT (CMA) and Centuria Industrial REIT (CIP) for a total of $759m, including CMA completing the third largest Australian real estate transaction in CY18.

Subsequently, CMA and CIP have expanded their respective AUM bases to $1.4bn and $1.3bn . The unlisted property division remained active during the FY19, expanding AUM by $304 million. In addition the open ended diversified fund (CDPF) increased 215% to $118.9m of AUM.

Unlisted property will generate strong performance returns from the sale of the Zenith Centre in Chatswood for $483m, this asset was acquired jointly with wholesale partner, Blackrock.

Investment Bonds

Centuria has invested further in Centuria Life with the launch of the new Centuria LifeGoals product, which provides investment bond options to a broad range of investor profiles and is aligned to select, high quality domestic and global fund managers. In addition to its traditional investment bond management revenues, we anticipate that the Centuria LifeGoals product, which commenced in 2H19, will generate growing investor and advisor group interest in FY20.

OUTLOOK

Today, Centuria announces its FY20 forecast distribution guidance of 9.7 cents per stapled security, (+4.9% on FY19 actual 9.25 cps).

CNI Trading Chart vs ASX200 AREIT Blue - CNI, Purple ASX200 AREIT Last 12 months

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SYDNEY   NSW   1225

Tel: +61 412 173 476

Email: warwick@cmaust.com

ABN: 32 610 910 819

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