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Centuria Metropolitan REIT released Half Yearly Results to Dec 2017

Centuria Property Funds Limited as Responsible Entity of Centuria Metropolitan REIT announced results for the half financial year ending 31 December 2017.

Financial highlights

  • Statutory net profit of $39.2 million

  • Distributable earnings of $19.9 million representing 9.4 cents per security (cps)

  • Quarterly distributions paid during 1H18 to securityholders of 9.05 cps

  • Increased net tangible assets (NTA) to $2.39 per security, up 7 cps or 3.0% from 1H17

  • Disciplined gearing of 29.6%, within target range

  • Inclusion in the S&P/ASX 300 A-REIT index from September 2017

  • 12 month total return of 20.9% outperforming S&P/ASX 300 A-REIT Index at 6.4% as at 31 December 2017

Operating highlights

  • Strong leasing activity with 20 lease transactions across 9,234 sqm over 1H18

  • FY18 lease expiries of 1.2% provide solid earnings visibility for remainder of FY18

  • Increase in portfolio valuations to $899.7 million since the end of 1H17 with Like-for-like total portfolio increased by $41.6 million, or 7.0%

  • Weighted average capitalisation rate (WACR) firmed to 6.87% (44bps) from 1H17

  • Strong weighted average lease expiry (WALE) of 4.3 years

  • Acquisition of four high quality, fully occupied assets totaling $210.9 million

  • Average NABERS energy rating of 3.8 stars

Asset valuations

Leasing success was a key contributor to strong growth in asset values, with the total portfolio valued at $899.7 million at 31 December 2017. Like-for-like, since 1H17, the portfolio value increased $41.6 million, or 7.0%. The portfolio’s total WACR firmed 44 basis points to 6.87%

Earnings & distribution guidance

FY18 distributable earnings guidance is reaffirmed at 18.6 cps. FY18 distribution guidance remains 18.1 cps, an increase of 3.4% on the previous financial year’s distribution and generating a strong FY18 distribution yield of 7.6%3 . Distributions will be paid in equal quarterly installments of 4.525 cps with two quarterly distributions remaining to be paid for FY18

Investor Presentation Document