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Centuria Capital 1H19 Results Update


Centuria Capital Group announced their 1H19 results this week claiming to be one of the fastest growing Australian real estate funds managers with annualised AUM growth of 54.1% over the past 2.5 years.

Highlights

• 14.3% platform AUM growth in 1H19 to $5.6bn, including completion of $645m acquisition of Hines portfolio,

• $100m equity raise and $80m corporate bond issuance supporting corporate initiatives and Centuria REIT co-investments

• recurring revenue uplift to $42.0 million

• New Investment Bond product Centuria “LifeGoals”

• 1H19 operating EPS of 6.5 cents per stapled security (cps)

• 1H19 interim distribution of 4.25cps (up 3.7% from 1H18)

Despite the above highlights, Net Profit After Tax was down 28% to $21.7M, principally due to the significant performance fees taken on 10 Spring Street in the prior year which are distorting the comparative results. When excluding performance fees, Operating profit after tax up $2.9m from 1H18.

Real estate funds under management lifted 20% to $4.8 billion, underpinned by the $645m acquisition of the Hines portfolio in 2018 which was completed in conjunction with the Lederer Group.

CNI’s balance sheet expanded through a successful $100m equity raise and $80m debt issuance used to further the co-investment stakes in Centuria Metropolitan REIT (CMA) and Centuria Industrial REIT (CIP) with holdings of 24.9% and 24.2% , respectively.

Centuria reaffirms FY19 distribution guidance of 9.25cps. In addition, Centuria offers updated guidance in relation to FY19 operating earnings per security of 12.7cps.

CNI Trading Chart vs ASX200 AREITs

Blue - CNI

Purple - ASX200 AREITs

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