Centuria Metropolitan REIT ASX CEO Connect ASX:CMA 10 December 2019 CMA & Centuria unlisted: 201-203 Pacific Highway, St Leonards NSW C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 1
CENTURIA PLATFORM Centuria Capital funds management platform $6.7bn ASX:CNI Group AUM Market Capitalisation $930m 1 $5.8bn $0.9bn $0.6bn Real Estate AUM Investment Bonds AUM CNI Co-Investments $3.1bn $2.7bn Centuria Life Listed Property AUM Unlisted Property AUM Centuria Centuria Centuria LifeGoals Centuria Centuria Centuria Unlisted Centuria Heathley Metropolitan REIT Industrial REIT Centuria Investment Bonds Metropolitan REIT Industrial REIT Real Estate Healthcare Real Estate (CMA) (CIP) Guardian Friendly Society (CMA) (CIP) $322m 2 $235m 3 $1.8bn $1.3bn $2.0bn $0.7bn 22.6% 21.7% 1. Based on CNI closing price of $2.12 on 29 November 2019 2. Based on CMA closing price of $3.16 on 29 November 2019. Includes ownership by associates of Centuria Capital Group 3. Based on CIP closing price of $3.60 on 29 November 2019. Includes ownership by associates of Centuria Capital Group C E N T U R I A C A P I T A L G R O U P A S X : C N I 2
Centuria Metropolitan REIT ASX: CMA CENTURIA METROPOLITAN REIT ASX:CMA 3
CMA: STRATEGY Strategic vision and objectives Continuing to build Australia’s leading pure play office REIT Vision A clear Focused on generating sustainable and quality income streams and executing initiatives and simple to create value across a portfolio of quality Australian office assets strategy Overseen by an active Prudently managing its Australia’s largest domestic Strongly supported by CMA is management team with balance sheet to position pure play office REIT Centuria Group deep real estate expertise for further growth Key Unlock opportunities Portfolio Construction Active Management Capital Management objectives to create further value A portfolio of quality Australian Primarily focused on A robust and diversified Continue to enhance office assets diversified maintaining occupancy and capital structure, with the portfolio and upgrade by geography, tenants extending portfolio WALE appropriate gearing asset quality and lease expiry C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 4
CENTURIA METROPOLITAN REIT Australia's largest pure play office REIT Sept 19 PORTFOLIO 22 $1.8bn 99.1% 4.8 years High quality assets Portfolio value Occupancy 1 Portfolio WALE 2 FINANCIAL 34.9% $2.51 $1.4bn 5.6% Pro forma gearing 3 Market capitalisation 4 Forecast FY20 DPS yield 5 Pro forma NTA 1. By area 2. By gross income 3. Gearing is defined as interest bearing liabilities less cash divided by total assets less cash and goodwill 4. Based on CMA closing price of $3.16 on 29 November 2019 5. Based on FY20 DPS guidance of 17.8 cpu and based on the CMA closing price of $3.16 on 29 November 2019 C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 5
OFFICE MARKETS Australian office remains compelling relative to global markets National Office Transaction Volumes Average Prime Office Yield by City June 2019 8.00% $25.00 9.00% 8.00% 7.00% $20.00 7.00% 6.00% 6.00% 5.00% $15.00 5.00% Billions 4.00% 4.00% $10.00 3.00% 3.00% 2.00% 2.00% $5.00 1.00% 1.00% $0.00 0.00% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NSW VIC QLD WA SA Other Average Prime CBD Yield Average A Grade Metro Yield C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 6 Source: Colliers Research
OFFICE MARKETS Market indicators Prime space continues to attract tenants & metropolitan rents remain compelling Change from VACANCY RATES 30 SEPT 19 1 TOTAL 30-Sep-18 PRIME RENTS 30 SEPT 19 1 NET EFFECTIVE 30 SEPT 18 Sydney CBD 4.6% 4.7% $826 1.4% Sydney CBD Chatswood 6.1% 6.8% $430 14.4% Chatswood St Leonards 7.7% 13.2% $466 20.4% St Leonards Canberra 10.6% 11.6% $255 1.2% Canberra Brisbane CBD 10.9% 13.9% $278 4.9% Brisbane CBD Brisbane Fringe 13.6% 15.2% $203 9.2% Brisbane Fringe Melbourne CBD 3.7% 4.0% $405 6.2% Melbourne CBD Melbourne Fringe 6.2% 6.0% $337 0.0% Melbourne Fringe Perth CBD 19.4% 22.0% $272 0.5% Perth CBD West Perth 20.2% 19.1% $199 0.4% West Perth Adelaide CBD 13.5% 13.7% $178 6.7% Adelaide CBD 1. Source: JLL Research C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 7
OFFICE MARKETS Factors transforming commercial markets Connectivity with Reduced commute time key infrastructure & proximity to evolving communities Access to urban Quality of existing real estate & recreational amenity & supply possibilities Workforce & Planning & strategic industry profiles importance of the markets C E N T U R I A C A P I T A L G R O U P A S X : C N I 8
CMA POST ACQUISITIONS Enhanced portfolio scale and WALE Portfolio snapshot FY19 Sept-19 WA 16% Number of assets 20 22 QLD 27% Portfolio value $1,400m $1,780m NT Weighted average 6.22% 6.15% QLD capitalisation rate WA NLA 1 218,080 sqm 276,415 sqm SA NSW NSW 29% ACT Occupancy 2 98.4% 98.7% VIC SA 3% WALE 3 3.9 years 4.8 years ACT 5% Average NABERS Energy 4.5 Stars 4.6 Stars rating 4 VIC 20% Average building age 4 15.9 years 16.3 years 1. 100% of NLA 2. By area 3. By gross income C E N T U R I A C A P I T A L G R O U P A S X : C N I 9 4. By portfolio value
CMA POST ACQUISITIONS Enhanced portfolio scale and WALE Geographic diversification 1 Top 10 tenants September 19 FY19 September 19 Federal Government (Aust) 8.6% 4% 6% 3% 5% NSW Infosys Technologies 4.9% QLD 24% 6% 29% 16% VIC 4.1% WA Laing O'Rourke 25% SA 20% ACT State Government (WA) 3.6% 35% 27% Insurance Australia 3.3% Lease expiry profile 2 Target Australia 3.3% 68.7% Pre-Acquisitions FY19 62.3% Post-Acquisitions¹ September 19 Foxtel 3.3% 3.2% Ericsson Australia 19.5% 16.2% 8.3% 8.4% 7.0% 6.8% State Government (QLD) 3.0% 1.5% 1.2% Existing tenant Vacant FY20 FY21 FY22 FY23+ Seven Network 3.0% New top 10 tenant 1. By portfolio value 2. By gross income C E N T U R I A C A P I T A L G R O U P A S X : C N I 1 0
CENTURIA METROPOLITAN REIT Australia's largest pure play office REIT • Australia’s Australia’s largest pure play office REIT listed on the ASX 1 largest pure play • Geographically diversified portfolio of 22 high quality office assets office REIT situated in major Australian office markets • Occupacy 1 of 99.1%, WALE 2 of 4.8 years • 2 Actively managing Average building age 3 of 16.3 years CMA’s portfolio • Diversified tenant profile – 75% of portfolio income derived from multinational, ASX listed and government tenants • FY20 funds from operations 4 guidance of 19.0 cents per unit (cpu) 3 • FY20 guidance FY20 distribution guidance of 17.8cpu • FY20 distributions to be paid in equal quarterly installments • FY20 forecast distribution yield of 5.6% 5 1. By area 2. By gross income 3. By value 4. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adju sted for certain non-cash and other items C E N T U R I A M E T R O P O L I T A N R E I T A S X : C M A 1 1 5. Based on the CMA closing price of $3.16 on 29 November 2019 CMA: William Square, 235 William Street, Northbridge WA
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