ASX CEO Connect ASX:CIP 5 May 2020 Centuria Industrial REIT C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 1 69 STUDLEY COURT, DERRIMUT, VIC
CENTURIA CAPITAL GROUP A leading ASX-listed funds manager $7.3bn Group AUM 1 ASX:CNI – Market capitalisation of $0.7bn 2 $0.5bn $6.4bn $0.9bn CNI Co-Investments on balance sheet Real Estate AUM Investment Bonds AUM $195m 3 Centuria Office Listed Real Estate AUM Unlisted Real Estate AUM REIT ASX:COF Centuria 19.9% $3.7bn $2.7bn Life $180m 4 Centuria Industrial Centuria Centuria Centuria Centuria REIT ASX:CIP Centuria 17.4% Office Industrial Diversified Heathley Centuria Investment Bonds Fixed Term REIT REIT Property Fund Guardian Friendly Society Healthcare Funds ASX:COF ASX:CIP (CDPF) Real Estate $95m Unlisted Property and Debt Funds $2.1bn $1.6bn $1.8bn $0.2bn $0.7bn 1. Group AUM as announced for HY20 results on 12 February 2020 2. Based on CNI’s closing price of $1.53 on 1 May 2020 3. Based on COF closing price of $1.90 on 1 May 2020. 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 4. Based on CIP closing price of $2.60 on 1 May 2020. Includes ownership by associates of Centuria Capital Group
STRATEGY & GUIDANCE Strategic vision and objectives To build Australia’s leading domestic pure play industrial REIT V I S I O N A CLEAR Deliver income and capital growth to investors from a portfolio of high quality Australian industrial assets AND SIMPLE STRATEGY Overseen by an active Prudently managing its Australia’s largest domestic Strongly supported management team with balance sheet to position CIP is pure play industrial REIT by Centuria Group deep real estate expertise for further growth Unlock opportunities KEY Portfolio Construction Active Management Capital Management OBJECTIVES to create further value Focus on ‘fit for purpose’ assets A portfolio of quality Australian A robust and diversified Reposition assets and execute that align to the needs of our quality industrial assets diversified by capital structure, with on value-add initiatives to maximise customers, ensure high retention geography, tenants and lease expiry appropriate gearing returns for unitholders and occupancy C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 3
PORTFOLIO OVERVIEW Key metrics P O R T F O L I O F I N A N C I A L 49 $1.6bn $1.0bn 27.7% Portfolio value 1 Market capitalisation 3 Pro Forma Gearing 4,6 High quality assets 96.4% 6.9yrs $2.78 7.2% Portfolio occupancy 2 Portfolio WALE 2 Pro forma NTA 5,6 FY20 distribution yield 7 1. As at 31 December 2019 5. 31 December 2019 pro forma NTA post Placement, adjusted for post-balance date movements. NTA per unit is calculated as net assets less goodwill divided by closing units on issue 2. As at 31 March 2020 3. Based on CIP’s closing price of $ 2.60 on 1 May 2020 6. Excludes potential proceeds from the non-underwritten UPP 7. Based on FY20 distribution guidance of 18.7 cents per unit and closing price of $2.60 on 1 May 4. 31 December 2019 pro forma gearing post Placement, adjusted for post-balance date movements. C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 4 2020 Gearing is total borrowings less cash divided by total assets less cash and goodwill
INDUSTRIAL MARKETS Factors transforming industrial markets ONLINE RETAIL AND ECOMMERCE 1 (AUD Billions) 9.3% 35 8.9% 10.0% 8.4% 7.9% 30 7.4% 6.9% 8.0% 6.7% 6.2% 25 The transformation of 6.0% 20 E-Commerce 15 4.0% 10 2.0% 5 0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 Total online retail sales Online retail sales as a % of total retail turnover Food logistics NATIONAL CONSTRUCTION ACTIVITY 1 2500 2000 1500 Pharmaceuticals 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Completed Plans Submitted Under Contruction Plans Approved C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 5 1. Source: Jones Lang LaSalle Research
1. Source: Knight Frank Research Availability reducing across all key markets INDUSTRIAL MARKETS 1 100 200 300 400 500 600 700 800 900 SQM 0 Apr-11 Aug-11 PRIME Dec-11 SYDNEY Apr-12 Aug-12 Dec-12 Apr-13 SECONDARY Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 AVAILABLE SPACE Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 1000 1200 SQM 200 400 600 800 0 Apr-11 MELBOURNE Aug-11 PRIME Dec-11 Apr-12 Aug-12 Dec-12 SECONDARY Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 AVAILABLE SPACE Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 SQM 100 200 300 400 500 600 700 800 0 Apr-11 Aug-11 BRISBANE PRIME Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 SECONDARY Aug-13 Dec-13 Apr-14 Aug-14 C E N T U R I A I N D U S T R I A L R E I T Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 AVAILABLE SPACE Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 A S X : C I P Apr-19 Aug-19 6
PORTFOLIO COMPOSITION Australia’s largest domestic pure play industrial REIT PORTFOLIO SNAPSHOT HY20 1 FY19 2 PORTFOLIO WEIGHTING QLD 32% Number of assets # 49 43 WA 11% 13.0 Book value $m 1,560.3 1,221.3 95.7 3.5 89.8 WALE(YRS) OCCUPANCY(%) WACR % 6.19 6.46 WALE(YRS) OCCUPANCY(%) GLA sqm 941,553 821,823 Average asset size sqm 19,215 19,112 NT Average tenancy size 3 sqm 9,156 8,837 QLD Occupancy by income 4 % 96.4 95.9 NSW 31% WA WALE by income 4 yrs 6.9 4.3 97.9 4.0 SA OCCUPANCY(%) WALE(YRS) NSW • A $1.6 billion portfolio of assets located in ACT infill locations and close to key infrastructure • Average tenancy size of <10,000sqm , VIC SA 3% aligned to strong national leasing velocity ACT 1% • Increased occupancy driven by leasing success, 100 9.8 VIC 22% OCCUPANCY(%) WALE(YRS) 100.0 2.2 strong WALE of 6.9 years OCCUPANCY(%) WALE(YRS) 5.4 96.3 • 85% of portfolio weighted to eastern seaboard WALE(YRS) OCCUPANCY(%) markets, benefiting from positive economic outlook 1. Includes 24 West Link Place, Richlands which was exchanged, but not settled by 31 December 2019 2. Excludes 75-95 & 105 Corio Quay Road, North Geelong and 680 Boundary Road, Richlands which were exchanged, but not settled by 30 June 2019 C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 7 3. Excludes Cargo Park, 1 International Drive, Westmeadows VIC which has an average tenancy size of 438 sqm 4. As at 31 March 2020
PORTFOLIO OVERVIEW Portfolio tenants weighted to defensive and resilient sectors • Diverse income streams from customers in defensive sectors WEIGHTED AVERAGE LEASE EXPIRY (% BY INCOME) across a portfolio of 49 high quality industrial and logistics assets 67.6 • 54% of portfolio income derived from tenant customers directly linked to the production, packaging and distribution of consumer staples and Portfolio well positioned with pharmaceuticals just 5.5% expiring over FY20 • Major tenants include Arnott’s (12%), Woolworths (6%), Visy (6%) and & FY21 Green’s General Foods (5%) 16.6 • Strong portfolio WALE of 6.9 years , with remaining FY20 expiry 6.6 4.5 3.6 1.0 negligible at 1.0% 1 . Focus on managing FY21 & FY22 expiries Vacant FY20 FY21 FY22 FY23 FY24+ KEY TENANTS Occupies 68,378sqm Occupies 58,922sqm Occupies 83,781sqm Occupies 55,771sqm Occupies 39,911sqm over 2 properties and over 2 properties and over 2 properties and over 3 properties and over 2 properties and contributes to 12.1% contributes to 6.2% contributes to 6.1% contributes to 5.5% contributes to 5.1% of trust income of trust income of trust income of trust income of trust income 1. By income, as at 31 March 2020 C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 8
CENTURIA INDUSTRIAL REIT Australia’s largest domestic pure play industrial REIT • Geographically diversified portfolio of 49 high quality industrial assets situated in key Australia’s largest domestic pure 1 metropolitan markets throughout Australia play industrial REIT • $1.6bn of AUM • CIP’s portfolio is 96.4% occupied 1 with portfolio WALE 1 of 6.9 years • Over 67% of portfolio leases expire at or beyond FY24 2 Quality industrial portfolio with high occupancy and long WALE - Limited near term expiry with only 5.5% of the portfolio expiring over remainder of FY20 and FY21 • 54% of portfolio income derived from tenant customers directly linked to the production, packaging and distribution of consumer staples and pharmaceuticals 3 Resilient and defensive • Major tenants include Arnott’s (12%), Woolworths (6%), Visy (6%) and Green’s General tenant composition Foods (5%) • FFO 4 guidance 18.9 – 19.3 cents per unit 4 • FY20 guidance FY20 distribution guidance 18.7 cents per unit • FY20 distribution per unit yield of 7.2% 5 FFO is the Trust’s underlying and recurring earnings from its operations. 1. By income, as at 31 March 2020 4. This is calculated as the statutory net profit adjusted for certain non-cash 2. Gearing is defined as total borrowings less cash divided by total assets less and other items cash and goodwill 5. Based on CIP closing price of $2.60 on 1 May 2020 3. Excludes potential proceeds from the non-underwritten UPP C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 9
Questions ASX:CIP C E N T U R I A I N D U S T R I A L R E I T A S X : C I P 1 0 1 INTERNATIONAL DRIVE, WEST MEADOWS, VIC
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