John McBain
Specialist investment manager Centuria Capital yesterday announced its results for the half-year ended 31 December 2014 and declared an interim fully franked dividend of 2.0 cps.
Group CEO John McBain commented: “The results for the first-half of the 2015 financial year are the strongest first-half results the Group has delivered for many years.
Equally pleasing is the fact that the Group has executed on its major strategic objectives, at the same time streamlining our business model to two core operating divisions.” he said referring to the Property Funds Management and Investment Bonds divisions.
He further commented: “Shareholders experienced a pleasing increase in share price during this half (20%). Centuria aims to produce attractive total shareholder returns with a combination of increased security price as the market takes into account our clear business model together with a consistent income stream as earnings continue to grow.
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2015 Half-year Results
| 31-Dec-14 | 31-Dec-13 | Change | |
| Statutory net profit after tax | $7.6m | $5.0m | 52.1% |
| Statutory earnings per share (basic) | 9.8c | 6.5c | 50.8% |
| Underlying net profit after tax | $5.4m | $2.9m | 87.6% |
| Underlying earnings per share | 6.9c | 3.7c | 88.1% |
| Dividends per share (fully franked) | 2.0c | 1.25c | 60.0% |
| 31-Dec-14 | 30-Jun-14 | Change | |
| Net assets | $111m | $105m | 6.6% |
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Accordingly, Centuria Group declared an interim dividend of 2.0 cents per share fully franked, with a record date of 5 March 2015 which will be paid on 26 March 2015”
Strategic Objectives Achieved
- Listed Property Funds management division’s successful IPO of the $143 million Centuria-managed, Centuria Metropolitan REIT (ASX: CMA) in December 2014. CMA has experienced strong investor support, with the share price increasing 16.0% from listing to close at $2.32 cents per share yesterday.
- Sale of non-core operations, Over Fifty Insurance Pty Ltd, and the variable rate reverse mortgage portfolio released $37 million to the Group pre-fees, strengthening the Group’s balance sheet, eliminating debt and providing capital to expand two core divisions.
- The Unlisted Property Funds division recorded substantial sale and performance fees, including fees from the sale of 441 St Kilda Road, Melbourne and Citilink Business Centre in Brisbane. The division established the Centuria 2 Wentworth Street Fund during the half which was substantially oversubscribed, closing early after a $27 million capital raising.
- The Investment Bond division is experiencing new inflows from its growing range of new bond products under the guidance of recently appointed General Manager, Neil Rogan. Centuria Life launched two new white-labelled Centuria bonds during the half-year, the Implemented Portfolios Dynamic Asset Allocation Bond and the Mason Stevens Credit Bond.
Centuria today released its half-year results presentation which analyses corporate earnings in detail and sets out fresh strategic objectives for the Group.
Refreshed strategies for 2015 and beyond include:
- Continue to grow the Unlisted Property Fund management business using our extensive Centuria investor base and growing adviser network. This division has settled or identified $150- $200 million of new acquisitions for the 2015 financial period.
- Centuria Property expects to create and invest in further development projects alongside our investors such as the 68-unit Monarch Mosman residential project presently being undertaken in Sydney. There is a significant pipeline of mature commercial trusts which own assets suitable for this type of residential conversion. Further skilled staff have been appointed to this area.
- To grow Centuria Metropolitan REIT strongly with quality asset acquisitions and utilise its very supportive institutional and private client base.
- Further expansion and resourcing of the Investment Bond business which is experiencing new inflows under the experienced leadership of ex-AMP marketing specialist Neil Rogan. A distribution team servicing all States is being set up and three appointments were made in the half.
- In addition to the single institutional mandates it has secured, Centuria’s Singapore office is finalising a new club vehicle to raise up to A$200 million which will invest in Australian commercial property.
- To pursue accretive acquisitions or the expansion into core business areas where sensibly priced opportunities arise.
John McBain commented further: “We have been working very hard to assemble a terrific team of executives with a very clear and straight forward model together with a strong balance sheet. We will employ our balance sheet to assist with growing the property funds management and operations and this may take the form of short-term bridging of transactions or joint ventures or long-term strategic holdings in the Centuria REIT or the Asian club. We also have a major resourcing and marketing push on our other core business, the Investment Bond operation
While quality assets are difficult to acquire, our experience is that we are able to perform well in these markets and we believe we are well positioned to grow all our business units in 2015.”