John McBain
Specialist investment manager Centuria Capital has announced results for the half year ended 31 December 2015 and declared a fully franked dividend of 2.25 cents per share, up 12.5% from the same period last year.
The full year underlying NPAT is likely to lie within the guidance range of $9.0 million to $10.5 million, again up compared with FY15 underlying NPAT of $6.3 million.
“We have experienced 14.6% growth in the Group’s funds under management to $1.8 billion and we are pleased to confirm a 2.25 cent interim dividend,” Centuria Group CEO John McBain told a shareholder webcast conducted following release of the results to the ASX.
“Net Tangible Assets per share also grew from 30 June 2015 5.5% to $0.91 cents, a very strong number, especially relative to peers in the fund management space.”
Mr McBain went on to highlight particular areas of performance that signal the Group is exactly where it wants to be in terms of its ambitious growth and other targets. He also emphasised the considered nature of the activity underpinning the performance and that Centuria is continually looking ahead to ensure it meets its goals.
“I am particularly pleased, for example, in reporting some $600 million in property sales that have released some market-leading profits to investors. And on the acquisitions side of the ledger, we’re acting on opportunities that will continue to boost results. The strength of our pipeline is very impressive,” he said.
Mr McBain continued to underscore the role of Centuria’s Property Funds Management on both the unlisted and listed side in the strong results, naming the acquisition of 203 Pacific Highway St Leonard’s, Sydney for $86 million, with the acquisition by Centuria Metropolitan REIT (CMA) of a 50% interest in the asset with the Centuria 203 Pacific Highway Fund taking the other 50%.
“The ability of the Property business to identify value where others don’t, and ensure potential for uplift in all its assets is a central plank in our strategic platform,” explained Mr McBain.He cited the landmark Australian Technology Park (ATP) acquisition of $104 million and the overwhelming take-up of the subsequent Centuria ATP Fund launch as an example.
Sale of 175 Castlereagh Street, Sydney for $98 million and the conditional sale of Macquarie Park properties for $101 million, resulted in both excellent return for investors and substantial profits and performance fees for Centuria.
Mr McBain also pointed to the important role of improving performance on the hitherto relatively quiet Bonds side of the business. “We’ve made a very strong move to reshape the Bonds business to better capitalise on the conditions and investment needs of the current market and we’re more than gratified to see investors and advisers sitting up and taking notice,” he said. “We expect the gradual improvement we’re already seeing in inflows to grow as a natural extension of the work we’ve undertaken.”
Mr McBain said that key achievements on the Bonds front included strategic hiring of a team of expert resources, a laser focus on business development and four of the Centuria Bond funds receiving Morningstar and Lonsec ratings.
“All in all, the half year results represent a very strong scorecard that show all areas of the business tracking exactly where they should be at this stage in order to deliver the outcomes that shareholders and investors are looking for. We are very well positioned to continue to execute on our business strategy,” concluded Mr McBain.
