Centuria’s two listed real estate trusts, Centuria Metropolitan REIT (ASX: CMA) and Centuria Industrial REIT (ASX: CIP), has announced strong half-yearly results for the period to 31st December 2017; the result of six months of successful transactional activity, leasing and portfolio re-alignment.
Most importantly, this activity has ensured our listed entities continue to deliver predictable and reliable returns to our investors. Distributable earnings improved to $19.9 million and $24.2 million for CMA and CIP respectively, with distribution guidance reaffirmed for both entities.
The results come one week ahead of Centuria Capital Group’s (ASX: CNI) half year results announcement on Thursday 15 February by group CEO John McBain.
CMA half-year highlights
Financial highlights
- Statutory net profit of $39.2 million
- Distributable earnings of $19.9 million representing 9.4 cents per security (cps)
- Quarterly distributions paid during 1H18 totalling 9.05 cps
- Increased net tangible assets (NTA) to $2.39 per security, up 7 cps or 3.0% from December 2016
- Disciplined gearing of 29.6%, within target range
- Inclusion in the S&P/ASX 300 A-REIT index from September 2017
- Rolling 12-month total return of 20.9% outperforming S&P/ASX 300 A-REIT Index at 6.4%3 as at 31 December
Operating highlights
- Strong leasing activity with 20 lease transactions across 9,234sqm
- FY18 lease expiries of 1.2% provide solid earnings visibility for remainder of FY18
- Increase in portfolio valuations to $899.7 million since 1H17
- Like-for-like total portfolio increased by $41.6 million, or 7.0%
- Portfolio weighted average capitalisation rate (WACR) firmed to 6.87% (44bps) from 1H17
- Strong portfolio weighted average lease expiry (WALE) of 4.3 years
- Acquisition of four high quality, fully occupied assets totalling $210.9 million
- Average NABERS energy rating of 3.8
CIP half-year highlights
Financial highlights
- Statutory net profit of $49.6 million
- Distributable earnings[1] of $24.2 million representing 10.1 cents per unit (cpu)
- Distributions of 9.7cpu paid in 1H18
- Total assets increased 16.7% to $1,075.0 million[2], with NTA increasing by 4.7%[2] to $2.46 per unit
- Continued to deleverage with gearing reduced to 40.6% (43.1% at Jun-17)
- $31 million[3] revaluation gain, driven primarily by leasing success
Operating highlights
- Agreed leases over 159,502sqm; representing 20.8% of portfolio GLA
- Portfolio occupancy increased to 95.9% (92.1% at Jun-17)[4], with a 4.9 year WALE3
- Acquisition of 7.7% strategic interest in Propertylink Group[5]
- Acquisition of four strategic, geographically diversified properties for $78.4 million before transaction costs
Centuria’s listed business has grown from an aspiration just over three years ago, to two significant, market leading S&P ASX 300 Index funds today. Full results in the attached ASX announcements.
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