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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[1] Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash and significant items.  The CPF2L Directors consider that distributable earnings reflect the core earnings of CIP
[2] Since 30 June 2017
[3] Reflects gross increase, does not include capital expenditure incurred since 1 July 2017, excludes Mark to Market movement for PLG securities
[4] By income
[5] Centuria Capital Group (“CNI”) hold a 9.3% interest in PLG. CNI and CIP hold 17% of PLG when viewed in combination

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