Centuria Property Funds Limited CENTURIA METROPOLITAN REIT

Transcription

1 Australian Securities Exchange - Company Announcements Platform Centuria Property Funds Limited CENTURIA METROPOLITAN REIT Victorian Asset Tour Monday, 7 May 2018 Centuria Property Funds Limited (CPFL), as Responsible Entity of Centuria Metropolitan REIT (ASX:CMA), is pleased to provide a presentation used today s Victorian Asset Tour. - Ends - For more information or to arrange an interview, please contact: Nicholas Blake Trust Manager CMA Centuria Metropolitan REIT Phone: nicholas.blake@centuria.com.au Tim Mitchell Group Head of Investor Relations Centuria Capital Group Phone: tim.mitchell@centuria.com.au Hengky Widjaja Senior Analyst, Listed Property Centuria Metropolitan REIT Phone: hengky.widjaja@centuria.com.au Gigi Shaw Senior Consultant BlueChip Communication Phone: gigi@bluechipcommunication.com.au About Centuria Property Funds Limited Centuria Property Funds Limited (CPFL), a wholly-owned subsidiary of Centuria Capital Group (CNI), is the Responsible Entity for the ASX listed Centuria Metropolitan REIT (CMA). CMA is Australia s largest ASX listed metropolitan office REIT and is included in the S&P/ASX300 index. CMA owns a portfolio of 17 high quality metropolitan office assets and two industrial assets with a portfolio value of $900 million. The properties are located in core metropolitan submarkets throughout Australia. CPFL, combined with Centuria Property Funds No. 2 Limited (CPF2L), the Responsible Entity for the ASX listed Centuria Industrial REIT (CIP), has approximately $3.7 billion of funds under management in 17 unlisted property funds, one open-ended diversified property fund and two listed REITs. CNI is an ASX-listed specialist investment manager with $4.6 billion in total funds under management.

2 Centuria Metropolitan REIT Victorian Asset Tour PAGE SWAN STREET, RICHMOND, VIC

3 Centuria Capital ASX-listed specialist investment manager Centuria Capital Group $4.6b Assets Under Management 1,2 Property fund management Investment Bonds $3.7b Assets Under Management 1,2 Assets Under Management Listed Property $2.0b 1 Unlisted Property $1.7b 2 $0.9b Industrial REIT (CIP) $1.1b Assets Under Management Office REIT (CMA) $0.9b Assets Under Management 1 17 fixed term funds Centuria Diversified Property Funds 1. Includes 31 Kendall Street, Williams Landing, VIC, as if complete 2. Includes post 31 December 2017 acquisitions 3. Above chart at 31 December 2017 PAGE 2

4 CMA, Australia s largest ASX listed metropolitan office REIT Key Metrics at 31 December High quality assets $900m $552m 29.6% 97.8% Portfolio value Market capitalisation 1 Gearing 3 Portfolio occupancy 5,6 4.3yrs 18.1cps 7.9% Portfolio WALE 4,6 FY18 distribution guidance 1. Based on CMA closing price of $2.28 on 31 March Source: Moelis & Company 3. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill 4. By gross income 5. By area 6. WALE 4.1 years, occupancy 98.6% at 31 March 2018 FY18 forecast distribution yield 1 5.1% 1,2 12 month total return at 31 March 2018 outperforming the S&P/ASX300 A-REIT Index at -0.1% 1,2 PAGE 3

5 Portfolio composition Geographically diversified portfolio weighted to eastern seaboard markets Weighted Average Lease Expiry 1,2,3 WA 10 % WA 144 Stirling St, Perth Colin Street, West Perth SA 1 Richmond Road, Keswick Grenfell Street, Adelaide NT SA 6% VIC 576 Swan Street, Richmond 2 Kendall St, Williams Landing 30% VIC QLD 13% NSW 32% TAS ACT QLD 35 Robina Town Centre Drive, Robina 555 Coronation Drive, Brisbane Kingsford Smith Drive, Hamilton 154 Melbourne Street, South Brisbane 149 Kerry Road, Archerfield NSW 9 Help Street, Chatswood 201 Pacific Highway, St Leonards 203 Pacific Highway, St Leonards 3 Carlingford Road, Epping 77 Market Street, Wollongong 13 Ferndell Street, Granville 9% ACT 54 Marcus Clarke Street, Canberra 60 Marcus Clarke Street, Canberra 60% WALE 4.1 years 1.5% 1. As at 31 March By gross income Occupancy 98.6% 2.5% 1.2% 13.3% 0.6% 12.2% 16.2% 14.4% 55.0% Vacant FY18 FY19 FY20 FY21 FY Includes 2 Kendal Street, Williams Landing, VIC, as if complete 16.0% 14.0% 1H % 3Q FY18 PAGE 4

6 Transactions VIC market transactions 1 Address Purchase Price ($m) Passing Yield Market Cap Rate Rate/sqm WALE (yrs) 312 St Kilda Road, Melbourne % 5.59% 7, Johnston Street, Abbotsford % 6.05% 5, Church Street, Richmond % 5.29% 8, Todd Road, Port Melbourne % 6.24% 4, Since 4Q 2017 Source: Colliers / JLL PAGE 5

7 Metropolitan Melbourne Projected employment growth, WESTERN Key Industries Retail trade, manufacturing, healthcare and social assistance, transport, postal warehousing, education and training Jobs growth 2.3%pa INNER Key Industries Professional scientific and technical services, finance and insurance services, healthcare and social assistance, public administration and safety Jobs growth 1.4%pa WESTERN Jobs growth: Estimated compound annual growth rate, July 2011-July 2015 (Department of Economic Development, Jobs, Transport and Resources, internal analysis, 2016) INNER Source: Department of Economic Development, Jobs, Transport and Resources, internal analysis (2016) NORTHERN INNER SOUTH EAST SOUTHERN EASTERN INNER SOUTH EAST Key Industries Retal trade, healthcare and social assistance, professional, scientific and technical services, education and training Jobs growth 1.3%pa SOUTHERN Key Industries Retail trade, manufacturing, healthcare and social assistance, education and training Jobs growth 0.5%pa NORTHERN Key Industries Healthcare and social assistance, retail trade, manufacturing, education and training Jobs growth 1.5%pa EASTERN Key Industries Retail trade, healthcare and social assistance, manufacturing, education and training Jobs growth 0.1%pa PAGE 6

8 Case study 2 Kendall Street, Williams Landing 2 KENDALL STREET, WILLIAMS LANDING 20km MELBOURNE CBD WILLIAMS LANDING TRAIN STATION PRINCES FWY DIRECT FWY ACCESS Princes Freeway travel to the CBD and Geelong MAJOR BUS INTERCHANGE EASY ACCESS To Melbourne and Avalon Airport 28 MINS Express train to Southern Cross Station PRIORITY DEVELOPMENT ZONE ARTIST IMPRESSION PAGE 7

9 Case study 2 Kendall Street, Williams Landing Apartments Shopping Centre TARGET AUSTRALIA HEADQUARTERS Williams Landing Train station ARTIST IMPRESSION PAGE 8

10 Case study 2 Kendall Street, Williams Landing STACK PLAN TYPICAL FLOOR PLAN PAGE 9

11 Victoria Portfolio Swan Street, Richmond, VIC 2 2 Kendall Street, Williams Landing, VIC Melbourne Airport Beveridge Interstate Freight Terminal Transport project committed Metro Tunnel (rail) Mernda rail extension Heidelberg-Rosanna rail duplication Caulfield to Dandenong Level Crossing Removal and Line Upgrade Ballarat rail upgrade project CityLink-Tullamarine widening M80 upgrade Monash Freeway upgrade Western Distributor Transport project potential future Outer Metropolitan Ring / E6 reservation Interstate freight terminal (indicative) Rail network Road network Transport gateway major airport Transport gateway seaport Western Interstate Freight Terminal 2 Port Melbourne 1 Source: Victoria State Government Department of Environment, Land Water and Planning Each circle represents 10km radius from the CBD area Port of Geelong Avalon Airport Port Phillip Bay PAGE 10

12 576 Swan Street, Richmond, VIC Location The Property is located approximately six kilometres east of Melbourne s CBD within Botanicca Corporate Park. The site is well serviced by public transport with Hawthorn Railway Station approximately one kilometre north. Trams operating along Swan Street and Power Street are also in close proximity. The asset is situated a short distance to the Swan Street retail precinct. Description Completed in 2013, the property comprises a five level, A-grade commercial office building with NLA of 8,331 square metres. The property incorporates office accommodation across levels one to four, as well as ground floor retail and basement car parking. Typical office plates range from approximately 1,500 square metres to 2,300 square metres. Asset summary Property type Office NABERS energy rating No rating Ownership interest 100% Title Freehold Site area 4,499 sqm Building constructed 2013 Latest refurbishment N/A Car park spaces 209 Tenancy summary Net lettable area (by NLA) 8,331 Occupancy (by NLA) 100.0% WALE (by income) 4.2 years Major tenants (by gross income) GE Capital Finance Australasia 58% Forever New Clothing Pty Ltd 38% Valuation summary Book value $62.0m Most recent independent valuation $62.0m Valuation date 30 November 2017 Valuer Colliers Capitalisation rate (current) 5.88% Expiry profile (by income) 100 (%) % 0.0% 0.0% 0.0% 0.0% 100.0% Vacant FY18 FY19 FY20 FY21 FY22+ 2 Kendall Street, Williams Landing, VIC Location The property is located on the north east corner of Kendall Street and Altair Street in Williams Landing, approximately 20 kilometres south west of Melbourne CBD. Williams Landing is largely a new residential suburb located on the northern side of the Princess Freeway and features a town square consisting the Williams Landing Shopping Centre and Williams Landing Railway Station. More specifically, the property is located within the Williams Landing Town Centre. Description ARTIST IMPRESSION The property is a multi-level, A-Grade suburban office building consisting of a net lettable area of 12,919 sqm. The building is currently in the process of being developed and Target Australia, a wholly owned subsidiary of Wesfarmers (WES:ASX), will occupy 100% of the building on a ten year lease (from completion of construction). Upon completion, an anticipated 4.0 star NABERS energy rating, 384 car spaces, a ground floor cafe and modern end of trip facilities. Asset summary 1 Property type Office NABERS energy rating 4 stars Ownership interest 100% Title Freehold Site area 4,401 sqm Building constructed 2018 Latest refurbishment N/A Car park spaces 384 Tenancy summary Net lettable area (by NLA) 12,919 Occupancy (by NLA) 100.0% WALE (by income) 10.0 years Major tenants (by gross income) Target 100% Valuation summary Book value $58.2m Most recent independent valuation $58.2m Valuation date 19 June 2017 Valuer Savills Capitalisation rate (current) 6.50% Expiry profile (by income) 100 (%) % 0.0% 0.0% 0.0% 0.0% 100.0% Vacant FY18 FY19 FY20 FY21 FY As if completed PAGE 11

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15 Disclaimer This presentation has been prepared by Centuria Property Funds Limited Limited (ABN , AFSL ) (CPFL) as responsible entity of Centuria Metropolitan REIT ( CMA or the Trust ). All information and statistics in this presentation are current as at 7 May 2018 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment CMA. It should be read in conjunction with CMA s periodic and continuous disclosure announcements which are available at www. centuria.com.au. The recipient acknowledges that circumstances may change and that this presentation may become outdated as a result. This presentation and the information in it are subject to change without notice and CPFL is not obliged to update this presentation. This presentation is provided for general information purposes only. It is not a product disclosure statement, pathfinder document or any other disclosure document for the purposes of the Corporations Act and has not been, and is not required to be, lodged with the Australian Securities & Investments Commission. It should not be relied upon by the recipient in considering the merits of CMA or the acquisition of securities in CMA. Nothing in this presentation constitutes investment, legal, tax, accounting or other advice and it is not to be relied upon in substitution for the recipient s own exercise of independent judgment with regard to the operations, financial condition and prospects of CMA. The information contained in this presentation does not constitute financial product advice. Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. This presentation has been prepared without taking account of any person s individual investment objectives, financial situation or particular needs. It is not an invitation or offer to buy or sell, or a solicitation to invest in or refrain from investing in, securities in CMA or any other investment product. The information in this presentation has been obtained from and based on sources believed by CPFL to be reliable. To the maximum extent permitted by law, CPFL and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this presentation. To the maximum extent permitted by law, CPFL does not accept any liability (including, without limitation, any liability arising from fault or negligence) for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters ( Forward Statements ). Forward Statements can generally be identified by the use of forward looking words such as anticipate, estimates, will, should, could, may, expects, plans, forecast, target or similar expressions. Forward Statements including indications, guidance or outlook on future revenues, distributions or financial position and performance or return or growth in underlying investments are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CPFL represents or warrants that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Except as required by law or regulation, CPFL assumes no obligation to release updates or revisions to Forward Statements to reflect any changes. The reader should note that this presentation may also contain pro forma financial information. 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 Directors consider that distributable earnings reflect the core earnings of the Trust. All dollar values are in Australian dollars ($ or A$) unless stated otherwise PAGE 14

16 Thank you