This article is from the Australian Property Journal archive
A BIG appetite for agricultural real estate investments and a growing real estate finance division over the first half of FY23 took Centuria Capital Group’s assets under management to $21.2 billion.
Centuria’s interim profit fell from $112.7 million to $74.3 million, while its operating profit was maintained at about $58.5 million. Total operating revenue increased 15% to $159.7 million.
During the period, Centuria expanded its agricultural assets by 20% to more than $420 million, with growth largely attributed to the unlisted Centuria Agriculture Fund (CAF). That included the $70 million acquisition of the Sundrop Farms December, following its $177 million purchase of a Flavorite facility in Victoria. They made Centuria Australia’s largest single owner of major glasshouses.
Meanwhile, Centuria Bass Credit (CBC), the group’s real estate finance division, boosted its assets under management by 38% to more than $1.1 billion, which Centuria said highlighted the growing demand for non-bank finance as traditional lenders tighten their lending criteria.
CBC launched four single asset funds worth more than $76 million and its open-ended Centuria Bass Credit Fund (CBCF) loan book grew to $50 million, encompassing 21 diversified positions during the period.
Centuria also increased its healthcare platform by a further 3% to $1.7 billion.
Jason Huljich, Centuria joint CEO, said, “Throughout HY23, Centuria has delivered on its commitment to expand across alternative real estate sectors, which has contributed to our strong organic growth within the unlisted platform”.
“This expansion was strongly supported by Centuria’s broad, direct investor network comprising individuals, advisers, private wealth managers and, most significantly, across institutional mandates and partnerships.”
Institutional capital commitments increased 11% to $2.1 billion in the period.
Centuria’s gross real estate activity of $1.0 billion during the first half took in $616 million of real estate acquisitions and $349 million of real estate lending during HY23. Additionally, $369million of acquisitions that were exchanged in FY22 were settled in HY23.
Record transactions executed throughout FY22 provided sustainable management fee revenue, which increased 13% to $73.2 million.
“Throughout the past six months we have maintained a healthy balance sheet, continued our platform expansion into alternative sectors and re-affirmed our forecast earning and distribution guidance, despite high inflation and increased interest rates normalising from pandemic emergency levels.” John McBain, Centuria Joint CEO, said.
Centuria delivered operating earnings per security of 7.4c and declared a distribution of 5.8c per security for the period. It reaffirmed its full year guidance of 14.5c and distributions guidance of 11.6c, up 5.4%.
