This article is from the Australian Property Journal archive
CENTURIA Capital Group grew its real estate funds management platform by 17% to $19.3 billion in the first half, driven by $2.5 billion of acquisitions across its unlisted and listed vehicles.
The group posted a 26% increase in operating revenues on the prior corresponding period to $139.4 million, and operating profit after tax rose 73% to $58.7 million.
Operating earnings per security was 7.4c and a distribution of 5.5c was declared.
Centuria last month upgraded its FY22 guidance to 14.5c per security, a 20.8% increase on FY21.
It reaffirmed FY22 distribution guidance of 11.0c.
“It has been particularly pleasing to witness the consolidation of revenue streams from recently acquired business units in combination with a very strong contribution from organic property fund acquisitions, both listed and unlisted,” joint CEO, John McBain, said.
Most recently it teamed up with Singapore’s sovereign wealth fund GIC to buy a Brisbane city fringe retail precinct for $202 million, while it partnered with MA Financial Group to buy The Black Stump office building in Adelaide.
Its fast-growing Centuria Industrial REIT now boasts a portfolio worth $4 billion.
Across its unlisted healthcare funds, it closed out 2021 with $466 million worth of acquisitions on both sides of the Tasman.
Centuria recently took over WA-based fund manager Primewest.
“Centuria’s unlisted retail investors have continued to invest strongly and we have been active in placing new assets with our institutional mandate partners, making HY22 a very successful period,” McBain said.
Listed real estate acquisitions totalled $1.6 billion and unlisted $0.9 billion, and the group has a $2.2 billion development pipeline.
Operating recurring revenues as a percentage of total revenues was steady at 87%, while management fees bolstered recurring revenues.
Transaction fee income jumped 400% to $24.4 million resulting from $3.5 billion in total transaction activity.
“We continue to harness significant deal flow, especially through off-market opportunities as well as our active development pipeline, which generates sustainable, high-quality stock for our funds,” McBain and joint CEO Justin Huljich commented,
Centuria has $241 million of cash and undrawn debt on hand and an operating gearing ratio of 8.3%.
