Centuria posts flat results
Centuria Capital Group has posted flat FY19 returns, with operating net profit after tax (NPAT) amounting to $45.7 million against $45.1 million last year, after entering into the healthcare real estate sector.
At the same time, statutory profit amounted to $50.9 million and was lower compared to the prior corresponding period ($54.8 million).
Following this, operating NPAT generated an operating earnings per share (EPS) of 12.7 cents and a distribution per stapled security of 9.25 cents. The company said that the FY19 operating EPS was skewed relative to the FY18 operating EPS (16.3 cps) due to the abnormally high-performance fee generated by the sale in Sydney.
John McBain, who was appointed as Centuria’s board joint chief executive , alongside Jason Huljich, last year, said that the firm’s footprint grew substantially through FY19 with a market capitalisation of over $750 million, recording an FY19 securityholder return of 34 per cent.
“Moreover, our funds management platform is well positioned in the attractive office, industrial and healthcare real estate sectors and we expect continued healthy growth in these markets through FY20,” he said.
Centuria’s listed vehicles added 13 assets across both Centuria Metropolitan REIT (CMA) and Centuria Industrial REIT (CIP) for a total of $759 million while the unlisted property division managed to expand its assets under management (AUM) to $304 million.
The company also announced its FY20 forecast distribution guidance of 9.7 cents per stapled security (plus 4.9 per cent on FY19 actual 9.25 cps).
“Centuria remains focused on building a strong funds management platform aligned to the commercial, industrial and healthcare real estate sectors as well as continuing to build its investment bond business,” McBain said.
“Centuria’s suite of investment options are positioned to offer very attractive spreads for its investors in an investment universe where prolonged low interest rates and deceasing term deposits area a dominating factor.”
AUTHOR
Oksana Patron
Recommended for you
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
