CENTURIA CAPITAL GROUP — Annual Report 2017

Aug 22, 2017

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Centuria Capital Group FY17 Annual Results

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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1Overview[2] FY17 financial 3Property funds Unlisted property 5Listed property 6Investment 7Conclusion[8] Appendices highlights management[4] funds funds bonds

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1. a

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Overview

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Centuria profile

ASX-listed specialist investment manager

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Centuria Ca ital Grou
p p
$4.2b
FUM 1
Listed Property Unlisted Investment
Funds Industrial REIT (CIP) $998m FUM Property Funds Centuria Diversified Property Fund Bonds Centuria Life $353m FUM
$1.8b $1.6b + $0.8b
Office REIT (CMA) 16 fixed term funds Guardian Friendly Society
FUM [1] $779m FUM FUM [1] FUM $446m FUM
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1. Includes post 30 June 2017 acquisitions

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Operating highlights

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• Operating Operating NPAT of 10.3 cps, in line with guidance −

• earnings Recurring revenue contribution increased from 55% to 75% over FY17 − Final distribution of 5.2 cps

• Distributions − Total distributions for FY17 of 7.5 cps, in line with guidance

• To CNI Securityholders – 24%[1]

• Total FY17 − To Unlisted Property Fund investors – 28%[1]

• returns − To CMA Securityholders – 25%[1]

• − 118% increase in FUM to $4.2b[1] by organic growth and platform acquisitions

• Funds under − Includes $1.4b FUM from acquisition of 360 Capital real estate platform and

• management $731m increase in FUM from the acquisition of 10 assets[2]

• − Accessed debt markets with $100m corporate note issue

• −

• Capital $153m equity raise associated with 360 Capital acquisition and additional placement −

• management Market capitalisation up from $80m to $290m[3] − Good potential for CNI near-term ASX 300 inclusion

• Past performance is not indicative of future performance. Please refer to the Appendix for further important information on the calculation of total return figures 2. Includes post 30 June 2017 acquisitions

• As at 21 August 2017

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Operating highlights

Operating earnings and distributions continue to trend upwards

Operating earnings per security

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16
14 14.8
12
10
10.3
8
8.1
7.6
6 6.8
4
2
0
FY13 FY14 FY15 FY16 FY17
Cents per security
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Distribution per security

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8
7 7.50
6
5
5.25
4.75
4
3
2.75
2
1
1.25
0
FY13 FY14 FY15 FY16 FY17
Cents per security
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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Strong growth appetite

Increased FUM by organic growth and platform acquisition

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4,187
3,851
998
921
779
629
1,919
1,636
1,591 416
1,611
1,502
323
922
783
553
714 715 720 799 799
FY14 FY15 FY16 FY17 Aug 17
FUM $m
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― Acquisition of 360 Capital platform added $1.4b of FUM

• Strong organic growth with acquisition of 10 assets adding $731m of FUM[1]

― Expanded distribution channels

• Greater access to REIT market via CIP and CMA

• High net worth & traditional channels growing strongly (10k + client base)

• New capital partners (e.g. BlackRock) for larger joint acquisitions

• Greater distribution opportunities with aligned financial advisers

― Investment Bonds FUM growth of 11%

CIP Listed Property Funds ManagementCIP Listed Property Funds Management CMA Listed Property Funds ManagementCMA Listed Property Funds Management Unlisted Property Funds ManagementUnlisted Property Funds Management CLL Investment Bonds Management

1. Includes post 30 June 2017 acquisitions

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Transformational FUM growth

Setting a strong foundation for FY18 earnings

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FY16 1H17 FY17
$1.9b FUM $3.7b FUM $4.2b FUM [1]
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19%
20%
25% 24%
22%
41%
37%
18% [2] 19%
37% 38%
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1. Includes post 30 June 2017 acquisitions 2. Includes Centuria Urban REIT

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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FY17 corporate activity

Centuria milestone timeline

									Launched $72m					Merger of
									Centuria Scarborough					CMA and CUA
									House Fund
														CIP acquisition of
									Launched Centuria					2 properties for $65m
						Sold Creek St, Brisbane $39m			Diversified Property Fund			$100m corporate bond issue		CMA $58m acquisition of CMA acquisition of 2 properties for $92m
	Successful formation of Centuria Capital Group as a stapled security					Sold Crown St, Wollongong $41m			Announced simplification and de-stapling of CMA			Launched $106m Centuria Sandgate Road Fund		CIP $35m capital raising Kendall St, Williams Landing CIP $11m acquisition of Robinson Rd, Belmont
JUL16	SEP16 OCT16 NOV16 DEC16								JAN17 FEB17 MAR17				APR17	MAY17 JUN17 JUL17 AUG17
$279m acquisition	Liquidated			Announced		360		Completion of the CMA settled sale of					Refinanced CIP CMA $90m equity
of The Zenith,	GMF stake			Capital	platform				360 Capital Mars Rd, Lane Cove				portfolio’s $450m raising for three new
Chatswood	for $2m profit			acquisition					transaction for $26m				debt facilities acquisitions
Sold Macquarie Park $101m	Woden Development Fund launched, building relationship with			$72m acquisition of Scarborough House, Canberra				Successfully completed equity raising of $150m to fund acquisition of Settled $59m residential development in Mosman					CIP secures new leases/early tenant renewals for 8% of portfolio CIP sold Wedgewood Drive, Hallam $10m
In negotiations to acquire management of GMF	Hindmarsh in Canberra							majority of 360 Capital						$106m acquisition of Sandgate Road Nundah

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Strategy scorecard

An important milestone year in Centuria’s progress

Strategy	Initiative	Action	Action
Develop	Corporate activity supporting growth and	−	Successful formation of CNI as a stapled security
	encouraging co-investment	−	Merger of CMA and CUA
		−	Equity raising and 360 Capital platform acquisition added
			scale to business – market capitalisation $290m1
Support	Strong parent support for listed and unlisted property and	−	$136m1 co-investment in CIP/CMA
	investment bonds	−	Balance sheet support for $523m acquisitions in
			unlisted properties
Grow	Platform positioned to build on FUM growth in real estate and	−	Growth in FUM of 118%
	investment bonds	−	FY17 recurring revenues increased to 75% of total revenues
	Increase recurring revenue streams via increased FUM and	−	Launch of six unlisted funds adding $517m1 FUM
	co-investments	−	Launch of open-ended diversified property fund
		−	Record transaction The Zenith at $279m2
Perform	Deliver superior returns to securityholders	−	EPS of 10.3 cps
		−	DPS of 7.5 cps

1. As at 21 August 2017

2. In conjunction with BlackRock

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Outlook

• Greater scale and wider market recognition should lead to ASX 300 inclusion for Centuria in the near term

• Continue to support growth across all three property platforms (CMA, CIP and unlisted property)

• Greater access to capital markets (both equity and debt) and balance sheet depth will be utilised to:

• −accelerate unlisted property funds growth

• −increase co-investment stakes in CMA

• −review corporate acquisitions where appropriate

• Investment Bonds business in positive FUM growth; aim to improve position as Australia’s fourth largest manager

• Further diversify distribution channels, build on existing wholesale relationships as well as traditional equity sources

• Anticipated benefits from existing unlisted fund performance fees as assets realised and group rewarded for asset outperformance

• Expect FY18 operating EPS to increase approximately 5%, assuming performance fee contribution is consistent with long term average

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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FY17 financial highlights

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Group operating highlights Increased full year earnings

Operating NPAT Operating EPS	FY17 $15.5m 10.3cps	FY16 $11.3m 14.8cps1	% change 37% (31%)
Statutory NPAT	$26.3m	$12.1m	117%
Statutory EPS	11.5cps	15.8cps	(27%)
Dividend/distribution per security	7.5cps	5.25cps	43%

• Significant increase in operating NPAT reflects increased recurring revenue streams, including acquisition of 360 Capital real estate platform

• Distribution per security up 43% on FY16 with dividends fully franked and trust distributions 66% tax deferred

Operating Net Profit After Tax

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20
15.5
15
11.3
10
5.9 6.3
5.3
5
-0
FY13 FY14 FY15 FY16 FY17
Distribution per security
8 7.50
7
6
5.25 3.6
4.75
5
4
2.75
3
2 1.25 3.9
1
0
FY13 FY14 FY15 FY16 FY17
Dividend per security Trust distribution per security
$m
Cents per security
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1. FY16 operating EPS includes $15.8m in performance fees

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Operating segment results

Significant increase in recurring earnings

• Operating EPS in line with guidance

• Significant growth in recurring revenue

• Co-investment earnings up on $151m of investments

• Corporate costs in line with expectations from integration of the 360 Capital platform

• Improved effective tax rate

	Operating profit by segment	FY17 ($m)	FY16 ($m)
	Property Funds Management	14.0	2.4
	(ex. Performance Fees)
	-performance fees	1.8	15.8
	Investment Bonds division	4.4	4.5
	Co-investment - other income1	5.9 2.6	1.8 –
	Reverse mortgages	0.0	(0.3)
	Corporate	(7.5)	(6.3)
	Operating profit before interest and tax	21.2	17.9
	Corporate finance costs	(2.9)	(0.8)
	Operating profit before tax	18.3	17.1
	Operatingtax expense	(2.8)	(5.8)
	Operating profit after tax	15.5	11.3
	OperatingEPS - cps	10.3	14.8

1. Income from Belmont Rd, Mosman development

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Operating segment balance sheet

Stronger balance sheet – a platform to support growth

Property Funds Management $’000 Investment Bonds Management $’000 Co-investments $’000 Reverse Mortgage $’000 Corporate $’000 Operating Balance Sheet FY17 $’000 Operating Balance Sheet FY16 $’000 Assets Cash and cash equivalents 11,403 4,451 29,211 1,252 9,417 55,734 12,948 Receivables 8,809 1,117 2,766 (25) 675 13,342 13,525 Financial assets - - 151,354 46,186 - 197,540 109,577 Other assets 124 38 - - 1,389 1,551 1,380 Intangible assets 157,663 - - - - 157,663 53,025 Total assets 177,999 5,606 183,331 47,413 11,481 425,830 190,455 Liabilities Payables 922 957 8,167 1,235 12,542 23,823 8,511 Liability to 360 Capital Group - - 7,938 - - 7,938 - Provisions 624 - - - 677 1,301 1,155 Borrowings (6) - 98,125 9,147 - 107,266 36,550 Interest rate swap at fair value - - - 18,190 - 18,190 20,753 Deferred tax liability 422 (18) - (1) (2,724) (2,321) 2,900 Provision for income tax 3,485 199 (123) 1,720 (2,497) 2,784 1,826 Total liabilities 5,447 1,138 114,107 30,291 7,998 158,981 71,695 Net assets 172,552 4,468 69,224 17,122 3,483 266,849 118,760

Significant increase in co-investments Acquired management rights $100m corporate bond issue $153m in equity raised during the year Dividend distribution accrued this year

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Sources of operating revenue

Increased recurring revenue

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55,000 Significant increase in
recurring revenues
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
-
FY15 FY16 FY17
Property Funds Management FProperty funds management f ees Property services and other revProperty Services and Other RProperty Services and Other R e nuevenuevenue
Co-Investment IncomeCo-investment income Property transaction feesProperty Transaction FeesProperty Transaction Fees
Re-development incomeBelmont RdOther income [1]
Revenue ($m)
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Minimal performance
fee in FY17
Growth in unlisted property
portfolios to deliver consistent
recurring transaction and
performance fees
Co-investments provide
a further source of
recurring income
Significant underlying growth in
property funds management fees
FY17
Property services and other revProperty Services and Other RProperty Services and Other R e nuevenuevenue Investment Bonds management feesInvestment Bonds Management Fees
Property transaction feesProperty Transaction FeesProperty Transaction Fees Performance feesPerformance fees
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1. Revenue from Belmont Road, Mosman development

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Property funds management

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Property funds management division

Unlisted property funds

Listed property funds

Centuria’s unlisted property business has a 20 year history of arranging the syndicated acquisition of investment-grade property to an extensive private client network.

Centuria has a strong track record of delivering competitive income returns and capital growth for our investors, with asset sales of $1.3b and an average return to investors of 13.1%[1] across 36 completed funds.

Centuria’s listed property business offers investments in high-quality office and industrial assets across Australia through two ASX listed REITs: Centuria Industrial REIT (CIP) and Centuria Metropolitan REIT (CMA).

The business focus is to deliver predictable and growing returns to investors by generating value throughout the property cycle – from the strategic acquisition of assets to actively managing properties to attract and retain good tenants.

27% $1.8b 40 16 CMA FY17 FUM[2] Industrial Office total returns assets[2] assets[2]

28% $1.6b 16 FY17 total FUM[2] Unlisted fixed Completed[36] returns term funds[2] funds 1.

Past performance is not indicative of future performance. Please refer to the Appendix for further important information on the calculation of total return figures 2. Includes post 30 June 2017 acquisitions

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Property highlights

183% growth in total property funds under management[1]

Centuria Property Funds Gross Asset Value

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Centuria Property Funds Gross Asset Value
4000 4,000
3500 3,500 76 3,387
150
109
212 3,052
63
3000 3,000 72
262
211 (169)
2500 2,500 923
2000 2,000
279
1500 1,500
1,199
1000 1,000
1 July 2016 The Zenith CIP CUA (now Ex-360 Scarborough Other asset Asset RevaluationsRe-val 30 June 2017 Sandgate CMA CIP August 2017
opening FUM acquisition merged with Unlisted acquisition acquisitions disposals closing FUM acquisition acquisitions acquisitions closing FUM
CMA) Funds (unlisted)
1. Includes post 30 June 2017 acquisitions
FUM ($m)
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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Growing our property footprint nationally

Increased geographic diversification

• Acquired Australia’s largest pure income-focused Industrial REIT (CIP)

• Grew CMA into the dominant listed metropolitan office REIT on ASX

9 Properties valued at $392m CMA Office: 2 properties at $92m CIP Industrial: 4 properties at $111m Unlisted Office: 3 properties at $189m

14 Properties valued at $622m CMA Office: 4 properties at $235m CMA Industrial: 1 property at $26m CIP Industrial: 6 properties at $178m Unlisted Office: 2 properties at $137m Unlisted Retail: 1 property at $46m

• Unlisted property division FUM growth of 106%

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Geographic diversification
of properties
VIC
ACT
11%
5%
WA
NSW 12%
51%
QLD
19%
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SA
2%
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3 Properties valued at $56m
CMA Office: 2 properties at $48m
CIP Industrial: 1 property at $8m
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• 15 Properties valued at $387m CMA Office: 2 properties at $119m CIP Industrial: 13 properties at $268m

27 Properties valued at $1,665m CMA Office: 3.5 properties at $149m CMA Industrial: 1 property at $18m CIP Industrial: 13 properties at $381m Unlisted Office: 8.5 properties at $1,095m Unlisted Retail: 1 property at $22m

• 4 Properties valued at $156m CMA Office: 2 properties at $74m CIP Industrial: 1 property at $15m Unlisted Office: 1 property at $67m

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Unlisted property funds

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Unlisted property highlights

Strong FUM growth of 106% to $1.6b in FY171

• Launched six new funds adding $517m FUM[1] , highlights include:

• Record transaction with The Zenith[2] at $279m

• Scarborough House $72m, equity raising closed in five days

• Acquisition of Sandgate Road for $106m

• Woden Green development fund fully subscribed

• Four funds acquired from 360 Capital adding $262m FUM

• Completion of Belmont Road Development Fund, generating IRR of 20.4% pa

• Completion of 8 Australia Avenue Fund, generating IRR of 13.3% pa

• ― Launched the unlisted Centuria Diversified Property Fund

• Delivered 28.3% total return to unlisted investors in FY17[3]

• Based on valuation at launch (includes post 30 June 2017 acquisitions)

• In conjunction with BlackRock

• Past performance is not indicative of future performance. Please refer to the Appendix for further important information on the calculation of total return figures.

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Acquisition :
The Zenith $279m
July 2016
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Acquisition :
Scarborough House $72m
March 2017
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Acquisition :
Sandgate Rd $106m
July 2017
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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Centuria Diversified Property Fund

Diversified, platform-friendly property fund

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• Currently invested in 9 quality office funds

• Daily unit pricing and applications

• Offers liquidity through a limited monthly redemption facility

• 12 month return of 19.5%, outperforming benchmark[1] by 144%

• “Recommended” rating from Lonsec[2] and Core Property

• Expanded distribution to aligned financial advisers via platforms

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The Zenith, 8 Central Ave,
Chatswood Eveleigh
13 Garden St, 203 Pacific Hwy, Scarborough
Eveleigh St Leonards House, Woden
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1. Benchmark of 8% reflects the funds long term asset allocation. Refer to the Centuria Diversified Property Fund PDS for more details. 2. For information regarding the Lonsec rating, please refer to the Appendix

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Unlisted fund case study: The Zenith

Total return of 28.6%[1] in 12 months

• Iconic institutional-grade office building located 12km north of Sydney CBD

• Acquired in July 2016 in partnership with BlackRock

• 21% uplift in property valuation since purchase

• Achieved substantial leasing progress in FY17 increasing WALE to 3.4 years[2]

• – 10 new leasing deals totaling 8,950sqm[2]

• Exercised options totalling 4,236sqm[2] , and terms agreed with existing tenants over five deals for a further 8,595sqm[2]

• Strong rental growth, including record Chatswood rental of $625/sqm net over a half floor

― Reduced outgoings by $10/sqm

1. Past performance is not indicative of future performance. The case study is in summary form only and has no correlation to any other property or fund. Total returns include capital gains as well as distributions paid since the inception of the fund in July 2016 shown on a per annum basis. The case study is provided strictly for the information of shareholders and should not be relied on by investors in any of Centuria’s funds. The Centuria Zenith Fund is closed to new investment and returns will vary from year to year and may even be negative in future years. Each fund managed by Centuria Property Funds Limited will have different characteristics, properties and risk and should be assessed by an investor independently of the performance of completed funds. Please refer to the Appendix for further important information on the calculation of total return figures

	July 17	Purchase
WALE	3.4 years	2.6 years
Value	$339m	$279m
Occupancy	94%	96%
August rental	$523/sqm	$490/sqm

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1. Including areas that were under offer at 30 June 2017

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Unlisted fund case study: Belmont Road

Adding value to deliver superior returns for investors

• High-end, boutique 62 apartment residential development in prestigious Mosman, Sydney

• Redevelopment of legacy unlisted Centuria office fund asset

• 100% pre-sold prior to completion

• Created the opportunity for investors to participate in attractive equity returns

• Fixed price contract completed on time and on budget

• Centuria co-invested alongside investors in a deal-specific development fund

This case study provides a selected example relating to returns for the Centuria Belmont Road Development Fund completed during the year. The case study is in summary form only and has no correlation to any other property or fund. Total returns include capital gains as well as distributions paid during the life of completed funds shown on a per annum basis. Performance has been determined after the property sold and the fund wound up. Each fund managed by Centuria Property Funds Limited will have different characteristics, properties and risk and should be assessed by an investor independently of the performance of completed funds.

	Fund overview
	Fund launch	Feb 2015
	Fund term	2.1years
	Equityraised	$14m
	Centuria co-investment	$4m
	Total return(per dollar invested) Total return(%pa)	$1.45 20.4%

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Unlisted property outlook

Strong investor demand continues

― Investor demand

• Investor demand for unlisted products continues to grow

• New investment products to be created to match investor appetite for risk and return (e.g. Centuria Diversified Property Fund)

• Income remains the key investment driver

• Increased enquiry for investment in alternate asset classes

“Conditions continue to be optimal for the unlisted property business. In a market facing cap rate compression and low interest rates, there is broad consensus that Australian unlisted commercial property offers better value for investors seeking secure and stable income streams.”

• Well positioned to expand distribution to aligned financial advisers

• Centuria brand is well established in the Australian marketplace

― Returns

• Investors benefiting from increased valuations and distributions

• Cap rate compression continuing in most markets

• Significant leasing success across the portfolio

“In FY17 we have pioneered retail funds with starting yields of 6.5% – 7.0% as return expectations adjust to prevailing market conditions.”

Jason Huljich CEO – Unlisted Property Funds

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Listed property funds

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Listed property highlights

Significant growth since launch of initial REIT in December 2014

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$1.8b

FUM[1]

• Centuria Metropolitan REIT – $779m FUM[1]

• Market leading office REIT with 18 assets

• Over 3,150 institutional and retail investors

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$4.5m

Recurring revenues for group in FY17

• Centuria Industrial REIT now managed by Centuria following the acquisition of 360 Capital platform

• Australia’s largest asset-focused ASX listed industrial REIT with $998m of FUM[1]

• Over 7,850 institutional & retail investors

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11k Institutional and retail investors

• Centuria Capital is now a top five manager of Australian listed real estate

• Poised for continued expansion in FY18

• Includes post 30 June 2017 acquisitions

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Centuria Industrial REIT (CIP)

― Australia’s largest pure-play industrial REIT

• Market capitalisation of $563m[1] – included in S&P ASX 300 Index

• Distribution yield 8.3%[2] based on unit price of $2.47 per security

― Geographically diverse portfolio of 38 industrial assets

• NSW, VIC, QLD, SA, WA and ACT

• Portfolio book value of $961m[3]

― Since assuming management of CIP on 9 January 2017 Centuria has:

• Re-leased more than 17%[2] of the portfolio

• Acquired $76m of complimentary assets, coupled with a $35m equity raising

• Refinanced 100% of the REIT’s $450m debt facilities

• As at 16 August 2017

• As at 30 June 2017

• Includes post 30 June 2017 acquisitions

	Portfolio snapshot		FY173	FY16
	Number of assets		38	37
	Book value	$m	961.2	905.2
	WACR	%	7.33	7.45
	GLA	sqm	757,944	686,411
	Average asset size	sqm	19,945	18,551
	WALE	years	4.4	4.7

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18%
QLD
12%
WA 1%
SA
40%
NSW
1%
28% ACT
VIC
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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Centuria Metropolitan REIT (CMA)

― Australia’s dominant metropolitan office REIT

• Market capitalisation in excess of $492m[1] primed for inclusion in S&P ASX 300 Index

• Distribution yield 7.6%[2] based on unit price of $2.50 per security

― Geographically diverse portfolio of 16 office and two industrial assets

• NSW, VIC, QLD, SA, WA, ACT

• Portfolio book value of $760m[3]

― Highlights:

• Merged with Centuria Urban REIT ($213m FUM) 29 June 2017

• Re-leased more than 15.5%[1] of the portfolio

• Acquired a further $150m of office assets, coupled with a $90m equity raising

• As at 16 August 2017

• As at 30 June 2017

	Portfolio snapshot		FY171	FY16
	Number of assets		18	13
	Book value	$m	760	398.7
	WACR	%	7.17	7.86
	NLA	sqm	163,411	112,653
	WALE	years	4.3	3.9

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34%
QLD
12%
WA
6%
SA
22%
NSW
10%
16% ACT
VIC
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1. Includes post 30 June 2017 acquisitions

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Investment Bonds

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Investment Bonds

Centuria Life

With a 35-year heritage, Centuria Life offers flexible, tax-effective ways to create, transfer and protect wealth through unitised investment bonds and capital guaranteed funds.

Investment Bonds are a tax paid investment structure to help people grow their wealth and achieve financial goals – such as funding $353m education, estate planning FUM or finding an alternative to superannuation.

50%

Access to non-aligned advisers via APLs

13K

7

Over Fifty Guardian Friendly Society The Over Fifty Guardian Friendly Society invests the proceeds of prepaid funeral plans distributed by Invocare Limited.

The Society is well positioned, achieving strong growth to $446m, with continued growth expected in the sector.

$446m FUM

21%

75K

Customers

Investment options

FUM growth

Customers

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Investment Bonds

Fourth largest friendly society/insurance bond issuer in Australia

• 10.8% market share of $7.4b total market

• Unitised investment bonds grew 28% from asset growth and new business

• Well positioned in the non-aligned financial adviser market

	FY17 ($m)	FY16 ($m)	Change
Unitised Bonds (Centuria Life)	113	88	28.4%
Capital Guaranteed (Centuria Life)	240	262	7.6%
Prepaid funeral plans (Guardian)	446	370	21%
Total FUM	799	720	11%
Inflows Redemptions	80 75	67 96	19% 28%

Centuria Investment bond division growth v investment bond market

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180
170
160
150
140
130
120
110
100
90
Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17
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Centuria Life unitised bonds Guardian Friendly Society Investment bond market

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Investment Bonds

Outlook

Regulatory change

• 1 July 2017 super changes introduced to cap superannuation balances and limit the transfer of wealth

Distribution strategy

“With over 700 Australians turning 65 every day, Centuria’s Investment Bonds act as a structure for my clients to efficiently transfer wealth from one generation to the other.”

Val Nigol, Principal, Financial Freedom Solutions

• A continued focus on the non-aligned financial adviser market

• Increased interest from financial advisers in using investment bonds to supplement super savings and transfer wealth

Enhanced customer and adviser service

• Direct online application form with no signature required

• New Xplan and Adviser logic data feed to improve Centuria visibility for advisers

“Investment Bonds provide advisors with an important addition to their strategic toolkit. With the recent changes to superannuation contribution caps, Centuria’s Investment Bonds offer a simple and flexible structure to supplement superannuation savings.”

Mark Nagle, Executive Director, Treysta Financial Life Management

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Conclusion

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Conclusion

A strong foundation for FY18 growth

• A transformational year for Centuria Capital, with group FUM increasing 118% to $4.2b

• Acquisition of 360 Capital platform was a step-change for the group, bringing the business to scale

• Market leading real estate capability utilised to achieve $731m in quality asset acquisitions across listed and unlisted businesses

• Delivered strong Securityholder returns across listed and unlisted funds

• Achieved accelerated, above market growth in both our unitised bonds business and the Guardian Friendly Society

• Platform is well placed for FY18, with strong activity across all business segments. Expecting operating EPS to increase approximately 5% to 10.8cps in FY18

• Good potential for CNI near-term ASX 300 inclusion

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Appendices

CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Appendix

Past performance is not indicative of future performance:

• a) The total return figures for CNI and CMA on page 5 and 22 are based on the movement in security price from ASX opening on 1 July 2017 to ASX closing on 30 June 2017 plus the distribution per security declared during the financial year without re-investment of distributions. It is a one year performance figure provided strictly for the information of Securityholders only. Further information on the historical performance on Centuria’s listed funds can be found on our website.

• b) The total return figure for unlisted funds on page 5, is an aggregated one year performance figure provided strictly for the information of shareholders only, and does not detail the performance of any particular fund. It is calculated based on the movement in the Net Tangible Asset backing per unit in each of Centuria’s unlisted property funds from 1 July 2016 to 30 June 2017 plus the total of distributions to investors declared in that period and is calculated inclusive of actual fees paid and an assumption for performance fees if the property had been sold on 30 June 2017. The total return is an aggregated one year performance figure provided strictly for the information of shareholders only, and does not detail the performance of any particular fund. The total return figure is provided in relation to the current financial year only and does not indicate the returns that any particular fund has achieved or the performance of any fund since inception. Prospective investors in any of Centuria’s funds should not rely on this information in respect of any decision in relation to an investment in any of Centuria’s funds.

• c) The total return figures for various unlisted funds on pages 22, 23 and 24 calculated based on the movement in the Net Tangible Asset backing per unit in each of those unlisted property funds from 1 July 2016 to 30 June 2017 plus the total of distributions to investors declared in that period and is calculated inclusive of actual fees paid and an assumption for performance fees if the property had been sold on 30 June 2017.

• d) Annualised total return on page 18 of 13.1% is current as at 30 June 2017 and is the average of returns across all funds managed to completion (all real estate assets sold and debt repaid) by Centuria Property Funds Limited as responsible entity/trustee since 1998 and includes capital gains as well as distributions paid during the life of completed funds shown on a per annum basis. The annualised total return does not represent the current performance of any of Centuria’s funds currently under management. Each fund managed by Centuria Property Funds Limited will have different characteristics, properties and risk and should be assessed by an investor independently of the performance of completed funds. Average per annum returns calculated at the completion of a fund do not take into account returns in any particular year and current or future funds may experience fluctuations in asset values and distributions during the life of a fund.

The Lonsec Rating (assigned July 2017) presented in this document on page 23 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Centuria Property Fund Limited’s product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

For further information regarding Lonsec’s Ratings methodology, please refer to Lonsec’s website at http://www.lonsecresearch.com.au/research-solutions/our-ratings

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Definitions

Operating Segments - Group has five reportable operating segments. These reportable operating segments are the divisions which report to the Group's Chief Executive Officer and Board of Directors for the purpose of resource allocation and assessment of performance.

The reportable operating segments are:

Property Funds Management – Management of listed and unlisted property funds

Investment Bonds Management – Management of the Benefit Funds of Centuria Life Limited and management of the Over Fifty Guardian Friendly Society Limited. The Benefit Funds include a range of financial products, including single and multi-premium investments

Co-investments – Direct interest in property funds and other liquid investments

Reverse mortgages – Management of a reverse mortgage lending portfolio

Corporate – Overheads supporting the Group's operating segments

Non-operating segments – Non-operating items comprises transaction costs, mark-to-market movements on property and derivative financial instruments, and all other non-operating activities. Includes Benefits Funds and Controlled Property Funds

Benefit Funds – Represents the operating results and financial position of the Benefit Funds which are required to be consolidated in the Group’s financial statements in accordance with accounting standards Controlled Property Funds – Represents the operating results and financial position of property funds which are controlled by the Group and consolidated under accounting standards

Other definitions:

CAGR – Compound annual growth rate

CIP – Centuria Industrial REIT comprises the Centuria Industrial REIT ARSN 099 680 252 and its subsidiaries. The Responsible Entity of CIP is Centuria Property Funds No. 2 Limited ACN 133 363 185 CMA – Centuria Metropolitan REIT comprises the Centuria Metropolitan REIT ARSN 124 364 718 and its subsidiaries. The Responsible Entity of CMA is Centuria Property Funds Limited ACN 086 553 639 CNI , CCG or the Group – Centuria Capital Group comprises of Centuria Capital Limited ABN 22 095 454 336 (the 'Company') and its subsidiaries and Centuria Capital Fund ARSN 613 856 358 ('CCF') and its subsidiaries. The Responsible entity of CCF is Centuria Funds Management Limited ACN 607 153 588, a wholly owned subsidiary of the Company

DPS – Distribution Per Security

EPS – Earnings Per Security

FUM – Funds Under Management

IRR – Internal Rate of Return

NPAT – Net Profit After Tax

WACR – Weighted Average Capitalisation Rate

WALE – Weighted Average Lease Expiry

360 Capital Transaction – CCG’s acquisition of the property funds management platform of 360 Capital Group (along with certain co-investment stakes), including management of two market leading listed REITs and four of its mature unlisted property funds

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CENTURIA CAPITAL GROUP | FY17 ANNUAL RESULTS | ASX: CNI | 23 AUGUST 2017

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Disclaimer

This presentation has been prepared by Centuria Capital Limited and Centuria Funds Management Limited as responsible entity of Centuria Capital Fund (together the stapled listed entity CNI).

All information and statistics in this presentation are current as at 30 June 2017 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 in CNI.

It should be read in conjunction with CNI’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 CNI is not obliged to update this presentation.

This presentation is provided for general information purposes only. It is not a prospectus, 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 CNI or the acquisition of securities in CNI. 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 CNI.

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 CNI or any other investment product. The information in this presentation has been obtained from and based on sources believed by CNI to be reliable. To the maximum extent permitted by law, CNI and the members of the Centuria Capital Group 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, CNI 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.

Neither CNI nor any member of Centuria Capital Group 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, CNI 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 of CFML consider that distributable earnings reflect the core earnings of the Centuria Capital Fund. All dollar values are in Australian dollars ($ or A$) unless stated otherwise.

CA-CNI-07/08/17-00616

PAGE 40