CENTURIA CAPITAL GROUP — Earnings Release 2018

Aug 13, 2018

Australian Securities Exchange – Company Announcements Platform

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Centuria Capital Group

Centuria announces FY18 results

Tuesday, 14 August 2018

Centuria Capital Group (ASX: CNI or Centuria ) is pleased to announce FY18 results for the period ending 30 June 2018.

FY18 highlights

• Operating EPS 16.3cps[1] , above guidance[2]

• 29% increase in AUM to $4.9 billion:

• Over $1.0 billion of organic property acquisition and revaluation growth

• 12.5% growth in investment bonds with AUM up to $0.9 billion

• Recurring revenue growth to $67.0 million (FY17 $38.8 million)

• 23.3%[3,4] total return to investors in FY18

• Market capitalisation $428 million at 30 June 2018 (44% increase from FY17)

	FY18 FY17 Variance
Operating net profit after tax5 $m	45.1 15.5 191%
Operating earnings per stapled security1 cps	16.3 10.3 58%
Statutory net profit after tax6 $m	54.8 17.3 217%
Statutory earnings per stapled security cps	19.8 11.5 72%
Distribution per stapled security cps	8.2 7.5 9.3%

John McBain, Group CEO, said: “Centuria’s strong FY18 performance was driven by leveraging the scalability of our funds management platform against continued strong growth in assets under management. AUM grew 29% over the period.”

1 Operating NPAT of the Group comprises of the results of all operating segments and excludes non-operating items such as transaction costs, mark to market movements on property and derivative financial instruments, the results of Benefit Funds and Controlled Property Funds

2 Guidance (15.8cps-16.2cps)

3 Past performance is not indicative of future performance

4 Source: Moelis & Company

5 Operating EPS is calculated based on Operating NPAT of the Group divided by the weighted average number of securities 6 Attributable to securityholders

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“We have delivered an operating EPS of 16.3 cps, above our upgraded guidance range and we declared a distribution of 8.2 cps during the period, a 9.3% uplift on FY17.”

“We are particularly pleased with recurring revenues lifting to 66.5% of total revenues during FY18. This is the result of a concerted effort to ensure that our investors benefit from the strength of our underlying sustainable earnings. These were bolstered during FY18 with full-year management revenues from Centuria Metropolitan REIT ( CMA ) and Centuria Industrial REIT ( CIP ), co-investment distributions and revenues associated with the significantly increased unlisted property AUM.”

“Co-investment revenues increased to $278 million as at 30 June 2018. Importantly, these increased stakes further align Centuria’s interests with the shareholders of CMA and CIP.”

“During FY18, the Real Estate Funds Management business achieved 33.3% growth to $4.0 billion in AUM, supported by the expertise of our in house management platform and ability to create value in the industrial and metropolitan markets. Additionally, we have focused on initiatives to expand our product base such as the open-ended, unlisted Centuria Diversified Property Fund.”

“The pre-tax net performance fee of $25.8 million from the sale of 10 Spring Street, Sydney, NSW demonstrated enhanced value for both Centuria Capital security-holders and our unlisted property investors. We anticipate realising further performance fees across our unlisted portfolio as our pipeline of unlisted funds cycle through maturity and replenishment.”

“The Investment Bond AUM has grown 12.5% during FY18. Our distribution capacity has increased with further appointments and representatives now focussing on both property fund and investment bond sales.”

FY19 outlook

Mr McBain said: “We will continue to deliver investment opportunities and further value creation through the expansion of our property fund and investment bond platforms. We believe conditions remain favourable for our business and we are recording record levels of interest from our mature investor base.”

“From a capital market perspective we continue to assess corporate transaction opportunities that compliment the strategic direction of our business and where these make sense we will execute on them.”

“We are focused on securityholder returns, supported by stable recurring revenues and we continue to remain attentive to earnings growth while expanding our access to new capital sources.”

• Ends –

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For more information or to arrange an interview, please contact:

John McBain

Tim Mitchell

Group CEO Group Head of Investor Relations Centuria Capital Limited Centuria Capital Limited Phone: 02 8923 8910 Phone: 02 8923 8923 Email: john.mcbain@centuria.com.au Email: tim.mitchell@centuria.com.au

Katy Lithgow

Senior Consultant

BlueChip Communication Phone: 02 9018 8603 Email: katy@bluechipcommunication.com.au

About Centuria Capital Group

Centuria Capital Group (CNI) is an ASX-listed specialist investment manager with $4.9 billion of assets under management. We offer a range of investment opportunities including listed and unlisted property funds as well as tax-effective investment bonds. Our drive, allied with our in-depth knowledge of these sectors and intimate understanding of our clients, allows us to transform opportunities into rewarding investments.

www.centuria.com.au

Disclaimer

This announcement contains selected summary information and does not purport to be all-inclusive, comprehensive 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.

This announcement is provided for general information purposes only. It should not be relied upon by the recipient in considering the merits of CNI or the acquisition of securities in CNI.

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 announcement, including obtaining investment, legal, tax, accounting and such other advice as necessary or appropriate.

This announcement may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters ('Forward Statements'). No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CNI 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 announcement.

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