On 6 February 2019, Centuria Metropolitan REIT (ASX: CMA), a Real Estate Investment Trust which is the owner of the portfolio consisting of 20 high-quality metropolitan assets, announced the results of 1H FY2019 which ended on 31 December 2018.
During the period, the total Assets Under Management (AUM) were approximately $5.6 billion. It includes $4.8 billion under Property Funds Management AUM and $0.8 billion in Investment Bonds AUM. The breakdown of Property Funds Management AUM consists of Listed Property which was worth $2.6 billion and Unlisted Property which was worth $2.2 billion.
Under Listed Property, AUM for Industrial REIT (CIP) was under $1.2 billion, and AUM for Metropolitan REIT (CMA) was $1.4 billion.
Other than the total asset under management (AUM) of $5.6 billion, the trust had made co-investments worth $0.5 billion. Under co-investment, the company invested 24.9% on Centuria Metropolitan REIT (CMA), 24.2% on Centuria Industrial REIT (CIP) and 19.5% in Propertylink Group (PLG).
Since IPO, the annual total unitholder return has been 13.5%. Through CMA, the total return since IPO has been 60%. From FY2015 to 1H2019, there was an increase in the portfolio value by 55.3%. By 1H FY2019, the portfolio value reached $1.4 billion. From 1H2015 t0 1H2019, CAGR increased by 6.6%. The NTA from 1H2015 to 1HFY2019 increased from $1.91 per unit and reached $2.47.
The market capitalization of the stock as at 31 December 2018 was $844 million.
During the 1H FY2019, the trust was actively managing the portfolio with 98.8% occupancy with a WALE (Weighted Average Lease Expiry) of 4.3 years (excluding 13 Ferndell St, Granville, NSW which settled on 31 January 2019), supported by 75% multinational, ASX and government tenants. The ICR (interest coverage ratio) was 5.6x, and LVR (loan to valuation ratio) was 37% to ensure ample headroom with debt covenants.
During the period, the trust repositioned CMA as a pure-play office REIT. It is on track to deliver FY19 earnings and distribution guidance and a strong 12 months return on equity of 10.9%.
By the end of the 1H FY2019, the total revenue increased by $12.3 million as compared to the previous corresponding period. The total expenses also increased by $6.4 million. Both, the revenue and the expenses were majorly driven by $520.9 million of portfolio acquisition.
The funds from operations (FFO) increased by $5.9 million as compared to the previous corresponding period. As a result of leasing success and positive market fundamentals, the return on equity increased by 0.1%.
The Statutory net profit as at 31 December 2018 was $14.655 million which was down by 62.59%. The balance sheet shows that there was an increase in the net assets of the trust. The total shareholders’ equity was A$886.702 million.
Since the inception of CMA on ASX, the stock has generated a return of 17.37%. In last one year, the stock has generated a return of 4.25%.
CMA closed the day’s session at A$2.390 on 6 February 2019 with a market capitalization of A$851.54 million and a PE ratio of 6.39x.
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