Centuria Capital Group (ASX: CNI) is into the business of marketing and managing investment products which include a range of activities from property investment funds to investment bonds. The company is a parent to Centuria Property Funds Limited. The group has divisions including Investment Bonds, Property Funds Management, Reverse Mortgages and Corporate segments.
On 13 February 2019, the company has announced its 1H19 results for the period ended 31 December 2018. The highlights include a robust 14.3% platform AUM growth in 1H19 to $5.6 billion, successful $100m equity raise and $80m corporate bond issuance supporting corporate initiatives and Centuria REIT co-investments. The company witnessed strong recurring revenue uplift to $42.0 million. Further, the company has launched a new Investment Bond product Centuria LifeGoals. The operating EPS of the company stood at 6.5 cents per share. The company made a 1H19 interim distribution of 4.25 cents per share up by 3.7% from 1H18.
The CEO of the group John McBain said that during 1H19 the company continued to enhance its platform scale with the asset under management of the company growing 14.3%. The expansion was promoted by successfully executing the third largest real estate transaction of Australia, in CY18, for $645 million in conjunction with the Lederer Group.
As further mentioned, that the company have also undertaken a major repositioning of their investment bond business with the launch of a new menu-style investment bond offering called Centuria LifeGoals in January 2019. The company has expanded its balance sheet through a successful equity raise of $100 million and $80 million debt issuance further aligning CNI, through increased co-investments, to Centuria Metropolitan REIT and Centuria Industrial REIT with holdings of 24.9% and 24.2%, respectively.
Overall, co-investments grew to $0.5 billion during the period. The distributions from all the co-investments of the company have contributed $14.6 million to the group’s recurring revenues while providing a total annualised return of 14.3%.
The company stated the distribution guidance of 9.25 cents per share in FY19. Additionally, Centuria offers updated guidance in relation to FY19 operating earnings per security of 12.7 cents per share.
In 1H19, Real Estate Funds Management lifted 20% to $4.8 billion of AUM, underpinned by the $645 million acquisition of the Hines portfolio office assets in conjunction with the Lederer Group. Centuria Diversified Property Fund generated AUM growth to $50.7 million.
On the price-performance front, the stock of Centuria Capital Group is currently trading flat at $1.360 with a market capitalisation of $521.54 million. The stock has yielded a YTD return of 6.67% and posted returns of -2.56%, 4.62% and 6.25% over the last six months three-months and one-month period respectively. It has a 52-week high price of $1.451 and a 52-week low price of $1.255, with an average trading volume of 285,073. The stock is trading at a PE multiple of 6.870x with its EPS at AUD 0.198 and with an annual dividend yield is 6.14%.
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