Centuria Capital Group has reported a full-year statutory net profit after tax (NPAT) of $102.2 million, down slightly from $105.9 million in FY2022–23.
In an announcement to the ASX on Thursday, it said operating NPAT stood at $94.7 million, down from $115.6 million in the prior corresponding period.
Group AUM was relatively flat, standing at $21.1 billion compared to $21 billion in FY22–23.
This included $12.3 billion of unlisted real estate, $6 billion of listed real estate, $1.9 billion of real estate finance, and $0.9 billion of investment bonds.
Operating gearing reduced to 12.1 per cent from 13.9 per cent as the group “continued to diversify debt sources and recycled existing exposures,” it said, including $1.7 billion of refinancing across almost 70 per cent of Centuria’s office vertical.
Centuria highlighted “significant growth” in alternative real estate sectors resultant from corporate acquisitions in prior periods, providing a pathway for portfolio growth.
It expanded its investment in alternative sectors with real estate finance, through Centuria Bass Capital, to $1.9 billion, marking a 46 per cent rise. It also reported a 21 per cent rise in agriculture via the Centuria Agriculture Fund which stands at $0.64 billion.
Over 20 per cent of the group’s real estate platform is weighted to alternative real estate sectors, it said, which have collectively increased AUM by $4.1 billion in the last five years.
“Centuria’s diversification into alternative real estate sectors not only offers investors a platform with unique points of difference but early investment in these sectors during the COVID period has enabled Centuria to maintain AUM in a tight market, stabilise earnings, and confidently provide forecast growth for group earnings and distributions into FY25,” Centuria joint CEO John McBain said.
The group’s unlisted platform raised $1.15 billion of capital, with $0.6 billion of new capital from institutional mandates, including the $500 million Starwood Capital industrial mandate and a $100 million senior secured commitment from UBS for Centuria Bass.
Around $0.55 billion was generated from retail and wholesale investors.
“Centuria continued to diversify its real estate platform across a range of sectors at different stages within their investment cycles,” said Jason Huljich, Centuria joint CEO.
“The group recorded solid unlisted inflows in a difficult economic environment and focused on carefully sourcing new unlisted investments for our direct and institutional investor networks.”
The group flagged an optimistic outlook for FY24–25, highlighting an “improving trend of economic fundamentals” as global central banks commence rate cut cycles.
“These cash reductions have already commenced in New Zealand, where the group has a meaningful exposure with attendant increased levels of business confidence,” McBain said.
He observed that initial trends within Australia, such as lowered term deposit rates, are extremely positive fundamentals for the group with the relative return outlook having an immediate and ongoing positive impact.
“In essence, this means that as term deposit rates continue to trend down from current levels, returns from Centuria funds become increasingly compelling on a relative basis,” McBain said.
He also highlighted the group’s 50 per cent investment in new-generation data server provider ResetData, which uses liquid immersion cooling (LIC) technology to create “edge data centres”, which have compelling fundamentals when compared to traditional air-cooled data centres.
“Our early mover investment in ResetData allows us to be at the forefront of this new technology, unlocking new rental income from suitable underutilised real estate space,” McBain said.
This “completely new business vertical”, he added, is expected to have a positive impact on group earnings from FY25–26.
