- Operating revenue was up 15% to $160M
- Operating profit after tax maintained at $58.5M
- Reaffirmed FY23 OEPS guidance of 14.5 cps
The half-year (HY23) results are in for Centuria Capital Group (ASX: CNI), with the company noting its strength was underpinned by organic growth across its real estate platform, particularly alternative sectors, and strong capital management.
Among the highlights: the group’s total operating revenue was up 14.6 per cent to $159.7 million, 91 per cent recurring revenue; $248 million cash and undrawn debt; management fees up 13 per cent to $73.2 million, and $1 billion HY23 gross real estate activity.
Centuria said within the six months to 31 December 2022, it expanded its agricultural assets by 20 per cent to more than $420 million, with growth largely attributed to the unlisted Centuria Agricultural Fund.
The group’s real estate finance division, Centuria Bass Credit (CBC), significantly increased assets under management (AUM) 38 per cent to over $1.1 billion. Centuria said this highlighted the growing demand for non-bank finance as traditional lenders tighten their lending criteria. CBC launched four single asset funds worth more than $76 million and its open-ended Centuria Bass Credit Fund laon book grew to $50 million.
Centuria’s healthcare platform increased three per cent to $1.7 billion.
The company’s AUM has now increased to $21.2 billion, comprising $20.4 billion of real estate funds with unlisted AUM increasing to $13.9 billion and $6.5 billion of listed AUM.
Jason Huljich, Centuria Joint CEO, said, “Throughout HY23, Centuria has delivered on its commitment to expand across alternative real estate sectors, which has contributed to our strong organic growth within the unlisted platform. This expansion was strongly supported by Centuria’s broad, direct investor network comprising individuals, advisers, private wealth managers and, most significantly, across institutional mandates and partnerships. During the period, institutional capital commitments increased 11 per cent to $2.1 billion.”
The company said record transaction throughout the last financial year provided sustainable management fee revenue across the latest half year, which increased 13 per cent to $73.2 million. Contributing performance fees of $14.6 million were in line with expectation.
John McBain, Centuria Joint CEO, said, “Throughout the past six months we have maintained a healthy balance sheet, continued our platform expansion into alternative sectors and re-affirmed our forecast earning and distribution guidance, despite high inflation and increased interest rates normalising from pandemic emergency levels.
“Centuria has a proven track record for applying a disciplined approach during times of great volatility. We have recently entered the agriculture and credit markets, examples of alternative sectors with strong investor demand. We are also in a good position to take advantage of value-add market opportunities when they arise, delivering attractive returns to our securityholders.”
Operating profit after tax was maintained at $58.5 million during the half, with revenue increasing 15 per cent to $159.7 million.
