Strong rent collections and a property portfolio weighted towards industrial, healthcare and office buildings has seen diversified fund manager Centuria Capital Group avoid the worst of COVID-19’s fallout.
The near $1 billion ASX-listed real estate manager reported a $21.5 million statutory full-year profit to June 30, with its distribution of 9.7¢ per security meeting the company’s previous guidance.
At least 91 per cent of the group’s tenants paid rent from April to June, a healthy result when compared to another retail-focused platform like SCA Property which managed to only collect 77 per cent of rent during the pandemic.
Centuria, which hit the headlines this year with its takeover of New Zealand platform Augusta Capital, said operating earnings per security were 12¢, ahead of its 11.5¢ guidance, but lower than the 12.7¢ it achieved the previous year.
Profits from its funds management business increased 37 per cent to $34.5 million, and it generated $21.5 million in performance fees.
Lower finance costs also helped boost the group’s operating profit after tax to $53.3 million.
Centuria’s joint chief executive John McBain said the group’s strong performance came despite the COVID-19 pandemic.
“Centuria’s funds have continued to provide reliable distributions to investors, which is a strong endorsement for both our listed and unlisted funds,” he said.
The fund manager now has control of more than 96 per cent of ordinary shares in Augusta and has started a compulsory acquisition process for the remainder. It intends to delist Augusta and operate and grow the business as a Centuria subsidiary.
Augusta’s $1.8 billion real estate platform will expand Centuria’s funds under management to $9.4 billion.
So far this financial year, it has spent $600 million on acquisitions including Centuria Industrial REIT’s $417 million purchase of the Telstra Data Centre in Victoria with a 30-year triple-net lease to the telco.
Centuria has issued financial year guidance for 2021 of 8.5¢ distribution per security and operating earnings per share guidance of 10.5¢ to 11.5¢.