Centuria Capital boosts assets management to record $21.1 billion
Diversified fund manager Centuria Capital Group has seen its focus on agriculture, capital lending and healthcare real estate propel assets under management to a record $21.1 billion, and is forecasting stable conditions amid the volatile economy.
Having identified agriculture as a growth sector, the group is now the largest owner of glasshouses nationally worth $247 million. Overall in the first half of the 2023 financial year Centuria expanded its agricultural assets by 20 per cent to more than $420 million through its unlisted Centuria Agriculture Fund.
The ASX-listed Centuria Capital has a market value of $1.56 billion and manages a suite of listed and unlisted real estate funds as well as tax-effective investment bonds.
Its assets under management of $21.1 billion are a combination of real estate funds, owned by the unlisted funds alongside the listed funds.
‘Centuria has a proven track record for applying a disciplined approach during times of great volatility’
Centuria joint CEO John McBain
The organic growth across its real estate platform, particularly within alternative sectors, led to a steady net profit of $58.5 million. The fund reaffirmed its full year operating guidance of 14.5¢ per unit and the distribution guidance of 11.6¢, being a 5.4 per cent rise on the 2022 year.
Centuria’s joint chief executives John McBain and Jason Huljich said that by being a diversified business, it can ride out market volatility and offer investors “back to back stable returns”.
“Centuria has a proven track record for applying a disciplined approach during times of great volatility,” McBain said.
“We have been in the business for 30 years and have seen many cycles, so we have the experience to ride them out and look at other opportunities that will add value.”
Part of the diversity is also the fast-growing healthcare sector, where its platform rose 3 per cent to $1.7 billion in the first half. This was boosted by 100 properties and 235 healthcare tenants in private hospitals. In October last year the fund started construction on the $75 million Adeney Private Hospital in the east Melbourne suburb of Kew.
Currently, worth around $25 billion, Australia’s private hospital sector is already bracing for growth over the next two decades.
Alongside Centuria, other investors including Dexus, Charter Hall, the HomeCo business’ newly listed HealthCo Healthcare & Wellness REIT, Elanor Investors and Queensland Investment Corporation (QIC) are all investing in a range of private hospitals, mental health facilities and diagnostic imaging.
Another growth area has been the Centuria Bass Credit fund which provides non-bank lending in the current tight credit market. In the first half, assets under management increased 38 per cent to more than $1.1 billion. CBC launched four single asset funds worth more than $76 million and its open-ended Centuria Bass Credit Fund (CBCF) loan book grew to $50 million.
“Record transactions executed throughout the first half provided sustainable management fee revenue, which increased 13 per cent to $73.2 million,” Huljich said.
“Contributing performance fees of $14.6 million were in line with expectations.”
Centuria Capital reported an interim dividend of 5.8¢ payable on February 9.
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Source: Thanks smh.com