Centuria’s 1H18 results helped by acquisitions
Centuria has reported a 19 per cent growth in its assets under management (AUM) to $4.6 billion in 1H18 and said that the results were helped by the acquisition of the large property fund platform the company bought in January, 2017.
Centuria’s chief executive, John McBain said: “FY18 will be the first opportunity for investors and the market to see clearly the benefits of the large fund platform we acquired in January 2017 over a 12 month period.”
He said that the acquisition significantly transformed the nature and composition of earnings, increasing recurring revenues and tripling the group’s market capitalisation.
The operating net profit after tax (NPAT) improved to $30.2 million while recurring revenue grew by $18.9 million to $32.1 million.
Across the property platform, Centuria acquired ten A-grade properties for $655 million and saw an uplift in asset revaluations of $115 million.
The investment bonds grew by seven per cent over the six-month period from new business and asset growth, the firm reported.
“We believe conditions remain favourable for the continued creation of property fund opportunities,” McBain said.
“This includes leveraging our strong real-estate credentials to identify ‘pockets of value’ for our long-standing investor base, and improving our distribution capacity to accelerate growth in the investment bond business.”
Recommended for you
Private investment opportunities are moving up on the list of what investors want from their financial advisers, according to Natixis IM, and over half of firms say they are offering them more strategies.
Two asset managers have each expanded their product suite with the launch of new global equity funds for Australian investors.
Perpetual has confirmed it is in exclusive talks with global investment company KKR regarding an acquisition of its corporate trust and wealth management businesses.
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
