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Data infrastructure and real estate finance underpin Centuria’s growth strategy

HY25 results show diversify earnings in scalable alternative sectors

  • HY25 earnings & distribution: OEPS1 of 6.2 cps (+1.6% over HY24) and distribution of 5.2cps (+4% over HY24)
  • Real estate finance up 21%2 to $2.3bn, progressing LIT
  • ResetData intersects AI and real estate, earnings accretive from FY26:
  • completing Australia’s first sovereign public AI Factory/supercomputer in COF asset
  • planned roll out of its highly scalable AI Factory pipeline
  • Advancing two sector-specific REIT IPOs for FY26; greater deal flows unlock unlisted opportunities
  • Reaffirmed FY25 guidance: 12.0cps OEPS1 (+2.4 over FY24) and 10.4cps (+4% over FY24)
  • Alternatives account for 24% of $20.5bn Group AUM3

Australasian real estate fund manager, Centuria Capital Group (ASX: CNI or “Centuria”), released its interim 2025 Financial Year results today, signalling an inflection point in the company’s growth strategy, underpinned by its expansion of real estate finance, investment in data infrastructure, and unlocking more favourable equity market capital conditions with two future REIT IPOs.

As at 31 December 2024, Centuria’s alternative real estate assets accounted for 24% ($4.9 billion) of the Group’s $20.5 billion3 of assets under management (AUM), almost half of which comprises real estate finance through the Centuria Bass Credit division. Centuria Bass grew its AUM 21%2 to $2.3 billion and is on track to expand its EBIT by more than 20% across the entire FY25 year.

Jason Huljich, Centuria Joint CEO, said, “During the half we increased our investment in Centuria Bass to 80%, and we plan to continue supporting and growing this business significantly. To this end, Centuria Bass is positioned to expand its offerings with significant progress being made on a Listed Investment Trust as well as retail investment products that can grow the Group’s loan books, providing opportunities to a wider range of potential investors and advisors.

“Centuria was an early mover into real estate credit in 2021 and, in a short time, we’ve generated a significant credit book. During the period, this division was further bolstered by growing interest from institutional capital with UBS upsizing its commitment to $200 million as part of Centuria Bass’ $285 million warehouse debt facility.”

Also during HY25, Centuria acquired a 50% interest in new-generation data service provider, ResetData, and is on track to launch Australia’s first sovereign public AI Factory (supercomputer) within surplus office space in a Centuria Office REIT (ASX:COF) owned asset.

The first AI Factory (AI-F1) is anticipated to be online from Q4 FY25 and, in comparison to traditional air-cooled data centres, these AI Factories will feature ​high-density NVIDIA H200 GPU clusters ​and Liquid Cooling infrastructure. This enables a highly scalable model with Centuria already identifying a potential 10-site pipeline for further AI Factories. Following AI-F1’s activation, Centuria anticipates ResetData earnings to be accretive from FY26.

John McBain, Centuria Joint CEO said, “The recent introduction of ResetData to the Group creates an exciting new and highly scalable segment, which sits at the intersection of real estate and technology. We are the only real estate manager in Australia that has leveraged this unique AI technology in combination with a real estate solution.”

Looking ahead, Centuria is also in advance planning stages to progress two Initial Public Offerings (IPO) for sector-specific listed real estate investment trusts (REITs) earmarked in FY26.

Mr Huljich and Mr McBain commented, “The current FY25 real estate valuation cycle, in addition to equity capital market conditions, have created a highly conducive environment for the domestic REIT sector. We are optimistic this environment will see recovering values across the REIT sector in the short to medium term, which we anticipate to positively affect Centuria Industrial REIT and COF, as well as provide conditions that can support new Centuria REIT vehicles.

“Due to a number of market factors converging, we believe the Australian commercial real estate markets have troughed and are at an inflection point. One of these factors is the RBA’s recent 25bps cash rate reduction, and market expectation of further monetary easing policies. Subsequently, unlisted real estate fund returns are improving relative to fixed interest returns. The lower term deposit trajectory has re-activated high-margin unlisted fund business across both our Australia and New Zealand operations. Already we have experienced greater deal flow and large deal sizes.”

During 2HY25, Centuria secured the $115 million Logan Super Centre for a single-asset fund, which has a target $71 million equity raise across retail and wholesale investment markets. The Fund will open from 10 March 2025.

Centuria New Zealand has just closed the oversubscribed equity raise for a single-asset fund underpinned by the redevelopment of Woolworths’ largest South Island distribution centre, which has an end value of $90 million.

During HY25, Centuria executed $1.9 billion of total transaction activity4, including $0.6 billion5 of organic activity that continued to generate new investment opportunities for Centuria’s unlisted investor network. Additionally, a total of $0.4 billion in unlisted inflows was generated from $0.3 billion of gross equity raised from unlisted investors and $0.1 billion secured in new institutional capital.

Centuria delivered 6.2 cents per security (cps) Operating Earnings Per Security (OEPS)1 and 5.2cps Distribution Per Security (DPS) during HY25.

Centuria maintains a proactive capital management approach with c.$304 million in cash and undrawn debt and no debt expiry for the remainder of FY25. Its healthy balance sheet supports the Group’s core business units as well ensures it has sufficient capital to quickly scale alternative divisions. As at 31 December 2024, Centuria maintained a low operating gearing of 14.5%.

Based on prevailing market conditions remaining stable, Centuria reaffirms FY25 OEPS guidance of 12.0cps and distribution guidance of 10.4cps.

CNI HY25 results wrap

  1. Operating EPS is calculated based on the Operating NPAT of the Group divided by the weighted average number of securities.
  2. Centuria Bass AUM as at 30 June 2024 was $1.9 billion.
  3. Assets under management (AUM) as at 31 December 2024. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.1045 as at 31 December 2024). Numbers presented may not add up precisely to the totals provided due to rounding.
  4. Includes $66 million of acquisitions exchanged and settled in HY25, $490 million of real estate finance transactions, $1,081 million of real estate divestments, $225 million of real estate finance repayments.
  5. Includes real estate finance and real estate acquisitions.