Centuria Capital Group (ASX:CNI) executives used the company’s latest earnings briefing to emphasize “repeatable earnings growth” in the first half, pointing to a diversified platform, higher transaction activity across property, and disciplined growth in private credit. Joint CEO John McBain said the half improved forward earnings visibility and supported an upgrade to operating earnings guidance of AUD 0.136 per security, which management described as an 11.5% uplift reflecting underlying run-rate momentum.
AUM growth and transaction execution
Management said group assets under management increased 6% during the half to AUD 21 point (as stated on the call), supported by contributions across property funds management and real estate finance. McBain said the group executed roughly AUD 500.5 across the property platform and remained on track with its target.
Arrow acquisition and investor network
Executives repeatedly pointed to distribution and the investor base as a competitive advantage. McBain said Centuria completed the “platform” transaction that added AUD 440 million of agriculture AUM (as stated) and expanded private investor and family office networks.
Huljich said calendar year 2025 was a strong period for attracting new investors, citing more than 460 investors and family offices acquired via the Arrow transaction. He also referenced prior integration experience, saying engagement after the Primewest merger resulted in roughly 50% of Primewest investors committing to other Centuria offerings.
On the Q&A, management said the Arrow transaction had been discussed for years and ultimately appealed due to diversification into agricultural subsectors the company likes, strong tenant relationships, and access to a high-net-worth and family office investor base. Management also said the acquisition “screened pretty well,” citing the financials “stacked up” and a purchase “about 5.5” (as stated on the call).
Private credit expansion and balance sheet commentary
Private credit was positioned as a structural growth opportunity. McBain said Centuria has been active in real estate credit since 2016 and noted the company acquired its credit platform in 2021, grew its stake to 80% in 2024, and has now exercised an option to increase ownership to 100%. During the half, the credit business executed about AUD 1.4 billion of total loan origination, restructuring, and exit activity, while management estimated market share at roughly 1%, which it framed as leaving significant runway in a large and growing market.
Huljich said property and development finance AUM rose about 9% in the half and that Centuria Bass Credit also raised AUD 200 million of gross capital (as stated). He stressed that growth was paired with a focus on managing the loan book’s composition and that the business remains focused on asset-backed lending rather than increasing risk “straight across the overall book.”
Management also addressed questions about portfolio quality amid broader market concerns. In response to an analyst question referencing troubled developers, executives said there was “basically nothing at the moment,” adding that the portfolio was in very good shape and that the company was comfortable with its counterparties and customer relationships.
On gearing, management acknowledged look-through gearing had ticked up (with one analyst noting it was approaching 38%). Executives emphasized that some gearing is non-recourse and discussed their focus on “operating gearing,” which they said has remained within the target band they have communicated previously. They also defended the value of acquired intangibles and platforms such as Centuria Bass Credit and Primewest.
Financial results, earnings mix, and distributions
Chief Financial Officer Simon Holt said it was important to consider changes spanning FY25 through to the half-year accounts, including a restructure to the company’s proportionate consolidation approach in order to provide a clearer view of underlying economics. Holt reported operating EBITDA of AUD 89.3 million and emphasized the earnings mix, stating that the majority of operating earnings came from contracted sources, with performance fees a contributor but “rather than a dependency.”
Holt said property funds management earnings benefited from higher transaction volumes and performance fee contributions, which he linked to investor asset recycling rather than deterioration in asset quality. He said real estate and development finance earnings were stable across the halves. He also discussed ResetData, noting Centuria’s share of its result was a AUD 2.8 million negative contribution during the period, reflecting investment and early commercialization.
For securityholders, Holt said OPEX increased to AUD 54.6 million (as stated on the call). He also said the company declared a distribution of AUD 0.052 per security.
Holt highlighted balance sheet actions during the half, including AUD 131 of balance sheet asset recycling (as stated) and no near-term debt maturities. He said the repayment of listed notes lowered the company’s cost of funding by 25 basis points to roughly 275 (as stated). He also said Centuria had access to AUD 8.3 billion of diverse lending facilities and that average margins improved to 1.57% through stronger lender engagement and an active funding strategy.
ResetData, sovereign AI optionality, and outlook
ResetData drew significant analyst attention. Management said the business had leased “a chunk” of its facility and was seeing strong demand, but acknowledged the sales cycle for enterprise and government customers can be longer. Executives said they expected ResetData to remain loss-making in the second half, though with a smaller loss than the first half, and they framed this as positioning for future tailwinds as onboarding progresses.
In a discussion of industry technology preferences, management said the company’s facilities were built around Nvidia architecture and design protocols and that future facilities would follow the technology direction of key partners. Executives also highlighted the company’s positioning as “purely sovereign,” which they said was relevant for government and university customers.
On funding and deployment, management emphasized a measured approach—preferring to secure customer demand before committing substantial additional capital—and said the sector can be dominated by “flash releases,” which it aims to avoid. McBain reiterated that the company’s focus remains on scaling the core platform, progressing targeted acquisitions, and building data center and sovereign AI initiatives only where returns are compelling and demand is secured.
In Q&A, management also discussed fundraising momentum in specific transactions (including oversubscription in some raises) and provided an update on redemptions in open-ended funds, saying three funds offer redemption features and that total redemptions were less than AUD 120 million across the platform (as stated). Executives also pointed to the expected repatriation of capital from expiring bank hybrids over coming years as supportive of demand for yield-oriented products across credit and equity strategies.
About Centuria Capital Group (ASX:CNI)
Centuria Capital Group, an investment manager, markets and manages investment products primarily in Australia. It operates through Property Funds Management, Co- Investments, Developments, Property and Development Finance, Investment Bonds Management, and Corporate segments. The Property Funds Management segment manages listed and unlisted property funds. The Co-Investments segment holds interest in property funds, properties held for sale, and other liquid investments. The Developments segment engages in the management of development project and structured property developments for the commercial office, industrial, and health through residential mixed use.
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