Centuria Capital share price lifts on 60% profit surge

The Centuria Capital Group (ASX: CNI) share price is lifting nearly 3% higher in afternoon trade following the release of its FY22 results.

At the time of writing, shares in the real estate player are swapping hands at $1.91 apiece, up from the previous close of $1.86.

Centuria share price buoys from FY22 profitability

Key takeouts from the year include:

• Total operating revenue of $292.6 million, up 38% from FY21
• FY22 operating earnings of 14.5 cents per share (cps), representing a 20.8% gain on the prior corresponding period (pcp)
• FY22 distribution of 11.0cps, signifying a 10% gain on the pcp
• Management guides for operating earnings of 14.5cps and a distribution of 14.5cps in FY23
• Strong assets under management (AUM) growth of 18% year on year to $20.6 billion
• FY22 gross real estate activity comes to $3.1 billion
• Still another $2.1 billion in the company’s development pipeline

What else happened for Centuria?

The company says it experienced strong acquisition activity in FY22, securing $3.1 billion of gross real estate activity.

This was a record of the group, and a “direct consequence of a disciplined acquisition strategy coupled with enhanced platform scale,” it said.

Operating revenue grew by 38% year on year whereas management fees also grew 77% to more than $146 million.

Meanwhile, transaction fees also increased by 162% year on year to around $39 million, whilst Centuria also recognised $33 million of performance fees.

As a result, operating net profit after tax (NPAT) was $114 million, well up from $70 million in FY21, whereas the distribution per security increased to 11cps from 10cps.

Management commentary

Speaking on the results, co-CEO John McBain said:

The Group delivered record operating earnings and distributions throughout the period, following upgraded guidance during the year. Centuria demonstrated how its corporate acquisitions in previous periods have significantly increased the size of the platform with correspondingly high increases in both management fee revenues and transaction fee revenues as is evident in the FY22 result.

What’s next for Centuria?

Adding to previous comments, Mcbain said regarding the company’s outlook:

Centuria remains firmly focussed on the Australasian real estate sector. The Group intends to grow its platform strongly in the alternative healthcare, agriculture and non-bank lending sectors which are receiving strong investor demand.

In addition we will continue to leverage our strong distribution network and our institutional relationships to take advantage of both core and value-add real estate opportunities across our traditional asset classes.

In the past 12 months the Centuria share price is down by more than 38% and 45% this year to date.

The post Centuria Capital share price lifts on 60% profit surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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