Centuria Capital Group

Centuria reported half-year operating EBITDA of $89.3 million and operating profit after tax of $54.6 million, with operating earnings per security of $0.066, up 6.5% on the prior period. Statutory NPAT was higher, helped by fair value movements on co-invested property assets. Group assets under management increased 6% to $21.8 billion; property funds management AUM rose 5% to $18.3 billion; and property and development finance AUM increased about 9% to $2.5 billion. The company declared a distribution of $0.052 per security. Management upgraded FY26 operating earnings guidance to $0.136 per security, citing improved earnings visibility; it also said performance fees are expected to be about $20 million for the year and that ResetData should remain a net loss contributor in the second half, though smaller than in the first half.

John McBain framed the half as evidence that Centuria’s diversified platform can compound through the cycle, emphasizing repeatable earnings, contracted and recurring revenue, and conservative balance-sheet settings. He highlighted strong structural tailwinds in superannuation, SMSFs and capital expected to come out of bank hybrids, while stressing that growth options come from flexibility across property, credit and data centers. His tone was confident but measured, especially on ResetData, where he repeatedly said the business is very early stage and should be progressed only when customer demand is locked in.

Simon Holt focused on the earnings quality mix, saying most operating earnings came from recurring and contracted sources, with performance fees secondary rather than a dependency. He said the group realized $133 million of cash from asset recycling, liquidity is strong, and there are no near-term debt maturities; the repayment of listed notes lowered the all-in corporate margin from about 325 bps to about 275 bps. He also said the average cost of debt should come down by another 60-odd bps in the second half, while capital remains available through $8.3 billion of diverse lending facilities across listed and unlisted funds provided by 24 lenders.

Analysts pressed on ResetData, asking when it could become breakeven, how much capital it might need, and whether the technology choice and customer lease-up were proving problematic. Management said the loss should be smaller in the second half, that the drag is only a few million dollars in a roughly $50 million after-tax profit context, and that the issue is timing of customer sign-ups rather than technology demand. On credit quality, Centuria Bass said the book is in very good shape, with no meaningful issue from the troubled Western Sydney developer and LVRs remaining where the company is comfortable. Questions on gearing and IPOs were met with comments that operating gearing remains in the 10% to 15% target band, while any listed vehicle IPOs remain dependent on market conditions.