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Centuria’s results in the first half of the year were influenced by acquisitions

Centuria reported a 19 percent increase in assets under management (AUM) to $4.6 billion in the first half of 2018 and said the performance was helped by the acquisition of a large real estate fund platform that it bought in January 2017.

Centuria chief executive John McBain said: “FY18 will be the first opportunity for investors and the market to clearly see the benefits of the large funds platform we acquired in January 2017 over a 12-month period.”

He said the acquisition significantly changed the nature and structure of profits, increasing recurring revenues and tripling the group’s market capitalization.

Operating net profit after tax (NPAT) improved to $30.2 million, while recurring revenue increased by $18.9 million to $32.1 million.

Across its real estate platform, Centuria acquired ten Class A properties for $655 million and saw asset revaluations increase by $115 million.

According to the company, the value of investment bonds increased by seven percent in six months due to an increase in the number of new transactions and assets.

“We believe conditions remain favorable for continued real estate 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 capabilities to accelerate growth in the investment-grade bond industry.”