Centuria Capital Group (CNI) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Garry Charny, I'm Chairman of the Centuria Capital Group. On behalf of our Board of Directors and senior management, I would like to formally welcome you to our Annual General Meeting. Before we begin, I acknowledge that I'm hosting this AGM from the lands of the Gadigal people of the Eora Nation. I also acknowledge the traditional custodians of the various lands on which you all work today and the Aboriginal and Torres Strait Islander people participating in this AGM. We pay our respects to Elders past, present and emerging. We also welcome our friends from Aotearoa. As it is past the appointed time for the commencement of the meeting and a quorum is present, I declare the meeting open. Due to the recent COVID-19 pandemic, we have prioritized the health and well-being of shareholders, clients and employees. As such, and to minimize the health risk created by the COVID-19 pandemic, this meeting is being held virtually and is accessible to shareholders via a live webcast. It is a matter of great regret that we are unable to meet with shareholders personally today. And I look forward to welcoming you again in person next year. Today, I will go through some meeting formalities and then give you a brief address about the past year and what we are focusing on this year. That will be followed by addresses from John McBain and Jason Huljich, the joint CEOs of Centuria. I will then return to the formal business of the meeting and resolutions and matters to be dealt with this morning. So first, some housekeeping, which unfortunately, I will need to deal with somewhat formally. If any securityholders experience any technical issues during the course of the meeting, they should contact Boardroom by telephone on 1(300) 737-760 within Australia or +61-2-9290-9600 outside Australia. The online platform for the conduct of this meeting enables securityholders to ask written and verbal questions. If you are a Centuria securityholder or a properly authorized representative of a securityholder, you may still ask a question at any time during the meeting via the messaging tab, which will appear at the top of your screen. Now due to a slight technical delay with the webcasting, we encourage all securityholders to submit their questions as soon as possible. Please note, if you try and ask questions in real time that you receive the broadcast, I may well be onto the next item already. To send in a question, simply click in the Ask a Question box, type your question and select the Send arrow. Your question will be sent immediately for review. I will then identify the securityholder and read out the relevant questions submitted by that securityholder. I will attempt to respond to all questions at this meeting. Securityholders and their properly authorized representative have also been given the opportunity to submit written questions during the hour before the meeting. Securityholders have also been given the opportunity to submit written questions to the Company's Secretary by e-mail prior to the meeting. Securityholders and their properly authorized representative can continue to submit the written questions on the resolutions now and at any time during these proceedings until I advise the meeting that discussion on the resolutions have been closed. However, questions relating to meeting procedures and how to vote may be submitted up until the close of voting. To ask a verbal question, dial the relevant number for your location set out in the online securityholders' meeting guide that you received with the Notice of Meeting. Once dialed in, you'll be asked to enter the meeting ID as set out in the guide. Please ensure your webcast is muted before the call to avoid feedback. You'll be asked for a participant PIN, however, simply press # to join the meeting. You'll be muted upon entry. [Operator Instructions] Now the business of this Annual General Meeting is set out in the Notice of Meeting. We propose to follow the order of business as set out in that notice. The Centuria Capital Group consists of Centuria Capital Limited, which I shall refer to as the company throughout this morning's meeting, and Centuria Funds Management Limited as the responsible entity of the Centuria Capital Fund, which I refer to as the Trust. I will refer to the collective group as Centuria. Each share in the company is staple to a unit in the Trust, which form stapled securities. This meeting is a concurrent meeting of the shareholders in the company and unitholders in the Trust, which is permitted by the respective constitutions of the company and the Trust. Each securityholder and proxyholder should have registered during the virtual meeting user guide as set out in the notice. Voting on the resolutions will be conducted by way of a poll. Securityholders may vote at this meeting by clicking on the Voting tab on the navigation bar. You may submit your vote on each of the resolutions by clicking the for, against or abstain buttons. Your selection will change color and a confirmation message will appear. Voting can be performed at any time during this meeting until I declare the poll is closed. To those securityholders who have appointed me as Chairman of this meeting as their proxy, I shall be voting undirected proxies in favor of each item. If you are a proxy holder and been instructed how to vote, I ask you to ensure any vote you cast as proxyholder is in accordance with those instructions. If I may now introduce you to my other Board members. My colleagues are Susan Wheeldon, Jason Huljich, John McBain, John Slater, Kristie Brown and Peter Done. They bring to the Board an important range of skills and experience across the business, which our company is engaged, including funds management, property and investment markets, banking and finance, accounting, legal and technology. A brief profile of each director is included in the 2021 Annual Report. Also attending the meeting today are Anna Kovarik as Company Secretary; and our CFO, Simon Holt; along with James Lonie from HWL Ebsworth Lawyers; and Paul Thomas, the audit partner from KPMG. Paul is available to answer any questions regarding the conduct of the audits and the content and preparation of the audit report. The notice of this meeting dated 26th October 2021 has been in securityholders' hands for the required number of days, and therefore, I propose to take it as read. The company's annual report has been placed on the company website for your review and has been sent to those securityholders who have requested a hard copy. The minutes of the last general meeting were signed as true and correct record of the meeting and are available for inspection for the Company Secretary. Voting on the resolutions will be conducted by way of a poll. On a poll, each Centuria securityholders has 1 vote for each security held. Resolutions 1 to 6 to be proposed today are ordinary resolutions and will be passed if more than 50% of the votes cast on the relevant resolution are in favor of the resolution. Persons holding Centuria stapled security as at 7:00 p.m. on Wednesday, 24 November were, for the purposes of determining voting entitlements of this meeting, taken to be securityholders of the vote. Voting exclusions apply to a number of the resolutions as detailed within the Notice of Meeting convening this meeting. I intend to read out and propose each of the resolutions and then to conduct a poll on all resolutions together. Our returning officer is [ Andy Marr ] with Boardroom. Shortly, I will take you through the formal resolutions on which we're being asked to vote. You will have an opportunity to submit questions, be updated on the vote already received and be given a further opportunity to vote. Again, let me reiterate that questions may be asked at this meeting by clicking in the Ask a Question box. Type your question and click the Send arrow. It is essential that if you have any questions, you submit them as soon as possible so that may be dealt with during the discussion of the resolutions or in general business at the end. Questions may be submitted at any time during the meeting, but please be aware that, depending on your Internet speed, you may be receiving a delayed signal of between 20 seconds and 1 minute. I again apologize for the formality of that, but it's a necessary requirement for the meeting. So to my Chairman's address. Since we last met 12 months ago, Australia and New Zealand real estate markets have been navigating a sea of COVID, COVID restrictions, border closures and much uncertainty generally across the broader community. Against this backdrop, Centuria has shown resilience borne of commitment and hard work and perspicacity from an experienced leadership team with platform expansions, quality expansions within diverse asset classes from health care to industrial and extension into new markets. This allowed us to outperform initial FY '21 guidance and deliver strong results in the face of the pandemic. Early in the year, there were some encouraging signs of the pandemic abating. But as the year progressed, that initial optimism subsided. Nonetheless, aided by the expanded geographical diversity of the company, our team was able to progress acquisitions, maintain active asset management and be at the coalface of tenant customer relations to ensure continuity. These endeavors align to Centuria's core values and capabilities that support our approach to business and creating value for you, the securityholders. We acted on the road map set out in 2020 and fine-tuned our operations from home offices, kitchen hammocks -- kitchen tables and the occasional hammock. The Board and senior management became overnight technophiles, whilst interlopers such as children and dogs became the norm in Teams meetings. The resolve and success of the Centuria team during this extraordinarily difficult period is a testament to all concerned. On behalf of the entire Board, we thank you. As Centuria has grown, it has continued to engage with stakeholders and taken steps to keep improving all areas of environmental impact, social considerations, governments, remuneration and transparency. This is coupled with the ongoing reporting commitments required for a listed organization of Centuria's size and complexity. Turning to performance for FY '21. We've almost doubled the AUM across our platform, whilst delivering sustainable recurring revenue streams that represent 92% of total revenues. Centuria Capital Group increased its assets under management from $8.8 billion to approximately $17.4 billion through FY '21. This was achieved through a combination of M&A activity, organic real estate initiatives. In particular, on the merger front, it behooves me to welcome our new partners from Primewest and its founders, David Schwartz, John Bond and Jim Litis. An unusually coherent meeting of like minds have allowed 2 prospering businesses to become one even better. Pleasingly, we updated the market on 13 October 2021, noting a strong start to FY 2022, an expansion to approximately $18.1 billion of AUM. John and Jason will elaborate further on our corporate and funds management activities and performance shortly, but it is fair to say that Centuria is now a leading Australasian real estate funds manager. If any validation of that was necessary, I am pleased to report that Centuria was admitted to the ASX 200 on 16 July 2021. Long-term performance remains a core test for defining Centuria's success. This extends to delivering superior returns to our securityholders. The group's performance remains strong on an absolute basis, providing total security shareholder returns of 61.8% for FY '21 and a 3-year TSR of 130.1%. These returns reflect meaningful outperformance against the S&P/ASX200 Index, the S&P/ASX 200 A-REIT Index benchmarks and the majority of Centuria's peer set. The year was signposted with a number of key platform additions. As mentioned, we successfully merged with the Perth-based Primewest, delisting the entity and integrating the business into the Centuria fold. Primewest broadens Centuria's diversifications with a portfolio weighting towards West Coast Australia whilst expanding into diverse asset classes, including the resiliently performing large format retail and daily needs retail as well as agriculture. We also welcome Giles Borten, Nick Goh and the team who have joined us through our 50% investment in the rebranded Centuria Bass Capital, giving our investors the opportunity to take advantage of and participate in the growth of bank alternate real estate debt fund opportunities. Our footprint across New Zealand also expanded following the integration of Augusta Capital, now known as Centuria New Zealand. Kiwi operations grew 35% to $2.3 billion during FY '21 under the leadership of Mark Francis and Bryce Barnett. Now one of our newer asset classes, Centuria Healthcare's AUM grew 50% during FY '21 to $1.1 billion. Investor demand for health care assets grew noticeably during the pandemic, although I'm reluctant to draw a correlation between the two. Perhaps the more relevant is the compression of yields elsewhere and the need to build these alternate asset classes to present us with more growth opportunity. Centuria's listed real estate division continued to benefit from Centuria Office REIT and Centuria Industrial REIT being positioned as the largest ASX-listed office and industrial REITs. Our office assets across listed and unlisted funds have been resilient, underpinned by strong tenant covenants, particularly those backed by government and blue-chip national and international tenancies. Industrial portfolio, including listed and now unlisted funds, continue to benefit from strong tailwinds across the sector and a healthy weighting towards the East Coast. Throughout the year, we have made a conscious effort to highlight our existing new environmental, social and governance initiative. This is not lip service. It is a commitment to leave this place a sustainable and better place for future generations. An early step on this path was the publication of our first Sustainability Report, which I encourage you to read at your leisure, and the announcement of our Sustainability Framework, which John will elaborate on further. The establishment of our culture and ESG Board Committee complements the existing ESG Management Committee. This committee is chaired by the CNI independent Non-Executive Director, Susan Wheeldon. This year, we also announced our support of the Task Force on Climate-Related Financial Disclosure recommendations and delivered Centuria's Modern Slavery Statement. We remain committed to driving diversity through the group. We are committed to delivering sustainable developments and look for opportunities to enhance asset outcomes under our operational control that feature high Greenstar and NABERS ratings. We take this seriously. We continually reexamine and work to further diversity on our boards and responsible entities. And we welcome Kristie Brown to the Centuria Capital Group, Nicole Green to the Centuria Property Funds Limited Board, and Jennifer Cook to Centuria Property Funds No. 2 Limited Board. These responsible entity boards are now led by independent chairs, Matthew Hardy and Roger Dobson, respectively. Natalie Collins, a current CPF2L Board member has also joined the Centuria Healthcare Asset Management Limited Board and the Culture and ESG Committee. I also wish to acknowledge the important oversight and contributions made by Centuria's Conflicts Committee, which is externally and independently chaired by Professor Simon Rice AO. Last but not least, after 8 years with Centuria, Nick Collishaw stepped down as a Director of Centuria Capital Group and its responsible entities. Nick remains a welcome friend of Centuria. And I personally wish to thank him for his wise counsel and contribution over the years. Before I pass over to our joint CEOs, let me take a moment to talk about having joint CEOs, the topic I have canvassed with many of our investors. It may not be the right structure for some companies, but I want to assure all our stakeholders that at this moment in time, it is the right one for Centuria. Rarely have I seen 2 people complement each other as well as John and Jason. They run the leanest of senior executive teams whilst seamlessly building a company of opportunity, success and culture. Your senior management team continues to pull the right levers to ensure we hit and exceed our targets. On a personal note, let me thank my fellow Board members for their ongoing commitment and support. And finally, as I've said previously, to our securityholders, you, we serve at your pleasure, and we never take for granted your ongoing support. We remain committed to delivering results, protecting and growing your investments and ensuring it is done in a sustainable and ethical way. I now invite John McBain and Jason Huljich to deliver the joint CEO's address. John?

Thank you, Mr. Chairman, and good morning, everyone. On behalf of my fellow and joint CEO, Jason Huljich, we'd like to also welcome you to Centuria's 2021 Annual General Meeting. We too acknowledge the traditional Australian and New Zealand landowners, past, present and emerging in each of the countries we operate in. This morning, it's my pleasure to address Centuria's corporate initiatives, financial performance and our progress towards our social objectives since our last AGM, these being my areas of prime focus. I will also comment on the domestic market outlook and corporate strategy. Jason will address Centuria's funds management and real estate activities where his teams have performed exceptionally during FY '21. Since our last meeting, as Garry mentioned, we've experienced a period of oscillating lockdowns and restrictions which began with the effects of the pandemic unwinding prior to Christmas only for restrictions to be reintroduced. Now as vaccination rates increase, we are optimistic for FY '22, but we must understand this will be on a state-by-state basis. So while the 2020 financial year represented a steep learning curve for remote working and virtual meetings, during the 2021 financial year, despite a second wave of lockdowns, Centuria again proved its resilience by continuously growing our platform, delivering beyond guidance, strengthening the balance sheet and outperforming for our securityholders. With offices now in Sydney, Melbourne, Brisbane, Perth, Manila, Auckland, New Plymouth and Christchurch, Centuria has delivered business continuity and ensured the company continues to grow and serve its stakeholders from tenants, to investors, to business partners. Our resilience through the year is best illustrated with our strong FY '21 financial results. Group assets under management increasing 98% to $17.4 billion; total operating revenues rising to $212 million, up 40%; operating profit after tax rising to $70 million, up 32%; the maintenance of a strong balance sheet at year-end, with $250 million of cash on hand and an operating gearing ratio less than 4%. Balance sheet flexibility increased with a new $199 million listed note issuance, which extended debt duration to 4 years. Net asset value increased to $1.92 per security, up significantly from $1.44 in FY '20. Operating profit attributable to property funds management was $46 million up, up 40% on the prior corresponding period. Operating recurring revenue increased to 92% of total revenues, an increase from 86% in FY '20. And as Garry mentioned, the 12-month TSR return of 62% are outperforming the S&P ASX A-REIT index of 33%. Finally, since 30 June 2017, Centuria has delivered a compound annual growth rate in assets under management of 46%. It's also my pleasure to report that Centuria delivered operating earnings per security of $0.12, a 9.1% increase on our original FY '21 guidance midpoint; distribution per security of $0.10, a 17.5% increase over our original FY '21 guidance; and a total shareholder return, as previously mentioned, of 130% for the 3-year period ended June 2021. Centuria's growth during the year was also recognized with several milestones, including the group's inclusion in the S&P ASX200 Index in July 2021, a significant indicator; our GICS reclassification to the diversified real estate category in September 2020; and our inclusion in the MSCI Small Cap Index in November 2020. I'd like to talk a little bit about history. At the close of FY '19, Centuria Capital had a market capitalization of less than $750 million and was outside the S&P ASX300 Index. As of this week, our market capitalization is approximately $2.6 billion, and we are included in the S&P ASX200 Index at around 150th by market capitalization. This has been a remarkable journey. And I'd ask securityholders to reflect that Centuria's growth, both in terms of size as a fund manager, and the level of our shareholder returns are not a 12-month phenomenon. Centuria is one of a small number of listed discrete external real estate fund managers within the ASX 200, which has performed well over 1, 3 and 5 years, exceeding the relevant ASX indices. Some of these relative returns were set out for you in our financial report for the benefit of all securityholders. Within this narrow group, Centuria has performed at or near the top within our peers in what is a highly competitive market. We are strong believers that the balance sheet-light funds management model will continue to provide attractive, recurring relative returns. However, maintaining this strong growth in a competitive market means that a number of essential elements must be in place: strong leadership and stable best-in-class senior executive team; a stable -- and I repeat stable, effective and respectful working relationship between the multitude of boards and committees that govern the Centuria platform and Centuria's management team; clear and effective strategies to grow both by organic asset acquisition into funds and, where sensible, by M&A; and finally, and this should be no surprise to you, a commitment by directors and staff to work whatever hours are necessary to maintain our growth and fulfill our financial projections and social obligations. So Centuria must attract and retain a diverse range of high-quality staff in a new marketplace where an increasing number of our competitors represent private equity or are unlisted entities, which are not compelled to operate under the same strictures as listed entities. Acknowledging that securityholders may hold differing views regarding how we go about retaining talent, we will increase our efforts to engage constructively with securityholders irrespective of their views regarding these issues. I want to talk about new platforms that we are integrating. The past year has been a defining period in Centuria's history, not just because of the strong acquisition performance in the real estate team throughout the pandemic, which Jason will take you through, but due to the integration of highly successful platforms into the company's fold. These are complementary businesses that expand Centuria's reach from West Coast Australia over to New Zealand and bolstering our footprint across commercial real estate markets and expanding our investor networks. In July, as Garry mentioned, the WA-based Primewest Group merged its $5.6 billion platform with Centuria. And we've further grown its market presence across daily needs, retail, large-format retail, agriculture. This complements Centuria's preexisting verticals of industrial, health care and office. As a group, this has further diversified Centuria by asset class, fund type, geography, tenant range and investor profile. In relation to that latter point, by way of example, the Primewest platform alone brought with it 2 very substantial global institutional investors with mandates in place totaling over $2.3 billion. During the year, we also completed the full integration of our New Zealand business. Significantly, with an enhanced balance sheet backing, Centuria New Zealand secured Visy Glass manufacturing facility in Auckland for NZD 178 million, cementing it as the largest New Zealand single-asset retail fund to date, successfully raising $110 million from retail investors. This had never been done before. Centuria further diversified its investment product suite with a 50% investment in Bass Capital now renamed Centuria Bass Credit. As Garry mentioned, this business provides unlisted real estate debt to high net worth investors while capturing the growing demand for nonbank financial products. Centuria Healthcare continues to grow from strength to strength since Centuria secured a controlling interest in this business in 2019. There seems to be strong demand for fit-for-purpose health care property that caters cost-efficient models of care, and we continue to drive this business forward, establishing and building vital relations across this sector. A common denominator in all these mergers and acquisition is people. With all these companies, we have been able to attract high functioning entrepreneurial business leaders to the Centuria Group, who continue to operate their business but with an enhanced structure, improved systems and with greater balance sheet backing. All these business leaders previously mentioned by Garry are highly talented and are in the main now significant Centuria securityholders, thereby being completely aligned with our total investor base. Within the past year, we've made a conservative effort to highlight us -- highlight our sustainability commitments and report on our ESG initiatives. As Garry mentioned, last month, we released our Sustainability Report for the first time, reflecting our growth across the ESG issues and identifying pertinent topics that we'll focus on to create value with our stakeholders, employees, suppliers and our communities. This framework focuses on 3 major areas: one, engagement with our stakeholders, the society we operate in and how we promote diversity and inclusion in our workplace; two, being conscious of climate change, through exploring opportunities to reduce greenhouse emissions, improvements to energy efficiency and, as a business, understanding and becoming more resilient to the impacts of climate change to our operations; and finally, responsible business principles, being our commitment to honest, transparent and responsible business practices. Earlier this year, we delivered our first modern slavery statement, and we've continued to identify risks and mitigation strategies to eradicate modern slavery practices. Shortly, we will be delivering an update on these practices and strategies. As mentioned, I'd like to comment briefly on market conditions and the outlook for Australia. Our view for the FY '22 period reflects relatively buoyant domestic conditions within Australia as the eastern states in particular, move out of lockdown and pent-up household savings begin to filter down through the economy. People regained confidence and increased spending on a wide range of consumables, assets and services. This renewed confidence will also assist in investment decision-making, which we believe is a positive for Centuria's range of investment products. We acknowledge that markets are anticipating increases to medium- and long-term interest rates globally. And to some extent, this is already factored into the rate curve within Australia. Our setting is that this will take some time to play out, and we expect only moderate interest rate growth during the course of FY '22, barring other unforeseen global shocks. Accordingly, we expect domestic term deposit rates to remain relatively low throughout FY '22, another factor we view as a positive for Centuria. We have moved confidently into FY '22 with operating earnings per security guidance of $0.132 per security, up 10% since FY '21 and distribution guidance of $0.11 per security, again, a 10% increase over last year. Before I pass over to Jason, I'd like to acknowledge the backbone of our business, our strong 300 team members. Despite the pandemic, this has been the largest growth period in our company's history. So to all of the Centuria staff, allow me to thank you publicly for your dedication to the securityholders' interests. And I'd like to particularly acknowledge Jason Huljich for his dedication and support as joint CEO during this period. Jason and his real estate and funds management team has enjoyed spectacular results during FY '21. And it was the combination of this organic growth, together with the corporate acquisitions during the period, which demonstrate that whilst the contribution of each joint CEO differs in nature, the cumulative effect is that of a superior outcome for securityholders. As always, I can't thank the Chairman of our boards and the independent directors of all the boards and all the committee members too much for their dedication and hard work in considering the sheer volume of matters they handle each year. And as the platform grows, the volume of meetings have expanded. So I want to publicly acknowledge their essential contribution at this meeting. Jason and I would also like to join Garry in thanking Nick Collishaw for his 8-year contribution to Centuria and in addition, welcome Kristie Brown to the Centuria Capital Board and all the new directors to all the boards. Finally, my thanks to both new and long-standing Centuria securityholders for your confidence in our abilities and interest in our activities. It's now my great pleasure to hand over to Jason Huljich.

Thank you, John. Let me begin by highlighting the recent significant growth across our real estate platform. As John and our Chairman mentioned, our real estate funds doubled to $16.5 billion of AUM in FY '21. However, the real estate platform has grown further to over $17.2 billion since our last market update in October. The platform has skewed approximately 1/3 to listed and 2/3 unlisted real estate. It is well diversified by geography across Australasia, 6 separate asset classes, several capital sources, including retail, high net worth and institutional and multiple fund structures. Along with corporate expansion John discussed, Centuria has transacted more than 50 assets worth $2.5 billion in FY '21. Importantly, 75% of these acquisitions were secured off-market, which illustrates Centuria's strong transactional capabilities and industry relationships. Landmark acquisitions during the year included: the $417 million Telstra data center in Clayton, Victoria; the NZD 178 million Visy Glass manufacturing facility in Auckland, New Zealand; a $224 million A-grade office building located in Footscray, Melbourne; and over $400 million in health care asset acquisitions. The real estate platform also benefited from a $1.5 billion valuation increase across the portfolio with supportive fundamentals across many of the asset classes and markets we're exposed to throughout Australasia. During FY '21, the group's real estate portfolio increased to over 340 individual assets and 2,280 tenants. Impressively, we achieved a 98.8% average rent collection through the pandemic-affected trading period, which is partly credited to Centuria's significant in-house property management capabilities. This also extends to leasing more than 437,000 square meters across 215 leasing transactions during the period. Now on to our REITs, where our listed platform grew 37% to $5.5 billion. Centuria Industrial REIT broadened its portfolio to 62 high-quality assets, $2.9 billion of AUM and a portfolio underpinned by a WALE of 9.6 years and occupancy of 97%. CIP continues as Australia's largest ASX-listed pure-play industrial REIT and has broadened its market relevance with inclusion in the S&P ASX 200 Index and FTSE EPRA/Nareit Global Developed Index. CIP benefits from strong market tailwinds resulting from a shift to manufacturing onshoring and expansion of e-commerce throughout Australia. It is focused on securing urban infill industrial assets within core supply-constrained markets that benefit from high demand from last mile operators. CIP also continues to provide its unitholders with value-add investments, ranging from leasing uplift opportunities through to asset repositioning and select developments. Centuria Office REIT illustrated its resilience throughout the period with a portfolio of 22 high-quality assets, $2.1 billion of AUM, occupancy of 93% and a WALE of 4.3 years. More than 90% of the portfolio comprises A-grade office assets, demonstrating the high level of underlying quality. COF is Australia's largest listed pure-play office REIT and continues to grow its market relevance through inclusion in the S&P ASX 300 Index and FTSE EPRA Nareit Global Developed Index. Uniquely, COF's metropolitan and near city assets provides its portfolio with exposure to Australia's better-performing office markets that lend themselves to good workforce commutability and attractive affordable rents. These markets attract quality tenants, which underpin sustainable income returns and lower volatility. Despite the pandemic's impacts, COF generated record leasing activity across the portfolio with more than 52,000 meters leased throughout the period. The diversified NZX-listed asset class performed well throughout FY '21, providing a NZD 16 million profit. The REIT comprises a $300 million portfolio, including the $130 million development project at Munroe Lane, Albany in Auckland, which is 63% pre-let to the Auckland Council on a 15-year lease. The portfolio also contains another office development opportunity at 35 Graham Street in Auckland. Our unlisted platform increased 175% to $11 billion during the period. This platform has increased its size, number of asset classes and fund types that service our unlisted distribution network of more than 12,000 institutional, wholesale, direct retail and advisory investors. Our unlisted funds remain an important component of our overall business with very attractive fee cards. As Garry and John mentioned, Centuria Healthcare continues to grow. During the period, assets under management increased to $1.1 billion. Its open-ended unlisted fund, Centuria Healthcare Property Fund, was launched during the year and quickly grew to $190 million across 9 quality health care assets. Part of Centuria's health care strategy revolves around partnering with high-quality operators to deliver real estate projects that expand their platforms across the country. Our health care development pipeline consists of over $700 million of committed and future development projects for short-stay hospitals, medical centers and specialty facilities. A notable example is the Kew private hospital development in Melbourne, which will be operated by a doctor-led joint venture with Medibank, providing a no-gap treatment for eligible patients. Centuria has significantly expanded its daily needs and large-format retail portfolio since merging with Primewest earlier this year. We now manage more than $2.6 billion worth of retail assets for investors ranging from institutional mandates to unlisted wholesale funds. Most recently, the group secured the $71 million Northgate Shopping Center in Geraldton, Western Australia for a single asset wholesale fund. Our merger with Primewest presented an opportunity to enter the agricultural sector. This emerging sector provides exciting opportunities to unlock quality real estate underpinned by reputable operators and secure lease covenants. With a strong pipeline of opportunities, this vertical can provide compelling investment opportunities to a range of investors across Centuria's distribution network. Centuria continues to deliver on its $1.9 billion development pipeline across Australia and New Zealand. During the period, the group completed more than $127 million worth of projects and has over $1 billion in committed projects and approximately $750 million in future pipeline developments. Development fees and profits will provide a growing income stream for the group. We will continue to work through our pipeline, identifying opportunities to develop product for underlying funds and to selectively generate development profits with the support of CNI's balance sheet. We've continued to focus on institutional mandates. The group continues to service a $930 million daily needs institutional retail mandate, a $590 million office mandate, and a $500 million healthcare mandate. Additionally, Primewest also established a $272 million joint venture with BlackRock for the purchase of a prime grade office tower located at 140 St. Georges Terrace in the Perth CBD. Momentum across the real estate platform has continued into FY '22. Some notable highlights include: real estate AUM has grown to more than $17.2 billion across $6.1 billion of listed and $11.1 billion of unlisted real estate; COF purchased $273 million of decentralized office assets across Sydney and Melbourne, growing its assets under management to $2.3 billion; over $700 million of urban infill industrial assets within supply constrained markets were secured by CIP, growing its assets under management to $3.6 billion; $167 million of health care transaction initiatives were secured across 7 health care properties; we had a strong contribution from single asset funds, including settlement of the $224 million Centuria government income #1 fund and the launch of the $63 million Centuria government income fund #2; we launched the $71 million Northgate Geraldton Trust and had first close of our Agri Trust 2, a multi-asset fund seeded by the $54 million Moora Almond Orchard. And finally, FY '22 and FY '22 year-to-date real estate acquisitions now total $1.6 billion, including $700 million that had exchanged at FY '21 results and since settled and $900 million of acquisitions undertaken since FY '21 results were announced in August. The outlook for commercial real estate investment remains strong. We are seeing continued record demand for industrial and health care assets. We're also seeing strong transactional evidence in the commercial office markets as sentiment improves dramatically in the sector. Both neighborhood and large-format retail subsectors have proved extremely resilient throughout the COVID-affected period. And due to this, both onshore and offshore demand from investors is very robust. In terms of new opportunities, we are very excited to enter the agricultural sector as well as expand our credit platform through Centuria Bass. In conclusion, Centuria is focused on delivering income and capital growth from carefully selected high-growth asset sectors to a broad range of investor profiles. We leverage our geographic diversity, our in-depth market knowledge in favored sectors and our access to capital to grow assets under management with a strong focus on earnings growth. I'd like to take this opportunity to thank our Chairman, Garry, my fellow joint CEO, John, Directors of the group and our RE Boards. Your diligence, support and leadership are exemplary. Finally, thank you to our steadfast securityholders. Your loyalty and support is paramount to us all at Centuria. I will now hand back to our Chairman. Thank you.

Thank you, Jason, and thank you, John. I'll now move to the first item of business on the agenda, which is to receive and consider the financial report of the company, the Director's Report and the Auditor's Report for the financial year ended 30 June 2021. I would like -- now like to open this matter for questions. As I've mentioned, Paul Thomas from the company's auditors, KPMG, is here and able to answer any questions on the preparation and content of the audit report and the conduct of the audit itself. He cannot respond to questions on the results themselves. I ask that if you have any questions to the auditor that you direct them through me as Chairman of the meeting. I will now check with the moderator if there are any questions or comments on this resolution. There are no questions? Questions on the resolution are now closed. Thank you, ladies and gentlemen. With that, I shall ask the Company's Secretary to record in the minutes that the annual financial report, Directors' Report and Auditor's Report for the year ended 30 June 2021 were considered at the AGM. We'll now move to the next item of business. The remuneration report is set out in the annual report. It sets out not only details of the exact payments made to directors and the CFO, but also addresses the policy framework on which those payments are based. We are required by law to put the remuneration report, which forms part of the company's financial report to a vote in accordance with the Corporations Act. The status of that vote is nonbinding. Securityholders may be aware that legislation regarding remuneration reporting was introduced, commonly referred to as the 2 strikes rule. If the remuneration report receives a no vote of above 25% at 2 successive AGMs, then a spill resolution must be put to securityholders. If at least 50% of the securityholders vote in favor of the spill resolution, another security holder meeting must be scheduled within 90 days in which the directors vacate their office and stand for reelection. In any event, it is important that our securityholders understand how remuneration of directors, senior management and personnel is decided within the company. Our philosophy regarding remuneration as stated in our remuneration policy is contained in the company's annual report, which is available on our website. Centuria recognizes the important role people play in the realization of its long-term objectives. To grow and be successful, Centuria must be able to attract, motivate and retain capable individuals at a cost that is acceptable to security holders. The policy focus on providing competitive rewards to attract and retain executive talent; aligning remuneration to the creation of value securityholders; and linking the overall cost of remuneration to the ability of the company to pay. The resolution as set out in the Notice of Meeting reads, that, the company's remuneration report for the financial year ended 30 June 2021 be adopted. I will now check with the moderator if there are any questions or comments on this resolution.

So I think we have one question, which I'll just -- excuse me for turning, but item 2 remuneration report, with reference to the LTI grants table on Page 65 of the annual report, can you please explain the basis for the values of $1.11 and $0.19 for rights vesting in Tranche 6? I'll now ask Simon Holt, our CFO, to respond to that question.

Thank you, Mr. Chairman. The answer to that question is back in when we issued the Tranche 6 LTI grants, we had those independently valued based on the Black & Scholes valuation methodology, and that was the value that it came up with. At that particular point in time, the share price was around $1.40 back in 30 June 2018. So hopefully, that answers that question.

Thanks, Simon. Are there any other questions in relation to that resolution? Proxies received for this resolution are as follows: for, 85.5% for votes include open votes allocated to the Chairman, which will be voted in favor of the resolution; against, 15.03%; and the remaining open, 0.12%. The next 3 items of business relate to the reelection of directors. As the first reelection resolution pertains to me, I will now pass the chair to Susan Wheeldon for consideration of the next resolution.

The first resolution is that Mr. Garry Charny be reelected as a Director of the company. In accordance with the terms of the company's constitution, Mr. Charny retires by rotation at the close of the AGM and, being eligible, offers himself for reelection as a director. Garry was appointed as Chairman of the Centuria Capital Group Board on 30 March 2016. He has significant board level experience with both listed and unlisted companies across a diverse range of sectors, including property with Trafalgar Corporate which became 360 Capital and Manboom. Retail with the Apparel Group, Sportscraft and Saba, technology with General Electric, ECXpress and 1st Available and media with Boost Media, Macquarie Radio and April Entertainment. Currently, he is Managing Director and Founder of Wolseley Corporate and Australian Corporate Advisory and Investment House. He consults on local and international transactions in the U.S., U.K., Malaysia, India and throughout Southeast Asia. Wolseley specializes in mergers and acquisitions, strategic corporate advice and contentious matters resolution. Garry is also Chairman of Spotter Turquoise Films, an international film and television company based in Sydney and L.A. and Chairman of Shero Investments, a Sydney-based investment company. Previously, he was Co-Founder and Chairman of Boost Media International and International Media Advisory business with offices in Sydney, New York, Toronto, Kuala Lumpur and Delhi. He was also President of Boost Media LLC in the U.S. From 1983 to 1995, Garry practiced as a Barrister-at-Law at the Sydney Bar, specializing in corporate, commercial, equity and media. He was an adjunct lecturer in law at the University of New South Wales. The Board considers that Mr. Charny is an independent nonexecutive director. I will now check with the moderator if there are any questions or comments on this resolution. There are no questions or comment on this, the resolution has now closed. The proxies received for this resolution are as follows: for, 84.92% for votes include open votes allocated to the Chairman, which will be voted in favor of the resolution; against 14.96%; remaining open 0.12%. I will now pass the chair back to Garry.

Thank you, Susan. The next resolution is that Ms. Susan Wheeldon be reelected as a Director of the company. As with the previous resolution, in accordance with the terms of the company's constitution, Ms. Wheeldon retires by rotation at the close of the AGM and, being eligible, offers herself for reelection as a director. Susan joined the Centuria Capital Group as an independent Non-Executive Director in August 2016. She brings extensive experience across international commercial markets within ICT, real estate, legal, aviation and online retail sectors. Currently, Susan is country manager for Australia, New Zealand and Oceania at Airbnb. Previously, she served in a number of roles, including the Head of Government & Performance and the Head of Agency at Google, worked with major national and global companies to develop and deliver growth strategies that future-proof and build clients' business' brands in a constantly changing environment. During her career, Susan has held a number of senior roles in Australia and the United Kingdom across a diverse range of industries, including global law firms, DLA Piper and King & Wood Mallesons, working with the Virgin Australia and Virgin Atlantic airline brands, as Vice President of Groupon and as Head of Branded Retail at AMP Capital Shopping Centers. She holds an MBA from the Australian Graduate School of Management and is a Director of the Australian Institute of Company Directors. The Board considers that Ms. Wheeldon is an Independent Non-Executive Director. I will now check with the moderator if there are any questions or comments on this resolution. No? There are none. Questions on the resolution have now closed. The proxies received for this resolution are as follows: 99.76% for votes, including open votes allocated to the Chairman, which will be voted in favor of the resolution; against 0.13%; and the remaining open at 0.12%. The next resolution is that Ms. Kristie Brown be reelected as a Director of the company. As with the previous resolution, in accordance with the terms of the company's constitution, Ms. Brown retires by rotation at the close of the AGM and, being eligible, offers herself for reelection as a director. Kristie was appointed to the Board on the 15th of February 2021. She is an experienced real estate investment and legal professional. She is a founding partner of Couloir Capital and established Danube View Investments following 16 years at blue-chip law firms. The Board considers that Ms. Brown as an Independent Non-Executive Director. I will now check with the moderator if there are any questions or comments on this resolution. There are none. Questions on the resolution have now closed. Proxies received for this resolution are as follows: 99.75% for votes, included open votes allocated to the Chairman, which will be voted in favor of the resolution; against 0.13%; remaining open, 0.12%. The following resolutions deal with the allocation of performance rights to executive directors. Please note that the securities will only vest in the directors if the long-term performance hurdles as set out in the Notice of Meeting are met. The executive incentive plan forms a key element of the Centuria Capital Group's incentive and retention strategy for senior executives, the primary objective of the Nomination Remuneration Committee and the Board in setting remuneration to the executive directors and providing them with equity-based LTIs under the plan for the 2022, '23 and '24 financial years and to focus the executive directors on the long-term performance of the Centuria Capital Group and creation of securityholder value, ensure the executive directors' remuneration outcomes are aligned with securityholder interests and ensure the executive directors' remuneration is competitive and aligned with general market practices of ASX-listed companies. The resolutions related to each executive director are detailed on the screen as follows: to consider for the purposes of ASX Listing Rule 10.14 and all other purposes and, if thought fit, to pass the following resolutions as ordinary resolutions of the group. Approval will be given for the issue of Tranche 9 performance rights to Mr. John McBain under the Centuria Capital Group Executive Incentive Plan on the terms summarized in the explanatory notes; and approval be given for the issue of Tranche 9 performance rights to Mr. Jason Huljich under the Centuria Capital Group Executive Incentive Plan on the terms summarized in the explanatory notes. I wish to draw your attention to the fact that these 2 resolutions will be voted separately on Page 6 of the Notice of Meeting. I will now check with the moderator if there are any questions, comments on this resolution -- on these resolutions. No, there are none. So questions on the resolution have now closed. Proxies received for the resolution in respect of the issue of Tranche 9 performance rights to John McBain are as follows: 99.63% for votes, include open votes allocated to the Chairman, which will be voted in favor of the resolution; 0.25% against; and the remaining open at 0.12%. The proxies received for the resolution in respect of the issue of Tranche 9 performance rights to Jason Huljich are as follows: 99.63% for votes, which include open votes allocated to the Chairman, which will be voted in favor of the resolution; 0.25% against; and the remaining open, 0.12%. I now call for a poll on resolutions 2 to 6. Ordinary -- accordingly, please complete your votes online by selecting the voting icon at the top of your screen. The poll will be closed at 12:30 p.m. Australian Eastern Daylight Time. As the counting of the votes and the conduct of the poll may take some time, I propose to close the meeting and to publish the results of the poll as soon as possible through a release made to the ASX. That said, I am assuming looking at the proxies that all the resolutions will, in fact, be carried. I will now check with the moderator to see if we received any further questions.

We have 2 further questions. The first of these are -- and I'll read both questions out, and then I'll ask Jason Huljich to deal with them as Joint CEO. To what extent has the COVID-19 lockdown affected the income and profit of the Centuria Capital Group over the 2021 and 2021 financial year? Does Centuria Capital Group have an exit plan when the COVID-19 pandemic and associated lockdowns finally begin to ease and conclude? And the second question is what fees are charged by KPMG to act as auditor and prepare the independent auditor's report for Centuria Capital Group? Jason?

Thank you, Mr. Chairman. On the first question, during the pandemic-affected periods, Centuria has performed very well, as has been discussed today. But we had a very strong FY '21 and have a great start to FY '22. In terms of portfolio, whilst diverse, Centuria's portfolio suffered limited exposure to the worst affected asset classes. Centuria's industrial portfolio benefited from a massive swing towards logistics investment as Australia moved to online purchasing and supply chain infrastructure was identified as a sector most likely to benefit. Our listed industrial REIT CIP had a record year for acquisitions during this period. Our decentralized office assets have also proven resilient through the period with very low levels of vacancy. I think it's very important to note that over 80% of our tenants are government, ASX-listed or multinational entities. Across the entire portfolio, we achieved a 98.8% average rent collection through that pandemic-affected period, which is market-leading. Probably the one thing we are focusing on as we come out of this environment is the evolving design of workplaces, particularly in our office assets. And on the second question, the fees paid to KPMG for the audit and review of the financial report for FY '21 were $711,048. There's further details on the remuneration of audits outlined in Note F-4 of the financial report on Page 116 of the annual report. Thank you.

Thanks, Jason. And are there any other questions? No. So ladies and gentlemen, we have now completed all items of business for today's meeting. As mentioned, we will publish the results of the poll as soon as possible through a release made to the ASX. Before I close this meeting, may I take this opportunity on behalf of my entire Board and the sub-boards to wish you all a safe and healthy holiday season and hopefully a meeting in person this time next year. I now declare the meeting closed, and thank you for your attendance and participation at today's meeting.