Centuria Capital : still good value on offer

Wayne Jones

Founder, Ganes Capital Management

Centuria Capital (CNI) provided a market update last week continuing the good news shareholders have been receiving lately, although the market hasn’t noticed with the share price barely moving. In the December half-year the company reported an 87% increase in underlying earnings to $5.4m and after divesting problem assets has emerged as a more clearly defined business focused on property funds management and insurance bonds. Performance fees in its property funds management business, and the statutory reporting requirements of its insurance operations, make the task of determining its ongoing profitability and its financial accounts somewhat opaque. Nevertheless we estimate the company can earn a “normalized” 10c per share this year and pay a 4c dividend. The company continues to modestly buy back shares at current prices, and with $23m cash on the balance sheet, this represents an intelligent use of capital. The shares have performed well and remain near their 52-week high, but still represent good value in the current market. The likelihood of a continuing strong commercial property market offers the potential to earn further performance fees.


2 topics

Wayne Jones
Fund Manager
Founder, Ganes Capital Management

Portfolio Manager and co-founder of Ganes Capital Management, a Brisbane based boutique fund manager. Ganes is the investment manager for the Ganes Focused Value Fund and Ganes Value Growth Fund as well as mandates for high net worth individuals....

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.