Centuria Funds Management Limited reports a stable quarter for its Centuria Capital No. 2 Fund (C2F), with no compliance breaches or adverse financial events in Q2 FY25. The fund’s secured notes remain fully supported by first-ranking security interests, underscoring operational resilience.
- No compliance failures or breaches reported in Q2 FY25
- No events triggering immediate repayment or enforcement of notes
- Security interests remain first-ranking and sufficient to cover liabilities
- No material changes in business operations or guarantor status
- Unsecured loans to related bodies corporate remain stable
Quarterly Compliance and Operational Stability
Centuria Funds Management Limited (CFML), trustee of the Centuria Capital No. 2 Fund (C2F), has released its quarterly report for the period ending 31 December 2024. The report confirms that CFML and its guarantors have fully complied with all terms of the secured, redeemable notes traded under ASX code "C2FHA". No breaches of the Note Deed or relevant Corporations Act provisions were recorded during the quarter.
This compliance assurance is critical for investors relying on the fund’s notes, as it signals no immediate risks of accelerated repayments or enforcement actions. The absence of any events that could trigger such outcomes reflects a stable operational environment for C2F.
Security Interests and Financial Position
The report details that the security interests backing the notes consist of first-ranking general security deeds over assets held by CFML and related entities, including the Centuria Capital No. 2 Office and Industrial Funds. CFML’s assessment confirms that these assets are sufficient to cover all liabilities associated with the notes, providing a robust safety net for noteholders.
Importantly, the value of the secured property is insulated from the financial performance of related bodies corporate, ensuring that external fluctuations do not compromise the security underpinning the notes.
Related Party Transactions and Business Continuity
During the quarter, CFML reported minor unsecured loan movements with related bodies corporate, including Centuria Finance Pty Limited and the Centuria Bass Property Credit Fund. These transactions were modest and did not materially affect the fund’s financial position.
There were no substantial changes in the nature of CFML’s business or that of its guarantors, nor were there any changes in guarantor appointments or liabilities. This continuity supports the fund’s steady performance and investor confidence.
Context within Centuria Capital Group
C2F operates as a wholly owned subsidiary of Centuria Capital Group (ASX: CNI), a specialist investment manager with over $21 billion in assets under management. C2F holds strategic equity stakes in listed and unlisted property investments managed by Centuria, including the Centuria Industrial REIT and Centuria Office REIT.
The fund’s stable quarterly report aligns with Centuria’s broader reputation for disciplined asset management and transparent investor communications, reinforcing its position in the real estate investment trust sector.
Bottom Line?
C2F’s Q2 report underscores a steady foundation, but investors should watch for any shifts in market conditions or asset valuations that could impact future security coverage.
Questions in the middle?
- How will rising interest rates or property market shifts affect C2F’s asset valuations and security interests?
- Are there any upcoming strategic changes planned for C2F’s portfolio or guarantor arrangements?
- What is the outlook for related party loan exposures and their potential impact on fund liquidity?