Investment Matters

Company news: TZ Limited, Suncorp, Centuria Industrial REIT

First Samuel reduced the exposure to property-related investments in client's equity allocation, through the sale of the Centuria Industrial REIT

The Centuria Industrial REIT was acquired pre-listing in Dec-12, as the 360 Capital Industrial Fund.  It was under the management of the 360 Capital Group until more recently, when Centuria took over management.  Over the time of ownership, it has provided excellent investment for clients.  It was acquired initially at 45cents, which equates to $1.80 post the share consolidation in Jul-13.  Subsequently, there has been top-up investments, some trimming, and a steady stream of income distributions. Importantly, in recent years, it has provided defensive characteristics for the portfolio (and the income stream).  However, we consider now to be an opportune time to exit this investment.  It was sold for $2.46 per share.

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TZ Limited released a company update, to provide further information about the company's direction and plans.  It comes in the context of the capital raising announced last week.

Changes to the Board were reiterated, and a new senior management structure advised.  It talked about no longer being focused on lockers, with a plan to expand into new revenue streams and addressable markets.  It also reinforced its immediate financial priority is to deliver a positive EBITDA (earnings before interest, tax, depreciation and amortisation) this year - which we welcome.  Finally, the company discussed the 'lumpy' nature of its business, because it is project based.  The raising will assist the company manage the contract and cash flow variations in the business, as well as giving customers confidence in the financial strength of the company.

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Suncorp announced some changes to its senior management team.  As part of the roll-out of its digital strategy, it will streamline its management team and align it more with the functional focus of the company (including the "Customer Marketplace", a centralised application based portal for customer interaction).