Centuria Capital Group: A Leadership Handoff, an AI Bet, and a Credit Squeeze

FY26 results show deleveraging and record AUM, but FY27 guidance hinges on ResetData execution and Bathla workouts.

CNI.AX · Earnings Call · 2026-08-26

Leadership Handoff and a Reinvigorated Strategy

Centuria's joint CEO John McBain is stepping aside, handing the top job to Jason Huljich in November. The move caps a 30-year partnership but is framed as continuity: “The move to a single CEO structure is consistent with the Board's long-term strategy to ensure a seamless leadership transition.” — John McBain, Joint CEO · 2026-08-26 McBain will stay on as nonexecutive director. The company's strategy is now explicitly three-legged: real estate equity, credit, and AI infrastructure. McBain emphasized maturity and scale: "We manage more than $22 billion of assets across real estate equity, real estate credit and AI infrastructure." He also touted Centuria's position as “one of 3 NVIDIA cloud partners in Australia” — John McBain, Joint CEO · 2026-08-26, a credential that underpins the entire ResetData narrative.

FY26 Results and FY27 Guidance: A Raise to Deploy

FY26 was a strong year: operating profit after tax rose 11.5% to $113.8M, AUM hit a record $22.2B, and the company raised $300M in June to seed new funds and AI infrastructure. CFO Simon Holt highlighted the balance sheet repair: “Operating gearing declined from 12.3% to 5.1% during the year.” — Simon Holt, Chief Financial Officer · 2026-08-26 That deleveraging, combined with $1.2B of real estate acquisitions (20% above the $1B target), gives Centuria firepower. Guidance for FY27 calls for OPAT of ~$130M (+14%) and operating EBIT growth of ~20%, but operating earnings per security are guided flat at $0.13 due to the 20.6% dilution from the equity raise.

AI Infrastructure: From Ambition to Execution

The real news is ResetData's ramp. In the 8 weeks since the raise, Centuria ordered additional H200 and B300 GPUs, secured 7MW at a CDC facility, and signed customer MOUs. Jason Huljich said, "The focus now is simply on delivery." ResetData is still loss-making, but management expects the loss to narrow and EBIT to turn positive in the second half of FY27: CFO Simon Holt noted, “We're forecasting it to narrow.” — Simon Holt, Chief Financial Officer · 2026-08-26 This push aligns with a powerful global theme—AI data centers have been one of the market's strongest movers over the past year. Yet the recent tape tells a more cautious story: in the last 30 days, the same cluster that had been a top advancer turned into a decliner, with AI data center names down about 6%. That contrast underscores the execution risk Centuria is taking on.

Credit Stress: Bathla and the Suspension of Redemptions

The elephant in the room is Bathla. Centuria Bass has $278M secured across six residential projects, and the Bathla Group has entered voluntary administration. While the company insists the security pool and cross-collateralization provide protection, it has suspended redemptions on its two credit funds. Jason Huljich admitted, "We've got a number of pathways to get there," referring to restoring liquidity. The credit business is being run with more caution—management pared spreads in H2, and the decline in Centuria Bass EBITDA was walked back to competitive pressures. This tension between the high-growth AI narrative and the credit workout is what makes Centuria an interesting name. The market will have to weigh the potential of ResetData against the drag from Bathla—and the CEO transition adds another layer of uncertainty.