Good morning. Thank you for joining us. I'm John McBain, Joint Chief Executive of Centuria Capital , and together with fellow Joint CEO Jason Huljich and our CFO, Simon Holt, we're pleased to present Centuria's 2025 financial year results. Centuria pays its respects to the traditional owners of the land in Australia and New Zealand, to their respective cultures, and to their elders past and present. This morning, I'll provide an overview of Centuria's performance for the 12-month period to 30 June, together with some market comments. Jason will provide an update on our real estate and alternative sector divisions, and Simon will set out our full year financial results. Finally, we'll comment on our growth strategy. Slide four. Centuria Capital one of Australia's most diverse ASX-listed, externally managed real estate funds management platforms.
The platform currently manages $20.6 billion in AUM, including $6 billion of listed real estate, $13.7 billion of unlisted real estate and credit products, and $0.9 billion of investment bonds. The reduction of ResetData to the group creates a new, highly scalable segment, which we believe is poised to contribute growing earnings throughout coming trading periods. Despite being unrelated to AUM, Jason will elaborate on this shortly. Slide five. Improving market conditions enabled Centuria to outperform on its initial FY 2025 guidance expectations and positions the group to commence FY 2026 with double-digit earnings forecast. During the period, we saw real estate markets pass the latest cyclical inflection point and present increasingly attractive conditions to accelerate transactional activity and generate investor returns. Throughout FY 2026, we'll be targeting more than $1 billion in real estate acquisitions.
We also anticipate customer revenue will be generated from ResetData's AI marketplace and AI factory from FY 2026 onward. We continue to evaluate potential growth to eight data centre or AI factory opportunities. Importantly, ResetData i s Nvidia's only Australian-owned and operated consultant cloud partner. Jason will elaborate on the business a little later. Moving to slide six. Centuria's platform has demonstrated resilient earnings and distributions through the most aggressive rate rise cycle seen in decades. Despite these market conditions, we're pleased to have maintained group AUM at or near historic highs throughout the post-pandemic period, delivered in part by further diversifying into alternative sectors. This diversification has contributed to continuous solid earnings and distributions by introducing and scaling new revenue sources. Slide seven. Outlook.
Falling cash rates in Australia and New Zealand, coupled with stabilized and improving real estate market conditions, have provided the backdrop for increased transaction volumes and improved relative returns for Centuria funds. We see this trend continuing on FY 2026. We believe real estate investment will be more attractive for several reasons. As central bank cash rates decline, deposit and fixed interest rates are also falling in tandem. At the same time, borrowing costs for both our listed and unlisted funds are decreasing, acting to increase fund returns and thereby making these funds more attractive relative to deposit and fixed interest rate returns. FY 2026 will be an unusual year in one other respect, due to the progressive liquidation of the bank hybrid programs and the likely implementation of some type of Division 296 changes to superannuation.
We believe there will be large flows exiting high net worth investor portfolios as they review their settings. It's not just our extensive unlisted investor network who'll be searching for higher returns. We intend to capture investor appetite throughout FY 2026 by securing a range of high conviction assets that will appeal to our retail, wholesale, and institutional investor networks. In a world where yield becomes an increasingly scarce commodity, we believe our real estate equity and debt funds will prove increasingly attractive. This provides part of the picture, which has enabled Centuria to provide confident and meaningful earnings guidance for FY 2026. In the post-COVID period, we've concentrated on building complementary alternative revenue streams to support continued earnings growth. Moving forward, the group has a single-minded major focus on earnings growth for security holders. I'll now hand over to Jason for the divisional overview.
Thanks, John. Turning to slide nine, which outlines our seven real estate verticals that make up Centuria's $20 billion real estate platform. Our extensive platform diversification across traditional and alternative real estate sectors distinguishes Centuria from our peers. Throughout the period, Centuria's transactional activity totaled close to $3 billion, including circa $500 million of acquisitions and circa $630 million of real estate finance transactions. Throughout Australia and New Zealand, we manage more than 370 properties and service more than 2,300 tenant customers. Across this platform, Centuria maintained a high portfolio occupancy of 95% with a robust 5.3-year WALE. Let's examine our unlisted assets in more detail on slide 10. 2/3 of our real estate funds are weighted to the unlisted sector. This slide illustrates the diversification of our $13.7 billion unlisted platform by real estate sector, capital source, and fund type.
Importantly, 1/3 of our unlisted platform is weighted to alternative real estate sectors, such as real estate finance, healthcare, and agriculture. Centuria's unlisted platform continues to provide security holders with ongoing performance fees, with $7 million of performance fees booked to our P&L, over $32 million of performance fees collected, resulting in divestments and fund wind-ups during the period, and circa $95 million in unrecognised latent performance fees. Moving to slide 11. Centuria Bass continues to grow its mid-market presence despite increasing market competition. During the period, Centuria Bass credit generated $630 million of real estate finance activity, expanding its AUM more than 21% year-on-year to $2.3 billion, providing $27 million in EBITDA. Significantly, UBS upsized its senior secured warehouse commitment to $200 million during the year. We anticipate further opportunities to expand Centuria Bass's AUM and profitability through additional institutional capital and retail products.
Centuria Bass remains disciplined with its real estate-backed lending activity. Across its loan books, the portfolio provides a 68% gross average loan-to-value ratio, and 93% of its loans are secured by first-ranking mortgages. Turning to slide 12 and our unlisted investor network. Throughout FY 2025, Centuria generated $800 million of equity inflows. Across our 14,000 wholesale and retail investor network, half a billion dollars of capital was raised. In particular, our Centuria Logan Super Centre fund was oversubscribed, and we completed the deployment of capital for our Centuria Select Opportunities Fund. We are also off to a strong start in FY 2026 with our new $220 million Centuria Port Adelaide Industrial Fund commencing its raise. This is Centuria's second largest single-asset fund ever. In addition to the increased UBS warehouse facility commitment, Centuria formed a new institutional partnership with global real estate investment manager, BGO, through a $200 million seed portfolio acquisition.
We also expanded our partnership with Starwood Capital with a further industrial acquisition. In total, more than $300 million of institutional capital was secured during the year. Now to our REITs, beginning with Centuria Industrial REIT on slide 13. During the period, CIP divested $140 million of non-core assets and averaged 12% premium to book value. CIP reported $57 million in valuation gains in the second half, which was a third consecutive period showing valuation uplift. The fund achieved average 34% releasing spreads and 5.8% like-for-like NOI growth. It also recently announced a $60 million on-market unit buyback, supported by the ongoing disconnect between CIP's trading price and divestment metrics achieved. 60% of CIP's portfolio value is underpinned by land, providing further opportunities to unlock an embedded development pipeline. In particular, throughout the next two years, it anticipates four developments worth $245 million will commence.
CIP provided FY 2026 earnings guidance of $0.18- $0.185 per unit, an increase of up to 6% on FY 2025, and a distribution guidance of $0.168 per unit, up 3% on FY 2025. Turning to Centuria Office REIT on slide 14. COF reported an $18 million valuation gain in the second half, which is the first valuation increase since FY 2022. It executed over 24,000 sq m of leasing deals and achieved portfolio rental growth averaging 4.5% year-on-year. These positive indicators are possible about signaling that Australian metropolitan office market may be on the cusp of a new cycle. The outlook for metropolitan office supply is becoming extremely constrained. With a widening gap between replacement value and prevailing valuations, office development feasibilities remain challenging, which we anticipate will drive market rents over the medium term.
Replacement costs are currently estimated at more than $15,000 per sq m and remain well above costs implied trading value of around $6,150 per sq m . CIP also continued to receive strong endorsements from its lenders during FY 2025, refinancing $860 million of debt with no debt expiry until FY 2028. It also renegotiated its debt covenants, increasing its LVR to 60% and ICR down to 1.75x . Slide 15 recaps our ResetData strategies. At the beginning of the financial year, we announced our 50% acquisition of next generation cloud services and AI provider ResetData, which adds the complementary technology division to Centuria's funds management platform. Since then, ResetData launched Australia's first AI marketplace, which hosts pre-trained software that uses AI tools and large language models to deliver simple AI business solutions.
It also launched Australia's first sovereign public AI factory called AIF1, which is a next-generation data center optimized for large-scale parallel AI computation and built with Nvidia certified clusters. ResetData is Australia's first and only operator of sovereign AI factories and an official Nvidia cloud partner, positioning the business at the forefront of artificial intelligence infrastructure. Term sovereign refers to infrastructure, data, and operations that are fully located and controlled from within Australia. This distinction is increasingly critical as businesses and government agencies seek to comply with strict local data security, privacy, and regulatory requirements. By ensuring this sensitive information remains onshore, sovereign infrastructure reduces exposure to foreign jurisdiction risks and strengthens Australia's digital resilience. Let's turn to ResetData's deliverables on slide 16. ResetData has commenced AIF1 customer testing, which features high-density Nvidia H200 GPU clusters, liquid cooling technology, and a supercomputer capability.
It is anticipated to commence generating revenues from Q2 FY 2026. Currently, ResetData is evaluating feasibility for up to a further eight data centers or AI factory opportunities. ResetData also continues building forward revenues from its AI marketplace and SME GPU as a service offering. I will now hand over to Simon to go through the financial result for the period.
Good morning, everyone. I'm pleased to take you through the group's FY 2025 financial results and provide an update on our outlook for FY 2026. This year has been one of resilience and disciplined execution against a backdrop of ongoing economic and financial headwinds. Despite these challenges, we've delivered a solid operating performance, maintained a strong balance sheet, and positioned the business for sustainable growth. Let's start with our operating earnings and distributions. The group delivered a 6.4% uplift in operating NPAT to $100.8 million, translating to an operating EPS of $0.122 per security and distributions of $0.104 per security, both up 4% on the prior year. Statutory NPAT of $82.7 million, which was lower than operating NPAT, reflects the fair valuation impact of property investments held through our co-investment stakes. Looking ahead, we're very pleased to provide FY 2026 operating EPS guidance of $0.134.
It's a meaningful step up from $0.122 this year and a clear signal of the strength and resilience of our diversified operating model, which now spans the full property value chain and is increasingly supported by our emerging technology strategy. This positions us to continue delivering sustainable earnings and distributions to our security holders. Moving on to slide 19, which outlines the key components of our operating earnings. As you can see, we have restructured our operating segments for the current year, merging property funds management with developments and corporate. In addition, we have adopted a proportionate consolidation approach to presenting the performance of our investment properties. The group now recognizes in the operating segment its share of the underlying revenues and expenses of each co-invested fund, proportionate to its ownership interest.
In the new property investment segment, this change provides a more transparent and comprehensive view of the group's economic interest in the performance of its co-invested property assets. Our property funds management segment delivered an operating EBITDA of $59.6 million, up from $57.9 million last year. This result reflects resilience in a subdued transactional environment, with lower transaction and management fees largely offset by growth in property services and leasing activity. During the year, we executed over 230,000 sq m of new lease agreements, supporting recurring revenue streams. Performance fees of $7 million were booked in FY 2025, and $32 million of performance fee cash was collected following the group's divestment activities, as well as reduced longstanding performance fee receivables. The property investment segment contributed a proportion of consolidated EBITDA of $87.7 million, an increase on the prior year.
It's important to keep in mind that this result excludes the financing costs attributable to the underlying investment, which are now disclosed separately as finance costs non-recourse loans. These changes enhance the alignment between reported segment performance and position within the group's actual economic exposure to property investments held through its co-investment stakes. They also improve the clarity, transparency, and relevance of segment disclosures for users of these financial statements. Turning to property and development finance, this business delivered $27 million in operating EBITDA. This growth reflects continued expansion in AUM to $2.3 billion and the group's representation of 100% consolidation compared to the prior year. Our investment bonds management segment contributed $2.6 million, slightly lower than last year, as we continued to invest in strengthening compliance systems in response to regulatory changes.
As noted at the half-year, as a result of the purchase and consolidation of ResetData , C&I now has a new standalone operating segment called sovereign AI technology, reflecting the group's emerging technology strategy. At the commencement of this acquisition, we noted an expectation of no earnings contribution from this segment in FY 2025. The earnings profile noted for this segment has reflected our investment in sovereign AI capabilities and the costs related to the ResetData startup. The group anticipates profitability in FY 2026. Finance costs of the group increased to $37 million, driven by the settlement of minority stakes in both Centuria Bass and Centuria Healthcare over the corresponding periods. Finance costs, non-recourse and portable instruments are disclosed separately as a result of proportionately consolidating the group's property investments.
Overall, these results highlight the strength of our diversified platform and its ability to deliver growth across multiple income streams, even in a challenged market environment, and has delivered an operating EPS of 4.3% above last year. Moving to C&I's balance sheet on slide 20. During the year, we maintained a resilient capital position with net asset value per security steady at $1.79. Operating gearing remains steady at 12.3%. Look-through gearing of 36.9% is calculated in accordance with Centuria Industrial REIT's covenant calculations. We realized $194 million through the sale and recycling of balance sheet assets, and combined with operating cash inflows of $128 million, this has strengthened liquidity. I would like to draw attention to the ongoing strengthening of C&I's operating cash flows, which, despite some cyclicality at the half-year, have once again provided coverage for the group's operating NPAT of $101 million.
This result is as strong as FY 2024 and continues to align with the normal course of operating activities across Centuria's model. This is despite the full-year impact of Centuria Bass's 100% consolidation during FY 2025 and the cash flow timing recognition from this business that have shorter duration loans. At 30 June, we have $347 million in cash and undrawn debt available to originate new opportunities, manage upcoming debt maturities, while C&I operating interest cover remains healthy at 3.8x. This balance sheet strength underpins our ability to fund growth initiatives while maintaining disciplined risk settings. Moving to the next slide, which demonstrates the steps we have taken during the year to improve the profile of C&I's balance sheet and position for future growth.
Over the second half of the year, we raised an additional $100 million in liquidity, with the business expecting to repay its secured ASX-listed redeemable notes ahead of their maturity in October this year through the utilization of new debt, undrawn liquidity, and cash. Through disciplined debt recycling, our average margin will reduce below 300 basis points, which is a strong outcome in the current market and a level below where we have historically operated. Importantly, we've extended our weighted average debt duration from 2.3 years- 3.2 years, and this will increase further to 4.1 years once the secured ASX-listed redeemable notes are repaid. As you can see on the right, our pro forma debt profile is now much more balanced, with a significant proportion of refinancing obligations pushed out beyond FY 2029. This gives us flexibility, stability, and the capacity to fund growth without compromising our capital structure.
Now moving to how we actively manage debt across our real estate funds platform. We have a diversified funding base with 25 lenders and $7.6 billion in total lending facilities across our listed and unlisted real estate funds. The breadth of these relationships continues to support solid credit outcomes and reflects the strength of our proactive asset management approach. Our weighted average fund gearing remains conservative at 44% when measured against the weighted average LVR covenant of 57%. We've maintained a 49% hedge profile with an average hedge duration of 1.3 years, ensuring stability while retaining flexibility to respond to market conditions. Importantly, FY 2025 saw average margins improve by a further 5 basis points to 158 basis points across the platform, demonstrating the benefits of improved credit conditions, our scale, and lender relationships.
This disciplined approach to capital management positions our funds to navigate market cycles and capture opportunities as they arise. I'll now hand back to both John and Jason to comment on the group's strategy and execution.
Thanks, Simon. As I mentioned earlier, Centuria's core focus is on driving attractive earnings growth. Look to the FY 2026 with a forecast 10% increase in operating earnings. Improved market conditions present a more compelling real estate investment environment. This, coupled with lower competing deposit and fixed interest rate returns, provides ideal conditions to grow our core real estate fund volumes. We also retain a strong focus on delivering innovative new real estate funds, especially within alternative property markets. In addition to progressing our strategy to launch further listed vehicles as equity capital markets unlock. The ResetData business is now attracting customers as Australia commences its AI adoption journey. ResetData effectively builds a new technology segment within Centuria, with earnings not necessarily correlated to AUM. Finally, Centuria will continue to focus on proactive capital management, seeking opportunities for new lower-cost corporate debt sources.
I'll now pass you back to Jason, who will outline further details regarding the execution of these strategies.
Thanks, John. Centuria is well positioned to increase its operating earnings to $0.134 per security, largely driven by our expectation of executing more than $1 billion in real estate acquisitions in FY 2026, as well as increased performance fees. As I mentioned earlier, we've already started this financial year with the Trophy Industrial acquisition, which underpins Australia's largest single asset unlisted industrial fund and South Australia's largest ever industrial transaction. On the alternative real estate front, Australia's first sovereign public AI factory is undertaking testing with initial clients, with revenues anticipated to commence in quarter two of FY 2026. We look to replicate this blueprint by developing further AI factories throughout Australia. Centuria Bass is anticipated to continue its growth trajectory and will explore further opportunities for expansion with the potential for new institutional and retail investment products. As mentioned, CIP provided a compelling FY 2026 earnings guidance of up to 6% above FY 2025.
We believe its on-market buyback will be accretive to its earnings and NTA. Finally, we believe the Centuria platform is very well positioned to take advantage of the improving cycle by increasing transactional activity and driving EPS growth. That concludes the formal presentation. I'll now hand back to the operator to commence Q&A.
Thank you. If you wish to ask a question, please press Star, one on your telephone and wait for your name to be announced. For the benefit of all participants on today's call, please limit your questions to two at a time. If you wish to have follow-up questions, please rejoin the queue. Your first question comes from Solomon Zhang with JP Morgan.
Morning, John, Jason, Simon, thanks for your time. First question for me was just on, I guess, the payout ratio and the DPS guide. You've told it despite EPS growth of 10%. That's guided. Just interested in your thinking there.
I think when we look through our peer set for some time now, our payout ratio has been far higher than our immediate peers, with the exception of one. I thought it was time to attempt to address it in a minor way, and this was our attempt to start to address it. Our payout ratio is still higher, but considerably higher than most of our direct peers.
Yep. What do you sort of expect it to hold from current levels? Is this sort of a stable?
No, we're not going to make any forecasts about what we might do in the future. That will depend on earnings and growth. We don't believe it's necessary for our payout ratio to be extraordinarily high compared to our peers.
Makes sense. Second question was just on the one bill of, you know, acquisitions that you've, I guess, steered to for 2026. Firstly, is it a gross number that you're guiding to there, or a net number? Just how much of that is already secured? I know Porter led, you know, that was circa $200 million assets that had been secured post-balance date, I believe. Just be honest there, please.
Yeah, it's a gross number. Obviously, circa $200 million of that will be PADC, Port Adelaide Distribution Centre. We expect the rest of it to be a mix of the other sectors that we invest in and all forms of our capital, you know, both retail, wholesale, and some institutional.
Thanks. Appreciate it.
Your next question comes from Tom Bodor with UBS.
Good morning, team. I was just interested in the proportional consolidation of your earnings. I was just wondering if there's any potential index implications from that that could come from that.
I'll probably hand over to Simon, but this is John, thanks, Tom. Look, it's possible, but we're not the people that make that decision. A bit like my answer to Solomon's question, you know, when we look at our business and the way we report it, it seems to make sense to us, and it should be easier for your community for our results to be presented along the lines that our major direct peers present theirs. We've looked at it. We've formed some internal conclusions about the way the index is interpreted by applicants before, and we're quite positive about it, but we're very respectful of their process, and I think it's not appropriate for us to comment on what they may or may not do. I hope I'm not trying to be unhelpful, but I think that's probably we have quite a respectful position. We'll see what happens.
No, it's very clear. Thank you for that. I think just on the guidance slide, you talk about, I think it's innovative fund structures, and I think you talked about a couple of IPOs in FY 2026. Are these two things the same thing, or are they different things?
It’s a bit of both. It’s what we’ve talked about previously, as well as new potential funds and structures across both debt and real estate that we’re working on.
Okay. Can you talk to the potential sectors that the IPOs could be in at this point, or is it still too early?
It's still too early. I think, as I've said, we're working through it. We'll be ready to go when the window is open for us to launch. There's a lot of work going on in the background.
Okay, great. Thanks.
Your next question comes from Lou Parink with Jarden.
Yes, good morning. Just following up on Tom's question, does the successful launch of these funds, is that already included in your guidance, or would that be in addition to what you currently expect for 2026?
Look, our guidance includes a range of raisings. Obviously, the only one that's locked in is the Port Adelaide property, and the rest of it's arranged across the different sectors and the different fund types. I think we'd like to leave it at that.
Okay. Jason, you talked in one of your slides about the unrealized performance fees in your unlisted portfolio. Do you expect in your guidance in 2026 a significant, you know, contribution from those performance fees?
Yeah, look, we do think we'll have increased performance fees from FY 2025.
Great. Thank you.
Your next question comes from James Druce with CLSA.
Yeah, hi, good morning. Just on the equity info, I think you did about $0.8 billion this year, mostly retail. How are you looking at the mix of equity for 2026 that you think is most likely?
Yeah, look, I think what we call retail and our wholesale sort of investor base, we're definitely seeing them increase their appetite, so that should be a good chunk of it. We'd also like to grow our institutional part as well. We had obviously the new relationship with BGO, which was a seed portfolio of just over $200 million. We'd definitely like to expand that. We've seen the Starwood portfolio expand during the period as well. I think we've got really good opportunities across the board, all the way from retail through to institutional, on where we can raise the money and grow AUM.
Okay. On Bass's credit, some of the industry feedback is that competition is fading up and deals are being more difficult to do or finding good sponsors is more difficult. Can you just comment on what you're seeing in that environment, please?
Yeah, look, we agree with that. I think over the last four months, there's been more liquidity out there, fewer deals, and, you know, some probably margin pressure. We've stayed away from a lot of that. We've been quite conservative. We have seen in the last probably five or six weeks a bit of a pickup. It does ebb and flow. We've seen that ever since we invested in the Bass business sort of four years ago, that does ebb and flow. Sometimes there's periods of a lot of liquidity in the market and periods where it drops away. I think there is a bit of an uptick at the moment, but the last four months have been a bit soft.
Yeah, okay. Thank you.
Your next question comes from Callum Brammer with Macquarie.
Morning everyone. Thanks a lot for turning to the questions. I just wondered if you could help me a little bit more with the building blocks around your earnings guidance, just maybe around uncommitted capacity that's in the funds. I think you flagged one at least there where you've got a bit of capacity in the presentation pack, maybe what you're expecting around revaluations. I think you also talked to the idea that maybe ResetData starts to generate revenue, and I wondered if it makes a profit contribution rather than a loss in fiscal 2025. I think you did talk to that higher performance fees, and I believe in fiscal 2025 is about $7 million, but I might be wrong on that one. I just wondered if you could give us a little bit more color on what you're expecting.
My other question would be just around the cash flows, maybe to Simon on that recovery in the second half of 2025. Can you just talk a little bit about the drivers of that and the timing and whether or not we should expect a similar pattern into fiscal 2026?
I might start it and hand over to Simon, but yeah, there's a lot of questions in there. Look, I'll start with the value. You know, if you look at across the portfolio, for the 12 months, we're up about 1.5%. It was nice to see that after December values were just about 0.2% down. You've definitely seen the swing there led by probably our retail property. Large format was up close to 5%, daily needs over 2%, and most of the others up as well. Obviously industrials are pretty flat. It was down about 1%. That is going to help a little bit. We didn't forecast huge gains, but it's definitely swung the other way, which is good. On the other Reset, yeah, we do expect Reset to swing into profitability this financial year. Simon, do you want to talk about?
Just before Simon comments on the second question, I think just the way your question was phrased, Callum, about equity capacity, this isn't a simple business where there's four or five institutional mandates, and you either have those mandates or you don't. We do have some institutional mandates, and Jason's teams are building them quite aggressively. I think this market is turning now to how Centuria normally looks, for example, for 97 years out of 100, where if you look at the first asset we announced the other week, it was almost a quarter of a billion. There aren't too many fund managers buying quarter-billion dollar properties without an institutional mandate. Our business doesn't depend on them. We depend on a range of retail and wholesale investors that like the returns that we get for them, and we back ourselves into raising that money.
In a strange way, it's back now to what we're used to. In other words, we believe we've got plenty of capacity in our investor network to fund those scale of acquisitions. It's finding the ones that really float our boat. In the case of Port Adelaide, we've got that out for express dividends at the moment, and we're very, very pleased by our network's response to it. I know this situation makes it harder for the analyst community to look at us. We don't go and say we've got $6 billion of institutional capacity. We just go run some buildings to fill that. That's not all this business constitutes. I think that retail, firstly, it's 2x or 3x the fees of the institutional business, but that's a very, very strong profit driver in our business.
I'll just talk to the cash flow. Look, a couple of big things happened. Obviously, our asset recycling has been helpful, but I think at the operating level, obviously, receiving some of those performance fees of about $32 million of cash coming through have been helpful in relation to the FY 2025 cash flow. What we have seen, and we mentioned at the half-year, is this challenge of Centuria Bass and the timing of cash flow between the expenses that are consistent throughout the year and the timing of the income coming through that results with the back end of loans closing out in the underlying portfolio. That will continue as a challenge to the cash flow segment. I think what we've seen is, as you can see, the AUM between the end of first half and the end of this half has flattened out a little bit.
Some of that cash will have come in in that regard, and that's helped the numbers achieve for the full year. If there is another acceleration of Centuria Bass in its growth of AUM in particular, we'll see the same challenge pressure that we saw in the first half, but probably not as great is how I would describe it. Callum?
Thank you so much.
Once again, if you wish to ask a question, please press Star, one on your telephone and wait for your name to be announced. Your next question comes from Simon Chen with Morgan Stanley.
Hey, good morning everyone. First question, just in relation to how divestments, you mentioned $1 billion of gross acquisitions. Just wondering how much AUM across your $20 billion platform is, you know, coming to the end of their life in FY 2026, whereby you'll look to, you know, divest the assets?
Look, we expect significantly less divestments than in the FY 2025 period. I think we had $1.7 billion across real estate and debt, and we're probably expecting less than a third of that in FY 2026.
Would you be proposing to extend those funds, or you've kind of made your mind up there, Jason, that that one third will be divested?
It really depends on the fund. Some will require votes and so forth. That's our sort of best estimate where we sit right now.
Okay, that's all I've got. Thanks.
There are no further questions at this time. I will now hand back for any closing remarks.
Thank you all for dialing in today's presentation. If you have any further questions, please feel free to reach out to Tim, our Group Head of Investor Relations.
That does conclude our conference for today. Thank you for participating. You may now disconnect.