Group 1 - CN's President and CEO Tracy Robinson and CFO Ghislain Houle will speak at Morgan Stanley's 13th Annual Laguna Conference on September 11, 2025, at 10:00 a.m. Eastern Time [1] - The event will be available via live webcast on CN's investor relations website, with a replay accessible after the event [1] Group 2 - CN is a major transportation company that moves over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [2] - The company operates a nearly 20,000-mile rail network that connects Canada's Eastern and Western coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade and community prosperity since 1919 [2]

Core Points - CN will participate in Morgan Stanley's 13th Annual Laguna Conference on September 11, 2025, at 10:00 a.m. Eastern Time, with a live webcast available on its investor website [1] - CN is a major player in the transportation sector, moving over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [2] - The company operates a nearly 20,000-mile rail network that connects Canada's coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade and community prosperity since 1919 [2]

Group 1 - The article emphasizes the importance of evaluating Class 1 railroads based on earning power, operating efficiency, and long-term profitability rather than just valuation metrics [1] - It highlights that sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is a more reliable driver of returns [1] - The author manages a portfolio on eToro, focusing on undervalued growth stocks and high-quality dividend growers, indicating a strategic investment approach [1] Group 2 - The author has a diverse academic background, which enhances both quantitative analysis and the interpretation of market narratives [1] - The investment philosophy is centered around ensuring financial freedom through wise asset management, rather than seeking to avoid work altogether [1]

Core Viewpoint - Canadian National Railway (CNI) reported disappointing second-quarter 2025 earnings, missing both earnings and revenue estimates, leading to concerns about its future performance and potential for recovery [2][10]. Financial Performance - CNI's earnings for Q2 2025 were $1.35 per share (C$1.87), missing the Zacks Consensus Estimate of $1.37, and remained flat year-over-year [2]. - Revenues for Q2 2025 were $3.09 billion (C$4.3 billion), missing the Zacks Consensus Estimate of $3.16 billion and declining 2.4% year-over-year [2]. - Revenue ton-miles (RTMs) decreased by 1% year-over-year, while carloads dropped by 0.4% [3]. - Operating expenses fell by 5.2% year-over-year due to cost-cutting efforts [3]. Segment Performance - Freight revenues, which accounted for 95.7% of total revenues, decreased by 1.5% year-over-year, with declines in petroleum and chemicals (5%), metals and minerals (7%), forest products (8%), intermodal (3%), and automotive (6%) [5]. - Revenues from grain and fertilizers rose by 13% compared to 2024 figures, while coal segment revenues remained flat [5][6]. Liquidity and Share Repurchase - CNI ended Q2 with cash and cash equivalents of C$216 million, down from C$232 million in the previous quarter, and long-term debt increased to C$19.3 billion from C$18.9 billion [7]. - CNI generated C$1.75 billion from operating activities and reported free cash flow of C$922 million [7]. - The company repurchased 13.9 million common shares under its previous Normal Course Issuer Bid (NCIB) and has plans to repurchase up to 20 million common shares under the current NCIB [8]. Future Outlook - For full-year 2025, CNI anticipates mid to high-single-digit adjusted earnings per share (EPS) growth, revised down from a previous guidance of 10%-15%, and plans to invest approximately C$3.4 billion in its capital program [10]. - CNI has withdrawn its financial outlook for the 2024-2026 period due to ongoing macroeconomic uncertainty and volatility [10]. - Estimates for the stock have trended downward, indicating a potential for continued underperformance [11][13].

Financial Data and Key Metrics Changes - The group reported a 6.4% increase in operating NPAT to AUD 100.8 million, translating to an operating EPS of 12.2 cents per security, and distributions of 10.4 cents per security, both up 4% from the previous year [22][21] - Statutory NPAT was AUD 82.7 million, lower than operating NPAT due to fair valuation impacts of property investments [22] - FY '26 operating EPS guidance is set at 13.4 cents, indicating a significant increase from the current year [22] Business Line Data and Key Metrics Changes - The Property Funds Management segment delivered an operating EBITDA of AUD 59.6 million, up from AUD 57.9 million last year, reflecting resilience despite a subdued transactional environment [24] - The Property Investment segment contributed a consolidated EBITDA of AUD 87.7 million, an increase from the prior year [25] - Centuria Bass Credit generated AUD 27 million in operating EBITDA, with AUM expanding over 21% year-on-year to AUD 2.3 billion [12] Market Data and Key Metrics Changes - Centuria's transactional activity totaled close to AUD 3 billion, including approximately AUD 500 million of acquisitions and AUD 630 million of real estate finance transactions [10] - The group maintained a high portfolio occupancy rate of 95% with a robust average lease term of 5.3 years [10] - The unlisted platform's performance fees amounted to AUD 7 million booked to P&L, with AUD 32 million collected from divestments [11] Company Strategy and Development Direction - The company aims to target over AUD 1 billion in real estate acquisitions in FY '26, focusing on alternative property markets and innovative fund structures [4][35] - The introduction of Reset Data is expected to contribute to earnings growth, with anticipated revenue generation from its AI marketplace and AI factory starting in FY '26 [4][18] - Centuria plans to continue proactive capital management and seek new lower-cost corporate debt sources [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving real estate investment environment due to falling cash rates and increasing transaction volumes [6][35] - The company anticipates a continued increase in investor appetite for real estate funds, driven by lower competing deposit and fixed interest rate returns [7][35] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [29][30] Other Important Information - Centuria's net asset value per security remained steady at AUD 1.79, with operating gearing at 12.3% [29] - The company has raised an additional AUD 100 million in liquidity and expects to repay its secured ASX listed redeemable notes ahead of maturity [30] - The weighted average debt duration has been extended from 2.3 years to 3.2 years, enhancing financial stability [31] Q&A Session Summary Question: Inquiry about payout ratio and DPS guidance - Management acknowledged that their payout ratio has been higher than peers and indicated a minor adjustment to address this, but did not commit to future forecasts [42][44] Question: Clarification on the AUD 1 billion acquisition guidance - The AUD 1 billion figure is a gross number, with approximately AUD 200 million already secured from a recent acquisition [45][46] Question: Potential implications of proportional consolidation of earnings - Management indicated that while there could be implications, they believe the new reporting structure aligns better with peers and enhances transparency [48][50] Question: Guidance on innovative fund structures and potential IPOs - Management confirmed that guidance includes a range of raisings, with ongoing work on new fund structures, but specifics on sectors for potential IPOs are still being developed [51][54] Question: Equity inflows and mix for FY '26 - Management expects a good mix of retail and institutional capital, with a focus on expanding institutional partnerships [58] Question: Competition in the Bass Credit market - Management acknowledged increased competition and margin pressure but noted a recent uptick in market activity [60]

Financial Performance & Guidance - FY25 operating EPS (OEPS) reached 12.2 cents, outperforming guidance, a 4% increase over FY24[17] - FY26 OEPS guidance is set at 13.4 cents, a 10% increase over FY25[17] - The company maintains a FY25 DPS of 10.4 cents and projects the same for FY26[28] - FY25 Statutory NPAT was $82.7 million, with a Statutory EPS of 10.0 cents[85] - FY25 Operating NPAT reached $100.8 million, a 4.3% increase from FY24's $94.7 million[85, 91] Assets Under Management (AUM) - Group AUM stands at $20.6 billion, with real estate comprising $19.7 billion[11] - Unlisted real estate accounts for 70% of the total real estate AUM, amounting to $13.7 billion[11] - Centuria Bass Credit's AUM grew to $2.3 billion over FY25, a 21% year-over-year increase[44] Strategic Initiatives & Transactions - Targeting over $1 billion in real estate acquisitions in FY26[17, 116] - Launched Australia's largest single-asset unlisted industrial fund, valued at $216 million, for Port Adelaide[50, 116] - Completed a $21 million acquisition of a 50% interest in ResetData, focusing on AI Factories[75] - Completed $202 million in gross development projects in FY25[144] REIT Performance & Metrics - Centuria Industrial REIT (CIP) FY26 guidance includes FFO of 18.0-18.5 cents per unit (up to 6% pcp) and a distribution of 16.8 cents per unit (3% over FY25)[56] - CIP's FY25 portfolio saw $140 million in non-core divestments at a 12% average premium to book value[57] - Centuria Office REIT (COF) FY26 guidance includes FFO of 11.1-11.5 cents per unit and a distribution of 10.1 cents per unit[65] - COF's portfolio saw $18 million in valuation growth in 2H FY25[66]

Company Overview - Canadian National (CNI) is headquartered in Montreal, Quebec, and operates in the Transportation sector, specifically in railroads [3] - The stock has experienced a price decline of 8.05% year-to-date [3] Dividend Information - CNI currently pays a dividend of $0.65 per share, resulting in a dividend yield of 2.78%, which is higher than the Transportation - Rail industry's yield of 1.47% and the S&P 500's yield of 1.49% [3] - The annualized dividend of $2.59 represents a 5.7% increase from the previous year [4] - Over the past five years, CNI has increased its dividend five times, averaging an annual increase of 7.31% [4] - The current payout ratio is 50%, indicating that CNI pays out half of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate for CNI's earnings is projected at $5.75 per share, reflecting a year-over-year growth rate of 11.00% [5] Investment Considerations - CNI is considered a strong dividend investment opportunity, particularly appealing to income investors due to its solid dividend yield and growth potential [6] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]

Company Overview - Canadian National (CNI) is based in Montreal, Quebec, and operates in the Transportation sector, specifically in railroads [3] - The company's shares have experienced a price change of -7.94% this year [3] Dividend Information - CNI currently pays a dividend of $0.65 per share, resulting in a dividend yield of 2.77%, which is higher than the Transportation - Rail industry's yield of 1.45% and the S&P 500's yield of 1.48% [3] - The annualized dividend of $2.59 has increased by 5.7% from the previous year [4] - Over the last five years, CNI has raised its dividend five times, achieving an average annual increase of 7.31% [4] - The current payout ratio is 50%, indicating that the company pays out half of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CNI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.75 per share, reflecting a year-over-year growth rate of 11.00% [5] Investment Considerations - CNI is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Established firms like CNI are often preferred by income investors for their secure profits, although high-growth businesses typically do not offer dividends [6]

Core Insights - CN has published its 2025–2026 Grain Plan, emphasizing its commitment to high-performance service through disciplined planning and targeted infrastructure investments [1][3] - The company achieved a record volume of grain delivery in the past crop year, with projections for Western Canadian movement in 2024-25 expected to reach approximately 31 million metric tonnes (MMT), surpassing the previous record by about one million metric tonnes [2] Company Commitment - The Grain Plan reflects CN's dedication to supporting Canadian agriculture and enhancing the global competitiveness of farmers and grain handlers [3] - CN's investments are aimed at enabling the success of Canadian farmers and strengthening agricultural trade across North America [4] Capacity and Operations - CN anticipates moving between 27.0 to 29.5 million metric tonnes of grain and processed grain products during the 2025–2026 crop year, indicating sufficient resources to meet demand under normal operating conditions [7] - The company is innovating its supply chain coordination by changing the distribution method of empty hopper cars from West Coast ports, enhancing visibility and planning for customers [7] Transparency and Communication - CN provides end-to-end transparency through its Western Canadian Grain Report and operational dashboards, offering stakeholders weekly updates on car orders and supply chain conditions [7]

Core Insights - CN has delivered a record volume of grain during the 2024-2025 crop year, with projections indicating Western Canadian movement will total approximately 31 million metric tonnes (MMT), surpassing the previous record by roughly one million metric tonnes [2] Group 1: 2025-2026 Grain Plan - The 2025-2026 Grain Plan showcases CN's commitment to high-performance service through disciplined planning, targeted infrastructure investments, and proactive supply chain collaboration [1][3] - The plan emphasizes CN's support for Canadian agriculture and aims to enhance the global competitiveness of farmers and grain handlers [3][4] - CN anticipates moving between 27.0 to 29.5 million metric tonnes of grain and processed grain products during the 2025-2026 crop year, indicating sufficient resources to meet demand under normal operating conditions [6] Group 2: Supply Chain Innovations - CN is innovating its supply chain coordination by changing the distribution method of empty hopper cars from West Coast ports, enhancing visibility and planning for customers [6] - Customers will benefit from improved tracking of rail shipments through CN's rail shipment tracking tool, providing greater transparency [6] - The Western Canadian Grain Report and operational dashboards will offer stakeholders weekly updates on car orders, supply chain conditions, and system fluidity [6]