Centuria Office REIT
ASX:COF
Centuria Office REIT
Centuria Office REIT engages in the investment in office and industrial assets in metropolitan markets of Australia. The company is headquartered in Sydney, New South Wales and currently employs 0 full-time employees. The company went IPO on 2014-12-10. The principal activity of the Trust is investment in commercial office property within Australia. The Trust offers investors an opportunity to invest in commercial property through a real estate investment trust. The primary objective as a real estate investment trust is to generate sustainable and quality income streams, by executing initiatives to create value across a portfolio of quality Australian office assets. The company derives approximately 80% of its income from government, multinational corporations, and listed company tenants. Its property portfolio includes 8 Central Ave, Eveleigh, 201 Pacific Hwy, St Leonards, 9 Help St, Chatswood, 2 Phillip Law St, Canberra, 60 Marcus Clarke St, Canberra, 54 Marcus Clarke St, Canberra, 825 Ann St, Fortitude Valley, 154 Melbourne St, South Brisbane, 818 Bourke St, Docklands, 101 Moray, South Melbourne, 1 Richmond Rd, Keswick, 235 William St, Northbridge, and others.
Centuria Office REIT engages in the investment in office and industrial assets in metropolitan markets of Australia. The company is headquartered in Sydney, New South Wales and currently employs 0 full-time employees. The company went IPO on 2014-12-10. The principal activity of the Trust is investment in commercial office property within Australia. The Trust offers investors an opportunity to invest in commercial property through a real estate investment trust. The primary objective as a real estate investment trust is to generate sustainable and quality income streams, by executing initiatives to create value across a portfolio of quality Australian office assets. The company derives approximately 80% of its income from government, multinational corporations, and listed company tenants. Its property portfolio includes 8 Central Ave, Eveleigh, 201 Pacific Hwy, St Leonards, 9 Help St, Chatswood, 2 Phillip Law St, Canberra, 60 Marcus Clarke St, Canberra, 54 Marcus Clarke St, Canberra, 825 Ann St, Fortitude Valley, 154 Melbourne St, South Brisbane, 818 Bourke St, Docklands, 101 Moray, South Melbourne, 1 Richmond Rd, Keswick, 235 William St, Northbridge, and others.
Leasing Success: Centuria Office REIT recorded a near-record period of leasing, addressing most FY '26 lease expiries and extending income security.
Valuation Gains: The portfolio achieved its second consecutive half of valuation growth, supported by strong leasing and market rent growth.
Divestment: Sale of 9 Help Street, Chatswood at a 12.5% premium to book value will reduce gearing and strengthen the balance sheet.
Guidance Reaffirmed: FY '26 FFO guidance of $0.111–$0.115 per unit and distribution guidance of $0.101 per unit (yielding 9.5%) were reaffirmed.
Debt & Hedging: COF remains 78.5% hedged with an average all-in debt cost of 5.2% for HY '26 and expected 5.4% for FY '26.
Expense Pressures: Property expenses were elevated due to statutory charges, insurance, and higher vacancy, but management expects moderation if inflation eases and more leasing occurs.
Trough Earnings: Management maintains that FY '26 is expected to be the trough for earnings, with future growth expected as market conditions recover.
