The Centuria Office REIT (ASX: COF) share price was in focus today after the company posted a full-year Funds From Operations (FFO) of $66.9 million, meeting guidance, and declared a 10.1 cents per unit distribution.
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What did Centuria Office REIT report?
- Funds From Operations (FFO): $66.9 million, or 11.2 cents per unit, in line with FY26 guidance
- Distribution: 10.1 cents per unit, matching FY26 guidance
- Net Tangible Assets (NTA): $1.66 per unit
- Debt refinanced: $1 billion, extending average expiry to 4.3 years; 43.7% gearing, 76% hedged
- $189.3 million of cash and undrawn debt, no debt expiry until FY29
- FY27 guidance: FFO of 11.3 cents per unit, distribution of 9.0 cents per unit
What else do investors need to know?
Centuria Office REIT reported near-record leasing activity during the year, completing around 40,000 square metres across 47 transactions. This included both new tenants and renewals on competitive terms, helping keep portfolio occupancy at 91%.
The company successfully sold its 9 Help Street, Chatswood property for $90 million, representing a 12.5% premium to book value. Portfolio valuations saw an overall 1% increase, underpinned by rising market rents and stable occupancy levels.
COF continued to enhance its sustainability credentials, lifting its NABERS Energy Sustainable Portfolio Index rating to 5.1 stars, and installing more solar infrastructure.
What did Centuria Office REIT management say?
COF Fund Manager Belinda Cheung said:
Conditions across the Australian domestic office markets continued to stabilise during the year, reflected in an improvement in COF's portfolio valuations, the successful divestment of 9 Help St, Chatswood at a premium to book value and strong portfolio leasing volumes generating positive re-leasing spreads. With limited new office supply across the medium-term due to a rising disparity between replacement costs and prevailing asset values, COF anticipates continued benefit from stabilising market conditions. COF continues to adopt a proactive capital management strategy aligned to selective disposals and robust debt management while curating a portfolio of high-quality, well-located modern office buildings. We are pleased to confirm COF delivered on its FY26 FFO and distribution guidance with the REIT continuing to execute against many of its long-term objectives.
What's next for Centuria Office REIT?
Looking ahead to FY27, management has guided to FFO of 11.3 cents per unit and distributions of 9.0 cents per unit, paid quarterly, representing a forecast yield above 10%. The company plans to keep focusing on high occupancy, extending lease expiries, and managing its capital base conservatively.
The REIT remains committed to maintaining a portfolio of modern offices in key submarkets, strengthening its sustainability performance, and navigating evolving market conditions with a proactive approach.
Centuria Office REIT share price snapshot
Over the past 12 months, Centuria Office REIT shares have declined 27%, trailing the All Ordinaries Index (ASX: XAO), which has risen 2% over the same period.
