Centuria Office (COF) H1 2025 earnings summary

Executive summary

• Reported a statutory loss of $21.2 million for HY25, a significant improvement from the prior period, with FFO at $34.7 million and a diversified $1.9bn office portfolio at 92.2% occupancy and 4.2-year WALE.

• Achieved 12,611 sqm of leasing across 23 deals, commenced a 1.1MW data center at Docklands with a 10% asset valuation uplift, and completed an AUD 862 million debt refinance extending maturity to FY28.

• Portfolio is 93% A-grade, with 77% of income from government, ASX-listed, and multinational tenants, and strong sustainability and connectivity attributes.

Financial highlights

• FFO for H1 FY25 was AUD 34.7 million or 5.8 cents per unit, with distributions of 5.05 cents per unit and a payout ratio of 86.9%.

• Net tangible assets per unit at 31 December 2024 was AUD 1.72, down 4.4% from June 2024.

• Statutory net loss of $21.2 million, impacted by $36.2 million loss on fair value of investment properties and $4.6 million loss on derivatives.

• Average all-in cost of debt was 5.4% for the period.

• Portfolio weighted average cap rate expanded to 6.77%, resulting in a 1.4% or AUD 27.6 million decrease in valuation.

Outlook and guidance

• Reaffirmed FY25 FFO guidance of 11.8 cents per unit and distribution guidance of 10.1 cents per unit, implying an 8.6% yield.

• No income assumed in guidance from full-floor vacancies for the remainder of FY25.

• Management focus remains on tenant retention, proactive capital management, and portfolio quality.