Centuria Office (COF) H1 2025 earnings summary

Executive summary

• HY25 Funds From Operations (FFO) was $34.7 million (5.8 cents per unit), with distributions of 5.05 cents per unit, and a statutory loss of $21.2 million, a significant improvement from the prior period.

• Portfolio occupancy was 92.2% with a 4.2-year WALE, 12,611 sqm leased across 23 deals, and 77% of income from government, listed, and multinational tenants.

• Major $862 million debt refinance completed, extending debt maturity to FY28 and renegotiating covenants.

• Commenced construction of a 1.1MW data centre at Docklands, resulting in a 10% asset valuation uplift and diversifying income streams.

• Portfolio is 93% A-grade, with 19 assets valued at $1.9bn and an average building age of 17.8 years.

Financial highlights

• HY25 FFO was $34.7 million (5.8 cents per unit), down from $41.8 million (7.0 cents per unit) year-over-year.

• Distribution per unit was 5.05 cents, with a payout ratio of 86.9%.

• Net tangible assets (NTA) per unit at 31 December 2024 was $1.72, down 4.4% from June 2024.

• Statutory net loss of $21.2 million, improved from a $99.4 million loss in HY24, mainly due to a $36.2 million loss on fair value of investment properties.

• Portfolio revaluations declined by $27.6 million (1.4%) since June 2024.

Outlook and guidance

• FY25 FFO guidance reaffirmed at 11.8 cents per unit and distribution guidance at 10.1 cents per unit (8.6% yield), to be paid quarterly.

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

• Management expects continued high occupancy, proactive capital management, and focus on portfolio quality and sustainability.

• Guidance remains subject to unforeseen circumstances and material changes in operating conditions.

• Intends to review and trend payout ratio down over time, though no specific guidance for FY26 yet.