Centuria Office (COF) H1 2026 earnings summary

Executive summary

• Statutory net profit for HY26 was $61.5 million, a turnaround from a $21.2 million loss in the prior period, driven by a $42.8 million portfolio valuation uplift.

• Funds from operations (FFO) for HY26 were $33.4 million or 5.6 cents per unit, with distributions of 5.05 cents per unit and a payout ratio of 90.2%.

• Portfolio occupancy was 91% with a WALE of 4.1 years, and 29,354 sqm leased across 26 transactions, representing 10.7% of NLA.

• Divestment of 9 Help Street, Chatswood at a 12.5% premium to book value, supporting NTA and reducing near-term leasing risk.

• FY26 FFO and distribution guidance reiterated, with a forecast yield of 9.5%.

Financial highlights

• Gross property income for HY26 rose to $86.8 million, with 3% like-for-like growth year-over-year.

• FFO for HY26 was $33.4 million (5.6 cpu), down from $34.7 million (5.8 cpu) in HY25.

• Distribution per unit was steady at 5.05 cpu, with a payout ratio of 90.2%.

• Statutory net profit was $61.5 million, up from a loss of $21.2 million in HY25, driven by valuation gains.

• Net tangible assets per unit increased to $1.72 from $1.67 at FY25.

Outlook and guidance

• FY26 FFO guidance reaffirmed at 11.1–11.5 cpu and distribution guidance at 10.1 cpu, implying a 9.5% yield.

• Distribution to be paid quarterly; guidance assumes an average all-in cost of debt of 5.4% for FY26.

• FY26 is expected to be the trough year for earnings, with a conservative outlook on vacancies.

• Portfolio priorities include maintaining high occupancy, improving quality, and preserving balance sheet strength.

• Anticipates constrained future office supply and robust recovery in occupancy and rental growth for metropolitan assets.