Centuria Office (COF) H2 2025 earnings summary

Executive summary

• FY25 FFO reached $70.4 million or 11.8 cents per unit, and distributions totaled 10.1 cents per unit, both meeting guidance despite higher vacancies and divestments.

• Portfolio occupancy was 91.2%, well above the national metropolitan office average, with 24,406 sqm leased across 44 deals.

• Achieved an $18 million property valuation gain in 2H FY25, the first portfolio growth since June 2022.

• Debt was refinanced, extending expiry to FY28 with no change to margin, maintaining a robust capital structure.

• Portfolio comprises 19 high-quality assets valued at $1.9bn, with 93% A-grade weighting and a 5.0-star NABERS SPI energy rating.

Financial highlights

• FY25 gross property income was $171.4 million, down from $183.2 million in FY24 due to divestments and higher vacancy.

• Net tangible assets per unit at $1.67, down from $1.80 in FY24.

• Gearing increased to 44.4%, with 81.5% of debt hedged and $141.5 million debt headroom.

• Weighted average capitalisation rate expanded to 6.89%.

• Statutory net loss of $19.8 million, improved from $168.7 million loss in FY24.

Outlook and guidance

• FY26 FFO guidance is 11.1–11.5 cents per unit, with distribution guidance of 10.1 cents per unit and a forecast yield of 7.7%.

• Guidance assumes conservative downtime, with no income for full-floor vacancies and c.35% of FY26 expiries under advanced renewal negotiations.

• All-in cost of debt expected to be 5.2% in FY26.

• No divestments factored into FY26 guidance.

• Management expects FY26 to be the trough for FFO, with improvements anticipated from leasing and lower debt costs.