Centuria Office (COF) H2 2025 earnings summary

Executive summary

• Delivered FY25 FFO of $0.118 per unit (11.8cpu) and distributions of $0.101 per unit (10.1cpu), both meeting guidance despite higher vacancies and divestments.

• Achieved an $18 million property valuation gain in the second half, marking the first portfolio growth since June 2022.

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

• Debt refinanced with extended expiry to FY 2028, renegotiated covenants, and no change to margin.

• Portfolio book value at $1.9bn across 19 assets, with 93% A-grade assets and a 5.0-star NABERS SPI energy rating.

Financial highlights

• FFO totaled $70.4 million or $0.118 per unit (11.8cpu) for FY25, down from $82.2 million (13.8cpu) year-over-year.

• Gross property income declined to $171.4 million due to asset divestments and higher vacancy.

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

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

• Distributions paid were $0.101 per unit, with a payout ratio of 85.7%.

Outlook and guidance

• FY26 FFO guidance is $0.111–$0.115 per unit (11.1–11.5cpu); distribution guidance is $0.101 per unit (10.1cpu) and a forecast yield of 7.7%.

• Guidance assumes conservative downtime, with 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.