Centuria Office (COF) Q1 2025 TU earnings summary

Executive summary

• 3,531 sqm of lease terms agreed across 11 transactions in Q1 FY25, including a 10-year lease with ResetData for a new edge data centre at 818 Bourke Street, Docklands.

• Portfolio occupancy at 91.2% and WALE of 4.2 years as of 30 September 2024, with 72% of leases expiring beyond FY27.

• Market fundamentals for office assets are improving, with positive net absorption in key Australian markets.

Financial highlights

• $862 million debt refinanced, extending weighted average debt expiry to four years with no debt maturing until FY28.

• FY25 FFO guidance reaffirmed at 11.8 cpu and distribution guidance at 10.1 cpu, with an annualised distribution yield of 8.4%.

Outlook and guidance

• Management remains optimistic on the medium-term outlook, citing improved demand for office accommodation and a constrained supply pipeline due to high development costs.

• Distributions expected to be paid quarterly, with guidance subject to market conditions and interest rate assumptions.