Centuria Office REIT FY26 Results

REIT benefits from market stabilisation, significant leasing and positive valuations

• Near record leasing of c.40,000 sqm executed across 47 transactions (14.5% of portfolio NLA)¹
• Avg 5% re-leasing spread supporting valuation stabilisation, up $18 million or 1.0% yoy
• Chatswood divestment at premium indicates renewed investor demand for well-located office assets
• Delivered on FY26 Guidance: Funds From Operations (FFO) of 11.2 cents per unit (cpu), Distribution 10.1 cpu

Australia’s largest listed pure-play office fund, Centuria Office REIT (ASX: COF), delivered its 2026 full financial year results, which showed the REIT benefitted from market stabilisation evident from strong leasing activity, positive valuations and a divestment transacting at a significant premium to book value.

COF delivered on its FY26 FFO guidance of 11.2 cpu, which reflects the REIT’s earnings, and distribution guidance of 10.1 cpu.

Belinda Cheung, COF Fund Manager said, “Conditions across the Australian domestic office markets continued to stabilise during the year, reflected in an improvement in COF’s portfolio valuations, the successful divestment of 9 Help St, Chatswood at a premium to book value, and positive re-leasing spreads across the portfolio.

“With limited new office supply across the medium-term due to a rising disparity between replacement cost and prevailing valuations, COF anticipates continuing benefits from stabilising market conditions. COF continues to adopt a proactive capital management strategy aligned to selective disposals and robust debt management while curating a portfolio of high-quality, well-located modern office buildings. We are pleased to confirm COF delivered on its FY 26 FFO and distribution guidance with the REIT continuing to execute against many of its long-term objectives.”

COF’s like-for-like portfolio revaluations reflected an $18 million increase or a 1.0% gain on June 2025 book values. Portfolio valuations were underpinned by an average 4.4% increase in valuation market rents. COF’s Weighted Average Capitalisation Rate (WACR) expanded 16 bps during FY26 to 7.04%. As at 30 June 2026, the REIT recorded net tangible assets (NTA) of $1.66 per unit ².

During FY26, COF executed near record leasing transactions totalling 40,000 sqm across 47 transactions³, representing 14.5% of portfolio NLA. Across the portfolio 17,026 sqm of new leases were secured and 22,795 sqm renewed.

Strong leasing activity contributed to an average 5% portfolio re-leasing spread with Queensland assets achieving an average 14% re-leasing spread. Re-leasing spread refers to the difference between prior rental values and new rental values across the same property. The REIT maintained 100% office occupancy across its WA and SA assets. Its staggered lease expiry profile means only 4.7% of leases expiring in FY27.

The divestment of the REIT’s B-grade office asset at 9 Help Street, Chatswood NSW for $90 million, provided a 12.5% premium to book value, reflecting a 12.3% IRR and a 109% capital uplift throughout the asset’s ownership. The transaction provided a 5.5% passing yield on sales price and reflects returned investor demand for well-located, modern office buildings.

Also during the period, COF refinanced $1 billion of debt, resulting in a c.30 bps debt margin reduction and extension of the weighted average debt expiry to 4.3 years from 2.6 years. COF has no debt expiries until FY29 and maintains sufficient debt covenant headroom. At 30 June 2026, gearing was 43.7%³ and 76% of debt was hedged.

Ms. Cheung concluded, “COF delivered positive results during the year, against a backdrop of changing macroeconomic factors that impacted national productivity, inflation and interest rates. Looking ahead, COF remains conscious of capital management and focused on maintaining high portfolio occupancy, improving portfolio WALE by addressing near to medium-term expiries while curating a quality portfolio of modern, sustainable office assets.”

COF provided FY27 FFO guidance of 11.3 cpu⁴ and distribution guidance of 9.0cpu⁴ (distribution yield of 10.1%⁵), which are expected to be paid in quarterly installments.

1. Includes Heads of Agreement and executed leases.

2. NTA per unit is calculated as net tangible assets divided by closing units on issue.

3. Includes Heads of Agreement and executed leases.

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

 5.Yield based on guidance and COF closing price of $0.89 on 30 June 2026