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Latest Security Price |
- Centuria Capital (CNI)
- Centuria Office REIT (COF)
- Centuria Industrial REIT (CIP)
- Centuria Capital No.2 Fund (C2FHA)
19.9cpu1
FY21 FFO
Delivered
16.5 cpu
FY21 Distribution
Delivered
33.5%
Gearing2
$2.483
NTA
Centuria Office REIT
FY21 Results
Australia’s largest ASX listed pure play office REIT
Centuria Office REIT (ASX:COF) has announced FY21 annual results to 30 June 2021.
Centuria Capital is the manager of the Centurial Office REIT. Through the scale and expertise under Centuria management, COF has grown to be Australia’s largest pure-play office REIT with a $2.0 billion portfolio, whilst significantly de-risking the platform through active asset management, repositioning and fortifying the balance sheet. COF is included in the S&P/ASX300 Index.
COF’s Financial Year 2021 Year End Results revealed a record year of leasing with 61 transactions across 52,077sqm, illustrating strong tenant demand for modern, affordable fringe office accommodation. More than 50% of the leases completed were new tenants to the COF portfolio, which demonstrates growing tenant confidence in committing to new office accommodation. Total leasing transactions accounted for 18.1% of portfolio Net Lettable Area (NLA).
Throughout FY21, COF achieved a 98.3% average rent collection4. More than 80% of the REIT’s income is derived from government, multinational corporations and listed entities, of which, more than a quarter (27%) is generated from Federal and State Government. COF has a resilient leasing profile with more than 63% of portfolio leases expiring at or beyond FY25.
Leasing success translated into a solid trading performance with $102.2 million in Funds From Operations (FFO)1, meeting the top end of the REIT’s guidance of 19.9 cents per unit (cpu) and distribution guidance of 16.5cpu. COF delivered a 21.0% total shareholder return throughout the 12-month period5.
A $16.3 million valuation uplift contributed to COF’s Net Tangible Assets (NTA) of $2.48 per unit3 and $76.9 million net statutory profit.
COF secured a significant $405 million debt refinance, which increases its weighted average debt maturity to 4.2 years (from 2.3 years) and signifies strong support and confidence in the quality of its office portfolio. Throughout the second half of FY21, the portfolio increased its occupancy to 93.1%4 and maintained a 4.3-year weighted average lease expiry (WALE)4.
COF’s market confidence is reinforced with a FY22 distribution guidance of 16.6cpu6.
22
High quality
assets
$2.0b
Portfolio
value
93.1%4
Portfolio
occupancy
4.3 years4
Portfolio
WALE
Providing high quality, highly connected and affordable office space.
 |  |  |  |  |
| Balanced geographic diversification without single market concentration | Connectivity with key transport nodes & reduced commute time | Access to recreational amenity, essential retail & hospitality | Average building age is c.16 years | COF exposed market rents underpin sustainable income returns with lower volatility |
1. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adjusted for certain non-cash and other items.
2. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill
3. NTA per unit is calculated as net assets less goodwill divided by total assets less cash and goodwill. NTA adjusted to include the proceeds from the sale of 465 Victoria Avenue, Chatswood NSW.
4. By gross income
5. Total Securityholder Return (TSR) equals change in unit price during the period, plus distributions declared
6. Guidance remains subject to unforeseen circumstances impacting on material changes to operating conditions.