Centuria Office REIT Reports Income and Valuation Gains

The Centuria Office REIT has provided an update on the 2nd quarter progress with valuation gains and higher income leading to improved returns for investors.

Centuria confirmed that Concentrix has renewed its lease at 35 Robina Town Centre Drive, Robina QLD for a further three years, which, together with other agreed leases, increased the building’s occupancy to 100% and improved the Weighted Average Lease Expiry (WALE) to 2.7 years (1.0 years as at 30 June 2021).

Due to the Concentrix renewal, and other positive portfolio leasing outcomes, COF’s FY22 FFO guidance has increased from 18.0cpu to 18.3cpu however COF reiterates its FY22 distribution guidance of 16.6cpu, which represents a current distribution yield of 7.1%.

Grant Nichols, COF Fund Manager said, “The Robina leasing outcomes delivered a great result for COF unitholders, enabling the REIT to increase FY22 FFO guidance. More broadly, COF continues to generate solid leasing momentum across its portfolio, with tenants attracted to its high quality, highly connected and affordable accommodation. Tenants are increasingly gravitating towards relatively new, efficient and sustainable buildings that provide quality internal and surrounding amenities, characteristics that are typical of the COF portfolio.”

COF also completed external valuations on 11 of its 23 investment properties as at 31 December 2021. Approximately 48% of the portfolio has been independently valued, with the remainder subject to internal or Director’s valuations. The completed valuations reflect the ongoing strong investment demand for quality offices, resulting in a like for like increase of $28.5 million, equating to a c.5 cpu increase in net tangible assets.

Grant Nichols, said, “We continue to see strong transactional activity across Australian office markets, demonstrating robust investment demand for quality commercial assets. A number of these transactions are very comparable to COF’s portfolio, with transaction metrics providing strong support for the REIT’s net tangible assets.”

Further details on property valuations will be available in COF’s half year 2022 results to be released on Thursday, 3 February 2022.

Premium Members can find all Centuria Office Articles, trading Analysis, Annual Reports and Presentations here

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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