Centuria Office REIT (ASX:COF) Reports HY25 Financial Results
Financial Performance
Centuria Office REIT reported funds from operations (FFO) of $34.7 million for HY25, a 7.1% decrease compared to HY24. Total revenue was $84.9 million, down 8.8% from the previous period.
Portfolio Overview
The portfolio value stands at $1.9 billion across 19 assets, maintaining a high occupancy rate of 92.2%, significantly above the market average of 83.9%. The weighted average lease expiry (WALE) is 4.2 years, with no debt expiries until FY28.
Capital Management
Centuria refinanced $862 million of debt, renegotiated debt covenants, and extended debt expiry without changing margins. The construction of a 1.1MW edge data centre has commenced, expected to complete in Q4 FY25, contributing to a 10% asset valuation uplift.
Market Outlook and Guidance
The company reiterated its FY25 guidance with funds from operations (FFO) of 11.8 cents per unit and distributions of 10.1 cents per unit. Centuria expects continued strong demand in the Australian office market, driven by population growth and return-to-office mandates.
Sustainability Initiatives
Centuria aims to achieve zero scope 2 emissions by 2028, installing approximately 1,400 kW of solar across its portfolio. The company achieved a GRESB score of 80 and a 5.0-star NABERS SPI energy rating.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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