Highlights

  • COF reported FY26 funds from operations of 11.2 cents per unit.
  • FY26 distributions totalled 10.1 cents per unit.
  • The Q1 FY27 distribution of 2.250 cents per unit was paid on 28 October 2026.
  • FY27 guidance indicates distributions of 9.0 cents per unit, subject to conditions.

Centuria Office REIT (ASX:COF) owns Australian metropolitan and near-city office properties and receives rental income from its tenant portfolio. Its units closed at AUD 0.905 on 5 November 2026. The trust reported FY26 funds from operations of 11.2 cents per unit and distributions of 10.1 cents per unit, while its first FY27 quarterly payment provides an updated reference point for income-focused investors.

FY26 Distribution Record and Current Guidance

The trust paid 2.525 cents per unit on 30 January, 30 April and 14 August 2026 for the corresponding quarterly periods, according to its distribution history. A Q1 FY27 payment of 2.250 cents per unit followed on 28 October 2026. Those amounts refer to actual payments, while guidance is a forward-looking indication subject to conditions. Centuria provided FY27 distribution guidance of 9.0 cents per unit, expected in quarterly instalments, compared with the 10.1 cents per unit delivered for FY26. The batch data specifies 0% franking; REIT distributions require their own tax-component disclosures rather than treatment as ordinary fully franked dividends.

Leasing Activity Across the Office Portfolio

During FY26, COF executed approximately 40,000 square metres of leasing across 47 transactions, amounting to 14.5% of portfolio net lettable area. New leases covered 17,026 square metres and renewals 22,795 square metres. The fund reported an average 5% re-leasing spread and 100% office occupancy at its Western Australian and South Australian properties. Its FY26 portfolio consisted of 18 Assets with a Book Value of AUD 1.842 billion and occupancy of approximately 91% by gross income. Leasing performance affects recurring rental receipts, yet individual Lease terms, incentive costs and tenant Credit quality also influence results.

Operating Earnings and Capital Position

COF delivered FY26 funds from operations of 11.2 cents per unit, meeting its full-year guidance. Net tangible assets were AUD 1.66 per unit at 30 June 2026. Like-for-like valuations increased by AUD 18 million, or 1.0%, across the year, while the weighted average Capitalisation rate increased to 7.04%. The trust refinanced AUD 1 billion of debt, extending weighted average Debt expiry to 4.3 years, and reported gearing of 43.7% at year-end. It said it had no debt expiries until FY29. Interest costs and property valuations remain important for future earnings and distribution capacity.

FY27 Factors to Monitor

The manager outlined FY27 funds-from-operations guidance of 11.3 cents per unit, subject to material changes in operating conditions. Portfolio lease expiries, re-leasing spreads and vacancy will determine how much contractual rent converts into ongoing receipts. Capital Expenditure to reposition buildings could affect cash available for distribution even if it supports occupancy. The AUD 90 million sale of 9 Help Street, Chatswood, completed as part of the 2026 programme, also illustrates how property disposals change portfolio composition and funding needs. Unitholders should distinguish a payment already made from an indicative amount for future quarters.

Additional Distribution Considerations

Occupancy and rental receipts should be assessed alongside leasing incentives, debt costs and cash available after capital expenditure.

Key Insights

Centuria Office REIT (ASX:COF) completed FY26 with 10.1 cents per unit in distributions and continued leasing activity across its office portfolio. The October 2026 quarterly payment was 2.250 cents per unit, while FY27 guidance is 9.0 cents per unit. Occupancy, tenant conditions and debt costs will be central to assessing future payments.