Centuria Office REIT (ASX:COF): Office Leasing and Distributions Shape the Outlook

Aditi Sarkar

30 October 2026 03:54 PM AEDT

Centuria Office REIT (ASX:COF): Office Leasing and Distributions Shape the Outlook

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Highlights

FY26 funds from operations reached 11.2 cents per unit, with distributions of 10.1 cents per unit.
Office leasing approached 40,000 sqm across 47 transactions in FY26.
Like-for-like property valuations increased by $18 million during FY26.
The REIT refinanced $1 billion of debt and extended its average debt maturity.
FY27 guidance includes funds from operations of 11.3 cents per unit and distributions of 9.0 cents per unit.

Centuria Office REIT (ASX:COF) owns a portfolio of Australian office properties, with an emphasis on connected metropolitan and CBD locations. On 30 October 2026, its units were priced at $0.88, with a 0% franking figure. The fund’s FY26 results, leasing activity and announced FY27 distributions provide a picture of its operating position as the Australian office market continues to adjust to changing tenant demand.

FY26 Earnings and Distribution Performance

Centuria Office REIT (ASX:COF) reported FY26 funds from operations (FFO) of 11.2 cents per unit and distributions of 10.1 cents per unit. FFO is a measure of recurring property-related earnings that adjusts statutory results for selected non-cash and other items. The reported distribution reflects payments attributable to the financial year rather than a forecast of the amount that will be paid in later periods.

As at 30 June 2026, net tangible assets were $1.66 per unit. The property portfolio comprised 18 assets with a book value of $1,842.0 million, according to the fund’s FY26 portfolio figures. Occupancy by gross income was 91%, while the weighted average lease expiry stood at 4.0 years. Together, these measures describe both the occupied share of the portfolio and the average remaining contractual lease duration.

Leasing Activity and Office Asset Values

Leasing was a central component of Centuria Office REIT (ASX:COF)’s FY26 operations. Approximately 40,000 sqm was leased across 47 transactions, equivalent to 14.5% of portfolio net lettable area. This included 17,026 sqm of new leases and 22,795 sqm of renewals. An average 5% re-leasing spread indicated that rents agreed on the relevant space were above the previous rental levels.

Like-for-like property revaluations increased by $18 million, or 1.0%, relative to June 2025 book values. The weighted average capitalisation rate reached 7.04% at 30 June 2026, following an expansion of 16 basis points over FY26. These measures reflect different influences on asset values: rental assumptions, market yields and property-specific conditions can move independently.

The fund also completed the disposal of its office asset at 9 Help Street, Chatswood, for $90 million, representing a 12.5% premium to its book value. The transaction formed part of the portfolio and capital management activity disclosed alongside the FY26 results.

Debt Refinancing and FY27 Guidance

Centuria Office REIT (ASX:COF) refinanced $1 billion of debt during FY26. The refinancing reduced its debt margin by approximately 30 basis points and extended weighted average debt expiry to 4.3 years, from 2.6 years. At 30 June 2026, gearing was 43.7% and 76% of debt was hedged. The fund reported no debt maturities until FY29, although its borrowings and interest costs remain relevant to future cash flows.

For FY27, Centuria Office REIT (ASX:COF) issued FFO guidance of 11.3 cents per unit and distribution guidance of 9.0 cents per unit, with quarterly instalments anticipated. The stated guidance is conditional on operating circumstances. Changes in occupancy, rental outcomes, financing costs and capital expenditure are among the operating variables that can affect a listed office property trust.

Key Insights

Centuria Office REIT (ASX:COF) entered FY27 following extensive leasing, modest positive like-for-like valuation movement and a substantial debt refinancing programme in FY26. Its reported results show the interaction between property income, occupancy, portfolio transactions and financing. The FY27 distribution guidance is lower than the FY26 amount, while FFO guidance is slightly higher, making the distinction between recurring earnings and cash distributions relevant when assessing its published figures.

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