Highlights:

  • Centuria Office REIT declared a September 2026 quarterly distribution of 2.25 cents per unit.
  • The Distribution Reinvestment Plan will remain suspended for the September 2026 quarter.
  • FY26 Funds From Operations reached $66.9 million, with distributions of 10.1 cents per unit.
  • FY27 guidance targets FFO of 11.3 cents per unit and distributions of 9.0 cents per unit.
  • The portfolio recorded 39,821 square metres of leasing activity across 47 transactions during FY26.

Centuria Office REIT (ASX:COF) has confirmed a quarterly distribution of 2.25 cents per unit for the period ending 30 September 2026, with the distribution update following the REIT’s FY26 financial results, which highlighted ongoing portfolio leasing activity, Debt management initiatives and guidance for the upcoming financial year.

During the morning Trading session on 4 September 2026, Centuria Office REIT (ASX:COF) was trading at AUD 0.88, up 0.57% on the day. The units remained down 28.05% over the past year.

The September quarter distribution will have an ex-distribution date of Tuesday, 29 September 2026, with the Record Date scheduled for Wednesday, 30 September 2026. The distribution payment date is expected to be Wednesday, 28 October 2026. The REIT confirmed that its Distribution Reinvestment Plan (DRP) will remain suspended for the September 2026 distribution.

FY26 Performance

Centuria Office REIT reported Funds From Operations (FFO) of $66.9 million for FY26, equivalent to 11.2 cents per unit, which was in line with its guidance for the year. Distribution per unit was also delivered in line with guidance at 10.1 cents per unit.

The REIT recorded a statutory profit of $55.2 million in FY26 compared with a statutory loss of $19.8 million in FY25. Net Tangible Assets (NTA) stood at $1.66 per unit at 30 June 2026, compared with $1.67 per unit in the prior year.

The portfolio consisted of 18 assets valued at $1.8 billion, with occupancy of 91% and a weighted average Lease expiry (WALE) of 4.0 years. The weighted average Capitalisation rate (WACR) was 7.04%, compared with 6.89% in FY25.

Portfolio Leasing Activity

During FY26, Centuria Office REIT recorded approximately 39,821 square metres of leasing activity across 47 transactions, representing 14.5% of portfolio net lettable area.

The leasing activity included 17,026 square metres of new leases and 22,795 square metres of lease renewals. The average portfolio re-leasing spread was 5%, while Queensland assets recorded an average re-leasing spread of 14.4%.

Key leasing activity during the year included agreements at 8 Central Avenue, Eveleigh in New South Wales, where 10,026 square metres of terms were agreed, increasing occupancy to 100%. At 101 Moray Street, South Melbourne, Victoria, 5,096 square metres of terms were agreed with average re-leasing spreads of 2%.

The REIT also secured agreements at 203 Pacific Highway, St Leonards, increasing occupancy to 100%, and at 825 Ann Street, Fortitude Valley, Queensland, where 6,148 square metres of terms were agreed with average re-leasing spreads of 18%.

Debt Management

Centuria Office REIT highlighted its capital management activities during FY26, including the refinancing of $1 billion of debt.

The refinancing reduced debt margins by approximately 30 basis points and extended the weighted average debt expiry period to 4.3 years from 2.6 years. As at 30 June 2026, the REIT had no debt expiries until FY29, while gearing stood at 43.7% and 76% of debt was hedged.

The REIT retained $189.3 million of cash and undrawn debt, including $180 million of debt headroom. It also reported a 2.0 times Interest Coverage Ratio and a 44.8% Loan-to-Value Ratio, providing headroom against debt covenants.

FY27 Guidance

Centuria Office REIT provided FY27 guidance for FFO of 11.3 cents per unit and distributions of 9.0 cents per unit, which are expected to be paid through quarterly instalments.

The guidance followed FY26 results where the REIT delivered its targeted FFO and distribution outcomes. The REIT stated that it remains focused on capital management, maintaining portfolio occupancy, addressing upcoming lease expiries and managing a portfolio of modern office assets.

Centuria Office REIT Fund Manager Belinda Cheung said Australian domestic office market conditions continued to stabilise during the year, reflected in portfolio valuation improvements, leasing activity and positive re-leasing spreads.

Ms Cheung also noted that the REIT continues to pursue selective disposals and debt management while focusing on a portfolio of office assets located across Australian markets.

Portfolio and Sustainability Focus

Centuria Office REIT reported an improvement in its sustainability metrics during FY26, with its NABERS Energy Sustainable Portfolio index rating increasing to 5.1 stars from 5.0 stars.

The REIT has installed 1.6MW of solar infrastructure to date, while the portfolio recorded an average NABERS Water rating of 4.2 stars and a GRESB rating of 4.0 stars.

During the year, the REIT also completed the divestment of 9 Help Street, Chatswood, NSW, for $90 million. The transaction represented a 12.5% premium to book value, a 12.3% internal rate of return and a 109% capital uplift over the period of ownership.

Investor Takeaway

Centuria Office REIT’s September 2026 distribution declaration provides an update on its ongoing income distributions following the FY26 financial results. Investors may continue to monitor leasing activity, occupancy levels, debt management initiatives and delivery of FY27 guidance as the REIT progresses its office portfolio strategy.