Highlights

  • Centuria Office REIT (ASX:COF) traded at AUD 0.86, down 1.15%, at the time of writing on 10 September 2026.
  • FY26 FFO reached 11.2 cents per unit, while distributions totalled 10.1 cents per unit.
  • Approximately 40,000 square metres of leasing was completed across 47 transactions, with average re-leasing spreads of 5%.
  • FY27 FFO guidance stands at 11.3 cents per unit, while distribution guidance has been set at 9.0 cents per unit.

Centuria Office REIT (ASX:COF) was trading at AUD 0.86, down 1.15%, at the time of writing on 10 September 2026. The movement came during a weaker session across Australian equities and listed real estate securities.

The S&P/ASX 200 (ASX:XJO) was trading at 8,789.90 points, down 1.36% today, at the time of writing on 10 September 2026. The S&P/ASX 300 (ASX:XKO) was trading at 8,723.00 points, down 1.35% today, at the time of writing on 10 September 2026. The S&P/ASX 200 Real Estate (ASX:XRE) was trading at 3,264.30 points, down 1.23% today, at the time of writing on 10 September 2026.

COF therefore declined slightly less than the broader real estate index. However, the daily share price movement should be considered separately from the REIT’s underlying office portfolio performance. Leasing, occupancy, rental growth, property valuations and financing costs remain more relevant to the medium-term Earnings outlook.

Office Portfolio Focus

Centuria Office REIT is Australia’s largest listed pure-play office REIT and provides exposure to office properties located across major metropolitan markets. Its portfolio is focused on well-connected office buildings outside a single-market concentration.

At 30 June 2026, COF owned 18 Assets with a combined Book Value of AUD 1.842 billion. Portfolio occupancy stood at 91%, while the weighted average Lease expiry was 4.0 years. Net lettable area totalled 265,326 square metres.

The portfolio is spread across several Australian office markets, providing geographic diversification. For investors, the key operating variables include leasing demand, occupancy, tenant retention, incentives, rental growth and the pace at which office market conditions continue to stabilise.

Latest Verified Update

The latest substantive operating and financial update identified for Centuria Office REIT remains its FY26 full-year result released in early August 2026. The REIT’s investor centre lists the FY26 Results Announcement, Results Presentation, Financial Report and Appendix 4E dated 4 August 2026, with no newer full operating result before 10 September 2026.

COF delivered FY26 Funds From Operations of 11.2 cents per unit and distributions of 10.1 cents per unit, both in line with guidance.

The result reflected improving leasing activity and stabilising valuations across parts of the office portfolio, while higher funding costs and vacancy remained important factors for investors to assess.

Leasing Momentum

Leasing was one of the main features of FY26.

COF completed approximately 40,000 square metres of leasing across 47 transactions, representing 14.5% of portfolio net lettable area. This included 17,026 square metres of new leases and 22,795 square metres of renewals.

Average re-leasing spreads were positive 5% across the portfolio, while Queensland assets generated average re-leasing spreads of 14%. The REIT also maintained 100% office occupancy across its Western Australian and South Australian properties.

Only 4.7% of leases are scheduled to expire in FY27, reducing the Volume of near-term expiry risk compared with earlier periods.

These figures suggest the portfolio entered FY27 with improving leasing momentum, although overall occupancy of 91% indicates that vacancy remains an important area for management.

Valuations Stabilise

Office property valuations showed a modest improvement during FY26.

Like-for-like portfolio valuations increased by AUD 18 million, equivalent to 1.0% compared with June 2025 book values. Valuation market rents increased by an average of 4.4%.

At the same time, the weighted average Capitalisation rate expanded by 16 basis points to 7.04%. Net tangible assets stood at AUD 1.66 per unit at 30 June 2026.

The combination of higher market rents and wider capitalisation rates illustrates the mixed forces influencing office valuations. Rental growth can support asset values, while changes in required Investment yields can offset some of that benefit.

For COF investors, continued evidence of valuation stabilisation would be important after several years in which higher interest rates placed pressure on commercial property values.

Capital Recycling

COF also continued to reshape its portfolio through asset sales.

The REIT completed the divestment of 9 Help Street in Chatswood, New South Wales, for AUD 90 million. The sale represented a 12.5% premium to book value and generated a 12.3% internal rate of return over the period of ownership.

The transaction was completed at a 5.5% passing Yield on the sale price and represented a 109% capital uplift over the ownership period.

For investors, sales above book value can provide additional evidence around asset pricing while also creating capacity to reduce Debt or redirect capital toward portfolio initiatives.

Debt and Funding

Capital management remains a central issue for COF because office property remains a capital-intensive asset class.

During FY26, the REIT refinanced AUD 1 billion of debt facilities. The refinancing reduced debt margins by approximately 30 basis points and extended the weighted average debt expiry to 4.3 years from 2.6 years.

COF had no debt expiries until FY29 at the end of FY26. Gearing stood at 43.7%, while 76% of debt was hedged.

The refinancing provides greater Maturity visibility, although gearing remains an important consideration. Higher interest rates can affect distributable earnings even when property income remains stable.

FY27 Outlook

For FY27, COF has provided FFO guidance of 11.3 cents per unit and distribution guidance of 9.0 cents per unit, subject to unforeseen circumstances and material changes in operating conditions.

The FFO guidance is slightly above the 11.2 cents per unit delivered in FY26. However, the distribution target is lower than the 10.1 cents paid for FY26.

This difference means investors may focus more closely on capital retention, debt settings and the relationship between underlying earnings and distributions.

Management has indicated that priorities include maintaining portfolio occupancy, addressing near- and medium-term lease expiries, continuing selective portfolio curation and managing the balance sheet.

Investor Watchpoints

Occupancy remains one of the most important operating measures for COF. At 91%, additional leasing could support income growth if vacant space is progressively filled.

Re-leasing spreads are another area to monitor. FY26 average positive spreads of 5% indicate improving rental conditions across parts of the portfolio, but outcomes can vary significantly by market and individual asset.

Capitalisation rates and property valuations will also remain relevant. A stabilisation in office investment markets could support net tangible assets, while further yield expansion could offset rental growth.

Finally, debt costs and gearing remain key financial considerations. The FY26 refinancing improved debt maturity and pricing, but the REIT’s 43.7% gearing means financing conditions continue to matter for distributions and capital flexibility.

Final Takeaway

Centuria Office REIT (ASX:COF) was trading at AUD 0.86, down 1.15%, at the time of writing on 10 September 2026, while the S&P/ASX 200 Real Estate (ASX:XRE) was trading at 3,264.30 points, down 1.23% today, at the time of writing on 10 September 2026.

The latest substantive financial update showed FY26 FFO of 11.2 cents per unit, distributions of 10.1 cents per unit and approximately 40,000 square metres of leasing with average positive re-leasing spreads of 5%.

FY27 FFO guidance of 11.3 cents per unit suggests broadly stable underlying earnings, while the lower 9.0-cent distribution guidance puts greater focus on capital management, occupancy, leasing and funding costs as COF moves through the year.