• Leasing terms were agreed over 6,937 square metres across ten transactions, with re-leasing spreads of 4.1 per cent.
  • The FY27 expiry profile fell from 4.7 per cent to 2.7 per cent.
  • FY27 guidance was reaffirmed: FFO of 11.3 cents per unit and distributions of 9.0 cents per unit, paid quarterly.

Centuria Office REIT (ASX:COF) released its Q1 FY27 operating update on 15 October 2026. The trust reported leasing terms agreed over 6,937 square metres across 10 transactions, including heads of agreement, with positive re-leasing spreads of 4.1 per cent. About 60 per cent of the activity was renewals, and leasing was concentrated in Melbourne and Brisbane. COF said its FY27 expiry profile fell from 4.7 per cent to 2.7 per cent.

Notable leasing deals

At 100 Brookes Street, Fortitude Valley in Queensland, COF agreed a new full-floor Lease of 1,254 square metres for seven years, with a 13.5 per cent leasing spread. At 154 Melbourne Street, South Brisbane, it agreed a two-year full-floor renewal of 1,086 square metres at a 10.9 per cent spread. At 584 Swan Street, Richmond in Victoria, a major tenant renewed 2,280 square metres for five years, and the asset's weighted average lease expiry increased to 3.4 years. At 101 Moray Street, South Melbourne, two transactions covering 810 square metres in total were agreed, which the company said also lifted that asset's weighted average lease expiry to 3.4 years. The release does not give the term for the Moray Street deals.

The spreads quoted are company-reported comparisons of new rents with previous rents on the deals concerned, and the figures include heads of agreement, which are not yet formal leases.

Sustainability

COF reported a 4-Star GRESB rating, with its overall score improving from 86.6 to 87.8. The Nishi building in Canberra holds a 6-Star NABERS Energy rating, and its NABERS Water rating improved from 5 to 5.5 stars. The trust has a target of zero Scope 2 emissions by 2028, to be met through onsite solar and large-scale generation certificate arrangements matching consumption, and applies to existing Assets under COF's operational control. A Partnership with Energy Bay supports that target. The FY26 Sustainability Report is expected in October 2026.

FY27 guidance

COF reaffirmed FY27 guidance for Funds From Operations (FFO) of 11.3 cents per unit and distributions of 9.0 cents per unit, paid in quarterly instalments. FFO is defined in the release as the trust's underlying and recurring earnings, calculated as statutory net profit adjusted for certain non-cash and other items. The release states a distribution Yield of 10.6 per cent, calculated on guidance and a closing unit price of A$0.85 on 13 October 2026. That yield is an arithmetic result of the price on that single day and the forecast distribution, and will change if either changes.

Conditions and risks

The company said guidance is subject to unforeseen circumstances and material changes in operating conditions, and that actual results may differ materially from forward-looking statements. COF said it undertakes no obligation to update them. The announcement includes leasing outcomes only for the transactions listed and does not, in the text reviewed, report occupancy, gearing, valuations or net tangible assets.

What to watch

Dates confirmed in the release are limited to the October 2026 publication of the FY26 Sustainability Report and the 2028 zero Scope 2 target. Further leasing outcomes, including whether the heads of agreement convert into signed leases, would be disclosed in later company updates.