CENTURIA OFFICE REIT (COF)
Share Price Analysis and Chart

06/02/2025

3

Hold

$1.20

3.90%

Centuria Office REIT reiterated FY25 guidance, though the -17.1% year-on-year decline in first-half funds from operations (FFO) missed Bell Potter and consensus forecasts for declines of -7.7% and -5.5%.

The miss was largely attributed to the divestment of high-yielding assets in the prior period and increasing portfolio vacancy, explain the analysts.

Bell Potter believes the asset devaluation cycle is nearing a nadir, supported by improving office transaction volumes in the first half and 37% of Centuria’s portfolio valuations either increasing or stabilising over the period.

The broker maintains a Hold rating, with the target easing to $1.20 from $1.25.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 10.10 cents.
Bell Potter forecasts a full year FY26 dividend of 10.20 cents.

10/02/2025

4

Underweight

$1.17

1.30%

Centuria Office REIT's 1H25 result highlighted challenging office leasing markets in the near term, notes Jarden. The REIT also flagged incentives and capex will drag on adjusted funds from operations in the near term.

The broker believes the REIT does appear cheap but it is looking for more conviction on underlying income growth to get more constructive, which is made harder by the exposure to less known suburban markets.

The broker raised FY26 funds from operations forecast by 0.4%, mainly driven by a lower BBSW curve and highlighted upside potential for the stock in a declining interest rate environment.

Underweight rating retained and target price is $1.17.

FORECAST
Jarden forecasts a full year FY25 dividend of 10.10 cents and EPS of 11.80 cents.
Jarden forecasts a full year FY26 dividend of 10.10 cents and EPS of 11.90 cents.