Centuria Office REIT has reported a strong half-year performance with a 56% increase in revenue and a significant turnaround to a $61.5 million net profit, while maintaining steady distributions.
- 56.4% increase in total revenue to $118.4 million
- Net profit reverses from $21.2 million loss to $61.5 million profit
- Funds from operations slightly down 3.65% to $33.4 million
- Distributions steady at 2.525 cents per unit each quarter
- Net tangible assets per security stable at $1.72
Strong Revenue Growth Amid Market Recovery
Centuria Office REIT (ASX – COF) has delivered a robust financial performance for the six months ending 31 December 2025, reporting total revenue and other income of $118.4 million. This represents a substantial 56.4% increase compared to the same period last year, signalling a notable recovery and growth in its office property portfolio.
Despite this surge in revenue, funds from operations (FFO) saw a slight decline of 3.65%, falling to $33.4 million. This divergence suggests that while top-line income has improved, underlying operational cash flows faced some pressures or one-off adjustments during the period.
Turning the Corner on Profitability
The standout highlight is Centuria Office REIT’s dramatic turnaround in net profit attributable to members. After recording a loss of $21.2 million in the prior corresponding period, the REIT swung to a net profit of $61.5 million. This swing of over $82 million underscores improved asset performance, potential revaluations, or other income items contributing to the bottom line.
Net tangible assets per security remained steady at $1.72, reflecting stability in the REIT’s asset base despite market fluctuations. The number of securities on issue was unchanged at approximately 597 million units.
Distributions and Investor Returns
Centuria Office REIT declared consistent distributions of 2.525 cents per unit for each quarter in the reporting period, paid on schedule. Total distribution payments for each quarter amounted to $15.1 million. Notably, the Distribution Reinvestment Plan (DRP) remains suspended, which may influence investor decisions on reinvestment versus cash returns.
The REIT’s interim financial report was audited without qualification, providing assurance on the accuracy and reliability of the reported figures.
Looking Ahead
While the revenue growth and profit turnaround are encouraging, the slight dip in funds from operations and the ongoing suspension of the DRP suggest areas to watch closely. Investors will be keen to understand the sustainability of these earnings and the strategic direction Centuria Office REIT will take in a still-evolving office property market.
Bottom Line?
Centuria Office REIT’s strong half-year results mark a pivotal recovery, but operational cash flow trends and DRP suspension warrant close investor attention.
Questions in the middle?
- What factors drove the significant net profit turnaround despite a slight decline in funds from operations?
- Will the Distribution Reinvestment Plan remain suspended, and how might this affect future capital raising?
- How sustainable is the recent revenue growth amid ongoing market uncertainties in the office property sector?