Centuria Office REIT delivers first-half profit of $62m
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The news: Centuria Office REIT has delivered a profit of $62 million in the first half of FY26 due to a lift in portfolio valuations, rebounding from a net loss of $21.2 million in the previous corresponding period.
The numbers: The consensus expectation for statutory profit was $33.7 million, according to Visible Alpha.
Funds from operations were $33.4 million over the period, or 5.6 cents per unit. This was in line with the expected $33.8 million, according to Visible Alpha, but lower than the $34.7 million in the previous corresponding period.
FY26 funds from operation guidance of between 11.1 and 11.5 cents per unit has been reiterated. FY26 distribution guidance of 10.1 cents per unit has also been reiterated.
Portfolio valuation increased by $42.8 million, which was the second consecutive period of valuation gains. This was underpinned by a 4% valuation market rental growth year on year.
The context: Centuria Office REIT fund manager Belinda Cheung said the fund delivered its second largest volume of leasing on record.
Cheung said the fund is benefiting from improved conditions in the domestic metropolitan office markets, which is moving "past the cyclical trough and is expected to enter a new cycle of recovery".
During the period, Centuria Office REIT also exchanged contracts to divest 9 Help Street, Chatswood at a 12.5% premium to book value.
The source: ASX
