LA Private

Centuria Office REIT reveals strong FY23 portfolio valuations

Centuria Office REIT (ASX:COF), Australia’s largest ASX-listed pure play office REIT, has completed external valuations on a significant portion of its portfolio, representing approximately 70% of the portfolio by value.

The remaining valuations will be conducted as Director’s valuations in line with Centuria’s valuation policy.

The completed valuations reflect a decline of approximately $102 million in net tangible assets, equivalent to a 4.4% decrease in the portfolio’s value.

The Weighted Average Capitalisation Rate across the entire portfolio expanded by 25 basis points from 5.75% to 6.00% during the last half.

Grant Nichols, COF Fund Manager and Centuria Head of Office, highlighted the appeal of COF’s well-positioned and affordable office accommodation, attracting high-quality tenants, including government, ASX-listed, and multinational corporations.

Nichols emphasised the strength of COF’s diversified tenant base, providing a staggered lease expiry profile and broad income streams supported by strong leasing covenants.

The portfolio maintains a high occupancy rate of 97.3%, with a minimal vacancy of 2.7%.

In addition to the valuations, COF recently received a BBB MSCI ESG rating, indicating an improvement from its previous B rating.

The portfolio’s sustainability metrics contributed to the enhanced rating. COF also achieved an increased NABERs Sustainable Portfolio Index energy rating of 4.9 stars, highlighting its commitment to sustainable practices.

Looking ahead, the valuations and changes to NTA remain subject to audit and potential revisions. The ongoing independent valuations reflect Centuria’s commitment to transparent and accurate reporting.