Australian Unity Office Fund (AOF) AI Stock Analysis

• Market Cap: AU$55.89M
• Dividend Yield: 15.14%
• Average Volume (3M): 44.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -68.24%
• EPS Growth: 42.03%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.02
• Shares Outstanding: 164,383,440
• 10 Day Avg. Volume: 72,985
• 30 Day Avg. Volume: 44,935
• PEG Ratio: 0.05
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 11.02
• P/FCF Ratio: 62.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: AU$0.38 ▼(-3.08% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by significant deterioration in financial performance (sharp revenue contraction, sustained losses, and a steep drop in free cash flow), partially offset by a low-risk balance sheet (zero debt). Technicals are neutral-to-weak with price below key longer-term averages, while valuation is supported by the very high dividend yield but tempered by a negative P/E tied to ongoing losses.

Positive Factors

Conservative capital structure (zero debt)

Zero reported debt materially reduces refinancing and interest-rate risk and preserves financial flexibility. Over the next 2–6 months this lowers the probability of distress if cash flows remain weak and gives management optionality to fund operations or reposition assets without immediate financing pressure.

Positive free cash flow despite losses

Positive free cash flow indicates the portfolio still generates cash from rental operations even amid accounting losses. That cash provides a durable buffer to cover operating expenses and distributions in the near term and reduces reliance on external capital in a stressed market.

Historically strong gross margins / core REIT model

Historically high gross margins reflect a scalable, low-variable-cost office leasing model and operating leverage in property management. If occupancy and rents recover, the fund can restore profitability faster than businesses with narrower margins, a structural advantage for medium-term recovery.

Negative Factors

Severe revenue contraction

A multi-year drop in rental revenue materially reduces scale and recurring cash inflows. This structural decline impairs the fund's ability to cover fixed property costs and maintain distributions, and indicates tenant losses, disposals or lease roll issues that could persist absent clear recovery of office demand.

Persistent deep losses and margin collapse

Very large negative margins signal that operating income no longer covers costs and that accounting losses are severe. Over months this constrains retained earnings, limits reinvestment in assets, and undermines the fund's capacity to generate sustainable distributable cash without asset sales or cost restructuring.

Material shrinkage of assets and equity

A dramatically smaller asset and equity base reduces diversification and scale benefits, increasing per-asset fixed costs and operational concentration risk. This erosion limits the fund's ability to generate diversified rental income and to absorb further shocks without further disposals or capital raises.

Australian Unity Office Fund Business Overview & Revenue Model

Company Description

AOF is an ASX-listed REIT that wholly owns a diversified portfolio of nine office properties located across Australian metropolitan and CBD markets in Sydney, Adelaide, Melbourne, Brisbane and Canberra.

How the Company Makes Money

AOF generates revenue primarily through rental income from its portfolio of office properties. The company leases these properties to a variety of tenants, including government entities, large corporations, and small businesses, ensuring a stable and diversified income stream. AOF also aims to enhance its revenue by actively managing its assets to improve occupancy rates, negotiating favorable lease terms, and undertaking strategic capital improvements to increase property values. Additionally, the fund may occasionally realize gains through the strategic sale of properties that have appreciated in value. These activities are supported by partnerships with property management firms and leasing agents, which help optimize the performance and occupancy of AOF's assets.

Australian Unity Office Fund Financial Statement Overview

Summary

Operating fundamentals have deteriorated sharply: revenue fell from ~57.6m (2020) to ~7.1m (2025) and profitability swung to persistent deep losses (2025 net margin about -502%). The main stabilizer is the conservative capital structure with zero reported debt (2024–2025), but assets/equity have materially shrunk and free cash flow dropped ~91.9% in 2025 despite remaining positive.

Income Statement

Performance has deteriorated meaningfully over the period. Revenue has contracted sharply (down from ~57.6m in 2020 to ~7.1m in 2025), including a steep drop in 2025 (annual revenue growth of -63.8%). Profitability has also swung from positive net income in 2020–2021 to persistent and deep losses in 2022–2025, with 2025 showing very weak margins (net margin about -502%). A key positive is that the business previously demonstrated healthy gross margins (generally ~56%–64% in 2020–2024), but the most recent year shows gross profit turning slightly negative, underscoring current operating pressure.

Balance Sheet

Leverage is currently very conservative, with total debt reported at 0 in 2024–2025, which materially reduces financial risk. However, the balance sheet has shrunk substantially: total assets fell from ~678.1m (2020) to ~78.5m (2025) and equity declined from ~442.8m (2020) to ~73.0m (2025). Returns to shareholders are also poor, with return on equity materially negative in recent years (about -48.8% in 2025), reflecting ongoing losses and erosion of the equity base.

Cash Flow

Cash generation remains positive but has weakened sharply. Operating cash flow and free cash flow were ~1.25m in 2025, down significantly versus 2024 (~18.15m), with free cash flow growth of -91.9% in 2025. A positive is that free cash flow is positive despite reported net losses, but operating cash flow is modest relative to operating performance in the latest year (coverage of about 0.23), suggesting reduced cash cushion and potentially higher variability in cash generation.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	7.08M	24.77M	31.64M	46.65M	50.88M
Gross Profit	-273.00K	15.40M	18.04M	29.90M	31.12M
EBITDA	-35.52M	-60.36M	-120.00K	38.18M	32.06M
Net Income	-35.59M	-61.39M	-4.44M	-48.35M	23.26M
Balance Sheet
Total Assets	78.51M	252.97M	358.23M	554.00M	649.38M
Cash, Cash Equivalents and Short-Term Investments	25.96M	25.20M	43.86M	3.26M	8.94M
Total Debt	0.00	0.00	0.00	169.59M	190.16M
Total Liabilities	5.52M	23.74M	44.60M	182.51M	204.54M
Stockholders Equity	72.99M	229.23M	313.62M	371.49M	444.83M
Cash Flow
Free Cash Flow	1.25M	18.15M	15.46M	23.00M	30.91M
Operating Cash Flow	1.25M	18.15M	15.46M	23.00M	30.91M
Investing Cash Flow	136.18M	8.90M	208.96M	16.73M	22.30M
Financing Cash Flow	-136.67M	-45.71M	-183.82M	-45.40M	-50.07M

Australian Unity Office Fund Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AOF, the sentiment is Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.37, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.63 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AOF.

Australian Unity Office Fund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GDI	63 Neutral	AU$323.89M	5.21	4.91%	7.69%	17.85%	―
WOT	56 Neutral	AU$97.05M	-5.93	-3.94%	3.95%	-5.21%	-14350.00%
CMW	54 Neutral	AU$1.03B	3.08	7.18%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$573.44M	2.79	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$55.89M	-4.82	-16.74%	15.14%	-68.24%	42.03%
TOT	49 Neutral	AU$86.58M	7.09	1.89%	7.41%	-4.87%	―

Australian Unity Office Fund Corporate Events

Australian Unity Office Fund Moves Toward Sale of Last Asset and Wind-Up

Australian Unity Office Fund reported net tangible assets of $69.8 million, or $0.42 per unit, as at 31 December 2025, underpinned by an updated independent valuation of $45.0 million for its sole remaining asset at 150 Charlotte Street in Brisbane and $25.2 million in cash. The fund has run an expression-of-interest campaign for the sale of Charlotte Street and is now in discussions with a preferred buyer at $40.0 million, which would reduce pro-forma NTA to $0.39 per unit and, if terms are agreed and unitholders approve, lead to a sale, delisting, wind-up of the fund and return of net proceeds, with distribution guidance withheld amid the disposal uncertainty.

The most recent analyst rating on (AU:AOF) stock is a Hold with a A$0.36 price target. To see the full list of analyst forecasts on Australian Unity Office Fund stock, see the AU:AOF Stock Forecast page.