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Centuria Office REIT (AU:COF)
ASX:COF

Centuria Office REIT (COF) AI Stock Analysis

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AU

Centuria Office REIT

(Sydney:COF)

Rating:53Neutral
Price Target:
Centuria Office REIT faces significant challenges with declining revenue and profitability, as well as concerns about financial stability due to high debt levels and a decrease in stockholders' equity. Although technical analysis suggests potential stability, the negative P/E ratio and high dividend yield present a mixed valuation picture. Overall, the stock requires strategic improvements to enhance financial health and investor appeal.

Centuria Office REIT (COF) vs. iShares MSCI Australia ETF (EWA)

Centuria Office REIT Business Overview & Revenue Model

Company DescriptionCOF is Australia's largest ASX listed pure play office REIT and is included in the S&P/ASX300 Index. COF owns a portfolio of high quality assets situated in core office markets throughout Australia. COF is overseen by a hands-on, active manager and provides investors with income and the opportunity for capital growth from a pure play portfolio of high-quality Australian office assets. Centuria Property Funds Limited (CPFL) is the Responsible Entity for the ASX listed Centuria Office REIT (COF). CPFL, is a wholly owned subsidiary of Centuria Capital Group (CNI). CNI is an ASX-listed specialist investment manager with $10.2 billion in total assets under management and offers a range of investment opportunities including listed and unlisted property funds as well as tax effective investment bonds.
How the Company Makes MoneyCenturia Office REIT makes money primarily through the rental income generated from its portfolio of office properties. These properties are leased to a diverse range of tenants, providing a consistent and reliable source of revenue. The trust aims to maintain high occupancy rates and long-term lease agreements to ensure stable cash flows. Additionally, COF may engage in strategic acquisitions and divestments of properties to optimize its portfolio and enhance returns. Factors such as location, property quality, and tenant relationships contribute significantly to its earnings. The management team's ability to effectively negotiate leases and manage property expenses also plays a crucial role in maximizing profitability.

Centuria Office REIT Financial Statement Overview

Summary
Centuria Office REIT is experiencing declining revenue and profitability, as evidenced by a net loss of -$168.7 million and a decrease in revenue by 3.4%. Despite a moderate leverage level and a strong equity base, the decline in equity and consistent debt levels pose financial stability concerns. Cash flow is strained with a decrease in operating cash flow, although free cash flow remains positive.
Income Statement
45
Neutral
The income statement shows declining revenue and profitability. Revenue decreased slightly by 3.4% from the previous year, and the company recorded a significant net loss of -$168.7 million, indicating challenges in maintaining profitability. The gross profit margin was 61.3%, and the EBIT margin was 54.7%, reflecting decent operational efficiency despite negative net income. However, the drastic decline in net income over the years suggests potential difficulties in cost management or external market pressures.
Balance Sheet
55
Neutral
The balance sheet presents both strengths and weaknesses. The debt-to-equity ratio stands at 0.80, indicating a moderate leverage level. The equity ratio is 54.4%, showing a strong equity base relative to total assets. However, the decline in stockholders' equity from $1.31 billion to $1.08 billion raises concerns about financial stability. The consistent level of total debt over recent years highlights potential risks if revenue does not improve.
Cash Flow
50
Neutral
Cash flow analysis reveals mixed results. Operating cash flow decreased from $71.7 million to $63.8 million, which might strain liquidity if the trend continues. The free cash flow remained positive at $63.8 million, but the free cash flow growth rate reflects a decline from previous years. The operating cash flow to net income ratio is negative, indicating that the company is not currently generating sufficient cash to cover its losses.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
151.94M161.58M167.28M167.02M161.81M146.42M
Gross Profit
92.43M99.08M106.56M109.12M109.10M98.78M
EBIT
92.43M88.35M107.22M120.41M111.43M89.83M
EBITDA
63.16M88.35M107.22M134.30M111.43M90.23M
Net Income Common Stockholders
-90.56M-168.75M-91.93M115.02M76.94M23.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
20.39M17.50M17.29M26.56M15.64M28.81M
Total Assets
1.95B1.98B2.31B2.41B2.07B2.12B
Total Debt
879.09M857.03M926.12M861.10M733.46M779.09M
Net Debt
859.75M839.54M908.84M834.54M717.82M750.28M
Total Liabilities
922.44M901.93M994.67M918.27M793.87M836.31M
Stockholders Equity
1.02B1.08B1.32B1.49B1.27B1.28B
Cash FlowFree Cash Flow
58.27M63.79M71.65M95.31M103.97M82.99M
Operating Cash Flow
58.27M63.79M71.65M95.31M103.97M82.99M
Investing Cash Flow
59.27M81.21M-54.53M-317.89M14.14M-689.01M
Financing Cash Flow
-118.09M-144.91M-26.39M233.50M-131.27M617.28M

Centuria Office REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.26
Price Trends
50DMA
1.21
Positive
100DMA
1.17
Positive
200DMA
1.16
Positive
Market Momentum
MACD
<0.01
Positive
RSI
59.13
Neutral
STOCH
52.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COF, the sentiment is Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.21, and above the 200-day MA of 1.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:COF.

Centuria Office REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.86B10.960.41%6.08%5.73%-21.25%
AUCOF
53
Neutral
AU$740.70M-8.21%8.14%-9.52%47.94%
$4.85B-9.22%5.89%
$6.06B-1.94%4.67%
DEMQV
€1.32B12.836.37%6.66%
AUCIP
69
Neutral
AU$1.99B20.233.99%5.19%4.34%
AUGOZ
61
Neutral
AU$1.89B-10.45%8.96%2.70%-8.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:COF
Centuria Office REIT
1.26
0.18
16.67%
DEXSF
Dexus
4.72
0.65
15.97%
GPTGF
GPT Group
3.21
0.60
22.99%
DE:MQV
Charter Hall Retail REIT
2.30
0.47
25.68%
AU:GOZ
Growthpoint Properties Australia
2.56
0.42
19.63%
AU:CIP
Centuria Industrial REIT
3.20
0.23
7.74%

Centuria Office REIT Corporate Events

Centuria Office REIT Declares June 2025 Distribution
Jun 6, 2025

Centuria Office REIT has declared a distribution of 2.525 cents per unit for the quarter ending June 30, 2025, with the Distribution Reinvestment Plan remaining suspended. This announcement reflects COF’s ongoing commitment to providing income to its investors and maintaining its position as a leading office REIT in Australia.

The most recent analyst rating on (AU:COF) stock is a Sell with a A$1.40 price target. To see the full list of analyst forecasts on Centuria Office REIT stock, see the AU:COF Stock Forecast page.

Centuria Office REIT Announces Quarterly Distribution
Jun 5, 2025

Centuria Office REIT has announced a new distribution of AUD 0.02525 per ordinary unit for the quarter ending June 30, 2025. The distribution will be paid on August 19, 2025, with an ex-date of June 27, 2025, and a record date of June 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors and may impact its market positioning by reinforcing its reliability in dividend distributions.

The most recent analyst rating on (AU:COF) stock is a Sell with a A$1.14 price target. To see the full list of analyst forecasts on Centuria Office REIT stock, see the AU:COF Stock Forecast page.

Centuria Office REIT Reports Strong Q3 FY25 Leasing Performance
May 15, 2025

Centuria Office REIT has provided its Q3 FY25 update, highlighting a strong leasing performance with 21,078 sqm of lease terms agreed year-to-date, representing 7.7% of its portfolio. The company maintains a high occupancy rate of 91.4% and a weighted average lease expiry of 4.2 years, outperforming the national office market average. Despite challenges such as elevated national vacancy rates and new office supply, COF remains optimistic about the medium-term prospects of the Australian office market, supported by diminishing forecast supply and improving net absorption. The company reaffirmed its FY25 financial guidance, including a distribution yield of 8.1%, and continues to focus on addressing vacancies and lease expiries to enhance its portfolio’s resilience.

The most recent analyst rating on (AU:COF) stock is a Sell with a A$1.40 price target. To see the full list of analyst forecasts on Centuria Office REIT stock, see the AU:COF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.