Centuria Office REIT (COF) AI Stock Analysis

• Market Cap: AU$686.94M
• Dividend Yield: 8.63%
• Average Volume (3M): 859.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -4.50%
• EPS Growth: 88.28%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): <0.01
• Shares Outstanding: 597,336,900
• 10 Day Avg. Volume: 949,986
• 30 Day Avg. Volume: 859,083
• PEG Ratio: 0.39
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 4.40
• P/FCF Ratio: 12.67
• 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: AU$1.61
• Price Target Upside: 40.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: AU$1.00 ▼(-13.04% Downside)

Centuria Office REIT's overall stock score is driven by mixed financial performance and valuation concerns. While the company benefits from strong gross profit margins and a high dividend yield, challenges with profitability and rising leverage are significant risks. Technical indicators suggest neutral momentum, with the stock trading near its moving averages.

Positive Factors

Strong Gross Profit Margins

The strong gross profit margins indicate effective cost management, which is crucial for maintaining profitability and competitive pricing in the long term.

Positive Operating Cash Flows

Positive operating cash flows ensure that the company can meet its short-term liabilities and reinvest in its business, supporting sustainable growth.

High Dividend Yield

A high dividend yield can attract income-focused investors, providing a stable investor base and supporting stock price stability.

Negative Factors

Rising Leverage

Rising leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Negative Net Income

Consistent net losses undermine profitability and can erode shareholder value, impacting the company's ability to sustain operations and growth.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to fund new projects and expansions, potentially hindering long-term growth prospects.

Centuria Office REIT Business Overview & Revenue Model

Company Description

Centuria Office REIT (COF) is a real estate investment trust that primarily focuses on investing in high-quality office properties across Australia. The REIT aims to provide investors with attractive income returns through a diversified portfolio of office assets located in key metropolitan areas. COF's core services include property management, leasing, and strategic property acquisitions, ensuring a strong market presence and sustained growth in the commercial real estate sector.

How the Company Makes Money

Centuria Office REIT generates revenue primarily through rental income from its portfolio of office properties. The company leases its properties to a diverse range of tenants, which provides a steady stream of cash flow. Additionally, COF benefits from potential capital appreciation of its properties, which can enhance overall returns for its investors. The REIT's revenue model is supported by long-term leases that often include rent escalations, ensuring predictable income growth. Strategic partnerships with property managers and real estate professionals also contribute to optimizing property performance and occupancy rates. Furthermore, COF may engage in property acquisitions and developments that align with its investment strategy, further diversifying its revenue streams.

Centuria Office REIT Financial Statement Overview

Summary

Centuria Office REIT shows mixed financial performance. Strong gross profit margins and positive operating cash flows are offset by challenges with profitability and rising leverage. Negative net income and declining free cash flow growth rate raise concerns about financial stability.

Income Statement

Centuria Office REIT has experienced fluctuating revenue growth, with a slight increase in the most recent year. However, the company has faced consistent net losses, leading to negative net profit margins. The gross profit margin remains strong, indicating efficient cost management, but the declining EBIT and EBITDA margins suggest challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased over the years, indicating rising leverage, which could pose financial risks. The return on equity has been negative recently, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains positive, with a strong coverage ratio, indicating good cash generation relative to net income. However, the free cash flow has seen a decline, which could impact future investments. The consistent free cash flow to net income ratio of 1.0 suggests that all net income is being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	153.90M	153.53M	161.58M	167.28M	167.02M	161.81M
Gross Profit	142.69M	142.69M	99.08M	106.56M	109.12M	109.10M
EBITDA	36.98M	28.89M	88.35M	107.22M	134.30M	111.43M
Net Income	-19.78M	-19.78M	-168.75M	-91.93M	115.02M	76.94M
Balance Sheet
Total Assets	1.95B	1.95B	1.98B	2.31B	2.41B	2.07B
Cash, Cash Equivalents and Short-Term Investments	8.50M	8.50M	17.50M	17.29M	26.56M	15.64M
Total Debt	901.52M	901.52M	857.03M	926.12M	861.10M	733.46M
Total Liabilities	955.05M	955.05M	901.93M	994.67M	918.27M	793.87M
Stockholders Equity	995.81M	995.81M	1.08B	1.32B	1.49B	1.27B
Cash Flow
Free Cash Flow	52.80M	53.27M	63.79M	71.65M	95.31M	103.97M
Operating Cash Flow	52.80M	53.27M	63.79M	71.65M	95.31M	103.97M
Investing Cash Flow	-40.71M	-40.71M	81.21M	-54.53M	-317.89M	14.14M
Financing Cash Flow	-19.17M	-21.55M	-144.91M	-26.39M	233.50M	-131.27M

Centuria Office REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COF, the sentiment is Neutral. The current price of 1.15 is above the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.17, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:COF.

Centuria Office REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXI	70 Outperform	AU$878.84M	10.44	7.99%	6.09%	-8.67%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GDI	63 Neutral	AU$350.88M	9.85	5.37%	7.69%	17.85%	―
ABG	57 Neutral	AU$1.11B	41.20	1.70%	7.11%	4.69%	―
CMW	54 Neutral	AU$1.28B	-21.88	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$686.94M	-34.14	-1.91%	8.63%	-4.50%	88.28%
AOF	53 Neutral	AU$63.29M	-1.80	-23.55%	15.14%	-68.24%	42.03%

Centuria Office REIT Corporate Events

Centuria Office REIT Announces New Dividend Distribution

Centuria Office REIT announced a new dividend distribution of AUD 0.02525 per ordinary unit, scheduled for payment on January 30, 2026. This distribution, covering the quarter ending December 31, 2025, reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the real estate investment sector.

Centuria Office REIT Achieves Significant Leasing Milestone in Q1 FY26

Centuria Office REIT has announced a significant quarterly leasing achievement with over 23,400 sqm of lease terms agreed, addressing key upcoming expiries and solidifying its portfolio’s WALE. The company remains optimistic about the medium-term performance of Australian office markets, driven by reduced future supply due to higher replacement costs and office withdrawals for alternate uses. COF’s portfolio occupancy stands at 91.1% with a 4.1-year WALE, and it has reaffirmed its FY26 FFO and distribution guidance, highlighting its resilience and adaptability in a challenging market.

Centuria Office REIT Releases Corporate Governance Statement for FY2025

Centuria Office REIT has released its corporate governance statement for the financial year ending June 30, 2025, which has been approved by its board. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, demonstrating its commitment to transparency and accountability in its operations. This announcement is significant for stakeholders as it reaffirms the company’s dedication to maintaining high governance standards, potentially enhancing investor confidence and market positioning.

Centuria Office REIT Reports Strong FY25 Performance with High-Quality Asset Portfolio

Centuria Office REIT’s annual report highlights a strong performance in FY25, with significant tenant demand for its prime assets, which are strategically located near key transport nodes. The portfolio consists of 19 assets with an average asset size of approximately $100 million, and it maintains a high quality with 93% A-grade assets. The REIT’s market positioning benefits from affordable rent profiles compared to Sydney CBD, and it has a weighted average capitalization rate of 6.89%, indicating robust financial health and potential for stable returns for stakeholders.