Centuria Office REIT (COF) AI Stock Analysis

• Market Cap: AU$600.32M
• Dividend Yield: 8.63%
• Average Volume (3M): 859.08K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.63
• Revenue Growth: -4.50%
• EPS Growth: 88.28%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.10
• 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$1.17
• Price Target Upside: 17.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): AU$137.57M

• Rating: 53 Neutral
• Price Target: AU$1.00 ▲(0.00% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Stable rental income model

Centuria’s revenue base is primarily contractual rental income with rent-review mechanisms and tenant recoveries. That recurring cash flow profile provides predictability for distributions, underwrites property-level upkeep and supports long-term portfolio management despite cyclical office demand.

Strong gross profit margins

Reported strong gross profit margins create an enduring buffer against operating cost volatility. High gross margins help preserve distributable cash through leasing cycles, fund maintenance and refurbishments, and give management flexibility to execute active asset management to protect portfolio value over the medium term.

Positive operating cash flow conversion

Operating cash flow remains positive and converts net income to free cash flow at a consistent 1.0 ratio, indicating tangible cash generation despite accounting losses. Reliable operating cash supports debt servicing, maintenance capex and distributions without immediate dependence on asset sales, aiding medium-term stability.

Negative Factors

Rising leverage

An increasing debt-to-equity ratio raises financial risk by adding interest expense sensitivity and reducing balance sheet flexibility for acquisitions or downturns. Higher leverage heightens refinancing and covenant risk, constraining capital allocation and making the REIT more vulnerable to rate or occupancy shocks over time.

Consistent net losses

Sustained net losses and negative profit margins erode equity and limit internally generated funds for growth or capital improvements. Over months this can force reliance on external financing or asset sales to sustain distributions, weakening financial flexibility and complicating long-term portfolio investment plans.

Declining margins and FCF growth

Declining EBIT/EBITDA margins and slowing free cash flow growth indicate operational efficiency pressures. Reduced margin and cash growth diminishes capacity to invest in tenant retention and building upgrades, risks compressing yields, and makes recovery dependent on successful lease-up and cost control initiatives.

Centuria Office REIT Business Overview & Revenue Model

Company Description

COF 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 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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	157.84M	153.53M	161.58M	167.28M	167.02M	161.81M
Gross Profit	145.31M	142.69M	99.08M	106.56M	109.12M	109.10M
EBITDA	96.02M	28.89M	88.35M	107.22M	134.30M	111.43M
Net Income	62.96M	-19.78M	-168.75M	-91.93M	115.02M	76.94M
Balance Sheet
Total Assets	2.00B	1.95B	1.98B	2.31B	2.41B	2.07B
Cash, Cash Equivalents and Short-Term Investments	11.20M	8.50M	17.50M	17.29M	26.56M	15.64M
Total Debt	968.14M	901.52M	857.03M	926.12M	861.10M	733.46M
Total Liabilities	976.69M	955.05M	901.93M	994.67M	918.27M	793.87M
Stockholders Equity	1.03B	995.81M	1.08B	1.32B	1.49B	1.27B
Cash Flow
Free Cash Flow	43.92M	53.27M	63.79M	71.65M	95.31M	103.97M
Operating Cash Flow	43.92M	53.27M	63.79M	71.65M	95.31M	103.97M
Investing Cash Flow	-49.73M	-40.71M	81.21M	-54.53M	-317.89M	14.14M
Financing Cash Flow	-2.33M	-21.55M	-144.91M	-26.39M	233.50M	-131.27M

Centuria Office REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 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 Negative. The current price of 1 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.08, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$818.56M	11.09	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$340.09M	9.52	5.37%	7.69%	17.85%	―
ABG	57 Neutral	AU$965.15M	12.03	1.70%	7.11%	4.69%	―
CMW	54 Neutral	AU$1.17B	10.93	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$600.32M	9.54	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$59.18M	-4.95	-23.55%	15.14%	-68.24%	42.03%

Centuria Office REIT Corporate Events

Centuria Office REIT Details National Office Portfolio in HY26 Property Compendium

Centuria Office REIT has released its HY26 property compendium, detailing a geographically diversified portfolio of office assets across New South Wales, Victoria, Queensland, the Australian Capital Territory, Western Australia and South Australia. The document highlights key properties such as 8 Central Avenue in Eveleigh, several office buildings in St Leonards, Docklands, South Melbourne, Fortitude Valley, Canberra, Perth and Adelaide, underscoring the REIT’s strategic focus on maintaining a broad national footprint in core office markets, which is central to its positioning and income generation for investors.

The most recent analyst rating on (AU:COF) stock is a Hold with a A$1.03 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 Swings to Profit as Revenue Jumps, Keeps Distributions Steady

Centuria Office REIT reported a 56.4% jump in total revenue and other income to $118.4 million for the half-year to 31 December 2025, while funds from operations slipped 3.7% to $33.4 million. The REIT swung to a net profit attributable to members of $61.5 million from a $21.2 million loss a year earlier, with net tangible assets steady at $1.72 per security and total NTA edging up to $1.03 billion. COF declared quarterly distributions of 2.525 cents per unit for the June, September and December 2025 quarters, each totaling about $15.1 million, funded entirely from domestic income, while keeping its Distribution Reinvestment Plan suspended. The results, reviewed without modification by auditors, signal improved headline profitability despite softer underlying operating cash flows, and confirm the REIT’s intention to maintain stable cash payouts to unitholders.

The most recent analyst rating on (AU:COF) stock is a Hold with a A$1.03 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 Sets Date for HY26 Results Release and Investor Webcast

Centuria Office REIT has announced it will release its half-year 2026 financial results for the period ending 31 December 2025 on 4 February 2026, followed by a management briefing webcast later that morning. The release and accompanying investor presentation, to be lodged with the ASX before the briefing and subsequently available as a recording on the company’s website, will provide stakeholders with updated insight into the REIT’s performance and outlook at a time when office-market dynamics remain closely watched by investors.

The most recent analyst rating on (AU:COF) stock is a Sell with a A$1.05 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 Sells Chatswood Asset at 12.5% Premium

Centuria Office REIT (COF) has finalized an unconditional contract to sell the Chatswood office property at 9 Help Street, NSW, for $90 million, representing a 12.5% premium to book value. This divestment reflects a positive shift in domestic office market sentiment and supports COF’s strategy to enhance its portfolio quality and strengthen its balance sheet. The sale, which provided COF unitholders with a 109% capital uplift since listing, is anticipated to settle by June 2026, with proceeds allocated for debt repayment, positioning the company for further financial stability.

The most recent analyst rating on (AU:COF) stock is a Buy with a A$1.61 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 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.

The most recent analyst rating on (AU:COF) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on Centuria Office REIT stock, see the AU:COF Stock Forecast page.