Centuria Office REIT (COF) AI Stock Analysis

• Market Cap: AU$740.70M
• Dividend Yield: 8.14%
• Average Volume (3M): 750.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -9.52%
• EPS Growth: 47.94%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Office
• EPS (TTM): -0.15
• Shares Outstanding: 597,336,900
• 10 Day Avg. Volume: 860,950
• 30 Day Avg. Volume: 750,558
• PEG Ratio: 0.05
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.42
• 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$1.14
• Price Target Upside: -9.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• 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 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 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
151.94M	161.58M	167.28M	167.02M	161.81M	146.42M
	Gross Profit
92.43M	99.08M	106.56M	109.12M	109.10M	98.78M
	EBIT
92.43M	88.35M	107.22M	120.41M	111.43M	89.83M
	EBITDA
63.16M	88.35M	107.22M	134.30M	111.43M	90.23M
	Net Income Common Stockholders
-90.56M	-168.75M	-91.93M	115.02M	76.94M	23.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.39M	17.50M	17.29M	26.56M	15.64M	28.81M
	Total Assets
1.95B	1.98B	2.31B	2.41B	2.07B	2.12B
	Total Debt
879.09M	857.03M	926.12M	861.10M	733.46M	779.09M
	Net Debt
859.75M	839.54M	908.84M	834.54M	717.82M	750.28M
	Total Liabilities
922.44M	901.93M	994.67M	918.27M	793.87M	836.31M
	Stockholders Equity
1.02B	1.08B	1.32B	1.49B	1.27B	1.28B
Cash Flow		Free Cash Flow
58.27M	63.79M	71.65M	95.31M	103.97M	82.99M
	Operating Cash Flow
58.27M	63.79M	71.65M	95.31M	103.97M	82.99M
	Investing Cash Flow
59.27M	81.21M	-54.53M	-317.89M	14.14M	-689.01M
	Financing Cash Flow
-118.09M	-144.91M	-26.39M	233.50M	-131.27M	617.28M

Centuria Office REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
COF	53 Neutral	AU$740.70M	―	-8.21%	8.14%	-9.52%	47.94%
DEXSF		$4.85B	―	-9.22%	5.89%	―	―
GPTGF		$6.06B	―	-1.94%	4.67%	―	―
MQV		€1.32B	12.83	6.37%	6.66%	―	―
CIP	69 Neutral	AU$1.99B	20.23	3.99%	5.19%	4.34%	―
GOZ	61 Neutral	AU$1.89B	―	-10.45%	8.96%	2.70%	-8.39%

Centuria Office REIT Corporate Events

Centuria Office REIT Declares June 2025 Distribution

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

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

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.