Centuria Office REIT (COF) AI Stock Analysis

• Market Cap: AU$734.72M
• Dividend Yield: 8.18%
• Average Volume (3M): 996.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -9.52%
• EPS Growth: 47.94%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Office
• EPS (TTM): -0.04
• Shares Outstanding: 597,336,900
• 10 Day Avg. Volume: 686,609
• 30 Day Avg. Volume: 996,078
• PEG Ratio: -0.18
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.20
• 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: -4.88% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: AU$1.00 ▼(-18.70%Downside)

The overall stock score of 54.5 reflects significant financial challenges, including declining revenue and profitability, despite a stable balance sheet. While the technical analysis indicates a neutral trend, the high dividend yield provides some appeal. However, the negative P/E ratio highlights the company's current unprofitability, necessitating strategic improvements for long-term viability.

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 leasing of its portfolio of office properties. The company generates revenue by collecting rental income from tenants occupying its office spaces. This rental income forms the core revenue stream and is supplemented by lease incentives and recoveries, such as service charges and property management fees. The trust seeks to maximize occupancy rates and rental yields to enhance profitability. Additionally, COF may engage in property acquisitions and disposals to optimize its portfolio, aiming to increase asset value and returns. Strategic partnerships and joint ventures with other real estate entities can also contribute to earnings by expanding investment opportunities and sharing resources.

Centuria Office REIT Financial Statement Overview

Summary

Centuria Office REIT faces significant challenges, as reflected in declining revenue, profitability, and cash flow. Despite a stable balance sheet with moderate leverage, the company needs to address its net losses and improve operational efficiency. Revenue stability and stronger cost management are critical for future financial health. The company's ability to maintain positive free cash flow offers some reassurance, but strategic improvements are necessary to ensure long-term viability.

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

Centuria Office REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.23 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.19, and above the 200-day MA of 1.14, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 92.96 is Negative, 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
GDI	70 Outperform	AU$365.46M	17.22	3.21%	7.35%	20.75%	307.22%
DXI	64 Neutral	AU$878.84M	16.83	4.90%	5.92%	-10.26%	―
Sector *	64 Neutral	$6.88B	17.50	-1.92%	7.08%	4.62%	-25.61%
COF	55 Neutral	AU$734.72M	―	-8.21%	8.18%	-9.52%	47.94%
CMW	54 Neutral	AU$1.03B	―	-12.54%	7.59%	-52.49%	47.09%
ABG	54 Neutral	AU$1.06B	―	-6.24%	7.14%	―	―
AOF	53 Neutral	AU$74.79M	―	-26.33%	12.53%	-7.19%	-94.37%

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.