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Centuria Office REIT Profits Surge As Demand Increases Despite Lockdowns (Business News Australia)

February 4, 2022 – Despite outbreak of COVID-19 encouraging more office workers to work from home, Centuria Office REIT (ASX: COF) has reported a net profit of $63.6 million for HY22, reflecting a 66 per cent surge compared to the same time last year ($21.5 million).

Although revenue dropped by 4.2 per cent year-on-year ($90.8 million versus $94.8 million), the office fund noted the corresponding period strongly benefited from Foxtel’s surrender payment of 35 Robina Town.

COF had no setbacks in keeping tenants, and occupancy actually increased by 94.3 per cent – a slight jump of 1.2 per year-on-year.

According to the Property Council of Australia’s Office Market Report, tenant demand has lifted an average one per cent across the country’s CBDs, and 0.7 per cent in non-CBD markets.

“COF delivered a strong performance throughout the first half of the 2022 Financial Year providing an upgraded FY22 FFO guidance of 18.3cpu and a reaffirmed FY22 distribution guidance of 16.6cpu, reflecting a 7.4 per cent yield, paid in equal quarterly instalments,” says COF fund manager and Centuria head of office Grant Nichols.

“This pleasing outcome reflects a combination of strong operating metrics and continued leasing momentum across the portfolio. The result has been further illustrated by COF’s strong average rent collection of 97.8 per cent and more than 18,600sqm of leases agreed, representing 6.3 per cent of COF’s portfolio NLA.”

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