The FFO was 11.2¢ per security, up 16 per cent from the previous corresponding period.
COF is diversified across many Australian office markets, that focuses on the larger suburban markets across the country and has no exposure to Sydney’s CBD, which displays the weakest domestic tenant demand.
During the first half the fund secured 31 leasing transactions across 28,306 sq m, equating to 9.3 per cent of its portfolio.
More than 10,790 sq m related to new tenants across 17 separate deals. Centuria Office reinstated a full-year FFO guidance range of 19.4-19.9¢ and reiterates the 2021 full year distribution guidance of 16.5¢.
Grant Nichols, COF fund manager, said, while working from home is still topical, “we understand many workers want to be back in an office environment but not endure time-consuming daily commutes, which compromise their work-life balance”.
“Equally, many businesses, especially those affected by the pandemic, are conscious of cashflow and are actively seeking more affordable rents,” Mr Nichols said.
He added that throughout the first half of the 2021 financial year there was a significant number of comparable office transactions that showed yields have held at pre-pandemic levels or in some instances, contracted.
“This illustrates strong investor demand for the types of assets COF owns, but also a disconnect between direct market transactions and where listed markets are pricing office REITs, especially for those Trusts whose assets are outside of CBDs,” he said.
COF’s ASX-listed shares rose by 2.8 per cent to $2.005 at 11am AEDT on Thursday.