portrait shot grant nichols centuria office reit
Image – Centuria.
  • Valuations on 14 of 22 properties up $16.3M
  • $405 million in debt refinanced
  • COF currently trading around $2.40

The market opened this morning at 7,308 but sharply dropped, and at the time of publishing is trading at 7,289.90.

Centuria Office REIT (ASX: COF) was one of the first pieces of news this morning for ASX listed real estate companies.

Announcing the latest valuations, the company has seen a steady rise in security prices since January this year.

graph centuria office reit price over 5 years
Image – Google.

While prices are yet to recover to pre-pandemic levels, the company made back losses late last year where prices fell from just under $2.30 late last year to $1.95 in January this year.

UPDATE: The share price has since moved upward, peaking at $2.47 late in trading, before closing at $2.43, a five-cent premium on the previous close.

Valuations

Following the external valuations of 14 of 22 properties, Centuria Office REIT reported valuations increased by $16.3 million.

Increases are “due to positive leasing outcomes and some capitalisation rate compression.”

“COF’s $2.0 billion portfolio now has a weighted average capitalisation of 5.81%. Valuation uplift equates to a 3 cent per unit increase in net tangible assets.”

Grant Nichols, COF fund manager, said the company is confident about the office sector going forward.

“Transactional activity through 2021 demonstrated strong investment demand and confidence in the Australian office market. This was particularly evident in metropolitan markets, with investors attracted to the relative affordability and quality tenants these markets can attract.”

Grant Nichols, COF fund manager

Debt refinancing

Centuria Office REIT has now completed $405 million of debt refinancing.

“The debt refinancing increased the REIT’s weighted average debt maturity from 2.3 years to 4.3 years, with no debt expiring until June 2024.”

“The new debt facilities terms include debt covenants of a 50% loan to value ratio and 2.0x interest cover ratio, which are the same as the existing debt facilities.”

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