Centuria Office REIT (ASX:COF)
has upgraded its financial year 2022 guidance after one of its clients renewed its lease for another three years in Queensland. The renewal, alongside other agreed leases, increased the building’s occupancy to 100 per cent.
Centuria's client Concentrix renewed its lease at 35 Robina Town Centre Drive, Robina Queensland. Due to the Concentrix renewal, and other leasing outcomes, the real estate investment trust's guidance has increased from 18 cents per unit to 18.3 cents per unit. Centuria Office REIT reiterates its FY22 distribution guidance of 16.6 cents per unit, which represents a current distribution yield of 7.1 per cent.
"COF continues to generate solid leasing momentum across its portfolio, with tenants attracted to its high quality, highly connected and affordable accommodation. Tenants are increasingly gravitating towards relatively new, efficient and sustainable buildings that provide quality internal and surrounding amenities, characteristics that are typical of the COF portfolio," said fund manager Grant Nichols.
“We continue to see strong transactional activity across Australian office markets, demonstrating robust investment demand for quality commercial assets."
Shares in Centuria Office REIT (ASX:COF)
are trading 1.3 per cent lower at $2.32.