FY21 results for Centuria Office REIT were in-line with guidance, as was the FY21 DPS of 16.5c (83% payout ratio). Guidance was for funds from operations (FFO) of 18c and DPS of 16.5c, which implies to Morgans a distribution yield of 6.8%, paid quarterly.
At June, the weighted average lease expiry (WALE) across the portfolio was 4.3 years and occupancy 93.1%. The analyst notes FY22 and FY23 lease expiries are 7.2% and 13.4%.
Morgans adjust its FY22 FFO to be in-line with guidance, with upside likely, dependent on some leasing outcomes, particularly at Robina Town Centre. The broker retains its Hold rating and edges up its price target to $2.50 from $2.49.
Sector: Real Estate.
Target price is $2.50.Current Price is $2.45. Difference: $0.05 – (brackets indicate current price is over target). If COF meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
