Centuria Office REIT

Good morning. Thank you for joining Centuria Office REIT's full year 2026 results presentation. My name is Grant Nicholls, Head of Listed Funds for Centuria Capital. Presenting with me today is Belinda Cheung, Centuria Office REIT Fund Manager, and Cameron Mullen, COF Deputy Fund Manager. Starting on slide three, I would like to commence today's presentation with an acknowledgement of country. We are joining you from the lands of the Gadigal people of the Eora Nation. Venturia manages property throughout Australia and New Zealand and pays its respects to the traditional owners in each country, to their unique culture and to their elders past and present. The past year has demonstrated improved momentum across Australia's office markets with increased leasing activity, positive rental growth and signs of asset value stabilisation. This is occurring amid constrained future supply and the ongoing repurposing of office spaces for alternate use particularly in metropolitan markets. As a result, there is a positive outlook for stronger occupancy and rental growth in the markets COF is exposed to. COF's FY26 performance reflects this positive momentum and in today's presentation, Belinda and Cameron will cover an overview of COF's performance, COF's financial results, operational performance and conclude with a market overview and guidance. Moving to slide four, Centuria Office REIT is managed by Centuria Capital Group, which has over $22 billion of assets under management. DOF unit holders continue to benefit from Centuria's deep real estate expertise, including a fully integrated property, facilities, and asset management platform, synergies across the group's broader office real estate portfolio, and strong alignments as Centuria is COF's largest unit holder and the manager's interests are strongly aligned with yours as unit holders. Turning to slide six, COF's vision and strategy remains unchanged. We aspire to be Australia's leading pure-plate Office REIT. We are focused on generating sustainable and quality income streams and executing initiatives to create value across our portfolio of high-quality office assets that offer leading sustainability, amenity, and connectivity. The results the team present today reflect the execution of this strategy, supported by the deep real estate capability of the broader Centuria team. I will now pass over to Belinda.

Thank you, Grant, and good morning, everyone. Let me begin on slide seven. FY26 was an important year for COF. While office markets continue to recover at different speeds across the country, We believe many of the foundations for future growth are now firmly in place. Throughout the year, our focus remained on three priorities. Preserving incomes through leasing, strengthening the balance sheet, and positioning the portfolio to benefit from improving market conditions. I'm pleased to report the successful execution and outcomes across these priorities. During FY26, TOF delivered funds from operations, or FFO, of 11.2 cents per unit and distributions of 10.1 cents per unit, both in line with guidance. TOF completed almost 40,000 square metres of leasing, representing 14.5% of portfolio NLA, one of the strongest leasing years in its history. This activity addressed a significant portion of expiries, preserved portfolio occupancy, and captured positive rental reversion across a number of assets. From a capital management perspective, we refinanced $1 billion of debt, reduced margins, extended debt expiry, and completed the sale of 9 Help Street at a 12.5% premium to book value using the proceeds to repay debt. These initiatives improved financial flexibility while supporting portfolio quality and reduced hearings. COF reported stabilizing valuations which have been underpinned by sustained rental growth across the portfolio and improving leasing conditions in a number of our markets. These outcomes provide encouraging evidence that office market fundamentals are improving and that COF is well positioned for FY27. Turning to the guidance on slide eight. For FY27, we provide FFO guidance of 11.3 cents per unit. and distribution guidance of $0.09 per unit. The FY27 distribution represents an 80% payout ratio. We believe this is an appropriate setting in the current environment, retaining additional flexibility to support leasing initiatives, manage capital prudently, and position the REIT for future growth. This outlook reflects several factors. First, the disposal of 9 Help Street. We believe this transaction was the right capital management outcome, given the premium achieved and the strategic benefits delivered to the portfolio. Secondly, guidance incorporates conservative assumptions for existing vacancy and lease expiries. Improving leasing conditions are supporting activity across the portfolio, although tenant decision-making and lease commencement timing still remain key variables. We continue to make good progress on a number of negotiations across the portfolio. And finally, we expect the positive rental growth achieved across recent leasing activity to support the income growth over FY27. Slide 9. Throughout FY26, we have seen increasing evidence that conditions across many Australian office markets are improving. A key driver of this improvement is the supply outlook. Future office supply remains heavily constrained by elevated construction costs and development feasibility challenges. In all domestic markets, economic rents sit materially above market rents, and importantly, the gap continues to widen, and this is expected to constrain future supply for the foreseeable future. We expect this gap in rents to be a key catalyst for future rental growth. At the same time, demand is increasingly focused on high-quality existing office stock that offers strong amenity, sustainability credentials, and transport accessibility. The COF portfolio provides all this, but at a significantly lower cost compared to an equivalent new development. As tenants seek quality space without paying new construction premiums, we expect existing assets like those within the COF portfolio to be increasingly attractive. I will now hand over to Cameron to take you through the financial results and portfolio overview.

Thank you, Belle. Moving to our financial results on slide 11. COF delivered funds from operations of $66.9 million or 11.2 cents per unit. Net property income decreased primarily due to asset divestments executed during the year and higher portfolio vacancy. Finance costs increased by $2.5 million to $48.7 million over the full year. The average all-in cost of debt incurred for FY26 was 5.2%. COF declared and paid distributions of 10.1 cents per year across the period in quarterly installments, representing a payout ratio of 90.1%. Slide 12 details COF's capital management. As Belinda mentioned, during the period, COF completed a $1 billion loan refinance with existing lenders. resulting in beneficial outcomes such as extended debt duration to 4.3 years and a reduction in margins by circa 30 basis points. COF maintains sufficient liquidity and debt covenant headroom with no debt expiring until FY29. At June 30, 2026, COF remained 76% hedged, providing a defensive position to rising rates and support earnings stability from further rate-driven volatility. COF settled the divestment of Ninehelm Street Chathood in June for a gross price of $90 million. The net proceeds of the transaction were used to repay debt, reducing gearing to 43.7%. The interest cover ratio for 30 June 2026 was two times, and the loan-to-value ratio was 44.8%, providing comfortable headroom to our covenant requirements of 1.75 times and 60%. Turning to COF's portfolio on slide 14. COF's portfolio comprises young, quality assets positioned in Australian metropolitan and near city office markets. COF's portfolio of 18 assets is truly diversified with no single state exposure greater than 26%. Importantly, the portfolio is underpinned by the quality tenants boasting over 74% of the portfolio income derived from government, multinational corporations and listed entities. The quality of our tenant base demonstrates the portfolio's appeal with 65% of tenants being large corporates occupying tenancies greater than 2,000 square meters. Moving to slide 15. Leasing was a key highlight for FY26 with almost 40,000 square meters leased across 47 transactions representing 14.5% of the portfolio. We secured over 17,000 square metres of new leasing and approximately 23,000 square metres of renewals, contributing to positive portfolio re-leasing spreads of 5%. Notable outcomes included extending a major government tenant at 8 Central Avenue for a further five years over more than 7,700 square metres and securing a new seven-year commitment from a parent communications in the same property. executing two full-full leases at 203 Pacific Highway to drive.com.au and NextDC, taking that asset to 100% occupancy. In Queensland, we completed five new leases and one renewal at 825 Anne Street, achieving average releasing spreads of 18%. These results demonstrate the continued appeal of our assets to both corporate and government occupiers and the benefits of our active asset management approach. Turning to our lease expiry profile on slide 16, COF remains well positioned with only 4.7% of portfolio income expiring in FY27, providing strong medium term income visibility. Importantly, these expiries are currently around 6% under rented relative to market, creating an opportunity to capture positive rental reversion as leasing occurs. Achieving high portfolio occupancy remains a key management focus supported by a well-staggered lease expiry profile and improving leasing conditions across our markets, we are actively pursuing opportunities to further enhance portfolio occupancy and extend income visibility through proactive tenant engagement, targeted leasing initiatives, and asset strategies tailored to local market conditions. I will now hand back to Belle to take you through the valuation summary for the period.