Australia’s Centuria Office REIT grows FFO by 39% in FY20 and other APAC REIT news

ASX-listed Centuria Office REIT (COF) recorded a 39.5% year-on-year increase in funds from operations (FFO) to A$85.4m for the year ending June 2020, according to its earnings.

Net profit fell 56% YOY to A$23.1m for the 2020 financial year, while distribution per unit rose slightly to 17.8 cents per share. 

The REIT, which owns 23 office assets across Australia, said its occupancy rate was 98.1%, with 79% of total income coming from government, listed and multinational tenants.

“The COF portfolio delivered solid results throughout FY20, which included the challenging COVID-19 affected trading period,” said COF fund manager Grant Nichols.

“Its performance can be credited to assets underpinned by high quality tenants and positioned in metropolitan and near-city locations that provide excellent connectivity – easy commutes for workers – while delivering affordable rent levels. The assets’ location and affordability resonate well with tenants at a time when operating costs are scrutinised and workforces’ preferences show a trend towards working closer to home.” (Read more)

COF shares closed 6.56% higher at A$1.95.

IndexChangeValue at close
S&P/ASX 200 A-REIT-0.53%1,229.40
S&P/ASX 200
-0.60%6,001.30
FTSE ST REITS +0.41%846.83
STI+0.68% 2,532.69
Tokyo Stock Exchange REIT
+0.49%1,695.17
Nikkei 225
-0.26% 22,514.85
Hang Seng REIT +0.24%5,473.37
Hang Seng+0.62%25,102.54

Australia: Centuria Industrial REIT posts 27% rise in FFO for FY20

Centuria Industrial REIT (CIP) grew funds from operations (FFO) by 27% to A$63.5m during the 2020 financial year, while net profit fell 15% to A$75.3m. 

The trust set its distribution per unit at 18.7 cents per share, in line with its FY20 guidance. 

CIP also announced the acquisition of the Telstra data centre in Melbourne via a sale-leaseback deal for A$416.7m, as well as two industrial assets in NSW and Victoria for A$30.4m. 

“Throughout FY20, industrial assets have continued to demonstrate their resilience, particularly against the backdrop of COVID-19,” said CIP fund manager Jesse Curtis. 

“The rising trend of e-commerce, particularly for non-discretionary items, such as groceries and pharmaceuticals, is driving leasing demand along with manufacturing and packaging. CIP benefits from 52% of its tenancy base belonging to production, packaging and distribution of consumer staples and pharmaceutical sectors.” (Read more)

CIP shares finished trading flat at A$3.31.

Singapore: ARA US Hospitality Trust posts US$2m loss in 1H 2020

ARA US Hospitality Trust (XZL) reported a US$2m loss in net property income during the first half of 2020, leaving the hotel S-REIT with no distributable income for the period.

Gross revenue tumbled 58.4% to US$39.3m for the six months to end-June, compared to its forecast, with no distribution per unit set for the period. 

“ARA H-Trust’s 1H 2020 financial results reflect the adverse impact on our hotel portfolio arising from lockdowns and travel restrictions amidst the COVID-19 pandemic,” said Lee Jin Yong, CEO of the managers. 

“In the near term, the velocity of recovery will be difficult to determine. However, as hotel demand gradually recovers, we believe that trends will favor value-priced, transient guest-oriented, compact hotels located in drive-to markets such as our portfolio.” (Read more)

The REIT’s shares closed 1.49% lower at S$0.66.

Learn more about Asia Pacific REITs:

REITS in AustraliaREITs in Thailand
REITs in JapanREITs in Taiwan
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REITs in Hong KongREITs in New Zealand
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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.