Q4 2026 Centuria Office REIT Earnings Call

August 4, 2026

Speaker #1: Thank you for standing by, and welcome to the Centuria Office Suite FY26 results call. All participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session.

Operator: Thank you for standing by and welcome to the Centuria Office REIT FY26 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Grant Nichols, Head of Listed Funds for Centuria Capital. Please go ahead.

Operator: Thank you for standing by and welcome to the Centuria Office REIT FY 2026 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Grant Nichols, Head of Listed Funds for Centuria Capital. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Grant Nichols, Head of Listed Funds for Centuria Capital.

Speaker #1: Please go ahead.

Speaker #2: Good morning. Thank you for joining the Centuria Office Suites Q1 2026 results presentation. My name is Grant Nichols, Head of Listed Funds for Centuria Capital.

Grant Nichols: Good morning. Thank you for joining Centuria Office REIT's full year 2026 results presentation. My name is Grant Nichols, 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 acknowledgment of country. We are joining you from the lands of the Gadigal people of the Eora Nation. Centuria 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 stabilization.

Speaker #2: Presenting with me today is Belinda Cheung, Centuria Office REIT Fund Manager, and Cameron Mullen, COF Deputy Fund Manager. Starting on slide 3, I would like to commence today's presentation with an Acknowledgment of Country.

Speaker #2: We are joining you from the lands of the Gadigal people of the Eora Nation. Centuria manages property throughout Australia and New Zealand, and pays its respects to the traditional owners in each country, to their unique cultures, and to their elders past and present.

Speaker #2: The past year has demonstrated improved momentum across Australia's office markets, with increased leasing activity, positive rental growth, and signs of asset value stabilization. This is occurring amid constrained future supply and the ongoing repurposing of office spaces for alternate use—particularly in metropolitan markets.

Grant Nichols: 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 AUD 22 billion of assets under management. COF unitholders 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 alignment as Centuria is COF's largest unitholder, and the manager's interests are strongly aligned with yours as unitholders.

Grant Nichols: 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 FY 2026 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 AUD 22 billion of assets under management. COF unitholders 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 alignment as Centuria is COF's largest unitholder, and the manager's interests are strongly aligned with yours as unitholders.

Speaker #2: 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.

Speaker #2: Moving to Slide 4, Centuria Office REIT is managed by Centuria Capital Group, which has over $22 billion of assets under management. COF 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 alignment, as Centuria is COF's largest unit holder and the manager's interests are strongly aligned with yours as unit holders.

Speaker #2: Turning to slide 6, COF's vision and strategy remain unchanged. We aspire to be Australia's leading pure-play office suite. 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.

Grant Nichols: Turning to slide six. COF's vision and strategy remains unchanged.

Grant Nichols: Turning to slide six. COF's vision and strategy remains unchanged. We aspire to be Australia's leading pure-play 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.

Grant Nichols: We aspire to be Australia's leading pure-play 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.

Speaker #2: The results of the team presented today reflect the execution of this strategy, supported by the deep real estate capability of the broader Centuria team.

Speaker #2: I will now pass over to Belinda.

Speaker #3: Thank you, Grant, and good morning, everyone. Let me begin on slide 7. 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.

Belinda Cheung: 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 income through leasing, strengthening the balance sheet, and positioning the portfolio to benefit from improving market conditions. I am pleased to report the successful execution and outcomes across these priorities. During FY26, COF delivered funds from operations or FFO of AUD 0.112 per unit and distributions of AUD 0.101 per unit, both in line with guidance. COF completed almost 40,000 square meters of leasing, representing 14.5% of portfolio NLA, one of the strongest leasing years in its history.

Belinda Cheung: 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 income through leasing, strengthening the balance sheet, and positioning the portfolio to benefit from improving market conditions. I am pleased to report the successful execution and outcomes across these priorities. During FY 2026, COF delivered funds from operations or FFO of AUD 0.112 per unit and distributions of AUD 0.101 per unit, both in line with guidance. COF completed almost 40,000 sq m of leasing, representing 14.5% of portfolio NLA, one of the strongest leasing years in its history.

Speaker #3: Throughout the year, our focus remained on three priorities: preserving income through leasing, strengthening the balance sheet, and positioning the portfolio to benefit from improving market conditions.

Speaker #3: I'm pleased to report the successful execution and outcomes across these priorities. During FY26, COF 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.

Speaker #3: COF completed almost 40,000 square meters 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.

Belinda Cheung: 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 AUD 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 gearing. 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 AUD 0.113 per unit and distribution guidance of AUD 0.09 per unit. The FY27 distribution represents an 80% payout ratio.

Speaker #3: 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.

Speaker #3: These initiatives improved financial flexibility while supporting portfolio quality and reducing gearing. 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.

Speaker #3: 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 8.

Speaker #3: For FY27, we provide FFO guidance of 11.3 cents per unit and distribution guidance of 9 cents 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.

Belinda Cheung: 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. Finally, we expect the positive rental growth achieved across recent leasing activity to support the income growth over FY27. To slide nine. Throughout FY26, we have seen increasing evidence that conditions across many Australian office markets are improving.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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 income growth over FY27.

Speaker #3: On 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.

Belinda Cheung: 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. 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: Thank you, Belinda. Moving to our financial results on slide 11, COF delivered funds from operations of $66.9 million, or 11.2 cents per unit.

Cameron Mullen: Thank you, Bel. Moving to our financial results on slide 11. COF delivered funds from operations of AUD 66.9 million, or AUD 0.112 per unit. Net property income decreased primarily due to asset divestments executed during the year and higher portfolio vacancy. Finance costs increased by AUD 2.5 million to AUD 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 AUD 0.101 per unit 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 an AUD 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.

Speaker #2: Net property income decreased primarily due to asset divestments executed during the year and higher portfolio vacancy. Finance cost increased by $2.5 million to $48.7 million over the full year.

Speaker #2: The average all-in cost of debt incurred for FY26 was 5.2%. COF declared and paid distributions of 10.1 cents per unit across the period in quarterly installments, representing a payout ratio of 90.1%.

Speaker #2: 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.

Speaker #2: COF maintained sufficient liquidity and debt covenant headroom, with no debt expiring until FY29. At June 30, 2026, COF remained 76% hedged, providing a defensive position against rising rates and supporting earnings stability from further rate-driven volatility.

Cameron Mullen: At 30 June 2026, COF remained 76% hedged, providing a defensive position to rising rates and support earning stability from further rate-driven volatility. COF settled the divestment of 9 Help Street, Chatswood in June for a gross price of AUD 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 portfolio income derived from government, multinational corporations, and listed entities.

Speaker #2: COF settled the divestment of 9 Help Street, Chatswood 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%.

Speaker #2: The interest cover ratio for 30 June 2026 was 2.0 times, and the loan-to-value ratio was 44.8%, providing comfortable headroom to our covenant requirements of 1.75 times and 60%, respectively.

Speaker #2: 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%.

Speaker #2: Importantly, the portfolio is underpinned by quality tenants, with over 74% of 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 metres.

Cameron Mullen: 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 meters of new leasing and approximately 23,000 square meters 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 meters, and securing a new seven-year commitment from Apparent Communications in the same property. Executing two full leases at 203 Pacific Highway to Drive.com.au and Next PC, taking that asset to 100% occupancy. In Queensland, we completed five new leases and one renewal at 825 Ann Street, achieving average re-leasing spreads of 18%.

Speaker #2: Moving to slide 15. Leasing was a key highlight for FY26, with almost 40,000 square metres leased across 47 transactions, representing 14.5% of the portfolio.

Speaker #2: We secured over 17,000 square meters of new leasing and approximately 23,000 square meters 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 meters, and securing a new seven-year commitment from a parent communications company in the same property.

Speaker #2: We executed two full-floor leases at 203 Pacific Highway to drive.com.au and NextTC, taking that asset to 100% occupancy. In Queensland, we completed five new leases and one renewal at 825 Ann Street, achieving average re-leasing spreads of 18%.

Speaker #2: 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.

Cameron Mullen: 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 Bel to take you through the valuation summary for the period.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: I will now hand back to Belle to take you through the valuation summary for the period.

Speaker #3: Thank you, Ken. Now turning to valuation outcomes on slide 17. It is encouraging to note FY26 was the second consecutive year of positive valuation movements and provides evidence of continued stabilization.

Belinda Cheung: Thank you, Ken. Now turning to valuation outcomes on slide 17. It is encouraging to note FY26 was the second consecutive year of positive valuation movements and provides evidence of continued stabilization. At AUD 1.8 billion, the portfolio has an average valuation of about AUD 6,900 per square meter. Again, valuations improved despite a further increase in capitalization rates. The portfolio weighted average cap rate expanded to 7.04% during the year. However, this expansion was more than offset by underlying rental growth. Value has adopted average market rental growth of 4.4% across the portfolio, reflecting improving fundamentals and increasing rental tension across a number of our markets. The positive leasing outcomes delivered during FY26 translated into valuation gains across a number of assets, particularly at 8 Central Avenue, 100 Brookes Street, and 825 Ann Street.

Speaker #3: At $1.8 billion, the portfolio has an average valuation of about $6,900 per square meter. Again, valuations improved despite a further increase in capitalization rates.

Speaker #3: The portfolio weighted average cap rate expanded to 7.04% during the year; however, this expansion was more than offset by underlying rental growth. Valuers adopted average market rental growth of 4.4% across the portfolio, reflecting improving fundamentals and increasing rental tension across a number of our markets.

Speaker #3: The positive leasing outcomes delivered during FY26 translated into valuation gains across a number of assets, particularly at 8 Central Avenue, 100 Brook Street, and 825 Ann Street.

Speaker #3: Taken together, these results provide us with further confidence that rental growth is beginning to offset valuation pressure from capital markets and is contributing to a more stable outlook for the portfolio.

Belinda Cheung: Taken together, these results provide us with further confidence that rental growth is beginning to offset valuation pressure from capital markets and is contributing to a more stable outlook for the portfolio. Turning to slide 18. Despite the portfolio's improving fundamentals, we believe COF continues to trade at a significant discount to underlying asset values. At AUD 15,500 per square meter, the estimated replacement cost of a modern metropolitan office building is two times the current value of COF's portfolio and almost three times the implied valuation based on the current trading price. This disconnect is also reflected in capitalization rates. There is a 230 basis point spread between COF's weighted average cap rate and the implied cap rate of approximately 9.4%. These are difficult to reconcile with the improving leasing conditions, rent growth, and stabilizing valuations we have reported today.

Speaker #3: Turning to Slide 18. Despite the portfolio's improving fundamentals, we believe COF continues to trade at a significant discount to underlying asset values. At $15,500 per square meter, the estimated replacement cost of a modern metropolitan office building is two times the current value of COF's portfolio, and almost three times the implied valuation based on the current trading price.

Speaker #3: This disconnect is also reflected in capitalization rates. There is a 230 basis point spread between COF's weighted average cap rate and the implied cap rate of approximately 9.4%.

Speaker #3: These are difficult to reconcile with the improving leasing conditions, rent growth, and stabilizing valuations we have reported today. We believe this disconnect presents a compelling value proposition within the COF portfolio for long-term investors.

Belinda Cheung: We believe this disconnect presents a compelling value proposition within the COF portfolio for long-term investors. Moving to slide 19. The sale of 9 Help Street demonstrates COF's disciplined approach to capital management and portfolio optimization. The asset was sold at a 12.5% premium to book value and delivered a 12.3% IRR over our ownership period. Beyond reducing gearing and providing direct market evidence, this transaction is one of a number of strategic divestments we have executed over time that have resulted in improved portfolio quality. While divestments can address gearing, it can also impact earnings. This has been one of the factors contributing to COF's FFO history. As a result, we remain disciplined in assessing opportunities to transact where pricing, portfolio outcomes, and capital management objectives are appropriately aligned. Now turning to sustainability on slide 20. Sustainability outcomes are increasingly supporting leasing outcomes.

Speaker #3: Moving to slide 19. The sale of 9 Help Street demonstrates COF's disciplined approach to capital management and portfolio optimization. The asset was sold at a 12.5% premium to book value and delivered a 12.3% IRR over our ownership period.

Speaker #3: Beyond reducing gearing and providing direct market evidence, this transaction is one of a number of strategic divestments we have executed over time that have resulted in improved portfolio quality.

Speaker #3: While divestments can address gearing, they can also impact earnings. This has been one of the factors contributing to COF's FFO history. As a result, we remain disciplined in assessing opportunities, transacting where pricing, portfolio outcomes, and capital management objectives are appropriately aligned.

Speaker #3: Now turning to sustainability on slide 20. Sustainability outcomes are increasingly supporting leasing outcomes. We continue to see corporate and government occupiers place greater emphasis on electrified, energy-efficient buildings that align with their own decarbonization pathways.

Belinda Cheung: We continue to see corporate and government occupiers place greater emphasis on electrified, energy-efficient buildings that align with their own decarbonization pathways. We are on track towards COF's target of zero scope 2 emissions by 2028, supported by 1.6 megawatts of solar installed across our assets. More than half of the portfolio is now electrified, and pleasingly, much of the progress achieved to date has come from relatively low-cost initiatives. COF's strong sustainability credentials, including a 5.1 star NABERS SPI rating, tenant engagements, and community partnerships continue to deliver positive outcomes for key stakeholders, not only improving environmental performance, but also enhancing the quality, resilience, and long-term appeal of the portfolio. We maintain a positive outlook for Australian office markets for the reasons detailed on slide 22.

Speaker #3: We are on track towards COF’s target of zero Scope 2 emissions by 2028, supported by 1.6 megawatts of solar installed across our assets. More than half of the portfolio is now electrified and, pleasingly, much of the progress achieved to date has come from relatively low-cost initiatives.

Speaker #3: COF's strong sustainability credentials, including a 5.1 Star NABERS SPI rating, tenant engagement, and community partnerships, continue to deliver positive outcomes for key stakeholders—not only improving environmental performance, but also enhancing the quality, resilience, and long-term appeal of the portfolio.

Speaker #3: We maintain a positive outlook for Australian office markets for the reasons detailed on slide 22. Australia continues to benefit from strong population growth, expanding white-collar employment, and a comparatively resilient economic trajectory, providing a supportive backdrop for long-term office demand.

Belinda Cheung: Australia continues to benefit from strong population growth, expanding white-collar employment, and a comparatively resilient economic trajectory, providing a supportive backdrop for long-term office demand. At the same time, future office supply remains highly constrained. Inflated construction costs and a tight labor market has severely impacted feasible developments in metropolitan markets, giving way to continued rental growth for prime assets. Obsolescence-led office withdrawals are expected to further accelerate this trend. We also believe AI will reinforce demand for quality office space. While AI may disrupt some roles, history shows productivity gains ultimately support economic growth, business formation, and higher value work. As judgment, leadership, and collaboration become increasingly important, we expect demand to continue concentrating in well-located, sustainable, and amenity-rich buildings. Together, these trends are likely to further widen the bifurcation between high-quality and low-quality office assets, positioning COF's portfolio well for the years ahead.

Speaker #3: At the same time, future office supply remains highly constrained. Inflated construction costs and a tight labor market have severely impacted feasible developments in metropolitan markets, giving way to continued rental growth for prime assets.

Speaker #3: Obsolescence-led office withdrawals are expected to further accelerate this trend. We also believe AI will reinforce demand for quality office space. While AI may disrupt some roles, history shows that productivity gains ultimately support economic growth.

Speaker #3: Business formation and higher-value work. As judgment, leadership, and collaboration become increasingly important, we expect demand to continue concentrating in well-located, sustainable, and amenity-rich buildings.

Speaker #3: Together, these trends are likely to further widen the bifurcation between high-quality and low-quality office assets, positioning COF's portfolio well for the years ahead. COF's FY26 priorities are outlined on slide 23.

Belinda Cheung: COF's FY26 priorities are outlined on slide 23. Our focus remains simple. Execute leasing transactions to promote sustainable earnings, maintain a high quality portfolio, and preserve balance sheet flexibility so that COF is well-positioned to capture the opportunities emerging across domestic office markets. Closing on slide 24. For FY27, COF is providing FFO guidance of AUD 0.113 per unit and distribution guidance of AUD 0.09 per unit. While market conditions continue to improve, our focus remains on execution and generating sustainable income growth and long-term value for unit holders. Thank you for your continued interest in Centuria Office REIT. We look forward to updating you on our progress throughout FY27. I will now hand back to the operator and welcome questions you may have.

Speaker #3: Our focus remains simple: execute leasing transactions to promote sustainable earnings, maintain a high-quality portfolio, and preserve balance sheet flexibility so that COF is well positioned to capture the opportunities emerging across domestic office markets.

Speaker #3: Closing on slide 24: For FY27, COF is providing FFO guidance of 11.3 cents per unit and distribution guidance of 9 cents per unit. While market conditions continue to improve, our focus remains on execution and generating sustainable income growth and long-term value for unitholders.

Speaker #3: Thank you for your continued interest in Centuria Office REIT. We look forward to updating you on our progress throughout FY27. I will now hand back to the operator and welcome any questions you may have.

Speaker #2: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. In the interest of time, we ask that you please limit to two questions per person. Your first question comes from Lauren Berry with Morgan Stanley. Please go ahead.

Speaker #2: If you are on a speakerphone, please pick up the handset to ask your question. In the interest of time, we ask that you please limit to two questions per person.

Speaker #2: Your first question comes from Lauren Berry with Morgan Stanley. Please go ahead.

Speaker #1: Hi, good morning, guys. I just wanted to start with the decision to set the dividend at 9 cents, or an 80% payout ratio. Looking at the last couple of years, you've been paying out well over 100%, and it looks like you're implied to pay out over 100% in FY27 as well.

Lauren Berry: Hey, good morning, guys. I just wanted to start with the decision to set the dividend at AUD 0.09 or 80% payout ratio. Looking at the last couple of years, you've been paying out well over 100%, and it looks like you're implied to pay out over 100% in FY27 as well. Why not cut the dividend to 100% payout ratio or less to give you more flexibility on the incentive side? I'm just wondering why you want to keep it over 100% payout.

Speaker #1: Why not cut the dividend to a 100% payout ratio or less to give you more flexibility on the incentive side? I'm just wondering why you want to keep it at over a 100% payout.

Speaker #3: Hi Lauren, thanks for your question. At 80%, we believe this strikes the right balance between the current income and the long-term value creation for the fund.

Belinda Cheung: Hi, Lauren. Thanks for your question. At 80%, we believe this strikes the right balance between the current income and the long-term value creation for the fund. We have previously mentioned that 8% is our long-term payout aspiration. I think just given where this year has gone and how stable the portfolio is now, I think it is a very sustainable payout ratio to maintain.

Speaker #3: We have previously mentioned that 80% is our long-term payout aspiration. And I think, just given where this year has gone and how stable the portfolio is now, it is a very sustainable payout ratio to maintain.

Speaker #1: You're happy to pay out over AFFO going forward?

Lauren Berry: You're happy to pay out over AFFO going forward?

Speaker #3: AFFO is something that we don't typically guide to, and we haven't in the past. One of the main reasons why is because things like CapEx and leasing incentives can be quite lumpy, and it really depends on when major deals will be done.

Belinda Cheung: AFFO is something that we don't typically guide to, and we haven't in the past. One of the main reasons why is because things like CapEx and leasing incentives can be quite lumpy, and it really depends on when major deals will be done. For us, looking into FY27, we don't actually see too much expiries. We've got 4.7% of expiries coming up in FY27. I think it's a relatively sustainable measure to use this year.

Speaker #3: For us, looking into FY27, we don't actually see too much expiry. We've got 4.7% of expiries coming up in FY27, so I think it's a relatively sustainable measure to use this year.

Speaker #1: Okay, this year, but in FY28 you've got a significant amount of expiry coming up. If you do see incentives increasing a lot into FY28 because of the volume of expiry, could we expect the payout ratio to be cut further to account for that?

Lauren Berry: Okay. This year. In FY28, you've got a significant amount of expiry coming up. If you do see incentives increasing a lot into FY28 because of the volume of expiry, could we expect the payout ratio to be cut further to account for that?

Speaker #3: It's very difficult for us to provide distribution guidance for 2028 at this point in time, given that you still have quite a while to go until then.

Belinda Cheung: It's very difficult for us to provide distribution guidance to 2028 at this point in time, given that we still have quite a while to go until then. We will provide the market with more updates then. I think the way we're thinking about it is 80% is a through cycle distribution payout ratio we think is sustainable.

Speaker #3: So we will provide the market with more updates then. I think the way we're thinking about it is, 80% is a through-cycle distribution payout ratio we think is sustainable.

Speaker #1: Okay, great. Thanks.

Lauren Berry: Okay, great. Thanks.

Speaker #3: Thanks.

Belinda Cheung: Thanks.

Speaker #2: Thank you. Your next question comes from Andrew Dodds with Jefferies. Please go ahead.

Operator: Thank you. Your next question comes from Andrew Dodds with Jefferies. Please go ahead.

Speaker #4: Oh, hey, good morning, guys. Just one from me. It looks like you've got 154 Melbourne Street in the accounts. This helps sell. I'd just be interested to hear sort of how you're thinking about this potentially factoring into guidance.

Andrew Dodds: Good morning, guys. Just one from me. It looks like you have got 154 Melbourne Street in the accounts as held for sale. I would just be interested to hear how you are thinking about this potentially factoring into guidance and I guess some of the other building blocks into 2027 guidance that you are happy to call out at this stage.

Speaker #4: And I guess some of the other building blocks into '27 guidance that you're happy to call out at this stage.

Belinda Cheung: It is listed as held for sale at the moment, but it has got very little impact on FY2027's outlook, Andrew. At this point in time, I would not put too much weight on that.

Speaker #3: We're—it's listed as held for sale at the moment, but we have factored it's got very little impact on FY27's outlook, Andrew. So, at this point in time, I wouldn't put too much weight on that.

Speaker #4: Right. And just any of the other sort of building blocks for '27 guidance that you can call out?

Andrew Dodds: Right. Just any of the other sort of building blocks for 2027 guidance that you can call out?

Speaker #3: Yeah, definitely. So, on our FY27 guidance side, we would have pointed out that the key contributors to FY27's guidance are due to the divestment of Nine Health, Spirit, and Chatswood.

Belinda Cheung: Definitely. On our FY2027 guidance slide, we would have pointed out that the key contributors to FY2027's guidance is due to the divestment of 9 Help Street, Chatswood. We also have like-for-like property income growth. Also because of the refinancing that we did during the year and because of the sale of 9 Help Street, we have got slightly reduced debt costs that are contributing to a pretty stable outlook on FY2027 earnings.

Speaker #3: We also have, like-for-like property income growth, and also, because of the refinancing that we did during the year and the sale of Nine Health Street, we've got slightly reduced debt costs that are contributing to a pretty stable outlook on FY27 earnings.

Speaker #4: Okay. Thank you.

Andrew Dodds: Okay. Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you. Your next question comes from Cody Shield with UBS. Please go ahead.

Belinda Cheung: Thank you.

Operator: Thank you. Your next question comes from Cody Shields with UBS. Please go ahead.

Speaker #4: Morning, Graham, Blender, and Cameron. Thanks for the time. Just want to pick up on Dodds' question there. Just on 154 Melbourne—just trying to get my head around how that's not going to impact the 27 number.

Cody Shields: Morning, Grant, Belinda, and Cameron. Thanks for the time. Just want to pick up on Doddy's question there. Just on 154 Melbourne. Just trying to get my head around how that's not going to impact the 2027 number. You've got the benefit from the debt refi of about 30 basis points. Can you provide any color on the yield you're expecting on settlement for that asset?

Cody Shield: Morning, Grant, Belinda, and Cameron. Thanks for the time. Just want to pick up on Doddy's question there. Just on 154 Melbourne. Just trying to get my head around how that's not going to impact the 2027 number. You've got the benefit from the debt refi of about 30 basis points. Can you provide any color on the yield you're expecting on settlement for that asset?

Speaker #4: I mean, you've got the benefit from the debt refi of about 30 basis points. Can you provide any color on the yield you're expecting on settlement for that asset?

Speaker #3: Yeah, Cody. So the impact that we're expecting is, if we sell an asset, depending on when during the year, that will have a bigger impact.

Belinda Cheung: Cody, the impact that we're expecting is if we sell an asset, depending on when or during the year, that will have a bigger impact. If you sell earlier, it'll potentially have a bigger impact on FFO. We're not expecting anything in H1. At the same time, if you're looking at the passing yield for the building and interest cost, it's almost offset. I'd say the impact on the overall earnings for COF is very immaterial.

Speaker #3: If you sell earlier, it'll potentially have a bigger impact on FFO. We're not expecting anything in the first half. At the same time, if you're looking at the passing yield for the building and interest cost, it's almost offset.

Speaker #3: So, I'd say that the impact on the overall earnings for cost is very immaterial.

Speaker #4: Okay. Is there anything else going on at the MPI line that we need to be aware of? For example, property expense growth may be a little bit higher than you'd anticipated.

Cody Shields: Okay. Is there anything else going on with the NPI line that we need to be aware of? Like for example, property expense growth may be a little bit higher than you'd anticipated.

Cody Shield: Okay. Is there anything else going on with the NPI line that we need to be aware of? Like for example, property expense growth may be a little bit higher than you'd anticipated.

Belinda Cheung: Nothing that's too far out of the ordinary. I think the key driver for the net income is we've got positive leasing spreads, coupled with all the other leases on foot, has about 3.5% rent review put through it. It's a combination of these things.

Speaker #3: Nothing that's too far out of the ordinary. I think the key driver for the net income is we've got positive leasing spreads, coupled with all the other leases on foot, which have about a 3.5% rent review put through them.

Speaker #3: So, it's a combination of these things.

Speaker #4: Okay, sure. Maybe just on divestment activity from here. I mean, how are you thinking about the potential of selling some other assets? I mean, maybe across Brisbane or Canberra, some of those assets with 27 expiry.

Cody Shields: Okay, sure. Maybe just on divestment activity from here. How are you thinking about the potential of selling some other assets, maybe across Brisbane or Canberra, some of those assets with 2027 expiry?

Cody Shield: Okay, sure. Maybe just on divestment activity from here. How are you thinking about the potential of selling some other assets, maybe across Brisbane or Canberra, some of those assets with 2027 expiry?

Speaker #3: I mean, we usually get the best outcome selling assets if we can sell an asset that's a little bit better leased. That's definitely an outcome that we'd like to achieve.

Belinda Cheung: We usually get the best outcome selling assets if we can sell an asset that's a little bit better leased. That's definitely an outcome that we'd like to achieve. I'm not opposed to doing divestments across the portfolio, and I think 9 Help Street is good evidence of that. Over the last few years, we have sold a number of assets, obviously we need to balance the outlook on earnings as well as gearing. We are prioritizing gearing. I think we can extract a bit more value out of the existing portfolio before we execute any further sales. All I'm saying is we'll take a very measured approach. If we receive unsolicited offers that are worth considering, we'll definitely take it to the board for consideration.

Speaker #3: I'm not opposed to doing divestments across the portfolio, and I think Nine Health Street is good evidence of that. Over the last few years, we have sold a number of assets, but obviously we need to balance the outlook on earnings as well as gearing.

Speaker #3: We are prioritizing gearing, but I think we can extract a bit more value out of the existing portfolio before we execute any further sales.

Speaker #3: All I'm saying is we'll take a very measured approach. If we receive unsolicited offers that are worth considering, we'll definitely take it to the Board for consideration.

Speaker #4: Okay, got it. Thanks for your time.

Cody Shields: Okay, got it. Thanks for the time.

Cody Shield: Okay, got it. Thanks for the time.

Speaker #3: Thank you.

Belinda Cheung: Thank you.

Speaker #2: Thank you. Your next question comes from Tom Bodor with Jarden. Please go ahead.

Operator: Thank you. Your next question comes from Tom Boulden with Jarden. Please go ahead.

Speaker #5: Morning, Belinda, Grant, and Cameron. Just picking up on one of the answers to Lauren's question around maintenance capex and incentives. You mentioned that that can be quite lumpy, but looking at the last two years, they've been almost identical: maintenance capex, $7.1 million; incentives, between $10 million and $11 million.

Tom Boulden: Morning, Belinda, Grant, and Cameron. Just picking up on one of the answers to Lauren's question around maintenance CapEx and incentives. You mentioned that they can be quite lumpy, looking the last two years have been almost identical at maintenance CapEx at AUD 7.1, incentives between AUD 10 and 11. Where do you forecast these line items in FY27 on the basis of the leasing you've got today?

Tom Bodor: Morning, Belinda, Grant, and Cameron. Just picking up on one of the answers to Lauren's question around maintenance CapEx and incentives. You mentioned that they can be quite lumpy, looking the last two years have been almost identical at maintenance CapEx at AUD 7.1, incentives between AUD 10 and 11. Where do you forecast these line items in FY27 on the basis of the leasing you've got today?

Speaker #5: Where do you forecast these line items in '27, on the basis of the leasing you've got today?

Belinda Cheung: Tom, I guess we don't provide any guidance around those two items because it highly depends on the timing and if leasing is done across the remaining expiries. I'd say over the last two years, we have done really high amounts of leasing, which has resulted in higher leasing related CapEx. If there is less leasing done in the next year, I also expect those numbers to be less.

Speaker #3: Tom, I guess we don't provide any guidance around those two items because it highly depends on the timing, and if leasing is done across the remaining expiries.

Speaker #3: But I'd say, over the last two years, we have done really high amounts of leasing, which have resulted in higher leasing-related capex. So, if there is less leasing done in the next year, I also expect those numbers to be less.

Speaker #5: So, is that another way of saying you think it will be less than, say, 10 next year?

Tom Boulden: Is that another way of saying you think they will be less than, say, AUD 10 next year?

Tom Bodor: Is that another way of saying you think they will be less than, say, AUD 10 next year?

Speaker #3: Again, it depends on the leasing that's executed.

Belinda Cheung: Again, it depends on the leasing that's executed.

Speaker #5: Okay, thanks. And then, the other question I had was just around your ICR. At two times, your covenant is around 1.75. Just your level of comfort being that close to your covenant.

Tom Boulden: Okay, thanks. The other question I had was just around your ICR at two times, your covenant has been, is around 1.75. Just your level of comfort being that close to your covenant.

Tom Bodor: Okay, thanks. The other question I had was just around your ICR at two times, your covenant has been, is around 1.75. Just your level of comfort being that close to your covenant.

Speaker #3: Yeah, thanks, Tom. I think at two times, we are still comfortable with that level because there is still headroom to the ICR covenant requirement.

Belinda Cheung: Yeah. Thanks, Tom. I think at two times, we are still comfort with that level, because there is still headroom to the ICR covenant requirement. It's also worth noting that we're projecting earnings to be quite stable from here on, with positive rent reversions that we've seen, just solid leasing spreads. We also expect, I guess, that rental line to look a little bit healthier. As a result of our refinancing, we also expect our interest expense to be lower than where it has been in the past. Further to that, the loan portfolio is pretty highly hedged, so the exposure that we have is relatively minimal.

Speaker #3: It's also worth noting that we're projecting earnings to be quite stable from here on. And with positive rent reversions that we've seen—just solid leasing spreads—we also expect the rental line to look a little bit healthier.

Speaker #3: As a result of our refinancing, we also expect interest expense to be lower than where it has been in the past. Further to that, the loan portfolio is pretty highly hedged.

Speaker #3: So, the exposure that we have is relatively minimal.

Speaker #5: So, you expect that to be higher next year than this year?

Tom Boulden: You expect that to be higher next year than this year?

Tom Bodor: You expect that to be higher next year than this year?

Speaker #3: Yes, I do.

Belinda Cheung: Yes, I do.

Speaker #5: Okay, thanks.

Tom Boulden: Okay, thanks.

Tom Bodor: Okay, thanks.

Speaker #3: Thanks.

Belinda Cheung: Thanks.

Speaker #2: Thank you. Your next question comes from Mari Connolan with Moalis, Australia. Please go ahead.

Operator: Thank you. Your next question comes from Murray Connellan with Moelis Australia. Please go ahead.

Speaker #4: Morning, everyone. Just noting the comments around the under-renting for the FY27 expiries. Would you be able to give any commentary around what your view is on, I guess, the passing rents across the broader portfolio versus market?

Murray Connellan: Morning, everyone. Just noting the comment around the under-renting for the FY27 expiries. Would you be able to give any commentary around what your view is on, I guess, the passing rates across the broader portfolio versus market?

Speaker #3: Hi, Mari. Yeah, most of the leasing that we have to do in FY27 relates to Queensland. At the moment, I think everyone across the board has seen significant rental growth in the Brisbane market.

Belinda Cheung: Hi, Murray. Yeah. Most of the leasing that we have to do in FY27 relates to Queensland. At the moment, I think everyone across the board has seen significant rental growth in the Brisbane market. Most of the under-renting that we've quoted on that slide is in relation to Brisbane.

Speaker #3: So, most of the underrenting that we've quoted on that slide is in relation to Brisbane.

Speaker #4: Got it. And so, across the broader portfolio, do you think it's probably going to be a bit closer to market?

Murray Connellan: Got it. Across the broader portfolio, do you think it's probably going to be a bit closer to market?

Speaker #3: Yeah, it's pretty close to market. I think Cameron's just telling me now that we're about $7 underrented on average across the portfolio.

Belinda Cheung: Yeah, it's pretty close to market. Yeah, I think Cameron's just telling me now that we're about AUD 7 under-rented, on average across the portfolio.

Speaker #4: Got it. Got it, got it. And then, just on the incentives—levels that you've had to do on leasing over the course of the last, let's say, 6 to 12 months—would you be able to give us just a bit of a sense of how, I guess, that percentage number has changed on average versus, let's say, a year ago?

Murray Connellan: Got it.

Belinda Cheung: That's linear.

Murray Connellan: Got it. Just on the incentive levels that you've had to do on leasing over the course of the last, let's say six to 12 months. Would you be able to give us just a bit of a sense on how, I guess that percentage number has changed on average, versus, let's say, a year ago?

Speaker #3: Yeah, definitely. Incentives are pretty stable across the board. Over the last year, or at least from half-year, for new leases, we had average incentives of about 35 to 36 percent.

Belinda Cheung: Yeah. Definitely. Incentives have been pretty stable across the board, over the last year, or at least from half year. For new leases, we had average incentives of about 35% to 36%. For renewals, it was at around 30% to 31%. It's pretty in line, maybe a little bit better than what we reported at the half.

Speaker #3: And for renewals, it was at around 30 to 31 percent, so it's pretty in line—maybe a little bit better than what we reported at the half.

Speaker #4: Got it. Thanks, Belinda.

Murray Connellan: Got it. Thanks, Belinda.

Speaker #3: Sorry.

Belinda Cheung: No worries.

Speaker #2: Thank you. Your next question comes from Michael Armstrong with Bell Potter. Please go ahead.

Operator: Thank you. Your next question comes from Michael Armstrong with Bell Potter. Please go ahead.

Speaker #5: I'll just—on FY27 guidance, is there an all-in, or all-in cost debt or BBSW sort of average figure that you're predicating guidance on?

Michael Armstrong: Hi, all. Just on FY27 guidance. Is there an all-in cost of debt or BBSW sort of average figure that you're predicating guidance on?

Speaker #3: Hi Michael. We haven't disclosed the BBSW look-forward, but we're estimating our all-in cost of debt for FY27 to be 5.1%.

Belinda Cheung: Hi, Michael. We haven't disclosed the BBSW look-forward, but we're estimating our all-in cost of debt for FY27 to be 5.1%.

Speaker #5: Okay, thank you. And then earlier in the presentation, you said that there are some fairly conservative assumptions regarding, sort of, downtime or lease-up of existing vacancies.

Michael Armstrong: Okay. Thank you. Earlier in the presentation, you said that there's some fairly conservative assumptions regarding sort of downtime, or lease up of existing vacancies. Can you share sort of what the downtime assumptions are?

Speaker #5: Can you share, sort of, what the downtime assumptions are?

Speaker #3: Yeah, definitely. For our Melbourne assets, where we have full-floor vacancies, similar to last year, we have assumed no income flowing through. I think we're being quite realistic about the leasing conditions in those particular Melbourne markets.

Belinda Cheung: Yeah, definitely. For our Melbourne assets, where we have full floor vacancies, similar to last year, we have assumed no income flowing through. I think we're being quite realistic about the leasing conditions in those particular Melbourne markets. We have applied the same assumptions this year.

Speaker #3: So, we have applied the same assumptions this year.

Speaker #5: Okay, thank you. And is that the same for Sydney, like the State United's assets?

Michael Armstrong: Okay. Thank you. Is that the same for Sydney, like the St Leonards assets?

Speaker #3: In St. Leonards, yes. Some of these floors are in the process of being repositioned or split for multi-suites, so those may have some better outcomes.

Belinda Cheung: In St Leonards, yes. Some of these floors are meant to being repositioned or split for multi-suites, those may have some better outcomes. At this point in time, our FY27 guidance is relatively conservative.

Speaker #3: But at this point in time, our FY27 guidance is relatively conservative.

Speaker #5: Okay, thank you.

Michael Armstrong: Okay. Thank you.

Speaker #2: Thank you. Once again, if you wish to ask a question, please press star one. Your next question comes from Winky Tan with Morningstar. Please go ahead.

Operator: Thank you. Once again, if you wish to ask a question, please press star one. Your next question comes from Winky Tan with Morningstar. Please go ahead.

Speaker #6: Hi, good morning, Bill. Good morning, team. Just a question about FY26 FFO. It's down slightly from last year, and you mentioned it's because of the divestment that you have done.

Yingqi Tan: Hi, good morning, Bel. Good morning, team. Just a question about FY26 FFO. It's down slightly from last year. You mentioned about, it's because of the divestment that you have done. I know that 9 Help Street was settled in June 2026. You also have slightly higher vacancy. That would be offset by 4% rent growth that you have achieved in the past year. Was just wondering how you've pumped it at FFO. Could you just give a bit of comment on that? Thanks.

Winky Tan: Hi, good morning, Bel. Good morning, team. Just a question about FY26 FFO. It's down slightly from last year. You mentioned about, it's because of the divestment that you have done. I know that 9 Help Street was settled in June 2026. You also have slightly higher vacancy. That would be offset by 4% rent growth that you have achieved in the past year. Was just wondering how you've pumped it at FFO. Could you just give a bit of comment on that? Thanks.

Speaker #6: But I know that Nine Help Street was settled in June 2026, and then you also have slightly higher vacancy. But that would be offset by the 4% rent growth that you have achieved in the past year.

Speaker #6: Just wondering how you've punctured that FFO. Could you just give a bit of comments on that? Thanks.

Speaker #3: Yeah, definitely, Winky. So I guess the simplest way to think about it is, the portfolio on average—if you think about the average vacancy or average occupancy during the year—we had carried more average vacancy in FY26 than we did in FY25.

Belinda Cheung: Yeah, definitely, Winky. I guess the simplest way to think about it is the portfolio on average, like if you think about the average Vacancy or average occupancy during the year, we had carried more average vacancy in FY26 than we did in FY25. That's the easiest way to explain the slight drop in NPI.

Speaker #3: That's the easiest way to explain the slight drop in FFO.

Speaker #6: Right. And also about your cost of debt, which is down from 5.4% to 5.2%. But it seems like the market rate has gone up by at least 50 basis points.

Yingqi Tan: Right. Also about your cost of debt, which is down from 5.4% to 5.2%. It seems like the market rate has gone up about at least 50 basis points. I know that you've reduced your debt margins by about 30 bps. Just wondering how that has come down, and was it solely because of hedging?

Winky Tan: Right. Also about your cost of debt, which is down from 5.4% to 5.2%. It seems like the market rate has gone up about at least 50 basis points. I know that you've reduced your debt margins by about 30 bps. Just wondering how that has come down, and was it solely because of hedging?

Speaker #6: And I know that you've reduced your debt margins by about 30 bps, but just wondering how that has come down. And was it solely because of hedging?

Speaker #3: That's right. It's because we have high amounts of hedging put in place.

Belinda Cheung: That's right. It's because we have high amounts of hedging put in place.

Speaker #6: All right, great. Thanks.

Yingqi Tan: All right, great. Thanks.

Winky Tan: All right, great. Thanks.

Speaker #3: Thank you.

Belinda Cheung: Thank you.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Ms. Cheung for closing remarks.

Operator: Thank you. There are no further questions at this time. I'll now hand back to Ms. Cheung for closing remarks.

Speaker #3: Once again, thank you for your interest in Centuria Office REIT. If you have any follow-up questions, please contact Tim Mitchell or me. Thank you, and have a lovely day.

Belinda Cheung: Once again, thank you for your interest in Centuria Office REIT. If you have any follow-up questions, please contact Tim Mitchell or myself. Thank you, and have a lovely day.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.