Jefferies cuts PT on Centuria Office REIT, sees higher debt costs in H2

Centuria Office REIT

02/08/2022 22:15

** Jefferies cuts price target on Australian property
investor Centuria Office REIT  COF.AX  to A$1.77 from A$1.88;
maintains "hold" rating
    ** COF dropped as much as 10.2% on Tuesday after posting
funds from operations (FFO) of A$104.9 million, or 18.2
Australian cents per unit, for FY22  urn:newsml:reuters.com:*:nASX1Q1kzH
    ** Brokerage says FY22 FFO result was a miss of 0.9% to its
estimates on account of higher debt costs in second half
    ** Adds that COF has elevated vacancies and large lease
expiries to address in FY23 in a tough market with cost of debt
increasing materially, hence resulting in FY23 guidance below
Jefferies' estimates
    ** We see modest upside to FY23 guidance from conservative
debt cost assumptions, partially offset by leasing/occupance
risk - Jefferies
    ** Four of nine analysts rate the stock "buy" or higher,
three "hold" and two "sell" or lower; their median PT is A$1.95
– Refinitiv data
    ** Stock has fallen 27.4% this year

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))