Jefferies trims PT on Australia's Centuria Office REIT

Centuria Office REIT

23/10/2023 20:41

** Jefferies cuts price target on Australia's Centuria
Office REIT  COF.AX  to A$1.20 per share from A$1.39 
    ** The real estate investment trust (REIT) says it reaffirms
FY24 distribution guidance of 12.0 AU cents per unit 
    ** Brokerage sees valuation declines for COF over the next
12 months with company needing to address material lease
expiries over FY25 
    ** Flags that gearing ratio for the company remains too high
above target range, prompting more asset sales; says it should
sell a further A$200 million of assets to reduce gearing 
    ** Broker remains cautious on suburban office markets due to
moderating leasing volumes 
    ** Jefferies retains its "hold" rating on COF
    ** Four of seven analysts rate the stock "buy" or higher, 1
"hold" and 2 "sell"; their median PT is A$1.66 – LSEG data
    ** Stock down ~24.2% YTD, as of last close

 (Reporting by Aaditya Govind Rao)
 ((Aaditya.GovindRao@thomsonreuters.com;))