Centuria Office REIT provided funds from operations (FFO) guidance above Morgans expectations, largely due to the Foxtel lease surrender payment landing in the first half.
DPS guidance is unchanged at 16.5 cents.
Despite acknowledging near-term leasing risk, the broker notes a -19% discount to net tangible assets (NTA) and a very attractive yield.
The Add rating is unchanged and the target rises to $2.31 from $2.29.
Sector: Real Estate.
Target price is $2.31.Current Price is $1.98. Difference: $0.33 – (brackets indicate current price is over target). If COF meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
