CENTURIA OFFICE REIT — Interim / Quarterly Report 2021

Feb 3, 2021

HY21 RESULTS

ASX:COF

4 Feb 2021

Centuria Office REIT

C E N T U R I A O F F I C E R E I T

A S X : C O F

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NISHI, 2 PHILLIP LAW STREET, CANBERRA, ACT

A QUALITY PORTFOLIO OF HIGHLY CONNECTED AND AFFORDABLE OFFICE SPACE WITHOUT SINGLE MARKET CONCENTRATION

COF: NISHI, 2 PHILIP LAW STREET, CANBERRA, ACT

Agenda

1. Overview

COF: 54 MARCUS CLARKE STREET, CANBERRA, ACT

COF: 60 MARCUS CLARKE STREET, CANBERRA, ACT

1. Financial Results

2. Portfolio Metrics

3. Market Overview & Guidance

4. Appendices

C E N T U R I A O F F I C E R E I T A S X : C O F

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COF CANBERRA PORTFOLIO

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A PORTFOLIO
WITHOUT SINGLE
MARKET
CONCENTRATION
SECTION ONE
Overview
ASX:COF
C E N T U R I A O F F I C E R E I T A S X : C O F 3
42-46 COLINS STREET, WEST PERTH, WA
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CNI: ASX300-listed funds manager positioned for growth

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Market capitalisation [1] of $1.6bn
Included in the S&P/ASX300 Index
bn GROUP AUM
$10.2
LISTED REAL ESTATE UNLISTED REAL ESTATE INVESTMENT
BONDS
$4.8bn $4.5bn $0.9bn
Unlisted
Centuria Life
Centuria Centuria Asset Plus Ltd NZ single NZ Industrial Centuria Centuria Centuria Centuria
Office REITASX: COF Industrial REITASX: CIP NZX: APL asset funds & APF Fund Office FundsFixed Term CDPF Real EstateHealthcare CHPF Investment BondsCenturia
$2.1bn $2.4bn $0.3bn $1.4bn $0.4bn $1.6bn $0.2bn $0.8bn $0.1bn Friendly SocietyGuardian
OP E N E N D E D FU N D OP E N E N D E D FU N D OP E N E N D E D FU N D
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Note: All figures above are in Australian dollars (currency exchange ratio of AU1.000:NZ$1.0705). Numbers presented may not add up precisely to the totals provided due to rounding 1. Based on CNI closing price at 31 December 2020

C E N T U R I A C A P I T A L G R O U P A S X : C N I

4

COF is aligned to a highly experienced real estate funds manager

STRONG TRACK RECORD

Managing real estate funds for over 20 years

HANDS ON MANAGEMENT

In house property and facilities management with deep leasing and capital transaction capability

SUBSTANTIAL COMMERCIAL PROPERTY PLATFORM

$9.3bn AUM property platform provides economies of scale that flow through to COF

CENTURIA CAPITAL GROUP (ASX: CNI)

CENTURIA OFFICE REIT (ASX: COF)

COMPLEMENTS CENTURIA CAPABILITY

$2.0bn of office AUM, representing ~21% Centuria’s portfolio

AN ENABLING EQUITY PARTNER

CNI managed vehicles co-own three COF assets

CO-INVESTMENT ALIGNMENT CNI co-investment of 19.9%[1] is COF’s largest investor

C E N T U R I A O F F I C E R E I T A S X : C O F 5

1. Includes ownership by associates of Centuria Capital Group

Key metrics – Australia’s largest pure play office REIT

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P O R T F O L I O F I N A N C I A L
23 $2.0bn 19.4-19.9cpu 8.5% 16.5cpu 7.4%
High quality Portfolio value FY21 FFO Forecast FY21 FY21 DPU Six-month TSR [4]
assets guidance [2] DPU yield [3] guidance
91.5% 4.5yrs 96.7% 33.2% $175.7m 7.6x
Portfolio occupancy [1] Portfolio WALE [1] Average rent Gearing [6,7,8] Undrawn debt [7,8] Interest Cover Ratio [8]
collections [5] Covenant of 2x
July to December 2020
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1. By gross income

2. Guidance remains subject to unforeseen circumstances and material changes in operating conditions

3. Based on COF closing price of $1.95 per unit on 3 February 2021

4. Total Securityholder Return (TSR) equals the change in security price during the period, plus distributions declared

5. As COVID-19 impacts and the National Code of Conduct on Commercial Leases remain active, it is possible that further rent relief claims could be received for the July 2020 to December 2020 period

6. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill

7. Undrawn capacity excludes a $1.5m bank guarantee held as security over the 46 Colin Street, West Perth WA ground lease

8. Adjusted to include the proceeds from the sale of 465 Victoria Avenue, Chatswood, NSW

C E N T U R I A O F F I C E R E I T

A S X : C O F

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HY21 Summary

• 23 high quality office assets with an average building age of 16.4 years

• Sale of 465 Victoria Avenue, Chatswood, NSW for $44.7m[1]

Portfolio construction

1

• Balanced geographic diversification with exposure to Australia’s best performing office markets

• Strong tenant covenants with Australian Federal and State Governments representing c. 25% gross income

• HY21 distributions delivered in line with guidance

• FY21 distribution guidance equates to a forecast DPU yield of 8.5%[2]

Active management

2

• Leases agreed[1] for over 28,306 sqm , representing 9.3% of the portfolio’s NLA

• 91.5% occupancy[3,4] , 80% of income derived from multinational, ASX and government tenants

• WALE[3,4] of 4.5 years

• Debt sourced from five separate quality lenders

• Ample debt headroom of $175.7m[6]

3

Capital management

1. Settlement 1 February 2021

2. Based on COF closing price of $1.95 per unit on 3 February 2021

3. Includes Heads of Agreement

4. Low all in cost of debt of 2.3%[6]

5. Gearing reducing to 33.2%[5,6]

6. Interest cover ratio 7.6x (covenant of 2.0x)[6]

7. By gross income

8. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill

9. Adjusted to include the proceeds from the sale of 465 Victoria Avenue, Chatswood, NSW

825 ANN STREET, FORTITUDE VALLEY QLD

C E N T U R I A O F F I C E R E I T

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COF provides quality, highly connected and affordable office space

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Balanced geographic Connectivity with key Access to recreational Average COF exposed market rents
diversification without transport nodes & amenity, essential retail building age average a significant
single market reduced commute time & hospitality is c.16 years discount to Sydney CBD
concentration
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555 CORONATION DRIVE, TOOWONG, QLD
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235 WILLIAM STREET, NORTHBRIDGE, WA
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60 MARCUS CLARKE STREET, CANBERRA, ACT
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C E N T U R I A O F F I C E R E I T A S X : C O F

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CONNECTIVITY TO KEY TRANSPORT

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SECTION TWO

Financial Results

ASX:COF

A S X : C O F

C E N T U R I A O F F I C E R E I T

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201 PACIFIC HIGHWAY, ST LEONARDS, NSW

Funds from operations (FFO)

REVENUE		HY21	HY20	VARIANCE
Gross property income	$m	94.5	67.4	27.1
Interest income	$m	0.0	0.1	(0.1)
Total revenue	$m	94.5	67.5	27.0
EXPENSES
Direct property expenses	$m	(17.5)	(14.7)	(2.8)
Responsible entity fees	$m	(5.9)	(4.1)	(1.8)
Finance costs	$m	(9.2)	(8.7)	(0.5)
Management and other administrative expenses	$m	(3.0)	(1.0)	(2.0)
Expected credit loss and rental waiver expense	$m	(1.2)	0.0	(1.2)
Total expenses	$m	(36.8)	(28.5)	(8.3)
Funds from operations (FFO)	$m	57.7	39.0	18.7
Weighted average securities on issue	m	514.5	404.7	109.8
Funds from operation per unit1	cpu	11.2	9.6	1.6
Distributions	$m	42.4	38.7	3.7
Distribution per unit	cpu	8.3	8.9	(0.7)
Distribution yield2	%	7.7	6.1	1.6
Net tangible assets per unit3	$	2.45	2.57	(0.12)
Return on equity4	%	2.0	11.2	(9.2)
Payout ratio (% of FFO)	%	73.6	92.3	(18.7)

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Increase predominantly
driven by growth in
portfolio value and Foxtel
surrender payment
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FFO impact of
COVID-19 (0.6) cpu
Distributions per unit
(DPU) in line with FY21
guidance
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16.5
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Full Year DPU
Guidance
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19.4-19.9
Full Year FFO
Guidance [5]
2 KENDALL STREET, WILLIAMS LANDING, VIC
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1. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adju sted for certain non-cash and other items

2. Based on COF current full year guidance divided by closing price ($2.14 per unit as at 31 December 2020 and $2.07 per unit as at 31 December 2019)

3. NTA per unit is calculated as net assets less goodwill divided by total assets less cash and goodwill

4. Return on equity calculated as (closing NTA minus opening NTA plus distributions) divided by opening NTA

5. Guidance remains subject to unforeseen circumstances and material changes in operating conditions

C E N T U R I A O F F I C E R E I T A S X : C O F

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A strong balance sheet with significant covenant headroom

• Divestment of 465 Victoria Avenue, Chatswood, NSW reduces gearing to 33.2%[4]

• Five major lenders provides diversification to high quality financiers

• Weighted average debt expiry of 2.8 years

• Significant covenant headroom ICR 7.6x[4] (covenant 2.0x) and LVR 35.4%[4] (covenant 50%)

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DEBT MATURITY PROFILE ($M) [4]
(A$m)
1,000
Drawn debt
900
Undrawn
800
Hedged (swap)
700
Hedged (option)
600
500
400
300
200
100
0
Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24
KEY DEBT METRICS PRO-FORMA [4] HY21 FY20
Facility limit $m 880.0 880.0 880.0
Drawn amount $m 704.3 749.0 749.0
Undrawn capacity [1] $m 175.7 131.0 131.0
Weighted average debt expiry Years 2.8 2.8 3.3
Proportion hedged % 80.2% 75.4% 75.4
Weighted average hedge maturity Years 2.7 2.7 3.2
All in cost of debt [2] % 2.3% 2.2% 2.2%
Gearing [3] % 33.2% 34.6% 34.5
Interest cover ratio Times 7.6 7.6 6.3
Loan to value ratio % 35.4 36.8 36.4
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2.3% ALL IN COST OF DEBT[2,4]

m $175.7 CURRENT FACILITY HEADROOM[4]

33.2%

GEARING[3,4]

80.2%

HEDGING[4]

1. Undrawn capacity exclude a $1.5m bank guarantee held as security over the 46 Colin Street, West Perth WA ground lease

2. Effective interest rate as at 31 December 2020 includes floating rate, all-in margin (base and line fees) and fixed interest costs under existing swaps (excludes capitalised borrowing costs)

3. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill

4. Adjusted to include the proceeds from the sale of 465 Victoria Avenue, Chatswood, NSW

C E N T U R I A O F F I C E R E I T A S X : C O F

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A YOUNG PORTFOLIO
OF QUALITY ASSETS
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SECTION THREE Portfolio Metrics

ASX:COF

C E N T U R I A O F F I C E R E I T

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825 ANN STREET, FORTITUDE VALLEY, QLD

A high-quality geographically diversified portfolio With solid leasing outcomes achieved during HY21

PORTFOLIO SNAPSHOT HY21 HY20	PORTFOLIO SNAPSHOT HY21 HY20	PORTFOLIO SNAPSHOT HY21 HY20
Number of assets #	23	23
Book value1 $m	2,032.4	2,063.4
WACR1 %	5.90	5.92
NLA sqm	304,413	303,855
Occupancy2 %	91.5	99.2
WALE2 yrs	4.5	5.1
Average NABERS energyrating (byvalue) Stars	4.8	4.7
Average NABERS water rating (byvalue) Stars	4.0	3.9
Buildingsgeneratingsolarpower no.	6	1
Average buildingage(byvalue) yrs	16.4	15.3

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WA 14.3% QLD 23.2%
100 5.9 87.2 3.3
OCCUPANCY (%) WALE (YRS) OCCUPANCY (%) WALE (YRS)
NT NSW 26.2%
QLD OCCUPANCY (%) 97.9 WALE (YRS) 5.2
WA
SA
ACT 16.4%
NSW
ACT 96.5 5.5
OCCUPANCY (%) WALE (YRS)
SA 2.6% VIC
100 2.7 VIC 17.3%
OCCUPANCY (%) WALE (YRS)
70.5 3.2
OCCUPANCY (%) WALE (YRS)
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WEIGHTED AVERAGE LEASE EXPIRY

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56.9%
Income WALE (Jun-20) 4.7 yrs 51.1%
Income WALE (Dec-20) 4.5 yrs
Vacancy includes
lease surrender at
35 Robina Town Centre Dr,
Robina QLD
15.2% 17.7% 16.2%
8.5% 6.8% 6.4% 7.3% 7.7%
4.3%
1.8%
Vacant FY21 FY22 FY23 FY24 FY25+
9.3% 10,791sqm
PORTFOLIO NLA LEASED IN HY21 [3,4] 17 NEW LEASES IN HY21 [3,4]
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28,306sqm PORTFOLIO NLA LEASED IN HY21[3,4]

17,515sqm 14 RENEWALS IN HY21[3,4]

1. As at 31 December 2020

2. By area

C E N T U R I A O F F I C E R E I T A S X : C O F

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1. Includes heads of agreement (HOA)

2. By gross income

Portfolio income underpinned by diverse, quality tenants

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ASX Listed HY21 TENANT <500sqm TENANT PROFILE ACT GEOGRAPHIC
MIX (Income) BY SIZE (Area) DIVERSIFICATION
Government 500-1,000sqm QLD (Value)
Listed Multinational 1,000-2,000sqm VIC
Multinational >2,000sqm 10% ACT
National 5%14% 26% 7% WA 14% [3%] 26%
Other 9% SA
17%
20%
8% 27% 74% 23%
17%
81%
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• COF has no single market concentration with no state having greater than a 26% allocation

• Approximately 80% of income derived from government, listed or multinational tenants

  • 27% of income derived from government tenants

• 81% of portfolio income derived from federal and state government, ASX listed and multinational tenants

TOTAL GOVERNMENT EXPOSURE 27%

▪ The Australian Federal Government

• holds the largest single tenancy at 7% of COF’s income

COMMONWEALTH WA QLD NSW SA 32,317sqm 14,288sqm 7,130sqm 8,555sqm 3,672sqm four properties two properties one property two properties 2.3% one property 1.6% 14.9% of income 5.0% of income 3.0% of income of income of income

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• Average tenant size of 1,238sqm across the portfolio

• 74% of tenants are at least 2,000sqm

• By income

C E N T U R I A O F F I C E R E I T A S X : C O F 1 4

Portfolio valuation summary

BOOK VALUE

CAP RATE

STATE HY21 FY20 VAR % NSW 532.7 528.4 4.3 0.8 QLD 471.8 493.5 (21.7) (4.4) VIC 351.0 354.0 (3.0) (0.8) ACT 333.7 336.2 (2.5) (0.7) WA 290.0 288.0 2.0 0.7 SA 53.3 53.3 0.0 0.0 Total 2,032.4 2,053.3 (20.9) (1.0)	HY21 FY20 BPS
	5.65 5.71 (6)
	6.27 6.28 (1)
	5.36 5.35 1
	5.62 5.62 0
	6.47 6.53 (6)
	7.25 7.41 (16)
	5.90 5.93 (3)

Recent market transactions demonstrate robust demand for quality Australian office property

NTA per unit WACR[2] reduced of $2.45 3bps to 5.90 %

Externally valued in December 2020 13 representing 59% of portfolio value ASSETS

Some valuations impacted by softer near-term income assumptions, partially offset by cap rate compression

1. Valuation gains include capital expenditure incurred during the period

C E N T U R I A O F F I C E R E I T A S X : C O F

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1. Includes 465 Victoria Avenue, Chatswood NSW

Resilient performance and prudent management through COVID-19

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235 WILLIAM STREET, NORTHBRIDGE, WA
In house
Over 80% of management
from government, income derived c.96.7% c.$2.6m c.52% tenant engagementfacilitate greater
listed and MNC through period of
uncertainty
HIGH QUALITY REDUCTION IN PROPERTY
AVG RENT PROVIDED
TENANTS PROVIDED RENT & FACILITIES
COLLECTIONS RENT RELIEF
UNDERPIN RELIEF MANAGEMENT
JULY-DEC 2020 [1] JULY-DEC 2020 [1]
PORTFOLIO Q4FY20 – HY21
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1. Included within the outstanding rent is agreed and pending rent relief claims related to the National Code of Conduct on Commercial Leases

C E N T U R I A O F F I C E R E I T A S X : C O F

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CLOSE PROXIMITY
TO KEY AMENITY
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SECTION FOUR

Market Overview & Guidance

ASX:COF

A S X : C O F

C E N T U R I A O F F I C E R E I T

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42-46 COLINS STREET, WEST PERTH, WA

Fiscal stimulus to support office market recovery

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OVER
6.6% $72bn
December 2020 15 Fast-tracked
Australian $172bn infrastructure
unemployment FY20-24 projects
rate [2] Stimulus [1]
Unemployment rate Immediate and traditional Public and private
reduction for most states Federal Government infrastructure
policy responses investment
December OVER
50,000 2020 66,000
Jobs created across Highest level of job 85% Direct and indirect
Australia in advertisements in Stimulus aligned to jobs expected due
December 2020 Australia in the last employment and to fast tracked
18 months projects
infrastructure
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483 KINGSFORD SMITH DRIVE, HAMILTON, QLD
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1. BIS Oxford Economic

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1. ABS

Benefits of a geographically diversified portfolio

MARKET	VACANCY (%)	3 MTH NET ABSORPTION (SQM)	12 MTHS NET ABSORPTION (SQM)	RENTAL DISCOUNT TO SYDNEY CBD (%)	UPCOMING SUPPLY (SQM)	COF EXPOSURE (%)2
SYDNEY CBD	11.9	(57,329)	(278,118)	0	273,331	0%
SYDNEY FRINGE	7.8	(3,455)	45,040	-45.7%	34,839	9.2%
CHATSWOOD	15.8	5,848	(29,114)	-50.1%	0	6.2%
ST LEONARDS	15.0	(4,322)	10,158	-46.7%	9,864	8.5%
MELBOURNE CBD	13.2	(68,152)	(188,775)	-45.2%	204,182	10.9%
BRISBANE FRINGE	17.7	(41,450)	(45,029)	-59.0%	97,277	21.4%
ADELAIDE	16.6	(5,543)	(14,350)	-63.1%	40,209	0.8%
PERTH	20.0	6,848	(16,297)	-43.9%	79,200	14.2%
CANBERRA	8.2	17,315	38,411	-67.2%	56,000	16.4%

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• Positive 12-month net absorption evident in a number of COF’s markets

• Several markets demonstrated improved tenant demand in 4Q2020

• Weakest tenant demand in markets with no or low COF exposure

• COF exposed markets generally have lower upcoming supply

• COF exposed market rents average a significant discount to Sydney CBD

• Source: JLL Research

• Market data for some COF markets such as Wollongong and Robina were unavailable for comparison.

C E N T U R I A O F F I C E R E I T A S X : C O F 1 9

Attractive yield spread underpins investment demand

Yield spread between office sector discount rates and AU 10-year government bond rates

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OFFICE SECTOR
DISCOUNT RATE
BOND YIELDS
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1. Source: JLL Research, MSCI, Deloitte Access Economics

C E N T U R I A O F F I C E R E I T A S X : C O F

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Recent comparable transactions support COF’s NTA

PROPERTY	STATE	DATE	PRICE ($m)	CAP RATE	RATE ($psqm)	OCCUPANCY	WALE
Pinnacle, 4 Drake Street, Macquarie Park1	NSW	Sep-20	306.0	~5.25%	8,777	96.4%	4.6
2 Banfield Road, Macquarie Park1	NSW	Aug-20	144.3	~5.00%	9,900	74.9%	7.0
45 Kembla Street, Wollongong	NSW	Sep-20	57.4	5.40%	8,820	100.0%	7.1
452 Flinders Street, Melbourne	VIC	Sep-20	454.5	4.97%	11,940	100.0%	6.1
1 Giffnock Avenue, Macquarie Park1	NSW	Sep-20	167.2	~5.75%	8,628	100.0%	3.0
50 Flinders Street, Adelaide	SA	Jul-20	174.7	5.64%	8,032	100.0%	7.5
60 Pacific Highway, St Leonards	NSW	Jul-20	33.8	5.30%	11,571	100.0%	3.0
436 St Kilda Road, St Kilda	VIC	Jun-20	61.0	5.05%	8,185	94.9%	2.4
200 Victoria Avenue, Carlton	VIC	Feb-20	72.0	4.89%	9,100	97.6%	2.2
1-5 Thomas Holt Drive, Macquarie Park	NSW	Dec-20	288.9	5.80%	7,372	100.0%	4.3
AVERAGE				5.32%2	9,415
COF AVERAGE				5.90%	7,944
DIFFERENCE				(0.58%)	+1,471

• A basket of comparable property transactions strongly support COF valuations

• Increased transactional activity occurred in 2H2020

• Strong demand for metropolitan and regional assets

• Reflects investment demand for assets that offer relative affordability and accessibility for occupiers

• Transaction yet to settle. Metrics approx and based on market intel

• Weighted average Sources: m3, KF and Savills

C E N T U R I A O F F I C E R E I T

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FY21 Guidance

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16.5c
DISTRIBUTION PER
UNIT
8.5% [1]
FORECAST
19.4-19.9c
DISTRIBUTION
YIELD DISTRIBUTIONS FFO PER UNIT [2]
PAID IN EQUAL
QUARTERLY
INSTALMENTS
203 PACIFIC HIGHWAY, ST LEONARDS, NSW
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1. Based on COF closing price of $1.95 per unit on 3 February 2021

C E N T U R I A O F F I C E R E I T A S X : C O F

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1. Guidance remains subject to unforeseen circumstances and material changes in operating conditions

A PORTFOLIO EXPOSED TO AFFORDABLE MARKETS

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SECTION FIVE

Appendices

Appendix A – Income statementASX:COF Appendix B – FFO reconciliation Appendix C – Balance sheet Appendix D – Leasing and expiry profile Appendix E – Investment portfolio Appendix F – Strategic vision and objectives Appendix G – COVID-19

A S X : C O F

C E N T U R I A O F F I C E R E I T

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42-46 COLIN STREET, WEST PERTH, WA

Appendix A – Income statement

$'000	HY21	HY20
Gross property income	94,467	67,429
Interest income	6	86
Total revenue	94,473	67,515
Direct property expenses	(17,547)	(14,665)
Responsible entity fees	(5,860)	(4,142)
Finance costs	(9,237)	(8,733)
Management and other administrative expenses	(2,972)	(953)
Expected credit loss and rental waiver expense	(1,169)	0
Total expenses	(36,785)	(28,493)
Funds from operations1	57,688	39,022
Gain/(loss) on fair value of investment properties	(30,192)	(11,897)
Realised/unrealised loss on fair value of derivatives	(37)	(448)
Straight-lining of rental income, amortisation of leasing commissions and tenant incentives	(5,947)	(1,962)
Interest and depreciation expense adjustments for AASB 16	30	28
Transaction costs	0	(46)
Statutory net profit	21,542	24,697

NISHI, 2 PHILIP LAW STREET, CANBERRA, ACT

1. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adju sted for certain non-cash and other items

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Appendix B – FFO reconciliation

$'000	HY21	HY20
Statutory net profit	21,542	24,697
Loss/(gain) on fair value of investment properties	30,192	11,897
Realised/unrealised loss on fair value of derivatives	37	448
Straight-lining of rental income, amortisation of leasing commissions and tenant incentives	5,947	1,962
Interest and depreciation expense adjustments for AASB 161	(30)	(28)
Transaction costs	0	46
Funds from operations2	57,688	39,022
Distribution	42,448	38,694
FFO per unit (cents)	11.2	9.6
Distribution per unit (cents)	8.3	8.9
Annualised FFO yield3(%)	9.2	6.4
Annualised distribution yield3(%)	7.7	6.1

60 MARCUS CLARKE STREET, CANBERRA, ACT

1. Refer to Note A3 in the interim financial report for a summary of the impacts of AASB 16

2. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adju sted for certain non-cash and other items

3. Based on the COF full year guidance divided by closing price ($2.14 per unit on 31 December 2020) and FY20 FFO divided by closing price ($2.90 per unit on 31 December 2019)

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Appendix C – Balance sheet

$'000	PRO-FORMA	31-Dec-20	30-Jun-20
Cash	32,274	32,274	28,809
Investment properties held for sale	0	44,700	0
Investment properties1	2,019,671	2,019,671	2,085,650
Trade and other receivables	4,234	4,234	3,263
Other assets	2,592	2,592	1,536
Total assets	2,058,771	2,103,471	2,119,258
Interest bearing liabilities2	701,914	746,614	746,372
Trade and other liabilities3	28,801	28,801	22,260
Derivative financial instruments	12,093	12,093	12,056
Other liabilities	53,917	53,917	55,618
Total liabilities	796,725	841,425	836,306
Net assets	1,262,046	1,262,046	1,282,952
Securities on issue (thousands)	514,522	514,522	514,522
Net tangible assets per unit ($)	2.45	2.45	2.49
Gearing (%)4	33.2	34.6	34.5

1. Investment properties of $2,064.8m includes a $32.0m leasehold asset under AASB 16

235 WILLIAM STREET, NORTHBRIDGE, WA

1. Drawn debt net of borrowing costs

2. Includes $21.2m distributions payable and lease liability of $32.7m

3. Gearing is defined as total borrowings less cash divided by total assets less cash and goodwill

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Appendix D – Strong leasing track record

	CURRENT VACANCY(>1,000 SQM)	NLA (SQM)
	818 Bourke Street, Docklands 35 Robina Town Centre Drive, Robina	10,915 6,477	~~VA~~C
	60 Marcus Clarke Street, Canberra	2,444
	576 Swan Street, Richmond	2,280
	100 Brookes Street, Fortitude Valley	1,818
	8 Central Avenue, Eveleigh	1,275
	Other	2,364
	TOTAL	27,573
	% of total NLA	9.1%
	UPCOMING EXPIRIES(>1,000 SQM)	FY21
	131-139 Grenfell Street,Adelaide 1 Richmond Road, Keswick	2,860 1,708	~~FY~~21
	60 Marcus Clarke Street,Canberra	1,042
	Other	3,798
	TOTAL	9,408
	% of total NLA	3.1%
	UPCOMING EXPIRIES(>1,000 SQM) 9 HelpStreet,Chatswood 154 Melbourne Street,South Brisbane	FY22 4,446 4,282	~~FY~~22
	201 Pacific Highway,St Leonards	1,371
	60 Marcus Clarke Street,Canberra	1,161
	42-46 Colin Street,West Perth	1,057
	Other	2,776
	TOTAL	15,093
	% of total NLA	5.0%

818 BOURKE STREET, DOCKLANDS, VIC

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FY15 FY16 FY17 FY18 FY19 FY20
LEASING LEASING LEASING LEASING LEASING LEASING
EXECUTED EXECUTED EXECUTED EXECUTED EXECUTED EXECUTED
5,116sqm 12,493sqm 20,321sqm 17,970sqm 21,758sqm 32,378sqm
or 5.1% of or 11.1% of or 15.5% of or 9.7% of or 10.0% of or 10.6% of
portfolio portfolio portfolio portfolio portfolio portfolio
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
OCCUPANCY [1] OCCUPANCY [1] OCCUPANCY [1] OCCUPANCY [1] OCCUPANCY [1] OCCUPANCY [1]
96.7% 97.2% 97.3% 98.9% 98.4% 98.1%
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1. By area

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Appendix E – Investment portfolio

PROPERTY STATE	OWNERSHIP (%) BOOK VALUE ($M) CAPITALISATION RATE (%) AREA (SQM) AREA ($/SQM) WALE (YRS)1 OCCUPANCY (%)1
8 Central Avenue, Eveleigh NSW 201 Pacific Highway, St Leonards 9 Help Street, Chatswood 203 Pacific Highway, St Leonards 77 Market Street, Wollongong	50% $190.0m 5.38% 37,274 10,195 9.0 96.0%
	50% $106.5m 5.63% 16,498 12,911 3.3 100.0%
	100% $86.5m 5.75% 9,420 9,183 1.9 95.5%
	50% $69.0m 5.88% 11,734 11,760 4.2 100.0%
	100% $36.0m 6.75% 6,756 5,329 4.5 100.0%
2 Phillip Law Street, Canberra ACT 60 Marcus Clarke Street, Canberra 54 Marcus Clarke Street, Canberra	100% $252.0m 5.13% 27,401 9,197 6.9 99.9%
	100% $61.0m 7.00% 12,097 5,043 2.5 91.4%
	100% $20.7m 7.50% 5,227 3,960 3.0 84.4%
825 Ann Street, Fortitude Valley QLD 154 Melbourne Street, South Brisbane 483 Kingsford Smith Drive, Hamilton 100 Brookes Street, Fortitude Valley 35 Robina Town Centre Drive, Robina 555 Coronation Drive, Toowong	100% $155.0m 6.00% 19,151 8,094 2.9 97.4%
	100% $85.0m 6.00% 11,292 7,527 2.5 100.0%
	100% $76.5m 6.25% 9,228 8,290 4.3 82.7%
	100% $76.5m 6.25% 9,533 8,025 4.1 82.5%
	100% $40.0m 7.50% 9,814 4,076 0.9 33.8%
	100% $38.8m 6.75% 5,567 6,961 6.3 100.0%
818 Bourke Street, Docklands VIC 576 Swan Street, Richmond 2 Kendall Street, Williams Landing	100% $220.0m 5.13% 23,273 9,453 2.1 59.2%
	100% $65.5m 5.50% 8,185 8,003 2.1 77.7%
	100% $65.5m 6.00% 12,961 5,054 7.9 100.0%
235 William Street, Northbridge WA 144 Stirling Street, East Perth 42-46 Colin Street, West Perth	100% $186.0m 6.50% 21,697 8,573 6.5 100.0%
	100% $70.0m 6.00% 11,042 6,340 8.0 100.0%
	100% $34.0m 7.25% 8,467 4,016 2.3 100.0%
1 Richmond Road, Keswick SA 131-139 Grenfell Street, Adelaide	100% $35.0m 7.25% 8,083 4,330 3.6 100.0%
	100% $18.3m 7.25% 4,052 4,505 1.4 100.0%
Sub total / average	$1,987.7m 5.91% 288,749 7,765 4.5 91.3%
Asset held for divestment
465 Victoria Avenue, Chatswood2 NSW	25% $44.7m 5.50% 15,664 11,415 3.5 100.0%
Total / Average3	$2,032.4m 5.90% 304,413 7,820 4.5 91.5%

1. By gross income (equity share)

2. Held for sale – Settlement 1 February 2021

3. Investment properties $2,032.4m, excludes $32.0m leasehold asset under AASB 16

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Appendix F – Strategic vision and objectives

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V I S I O N

To build Australia’s leading pure play office REIT

A CLEAR AND SIMPLE STRATEGY

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COF is
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KEY
OBJECTIVES
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Focused on generating sustainable and quality income streams and executing initiatives to c reate value across a portfolio of quality Australian office assets

Australia’s largest Overseen by an active domestic ASX-listed pure play management team with office REIT deep real estate expertise

Prudently managing its Strongly supported by balance sheet to position Centuria Group for further growth

PORTFOLIO ACTIVE CAPITAL UNLOCK OPPORTUNITIES CONSTRUCTION MANAGEMENT MANAGEMENT TO CREATE FURTHER VALUE A portfolio of quality Australian Primarily focused on A robust and diversified Continue to enhance office assets diversified by geography, maintaining occupancy and capital structure, with the portfolio and upgrade tenants and lease expiry extending portfolio WALE appropriate gearing asset quality

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Appendix G – Commercial office remains core to business operations

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71% 4.2%
White collar People working
employment in from home in
2020 [1] 2016 [2]
3.5%
62%
People working
White collar
from home in
employment in
1990 [2]
1990 [1]
77 MARKET STREET, WOLLONGONG, NSW
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BENEFITS WORKING FROM THE OFFICE

• Maintaining professional relationships with stakeholders & colleagues

• Executing workstreams that require person to person contact

• Establishes work life and personal life separation

• Increases structured and unstructured collaboration

• Promotes unscheduled interactions and ideas generation

• Facilitates on-boarding, mentoring and culture frameworks

CHALLENGES WORKING FROM HOME

• Social isolation & mental health impacts

• Inequitable workplace environments

• Potential distractions at home

• Reduced work life and personal life separation (risk of overworking)

• Additional home office costs

• Diminished culture, manager and team engagement

• Source: JLL Research

All figures are as at 30 September 2020 unless stated otherwise

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1. ABS

Appendix G – Commercial office remains core to business operations

“I think this pandemic will make us all realise that no matter how much technology we have, nothing beats human interaction.”

Facebook have leased 730,000sq ft (68,000sqm) in New York

“People are very efficient doing their work at home once they know what they are doing. The problem is when you don’t know what to do next. If you don’t have a physical co-location, I think we are all going to struggle.”

• Ruslan Kogan, CEO Kogan (source: AFR)

• 3 Aug 2020 (source: NY Times)

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“The ability to connect with people, the ability of teams to work together in an ad-hoc fashion – you can do it virtually, but it isn’t spontaneous. We are looking forward to returning to the office.”

• Mark Golan, COO of Real Estate Investments and Development Google (source: AFR)

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I don’t see any positives. Not being able to get together in person is a pure negative.

• Ardine Williams, VP of Workforce Development Amazon (source: WSJ)

• Reed Hastings, Founder and Co-CEO Netflix Inc. (source: WSJ)

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Disclaimer

This presentation has been prepared by Centuria Property Funds Limited (ABN 11 086 553 639, AFSL 231 149) (CPFL) as responsible entity of Centuria Office REIT (ARSN 124 364 718) (‘COF’ or the ‘Trust’).

This presentation contains selected summary information and does not purport to be all-inclusive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment COF. It should be read in conjunction with COF’s periodic and continuous disclosure announcements which are available at www.centuria.com.au. The recipient acknowledges that circumstances may change and that this presentation may become outdated as a result. This presentation and the information in it are subject to change without notice and CPFL is not obliged to update this presentation.

This presentation is provided for general information purposes only. It is not a product disclosure statement, pathfinder document or any other disclosure document for the purposes of the Corporations Act and has not been, and is not required to be, lodged with the Australian Securities & Investments Commission. It should not be relied upon by the recipient in considering the merits of COF or the acquisition of securities in COF. Nothing in this presentation constitutes investment, legal, tax, accounting or other advice and it is not to be relied upon in substitution for the recipient’s own exercise of independent judgment with regard to the operations, financial condition and prospects of COF.

The information contained in this presentation does not constitute financial product advice. Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. This presentation has been prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. It is not an invitation or offer to buy or sell, or a solicitation to invest in or refrain from investing in, securities in COF or any other investment product.

The information in this presentation has been obtained from and based on sources believed by CPFL to be reliable.

To the maximum extent permitted by law, CPFL and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this presentation. To the maximum extent permitted by law, CPFL does not accept any liability (including, without limitation, any liability arising from fault or negligence) for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it.

This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward Statements can generally be identified by the use of forward looking words such as “anticipate”, “estimates”, “will”, “should”, “could”, “may”, “expects”, “plans”, “forecast”, “target” or similar expressions. Forward Statements including indications, guidance or outlook on future revenues, distributions or financial position and performance or return or growth in underlying investments are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CPFL represents or warrants that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Except as required by law or regulation, CPFL assumes no obligation to release updates or revisions to Forward Statements to reflect any changes. The reader

should note that this presentation may also contain pro forma financial information.

Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standards (AAS) and represents the profit under AAS adjusted for specific non-cash and significant items. The Directors consider that distributable earnings reflect the core earnings of the Trust.

All dollar values are in Australian dollars ($ or A$) unless stated otherwise.

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