CENTURIA OFFICE REIT — Interim / Quarterly Report 2023

Feb 1, 2023

ASX:COF

2 FEBRUARY 2023

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NISHI, 2 PHILLIP LAW STREET, CANBERRA ACT
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Centuria Office REIT HY23 RESULTS

ACKNOWLEDGEMENT OF COUNTRY

Our group manages property throughout Australia and New Zealand. Accordingly, Centuria pays its respects to the traditional owners of the land in each country, to their unique cultures and to their elders past, present and emerging.

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1. Overview

2. Financial results

3. Portfolio

4. Outlook and guidance

5. Appendices

101 MORAY STREET, SOUTH MELBOURNE VIC

ASX:COF

COF A PORTFOLIO WITHOUT SINGLE MARKET CONCENTRATION Overview SECTION ONE

8 CENTRAL AVENUE, SOUTH EVELEIGH NSW

Key metrics

A high-quality, geographically diversified portfolio

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Financial
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15.8cpu 8.8%
FY23 FFO Guidance FY23 DPU Yield [1]
FY23 DPU Guidance 14.1cpu
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$2.40
Net tangible assets
per unit [3]
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35.6%
Gearing [2]
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Portfolio
$2.3bn 96.4%
Portfolio book value Portfolio occupancy [4,6]
across 23 assets
4.2 yrs 4.8
Portfolio WALE [4] NABERS SPI
energy rating [5]
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1. Based on COF closing unit price of $1.60 on Tuesday, 31 January 2023

2. Gearing defined as total borrowings less cash divided by total assets less cash

3. NTA per unit is calculated as net tangible assets divided by number of units on issue

4. By gross income

5. Excluding non-rated assets

6. Includes Heads of Agreement

Centuria ASX:COF 4

HY23 summary

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818 BOURKE STREET, DOCKLANDS VIC
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Strong leasing outcomes improve portfolio occupancy

• 15,084 sqm of leases executed, representing 5.0% of the portfolio’s NLA

Total occupancy 1 increased 1.7% to 96.4%[2]

• Signed Heads of Agreement received for a further 15,336 sqm, representing 5.0% of portfolio’s NLA, including:

• 818 Bourke Street, Docklands: 7,151 sqm, increasing occupancy to 93%

• 203 Pacific Highway, St Leonards: 2,427 sqm, increasing occupancy to 90%

• Over 24,000 sqm of total leasing related to previously vacant space

• Portfolio occupancy increased to 96.4%[1,2] , WALE of 4.2[1] years

• Wyatt Street pre-commitment increased to 76% of NLA

• Average building age of 17 years[3] , 90% A-grade assets in COF portfolio

• NABERS SPI energy rating of 4.8 stars[4]

Portfolio & 2 fund metrics

• $2.40 net tangible assets per unit

• Weighted average capitalisation rate of 5.75%

• HY23 rent collections of 97%

• Substantial undrawn debt $101.5m[5] , ample debt covenant headroom, and no debt expiry until FY25

FY23 guidance 3 reiterated

1. By gross income

2. Includes Heads of Agreement

3. By value

4. Excluding non-rated assets

5. FY23 FFO guidance[6] of 15.8cpu, FY23 distribution guidance[6] of 14.1cpu

6. FY23 forecast FFO yield of 9.9%[7]

7. FY23 forecast distribution yield of 8.8%[7]

8. Headroom reflects undrawn debt (including a $1.5m bank guarantee held as security over the 46 Colin Street, West Perth WA ground lease)

9. Guidance remains subject to unforeseen circumstances and material changes in operating conditions 7. Based on COF closing unit price of $1.60 on Tuesday, 31 January 2023

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Centuria ASX:COF 5
Centuria ASX:COF 5
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COF: Vision, strategy and objectives

VISION

To be Australia’s leading pure play office REIT

COF

Australia’s largest ASX-listed pure play office REIT . Overseen by an active management team with deep real estate . expertise. Strongly supported by Centuria Capital Group

A clear and simple strategy

Key objectives

Focused on generating sustainable and quality income streams and executing initiatives to create value across a portfolio of quality Australian office assets.

Portfolio

construction A portfolio of Australian office assets diversified by geography, tenants and lease expiry.

Active management Primarily focused on maintaining occupancy and extending portfolio WALE.

Capital

management A robust and diversified capital structure, with appropriate gearing.

Unlock

opportunities to create further value Continue to enhance the portfolio and upgrade asset quality.

Centuria ASX:COF 6

COF provides quality, highly connected and affordable office space

Included in the S&P/ASX 300 Index and FTSE/EPRA Nareit Global Developed Index

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57 WYATT STREET,
ADELAIDE SA
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100 BROOKES STREET, 101 MORAY STREET, 2 KENDALL STREET,
FORTITUDE VALLEY QLD SOUTH MELBOURNE VIC WILLIAMS LANDING VIC
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COF portfolio strategic metrics

17yrs Average asset age[1]

90%

A-grade assets[2]

4.8stars

NABERS SPI energy rating[3]

c. $550psqm Avg. net rents

Portfolio of young assets

COF exposed market rents average a significant discount to Sydney CBD

COF assets provide Connectivity with key access to wellbeing transport nodes and amenity, retail and reduced commute times hospitality

1,750 sqm Avg. floorplate size

1. By value

2. Management interpretation of Property Council of Australia (PCA) guidelines 3. Excluding non-rated assets

Centuria ASX:COF

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COF is a geographically diversified portfolio

Exposed to outperforming office markets, enabling strong leasing outcomes

• Over 150,000 sqm of leasing completed since first impact of COVID in 2020, representing c.51% of portfolio NLA

• Many COF exposed markets have recorded solid 6 month and 12 month net absorption

• COF exposed markets generally have higher office occupancy rates

Australian office physical occupancy rates[3]

Market	Average	Peak
Adelaide	74%	77%
Brisbane	67%	73%
Canberra	52%	67%
Melbourne	57%	75%
Perth	80%	88%
Sydney	59%	74%

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NT
QLD
WA
SA
NSW
ACT
VIC
TAS
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COF National portfolio

96.4% occupancy[1,2]

4.2 yrs WALE[1]

>150,000 sqm leased since 2020

NSW

QLD

WA

25% total COF portfolio 91.8% occupancy[1,2]

12% total COF portfolio

21% total COF portfolio

99.8% occupancy[1,2]

96.4% occupancy[1,2]

4.5yrs WALE[1]

• 4.5yrs WALE[1]

• 3.1yrs WALE[1]

• 36,515sqm leased since 2020

19,322sqm leased since 2020

51,272sqm leased since 2020

ACT

VIC

SA

3% total COF portfolio 100.0% occupancy[1,2] 4.9yrs WALE[1]

15% total COF portfolio 97.9% occupancy[1,2] 5.2yrs WALE[1]

24% total COF portfolio 96.9% occupancy[1,2]

4.2yrs WALE[1]

15,209sqm leased since 2020

• 19,164sqm leased since 2020

• 14,675sqm leased since 2020

• By gross income

• Includes Heads of Agreement

• PCA November 2022 occupancy survey

Centuria ASX:COF

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Centuria Capital Group: A leading Australasian real estate funds manager

CNI is the manager of COF and is included in the S&P/ASX200 Index

bn $21.2 Group AUM[1]

$20.4bn Real estate AUM

$6.5bn Listed real estate

$13.9bn Unlisted real estate

$0.8bn Investment bonds

Centuria Life Centuria $3.9bn $2.4bn $0.2bn $8.5bn $2.8bn $2.6bn Investment Bonds Centuria Centuria Asset Plus Single Multi-asset Multi-asset Industrial REIT Office REIT Limited asset closed ended open ended Guardian Friendly ASX:CIP ASX:COF NZX:APL funds funds funds Society

Note: AUM as at 31 December 2022. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0711 as at 31 December 2022). Numbers presented may not add up precisely to the totals provided due to rounding 1. Includes asset exchanged to be settled, cash and other assets

Centuria ASX:COF

9

Cirque by Centuria demonstrates CNI’s commitment to office

A truly flexible work solution

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• cirque is Centuria’s national network of flexible workspace sites, initially located at 9 Help Street, Chatswood and 154 Melbourne Street, South Brisbane

• Strong focus on technology, state of the art work hubs, with best in class amenities

• Servicing precincts with limited comparable flexible space competition.

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Centuria ASX:COF 10

ASX:COF

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35 ROBINA TOWN CENTRE DRIVE, ROBINA QLD
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CONNECTIVITY WITH KEY TRANSPORT NODES AND REDUCED COMMUTE TIMES

Financial results

SECTION TWO

Funds from operations (FFO)

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825 ANN STREET, FORTITUDE VALLEY QLD
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REVENUE		HY23	HY22	VARIANCE
Gross property income	$m	92.0	90.8	1.2
Total revenue	$m	92.0	90.8	1.2
EXPENSES
Direct property expenses	$m	(19.9)	(18.1)	(1.8)
Responsible entity fees	$m	(6.6)	(6.1)	(0.5)
Finance costs	$m	(15.7)	(9.4)	(6.3)
Management and other administrative expenses	$m	(1.2)	(1.1)	(0.1)
Expected credit loss and rental waiver expense	$m	(0.1)	(1.3)	1.2
Total expenses	$m	(43.4)	(36.1)	(7.3)
Funds from operations (FFO)1	$m	48.6	54.7	(6.1)
Weighted average units on issue	m	597.3	597.3	0.0
Funds from operation per unit1	cpu	8.1	9.2	(1.1)
Distributions	$m	42.1	49.4	(7.3)
Distribution per unit	cpu	7.05	8.30	(1.3)
Net tangible assets per unit2	$	2.4	2.5	(0.1)
Return on equity3	%	2.2	3.7	(1.5)
Payout ratio (% of FFO) 4	%	86.7	90.7	(4.0)

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

2. NTA per unit is calculated as net tangible assets divided by closing units on issue.

3. Return on Equity is calculated as closing NTA minus opening NTA plus distributions divided by opening NTA per unit

4. Payout ratio equal to distributions per unit divided by FFO per unit for the period

Centuria Centuria ASX:COFASX:COF 1212

Capital management overview

Substantial undrawn debt, ample debt covenant headroom, and no debt expiry until FY25

Debt maturity profile ($m)

• No debt tranche expiring until FY25

• Significant covenant headroom ICR 4.9x (covenant 2.0x) and LVR 37.1% (covenant 50%)

• All in cost of debt forecast to increase further due to increased interest rates

• $210m of hedging executed in HY23

			390
	175	273		125
FY23 FY24	FY25 FY26		FY27	FY28
		Debt expiry
KEY DEBT METRICS			HY23	FY224
Facility limit		$m	962.5	962.5
Drawn amount		$m	861.0	832.0
Headroom1		$m	101.5	130.5
Weighted average debt expiry		years	3.4	3.7
Proportion hedged		%	58.1	55.9
Weighted average hedge maturity		years	1.0	0.9
All in cost of debt2		%	3.4	2.2
Gearing3		%	35.6	33.8
Interest cover ratio		times	4.9	6.3
Loan to value ratio		%	37.1	35.8

6 Quality debt lenders

$101.5m Facility headroom[1]

35.6%

Gearing[3]

58.1%

Hedging

1. Headroom reflects undrawn debt (including a $1.5m bank guarantee held as security over the 46 Colin Street, West Perth WA ground lease)

2. Average effective interest rate for the FY22 and HY23 (annualised) periods. 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

4. FY22 reflects metrics post refinancing which was completed subsequent to 30 June 2022

Centuria ASX:COF 13

ASX:COF

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57 WYATT STREET, ADELAIDE SA
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A YOUNG PORTFOLIO OF QUALITY ASSETS

Portfolio

SECTION THREE

Portfolio overview

High quality portfolio underpinned by excellent tenant covenants

PORTFOLIO SNAPSHOT HY23 FY22	PORTFOLIO SNAPSHOT HY23 FY22
Number of assets #	23 23
Book value $m	2,310.0 2,335.2
WACR %	5.75 5.58
NLA sqm	303,336 303,138
Occupancy1 %	96.4 94.7
WALE1 yrs	4.2 4.2
NABERS SPI Energy rating2 Stars	4.8 4.8
NABERS SPI Water rating2 Stars	3.9 3.9
Buildings generating solar power no.	7 6
Average building age (by value) Yrs	17 16

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4.8 Stars

17 years

NABERS SPI Average building age Energy rating[2] (by value) HY23 HY23

Tenant mix (income)

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14%
26% ASX Listed
7% Government
Listed multinational
18% Multinational
23% National
12% Other
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Tenant profile by size (area)

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10%
8% <500 sqm
500 - 1,000 sqm
15%
1,000 - 2,000 sqm
67% >2,000 sqm
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PCA grade (value)

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10%
A-grade
B-grade
90%
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79%

of income derived from government, ASX listed and multinational tenants

67%

of tenants >2,000 sqm, indicating the COF portfolio is dominated by large corporate and government occupiers

90%

COF’s portfolio comprises A-grade assets[3]

1. By gross income

2. Excluding non-rated assets

3. Management interpretation of PCA guidelines

Centuria ASX:COF

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Staggered lease expiry: 86% of leases expiring at or beyond FY25

HY23 was a strong leasing period increasing occupancy to 96.4%[1,3]

Weighted average lease expiry

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60%
50.5%
50%
40%
30%
22.2%
20%
13.1%
10% 7.0%
3.6% 3.6%
0%
Vacant FY23 FY24 FY25 FY26 FY27+
Income WALE (Jun-22) 4.2 yrs Income WALE (Dec-22) 4.2 yrs
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24,285sqm 6,135sqm Only c.14% of 24 new leases 11 renewals portfolio in HY23[2,3] in HY23[2,3] expiries before FY25

10% 30,420sqm portfolio NLA portfolio NLA leased in leased in HY23[2,3] HY23[2,3]

CURRENT VACANCY(>1,500 SQM)	NLA (SQM)
201 Pacific Highway, St Leonards (50% ownership)	3,326
154 Melbourne Street, South Brisbane	2,578
818 Bourke Street, Docklands	2,185
Other	5,154
Total	13,243
% of total NLA2	4.3%
Clough4, 825 Ann Street, Fortitude Valley	3,296
FY23 EXPIRIES(>1,500 SQM)	NLA (SQM)
201 Pacific Highway, St Leonards	2,882
(50% ownership)
825 Ann Street, Fortitude Valley	1,617
Other	3,378
Total	7,877
% of total NLA2	2.6%

FY24 EXPIRIES(>1,500 SQM)	NLA (SQM)
818 Bourke Street, Docklands	7,504
35 Robina Town Centre Drive, Robina	3,261
Other	7,532
Total	18,297
% of total NLA2	6.0%

1. Occupancy by gross income

2. By area

3. Includes Heads of Agreement (HOA)

4. Clough is currently in voluntary administration with an outcome still to be determined

Centuria ASX:COF 16

Valuation summary

Reduced transaction volumes demonstrate investor bifurcation based on quality and leasing risk

Portfolio valuation summary[2,3]

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12 of 23 assets externally revalued in December 2022

	HY23	FY22	VALUATION	HY23	FY22	MOVEMENT
	VALUATION	VALUATION	MOVEMENT2,3	WACR4	WACR4	WACR4
	($M)	($M)	($M)	(%)	(%)	(bps)
Portfolio/ weighted average	2,310.0	2,335.3	(25.3)	5.75	5.58	17

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NTA[1] per unit at $2.40

Significant recent executed HOAs were not included in HY23 valuation cycle

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Reduced transaction Like for like portfolio COF $8,346 average
volumes through valuation reduced by rate per sqm
HY23, investor $45m [5] . compares favourably
inactivity due to to replacement cost
interest rate
uncertainty
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1. NTA per unit is calculated as net tangible assets divided by number of units on issue

2. Past performance is not a reliable indicator of future performance

3. Reflects gross increase. Excludes capital expenditure incurred

4. Weighted average capitalisation rate

5. The difference between the like for like valuation movement and the portfolio valuation movement is amounts capitalised to the properties, predominantly funding the 57 Wyatt Street development

Centuria ASX:COF 17

Sustainability at Centuria Capital Group

Developing a flexible and relevant sustainability framework

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Conscious of
climate change
Environment
Green Building 5 Star Green Star GRESB pilot rating
Membership development pipeline COF undertook a pilot
Members of both the COF is targeting a GRESB assessment, with
Australian and New minimum a focus on future
Zealand Green Building 5 Star Green Star Rating participation
Council
Valued
stakeholders Social 45% 94%
Member of the Diversity Women [3] in the workplace Employee engagement
Council of Australia [2] Centuria is committed to a 94% of employees [4] are
diverse and inclusive proud to work at Centuria
workplace
Responsible
business principles
Governance
Climate focused investment Third Modern Slavery
Centuria has published its second Statement published
TCFD aligned disclosure as part of
our Sustainability Report
HY23 SELECT INITIATIVES
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Conscious of climate change Environment Green Building 5 Star Green Star GRESB pilot rating Climate Action Membership development pipeline COF undertook a pilot Ongoing solar installation Members of both the COF is targeting a GRESB assessment, with across our office and Australian and New minimum a focus on future industrial assets Zealand Green Building 5 Star Green Star Rating participation in partnership with tenants Council

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COF 4.8[1] Star NABERS Energy Sustainability Portfolio Index Rating, up from 4.7 the previous year

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T.E.N Customer focused Launched a digital tenant portal to better tenant relations and communication

A new flexible working space offering

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Learn more about
Climate focused investment Third Modern Slavery Supplier engagement Centuria’s ESG
Centuria has published its second Statement published Centuria’s Supplier Code of initiatives in our
TCFD aligned disclosure as part of Conduct has been published.
second Sustainability
our Sustainability Report
Report.
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Centuria Office REIT benefits from Centuria Capital Group’s (ASX: CNI) sustainability approach. CPFL is the responsible entity for COF and a wholly owned subsidiary of Centuria Capital Group. By the REIT’s nature, COF has no staff and is solely a portfolio of assets. Centuria’s approach to sustainability prioritises three areas of focus, conscious of Climate Change (Environment), Valued Stakeholders (Social) and Responsible Business Principles (Governance)

1. Centuria Office REIT has improved it’s NABERs SPI rating consistently for three years

2. Centuria Capital Group is a member of the Diversity Council of Australia

3. COF is externally managed by Centuria Capital Group. Diversity numbers are for Centuria Capital Group as at 31/12/2022

4. Centuria undertake regular employee engagement surveys. The figure reported is from the Group’s FY22 survey

Centuria ASX:COF

18

ASX:COF

CLOSE PROXIMITY TO KEY AMENITY

Market outlook and guidance

SECTION FOUR

235 WILLIAM STREET, NORTHBRIDGE WA

Key themes for COF markets

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Increased leasing activity

• Tenants demonstrating flight to quality / experience / young assets

• Tenants recognise the importance a central workplace for company culture and productivity

• Tenants generally seeking to accommodate peak rather than average occupancy

• Impacts of increased employee flexibility on office footprints have been overstated

COF has leased over 150,000 sqm of NLA since the COVID-19 outbreak

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COF
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Robust tenant demand for metropolitan locations

• Demonstrated tenant demand for fringe and metropolitan office markets

• Melbourne fringe had the strongest 12-month prime net absorption[1] , followed by Canberra, Brisbane and Perth

• 80% of leasing deals move within their existing markets[2]

• Office accommodation with lifestyle amenity driving demand

53% of ASX 200 companies are headquartered in metropolitan or regional office markets

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Inflation impacts

• Increased fitout costs direct tenant demand to existing fitouts or renewals

• Rising construction costs and interest rates will cause increases in economic rents for new developments and tempering supply

• Higher interest rates are impacting investment demand

Increased construction and funding costs suggest many existing buildings are valued well below replacement cost

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Strong employment growth

• 469,700 new jobs created in the 12 months to December 2022[3]

• Current unemployment rate of 3.5%[3]

• Constraints on visa approval process are dissipating

• Employment and population growth are a strong tailwinds for office demand

Tenants generally require a period of employment growth before committing to increased space

1. Source: JLL December 2022

2. Source: Colliers September 2022

3. Source: ABS January 2023

Centuria ASX:COF

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Strong net absorption in COF exposed office markets

Australian office market net absorption[2]

Many Australian office markets have demonstrated robust tenant demand through 2022

Negative absorption concentrated in Sydney and Melbourne CBD, markets COF has limited or no exposure to

Pending and future office supply materially skewed to CBD office markets

After remuneration, commute time is the second most important parameter for potential employees in job selection[1]

Flight to quality driving face rental growth for some highly desirable buildings

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100,000
80,000
60,000
40,000
20,000
0
-20,000
-40,000
6 mths to Q4 2022 12 mths to Q4 2022 COF exposed market
sqm sqm
sqm
Sydney CBD Sydney Fringe Melbourne CBD Melbourne Fringe Brisbane CBD Brisbane Fringe Adelaide CBD Perth CBD West Perth Canberra
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1. Source: CBRE Research December 2022

2. Source: JLL December 2022

Centuria ASX:COF

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FY23 guidance

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203 PACIFIC HIGHWAY, ST LEONARDS NSW
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Distribution per unit[1] 14.1c

Forecast FY23 distribution yield 1,2 8.8%

FFO per unit[1] 15.8c

Distributions paid in equal quarterly instalments

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

2. Based on COF closing unit price of $1.60 on Tuesday, 31 January 2023

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Centuria Centuria ASX:COFASX:COF 2222
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ASX:COF

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144 STIRLING STREET, PERTH WA
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A PORTFOLIO PROVIDING AFFORDABLE ACCOMODATION SOLUTIONS

Appendices

SECTION FIVE

Appendix A: Australian office market metrics Appendix B: COF leasing history Appendix C: Income statement Appendix D: FFO reconciliation Appendix E: Balance sheet Appendix F: Portfolio valuation summary Appendix G: Investment property portfolio Appendix H: Environmental data

Appendix A: Australian office market metrics

MARKET1	VACANCY (%)	6 MTH NET ABSORPTION (SQM)	12 MTHS NET ABSORPTION (SQM)	RENTAL DISCOUNT TO SYDNEY CBD (%)	UPCOMING SUPPLY (SQM)
Adelaide 16.5 4,121 (544) 63.1 126,998
Melbourne CBD 15.4 1,653 (13,789) 46.9 249,453
Melbourne fringe 14.4 38,147 82,299 58.2 208,078
Melbourne SES 11.9 (856) 2,624 67.5 46,815
Brisbane CBD 13.9 29,898 56,399 46.5 108,923
Brisbane fringe 17.2 22,195 25,612 59.6 91,861
Canberra 7.0 48,994 47,585 67.7 43,000
North Sydney 17.6 (16,961) (18,535) 30.5 93,767
Chatswood 16.4 (428) (7,603) 49.3 -
Parramatta 22.6 (50,236) (67,830) 53.8 15,354
Perth CBD 19.0 20,630 32,610 47.3 88,800
St Leonards 24.2 (11,561) (11,901) 48.7 16,738
Sydney CBD 14.0 (20,807) (27,266) - 212,138
Sydney fringe 8.7 10,769 19,476 42.1 18,519
Macquarie Park 14.0 11,561 (502) 65.9 33,920
West Perth 18.3 15,455 19,272 64.9 -

154 MELBOURNE STREET, SOUTH BRISBANE QLD

1. Source: JLL (as at 31 December 2022)

Centuria ASX:COF 24

Appendix B: COF leasing history

Since the COVID-19 outbreak, COF has leased over 150,000 sqm, c. 51% of portfolio NLA

100 BROOKES STREET,	FORTITUDE VALLEY QLD
Leasing executed FY15	Leasing executed FY16	Leasing executed FY17	Leasing executed FY18	Leasing executed FY19	Leasing executed FY20	Leasing executed FY21	Leasing executed FY22	Leasing executed HY23
5,116sqm	12,493sqm	20,321sqm	17,970sqm	21,758sqm	32,378sqm	52,077sqm	41,283sqm	30,420sqm
or5.1%	or11.1%	or15.5%	or9.7%	or10.0%	or10.6%	or18.1%	or13.6%	or10.0%
of portfolio	of portfolio	of portfolio	of portfolio	of portfolio	of portfolio	of portfolio	of portfolio	of portfolio
Portfolio	Portfolio	Portfolio	Portfolio	Portfolio	Portfolio	Portfolio	Portfolio	Portfolio
occupancy1	occupancy1	occupancy1	occupancy1	occupancy1	occupancy1	occupancy2	occupancy2	occupancy2
96.7%	97.2%	97.3%	98.9%	98.4%	98.1%	93.1%	94.7%	96.4%

1. By area 2. By income

Centuria ASX:COF 25

483 KINGSFORD SMITH DRIVE, HAMILTON QLD

Appendix C: Income statement

$'000	HY23	HY22
Gross property income 91,977 90,777
Interest income - 1
Total revenue 91,977 90,778
Direct property expenses (19,852) (18,118)
Responsible entity fees (6,648) (6,092)
Finance costs (15,660) (9,433)
Management and other administrative expenses (1,185) (1,123)
Expected credit loss and rental waiver expense (77) (1,340)
Total expenses (43,422) (36,106)
Funds from operations1 48,555 54,672
Gain/(loss) on fair value of investment properties (51,367) 11,677
Realised/unrealised loss on fair value of derivatives (1,540) 5,427
Straight-lining of rental income and amortisation of leasing commissions and tenant incentives (13,027) (8,182)
Interest and depreciation expense adjustments for AASB 16 16 36
Statutory net profit (17,363) 63,630

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

Centuria Centuria ASX:COFASX:COF 2626

42-46 COLIN STREET, WEST PERTH WA

Appendix D: FFO reconciliation

$'000	HY23	HY22
Statutory net profit (17,363) 63,630
(Gain)/loss on fair value of investment properties 51,367 (11,677)
(Gain)/loss on fair value of derivatives 1,540 (5,427)
Straight-lining of rental income and amortisation of leasing commissions and tenant incentives 13,027 8,182
Adjustments for AASB 16 (16) (36)
Funds from operations1 48,555 54,672
Distribution 42,110 49,408
FFO per unit (cents) 8.1 9.2
Distribution per unit (cents) 7.05 8.30

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

Centuria Centuria ASX:COFASX:COF 2727

203 PACIFIC HIGHWAY, ST LEONARDS NSW

Appendix E: Balance sheet

$'000	31-Dec-22	30-Jun-22
Cash	19,487	26,558
Investment properties1	2,341,401	2,366,770
Trade and other receivables	9,976	7,450
Derivative financial instruments	7,557	7,133
Other assets	12,816	9,995
Total assets	2,383,680	2,410,773
Interest bearing liabilities2	857,553	828,504
Trade and other liabilities	39,466	32,385
Other liabilities3	53,633	57,383
Total liabilities	950,652	918,272
Net assets	1,433,028	1,492,501
Units on issue (thousands)	597,336	597,336
Net tangible assets per unit ($)	2.40	2.50
Gearing (%)4	35.6	33.8

1. Investment properties of $2.3bn includes a $31.4m leasehold asset under AASB 16

2. Drawn debt net of borrowing costs

3. Includes $21.1m distributions payable and lease liability of $32.6m

4. Gearing is defined as total borrowings less cash divided by total assets less cash

Centuria Centuria ASX:COFASX:COF 2828

Appendix F: Portfolio valuation summary

STATE HY23 VALUATION1 FY22 VALUATION1 VALUATION MOVEMENT2	HY23 WACR1,3 FY22 WACR1,3 MOVEMENT WACR3
($M) ($M) ($M) (%)	(%) (%) (BPS)
NSW 584.5 589.6 (5.1) (0.9)	5.53 5.37 16
QLD 490.5 501.6 (11.1) (2.2)	6.19 5.96 23
VIC 551.0 562.2 (11.2) (2.0)	5.27 5.11 16
ACT 338.4 341.4 (3.0) (0.9)	5.53 5.40 13
WA 279.3 284.3 (5.0) (1.8)	6.58 6.34 24
SA 66.3 56.2 10.1 18.0	6.09 6.23 (14)
Like-for-like portfolio/weighted average 2,310.0 2,335.3 (25.3) (1.1)	5.75 5.58 17

825 ANN STREET, FORTITUDE VALLEY QLD

1. Excludes the fair value of any ground lease

2. Reflects gross increase, excluding capital expenditure incurred 3. Weighted average capitalisation rate Past performance is not a reliable indicator of future performance

Centuria ASX:COF

29

Appendix G: Investment property portfolio

PROPERTY	STATE	OWNERSHIP (%)	BOOK VALUE ($M)	CAPITALISATION RATE (%)	AREA (SQM)	AREA ($/SQM)	WALE (YRS)1	OCCUPANCY (%)1
8 Central Avenue, Eveleigh	NSW	50%	205.5	5.13%	36,619	5,612	7.2	96.5%
203 Pacific Highway, St Leonards	NSW	100%	138.0	5.75%	11,736	11,759	4.1	87.7%
201 Pacific Highway, St Leonards	NSW	50%	106.5	5.63%	16,499	6,455	1.9	79.8%
9 Help Street, Chatswood	NSW	100%	97.5	5.50%	9,392	10,382	3.4	88.8%
77 Market Street, Wollongong	NSW	100%	37.0	6.75%	6,755	5,478	2.9	100.0%
2 Phillip Law Street, Canberra	ACT	100%	252.0	5.13%	27,390	9,201	6.0	100.0%
60 Marcus Clarke Street, Canberra	ACT	100%	63.0	6.63%	11,978	5,260	3.3	93.1%
54 Marcus Clarke Street, Canberra	ACT	100%	23.4	7.00%	5,200	4,500	3.0	100.0%
825 Ann Street, Fortitude Valley	QLD	100%	158.0	6.00%	19,167	8,243	2.9	99.8%
100 Brookes Street, Fortitude Valley	QLD	100%	88.5	6.00%	9,525	9,291	3.4	100.0%
154 Melbourne Street, South Brisbane	QLD	100%	82.0	6.38%	11,176	7,337	2.9	76.9%
483 Kingsford Smith Drive, Hamilton	QLD	100%	79.0	6.00%	9,182	8,604	3.8	100.0%
35 Robina Town Centre Drive, Robina	QLD	100%	42.0	7.00%	9,145	4,593	1.7	100.0%
555 Coronation Drive, Toowong	QLD	100%	41.0	6.50%	5,567	7,365	4.4	100.0%
818 Bourke Street, Docklands	VIC	100%	205.0	5.25%	23,096	8,876	3.1	90.5%
101 Moray St, South Melbourne	VIC	100%	204.0	5.00%	15,923	12,811	5.2	99.6%
2 Kendall Street, Williams Landing	VIC	100%	72.0	5.75%	12,961	5,555	5.9	100.0%
584 Swan Street, Richmond	VIC	100%	70.0	5.63%	8,261	8,474	3.7	100.0%
1 Richmond Road, Keswick	SA	100%	44.7	6.50%	8,087	5,527	3.8	100.0%
57 Wyatt Street, Adelaide2	SA	100%	21.6	5.25%	4,600	11,590	7.0	100.0%
235 William Street, Northbridge	WA	100%	168.0	6.63%	21,626	7,768	3.5	99.4%
144 Stirling Street, East Perth	WA	100%	73.3	6.50%	11,042	6,634	6.5	100.0%
42-46 Colin Street, West Perth	WA	100%	38.0	6.50%	8,411	4,518	5.4	100.0%
TOTAL PORTFOLIO (DEC-22)3			2,310	5.75%	303,336	8,346	4.2	96.4%

1. By gross income (equity share)

2. 57 Wyatt Street, Adelaide is currently under development. The $21.6m book value represents the cost to date of the development 3. Investment properties of $2.3bn excludes a $31.4m leasehold asset under AASB 16

Centuria ASX:COF 30

Appendix H: Environmental data

Environmental Data reported is for financial years 2021 and 2022. Financial year 2023 data will be reported in the Centuria 2023 Sustainability Report

Reported figures represent data for assets within the Centuria Office REIT (ASX:COF)

Environmental data is reported where Centuria is deemed to have operational control of an asset

OPERATIONAL CONTROL

Operational Control refers to Centuria’s capacity to directly manage the day-to-day activities of assets, by employing Centuria’s or a nominated delegate’s management policies. This definition is consistent with the principles outlined in the National Greenhouse and Energy Reporting Act 2007

EMISSIONS

Centuria use emissions factors from each corresponding year’s National Greenhouse and Energy Reporting (Measurement) Determination. Emissions are reported for material energy sources collected including electricity and natural gas

	Unit of Measure	FY22	FY21
Net lettable area	sqm	295,128	304,589
Total energy	MWh	27,671	21,280
Base building electricity	MWh	23,009	17,484
Natural gas	MWh	4,292	3,714
On-site solar generation	MWh	394	87
Renewables exported	MWh	24	-
Scope 1 emissions	tCO2-e	796	689
Scope 2 emissions	tCO2-e	17,855	13,889
Water	kL	145,928	145,634
Total waste	tonne	900	1,094
Waste disposed	tonne	659	822
Waste diverted	tonne	241	272

Centuria ASX:COF 31

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 in 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 units 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. Past performance is not a reliable indicator of future performance.

The information contained in this presentation does not constitute financial product advice. Before making an investment decision, the recipient should consider their own financial situation, objectives and needs, and conduct their own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as they consider 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, units 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.

Centuria ASX:COF 32

AUSTRALIA

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Sydney Head Office (02) 8923 8923 Level 41, Chifley Tower 2 Chifley Square Sydney NSW 2000

Brisbane Office (07) 3905 7000 Level 2

348 Edward Street Brisbane QLD 4000

Melbourne Office

(03) 9616 6500 Level 47 101 Collins Street Melbourne VIC 3000

Perth Office

(08) 9321 7133 Level 27 140 St Georges Terrace Perth WA 6000

NEW ZEALAND

Auckland Office

+64 (9) 300 6161 Level 2, Bayleys House, 30 Gaunt Street, Wynyard Quarter Auckland 1010