COF reported half year results for the 6 months ended 31 December 2020. Some of the key highlights include:
- FFO of 11.2 cpu, up from the 9.6 cpu in 1H20 with earnings boost from one-off lease surrender payment by Foxtel at Robina QLD location.
- Occupancy fell to 91.5% (from 98.1%) from loss of Foxtel lease as well as Infosys vacating 818 Bourke St, Melb VIC.
- Rent collection rate improved to 96.7% (from 92% in June 2020 quarter).
- COF has provided new guidance for FY21 earnings of 19.4 – 19.9 cpu, with distributions reaffirmed at 16.5cpu.
- At current levels COF is trading at a 19.2% discount to NTA and and attractive FY21 yield of 8.3%.
We have upgraded our recommendation to BUY on the basis of earnings certainty returning in FY22, flowing through to distribution growth.
Download our report for the full details.