Centuria Office REIT, the country’s largest pure-play office landlord, has revealed a record year of lease deals that indicate corporate and government tenants are looking at future accommodation requirements and making commitments.

Centuria Office fund manager Grant Nichols said that while lockdowns were not good for immediate operating conditions, they reinforced how isolating being away from an office culture and broader workforce can be.

“While we’re not enjoying the immediate lockdown issues, I think they do – to an extent – reinforce why workplaces are so important,” Mr Nichols said.

“While there remains uncertainty due the ongoing disruptions caused by COVID-19, we have seen increasing white-collar employment growth and greater confidence from tenants in relation to their future office accommodation requirements.”

The $1.3 billion ASX-listed fund specialises in office accommodation mostly located in fringe and metropolitan markets, including 818 Bourke Street in Melbourne’s Docklands, and 201 Pacific Highway in St Leonards on Sydney’s north shore.

For the year to June 30, affected by ockdowns in both markets, the REIT reported a statutory profit of $76.2 million, up from $23.1 million. The annual distribution was 16.5¢, payable on August 10, and the 2022 guidance is 16.6¢.

Funds from operation (the more accurate measure for real estate investment trusts) was $102.2 million, up from $85.4 million, and was boosted in part by a lease surrender payment from Foxtel in Queensland and a $16.3 million rise in the portfolio’s value, taking it to $2 billion. The result was in line with market expectations.

Mr Nichols said the group signed 61 transactions across 52,077 square metres, illustrating strong tenant demand for modern, affordable fringe office accommodation.

This level of deals, he said, would indicate that many tenant occupiers are looking at returning to work in a manner similar to what they had before the pandemic, which would further improve leasing activity.