Ann: COF HY24 Results Announcement, page-2

“Looking to the leasing market, we believe tenant demand may be finding an equilibrium. Workplace structural changes throughout the past four years have largely balanced out, and flexible working arrangements are now somewhat ubiquitous. In fact, many Australian office markets experienced positive net absorption through 202310. Many tenants have not decreased their footprint and the universal office leasing distress predicted by market speculators has not materialised, particularly in the markets COF is exposed to.
“Significantly, metropolitan office demand continues to materially outstrip the Sydney and Melbourne CBDs. In particular, the Brisbane fringe market incurred the strongest net absorption in 2023 and has limited pending supply.10 COF has substantial exposure to this market with a 20% portfolio weighting.”