This article is from the Australian Property Journal archive
ARENA REIT expects a portfolio revaluation uplift of $72 million for the six months to the end of June, an increase of 7%, on the back of strong macroeconomic drivers supporting Australia’s early learning sector.
A total of 47 childcare assets and four healthcare assets were independently valued, with the remaining assets subject to directors’ valuation.
The group’s childcare centre portfolio will increase in value by 6.8% to $60 million, with a firming in weighted average passing yield of 32 basis points to 5.84%.
Its healthcare portfolio will increase $12 million, by 8.4%, with a 44 basis point firming in WAPY to 5.55%.
They equate to a total portfolio WAPY of 33 basis points to 5.80%.
The uplift represents an increase of $0.21 in Net Asset Value (NAV) per security.
A summary of the $72 million portfolio revaluation uplift is detailed below:
The group said demand for services and record female workforce participation rate have been driving increased long day care participation rates. The federal government recent committed to further invest $1.7 billion to the sector.
A total of seven property acquisitions and 14 development projects are expected to be completed during FY21, and nine new projects have been added to the development pipeline.
Arena’s development pipeline now comprises 13 projects, with an expected total capital investment of $79 million.
Distribution for the June quarter is 3.725c per stapled security, bringing the FY21 full year distribution to 14.8c per stapled security, in line with guidance.
