This article is from the Australian Property Journal archive
ARENA REIT (ASX:ARF) saw a 74% fall in profits over HY23, after a period of weaker investment property revaluation gains.
The trust posted a statutory net profit of $47.6 million, down 74% on HY22.
While posting a net operating profit of $29.9 million, up 8.6% on the previous corresponding period.
Earnings per security were up 7.8% over the period to 8.59 cents, with Arena having paid DPS of 8.4 cents for the period, up 6.3% on the pcp.
Arena’s total assets increased by 4% from 30 June 2022 to $1.58 billion, contributing to a 1% increase in NAV of 5cps to $3.42 as at 31 December 2022.
“Arena has delivered seven new high quality, purpose built early learning centres for local communities and our tenant partners continue to report strong underlying business occupancy,” said Rob de Vos, managing director at Arena.
Arena’s portfolio comprised 260 ELC properties and development sites and 11 healthcare properties, with occupancy at 99.6% and a WALE of 19.5 years.
Over the period all 271 properties were revalued, with 52 independently valued, resulting in a portfolio valuation uplift of $18 million, up 1.3% on FY22. and a portfolio weighted average passing yield 5.05%
Over the period 100% of contracted rent was received for the half year period, with an average like-for-like rent review increase of 6.45%.
Arena’s gearing was at 21.5%, up from 20.2% at 30 June 2022, with a weighted average cost of debt at 3.90%.
80% of debt was hedged for a weighted average term of 4.0 years at 1.93%, with a weighted average facility term of 4.2 years and no expiry until March 2026.
“Arena’s investment proposition and partnership approach are integral to building better communities, together,” added de Vos.
“This approach drives sustainable and commercial outcomes and underpins Arena’s value proposition which provides inflation protected, long term income predictability with earnings growth prospects over the medium to long term.”
ARF reaffirmed its FY23 full year distribution guidance of 16.8 cents, up 5% on FY22.
