This article is from the Australian Property Journal archive
ALTERNATIVE real estate investor Arena REIT recorded no material change in its latest portfolio valuation.
A total of 59 early learning centre (ELC) assets and six healthcare assets were independently valued as at 30 June 2024, with the remaining ELC and healthcare assets and ELC development projects subject to directors’ valuation.
The ELC portfolio gained $3 million or 0.2% which was offset by a $3 million or 2.2% decline in the healthcare portfolio. The valuation effect of an expansion in capitalisation rates has been offset by increases in passing and market rents resulting in an overall neutral revaluation outcome.
Rent reviews during the period resulted in an average like-for-like FY2024 rent increase of 4.9%.
Managing director Rob de Vos said strong macroeconomic drivers continue to support growth in the demand for essential community services across Australia.
“These themes, combined with Arena’s disciplined capital management, development and asset management expertise, as well as the integration of sustainability across the business, underpin Arena’s value proposition. We remain well positioned to pursue new social infrastructure opportunities that are consistent with our purpose and investment objective.”
Arena has declared a final quarter distribution of 4.35 cents per security. The total FY2024 distribution is 17.4 cents per security which is in accordance with previous guidance and reflects growth of 3.6% over FY2023.
