This article is from the Australian Property Journal archive
CHARTER Hall’s listed childcare trust and Arena REIT have both withdrawn full year guidance figures, while the federal government has tabled plans to increase funding to the sector and keep centres in operation.
Arena, which has a portfolio comprising 85% early learning centres and 15% healthcare properties, deferred its March quarterly distribution but said all of its tenants are currently compliant with rent obligations.
Managing director of the trust, Rob de Vos said Arena believed it prudent to defer the declaration of the March quarterly distribution “until Arena has greater clarity on the funding of the ELC industry and importantly, the impact of COVID-19 on the businesses of our tenant partners”.
Arena has undrawn debt capacity of $123 million, in excess of outstanding development capital expenditure requirements of $80 million, while CQE has debt facilities of $500 million with no debt maturities until March 2023 and available liquidity.
Both trust have no debt expiry falling due until March 2023.
CQE will pay its distribution for the March quarter of 4.175 cents per unit previously declared on 21st April. Fund manager of CQE, Travis Butcher, said it was prudent to withdraw current earnings and distribution guidance in light of the escalating nature of the COVID-19 pandemic.
He said the trust has the “ability to fully fund its contracted property acquisitions and future development pipeline from existing facilities”.
“We welcome today’s announcement from the Minister of Education that the government will help families with the cost of childcare and provide support for childcare centres to remain viable and pay staff during enforced COVID-19 closures.”
Federal Education Minister Dan Tehan said current medical advice is for childcare centres to remain open, except where health authorities direct individual services to close.
About 1.3 million children are currently in childcare and about 200,000 people employed in the sector. School holidays were brought forward in Victoria by one week to begin today.
Laws scheduled for debate in parliament on Monday included increasing the number of days that a family can continue to claim the Child Care Subsidy where a child is absent from child care for more than the currently allowable 42 days; additional access to absences for families without the need for evidence in relation to COVID-19, and waive obligations of childcare services to require a family to pay gap fees if the service is forced to close.
The Child Care Subsidy can be up to 85% of the daily cost of care for a child and will continue to be paid if a centre is directed to close because of COVID-19. New measures will not applicable to centres that voluntarily close.
