Arena REIT (ARF) investor relations material

Executive summary

• Net operating profit rose 8% year-over-year to $79.1 million, with statutory net profit up 62% to $132 million, driven by rental growth, acquisitions, and valuation gains.

• Operating EPS increased 5.7% to 19.60 cents; DPS up 5.5% to 19.25 cents, in line with guidance.

• Portfolio comprises 307 assets valued at $2 billion, with a WALE of 17.5 years and 100% occupancy.

• Portfolio quality improved through disciplined capital allocation, development, and targeted divestments.

• Edge portfolio defaulted on rent, leading to a 10% or $24.4 million reduction in value.

Financial highlights

• Total assets reached $2.0 billion, up 8% from June 2025; NAV per security rose 4% to $3.60.

• Property income increased 10.3% year-over-year to $101.6 million, driven by rent reviews and capital deployment.

• Like-for-like rent reviews averaged 4%, with 36 market reviews at an average 7.6% increase.

• Portfolio value increased by $47.4 million (2.7%) despite Edge revaluation.

• Passing yield for the portfolio is 5.56%, up nine basis points.

Outlook and guidance

• FY2027 DPS guidance set at not less than 18.0 cents per security, assuming no income from the Edge Portfolio after 1 August 2026 except for $4 million in security.

• Guidance assumes only July rent from Edge, with $4 million in bank guarantees to offset potential loss.

• Focus remains on resolving Edge situation, monitoring market, and progressing 29 development projects.

• Prudent approach to guidance due to uncertainty around Edge Portfolio outcomes.

• Long-term sector fundamentals remain positive, supported by demographic and policy drivers.