Arena REIT (ARF) H1 2026 earnings summary

Executive summary

• Net statutory profit reached $110 million, a 202% year-over-year increase, with net operating profit up 9% to $39 million, driven by rental income growth, acquisitions, and development completions in early learning and healthcare assets.

• Operating EPS rose 5.4% to 9.70 cents, and NAV per security increased to $3.64, reflecting portfolio quality and revaluation gains.

• Portfolio remains fully occupied, with a WALE of up to 18.7 years and diversified tenant base; no single tenant exceeds 20% of income.

• Sustainability initiatives reduced emissions intensity by 53% in FY25, with 93% of the portfolio powered by rooftop solar.

• FY2026 distribution per security guidance reaffirmed at 19.25 cents, a 5.5% increase.

Financial highlights

• Earnings per security increased 5.4% to 9.70 cents; net asset value per security up 5.2% to $3.64.

• Total assets rose 7% to $1,984 million since June 2025.

• Distributions of 9.625 cents per security paid for the half, up 5.5% year-over-year.

• Investment property value grew 6% due to $83 million in acquisitions and development CapEx, and $61 million in positive revaluations.

• Passing yield on the portfolio firmed to 5.39%; like-for-like rent growth was 3.6%.

Outlook and guidance

• Full-year distribution guidance reaffirmed at 19.25 cents per security, assuming no material changes in market or operating conditions.

• Positive outlook supported by population growth, government policy, and demand for essential services.

• Development pipeline replenished with 29 projects, expected to complete over two years at a 6% yield.

• Second half expected to see completion of remaining market rent reviews and continued disciplined acquisitions.

• Focus remains on disciplined portfolio management, quality enhancement, and embedded income growth through inflation-linked leases.