Arena REIT (ARF) H2 2025 earnings summary

Executive summary

• Statutory net profit rose 42% to $81.5 million year-over-year, with net operating profit up 17% to $73.1 million and total assets reaching $1.9 billion, a 15% increase.

• Operating earnings per security increased 5.1% to 18.55 cents, and distribution per security grew 4.9% to 18.25 cents compared to FY2024.

• Portfolio maintained 100% occupancy and a WALE of 18.4 years, with an average like-for-like rent increase of 3.5%.

• Eleven properties acquired, five divested, and twelve early learning centre developments completed at a 5.8% initial yield.

• Sustainability initiatives led to a 47% reduction in financed emissions intensity, solar installations on 92% of properties, and zero Scope 1 and 2 emissions.

Financial highlights

• Statutory profit for FY25 was $81.5 million; underlying cash-based net operating profit was $73 million, up 17% year-over-year.

• Earnings per security increased 5.1% to $0.1855; net asset value per security rose 1.5% to $3.46.

• Distribution for FY25 was $0.1825 per security, up 4.9% from FY24; FY26 guidance set at $0.1925, a 5.5% increase.

• Investment property value grew 12% due to $224 million in acquisitions and development CapEx; total assets reached $1.86 billion.

• Gearing stable at 22.8% after $164 million equity raised.

Outlook and guidance

• FY26 distribution guidance of $0.1925 per security, up 5.5% from FY25, underpinned by contracted rent increases and development pipeline.

• Positive outlook driven by strong demand for early learning and healthcare services, with continued focus on disciplined growth and portfolio curation.

• Development pipeline replenished with 29 projects scheduled for completion in FY2026 and FY2027.

• Growth underpinned by contracted rental growth, transactions, and development completions.

• Ongoing focus on portfolio quality and active management to support predictable, growing distributions.