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Arena REIT
(Sydney:ARF)
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Rating:68Neutral
Price Target:
AU$2.50
â–Ľ(-26.47% Downside)
Action:Reiterated
Date:10/08/26
The score is driven mainly by solid financial performance (growth and manageable leverage) and a strong valuation profile (low P/E and high yield). These positives are tempered by weaker cash-flow quality (frequently negative free cash flow, including a large 2026 outflow) and mixed technicals with a negative MACD and a longer-term downtrend versus the 100/200-day averages.
Positive Factors
Revenue Growth
The substantial increase in revenue indicates that Arena REIT has expanded its rent base and portfolio earnings over time. Continued top-line growth can strengthen operating scale, support future distributions, and provide capacity to reinvest in additional social infrastructure properties.
Negative Factors
Weak Free Cash Flow
Repeated negative free cash flow means operating cash generation has not consistently covered investment and capital spending requirements. The sharp 2026 outflow may increase reliance on funding sources and constrain distributions, acquisitions, or development flexibility if the pattern persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The substantial increase in revenue indicates that Arena REIT has expanded its rent base and portfolio earnings over time. Continued top-line growth can strengthen operating scale, support future distributions, and provide capacity to reinvest in additional social infrastructure properties.
Read all positive factors
Arena REIT (ARF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$964.50M
Dividend Yield8.02%
Average Volume (3M)2.42M
Price to Earnings (P/E)8.2
Beta (1Y)0.79
Revenue Growth6.55%
EPS Growth44.74%
CountryAU
Employees12
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.30
Shares Outstanding408,685,800
10 Day Avg. Volume3,125,814
30 Day Avg. Volume2,420,141
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.96
Price to Sales (P/S)10.71
P/FCF Ratio-15.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.91Price Target Upside-14.54% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$104.22M
Arena REIT Business Overview & Revenue Model
Company Description
Arena REIT is an ASX300-listed property group dedicated to the ownership, management, and development of social infrastructure assets throughout Australia. Its existing portfolio generates income through leases to a varied tenant base, predominant...
How the Company Makes Money
Arena REIT primarily makes money by owning social infrastructure properties (predominantly early learning centres) and leasing them to operating tenants. Its core revenue stream is rental income received under lease agreements, typically structure...
Arena REIT Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 117.26M | 110.05M | 98.18M | 93.23M | 81.24M |
| Gross Profit | 116.35M | 101.36M | 90.43M | 86.06M | 80.67M |
| EBITDA | 147.48M | 101.36M | 91.42M | 84.87M | 61.55M |
| Net Income | 121.78M | 81.49M | 57.51M | 74.24M | 334.29M |
Balance Sheet | |||||
| Total Assets | 2.02B | 1.86B | 1.62B | 1.57B | 1.52B |
| Cash, Cash Equivalents and Short-Term Investments | 21.73M | 16.57M | 12.43M | 16.11M | 22.20M |
| Total Debt | 510.06M | 436.98M | 377.32M | 340.79M | 323.21M |
| Total Liabilities | 552.00M | 472.83M | 409.05M | 368.99M | 349.59M |
| Stockholders Equity | 1.30B | 1.23B | 1.07B | 1.20B | 1.17B |
Cash Flow | |||||
| Free Cash Flow | -78.49M | 74.27M | 62.53M | -11.47M | -45.90M |
| Operating Cash Flow | 78.04M | 74.27M | 62.53M | 59.85M | 58.10M |
| Investing Cash Flow | -91.34M | -220.35M | -56.76M | -38.21M | -87.50M |
| Financing Cash Flow | 18.46M | 150.23M | -9.45M | -27.73M | 37.59M |
Arena REIT Technical Analysis
Positive
3.40
Price Trends
2.29
Positive
2.70
Negative
2.98
Negative
Market Momentum
<0.01
Negative
61.18
Neutral
72.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARF, the sentiment is Positive. The current price of 3.4 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 2.29, and above the 200-day MA of 2.98, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARF.
Arena REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$2.27B | 6.15 | 11.14% | 7.89% | 3.75% | 44.09% | |
74 Outperform | AU$8.68B | 8.23 | 9.83% | 5.35% | -7.59% | 178.60% | |
73 Outperform | AU$17.81B | 9.03 | 10.30% | 5.31% | -3.71% | 37.55% | |
72 Outperform | AU$359.64M | 6.54 | 15.00% | 7.80% | -5.59% | 43.56% | |
71 Outperform | AU$10.86B | 7.47 | 11.65% | 5.34% | 2.65% | 37.05% | |
68 Neutral | AU$964.50M | 8.21 | 9.31% | 8.02% | 6.55% | 44.74% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
AU:ARF
Arena REIT
2.36
-1.27
-34.93%
AU:VCX
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AU:GPT
GPT Group
4.53
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3.41
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AU:DXC
Dexus Convenience Retail REIT
2.68
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AU:HDN
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1.09
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-14.97%
Arena REIT Corporate Events
Arena REIT Entrenches AMIT Provisions in Trust Constitutions to Preserve Tax Treatment
Sep 28, 2026
Arena REIT has amended the constitutions of its Arena REIT No. 1 and Arena REIT No. 2 trusts to embed provisions required under Australia’s Attribution Managed Investment Trust tax regime. The changes, made under the Corporations Act and exi...
Arena REIT details 2026 governance, diversity and board renewal moves
Sep 28, 2026
Arena REIT has released its 2026 corporate governance statement outlining how it adhered to the ASX Corporate Governance Council’s fourth edition Principles and Recommendations over the year to 30 June 2026. The group continues to operate wi...
Arena REIT Files Updated Corporate Governance Statement with ASX
Sep 28, 2026
Arena REIT has confirmed that its corporate governance statement for the year ended 30 June 2026 is available on its website and has been approved by the board. The statement outlines the extent of compliance with ASX Corporate Governance Council ...
Arena REIT publishes FY2026 annual report with full portfolio and financial disclosures
Sep 28, 2026
Arena REIT has released its annual report for the financial year ended 30 June 2026, covering the consolidated financial performance of Arena REIT Limited, Arena REIT No. 1, Arena REIT No. 2 and their controlled entities. The report outlines portf...
Arena REIT director increases stapled security holding via incentive vesting
Sep 23, 2026
Arena REIT has disclosed a change in the interests of director Gareth Winter following the vesting of securities under the group’s deferred short- and long-term incentive plan. Winter’s indirect holding, via the Winter Family account, ...
Arena REIT Director Justin Bailey Increases Holding via Incentive Vesting
Sep 23, 2026
Arena REIT has disclosed a change in the security holdings of director Justin Bailey following the vesting of incentives under the group’s Deferred Short Term and Long Term Incentive Plan. The update details movements across his direct and i...
Arena REIT Seeks ASX Quotation for New Employee Incentive Securities
Sep 21, 2026
Arena REIT has applied for quotation on the ASX of 112,540 fully paid stapled ordinary securities, to be issued on September 23, 2026 under an employee incentive scheme. The move modestly increases the trust’s listed security base and unders...
Arena REIT Seeks ASX Quotation for New Employee Incentive Securities
Sep 21, 2026
Arena REIT has lodged an application with the ASX for quotation of 139,985 fully paid stapled ordinary securities to be issued on 23 September 2026. The new securities have been issued under an employee incentive scheme, indicating continued use o...
Arena REIT Confirms Quarterly Distribution and Suspends DRP
Sep 21, 2026
Arena REIT has declared a quarterly distribution of 4.50 cents per stapled security for the period ending 30 September 2026. The payout aligns with the FY27 distribution guidance previously provided to investors, underscoring the trust’s com...
Arena REIT declares quarterly distribution for September 2026
Sep 21, 2026
Arena REIT has announced a quarterly distribution to holders of its fully paid stapled securities, set at AUD 0.045 per security for the period ending 30 September 2026. The distribution will trade ex on 29 September 2026, with a record date of 30...
Arena REIT Names Adam Tindall Chair Elect as David Ross Retires
Sep 16, 2026
Arena REIT has announced that long-serving independent non-executive director and Chair David Ross will retire following the company’s AGM on 20 November 2026, marking the end of his tenure that began with Arena’s ASX listing in 2013. ...
Arena REIT Relocates Corporate Head Office to Melbourne CBD
Sep 13, 2026
Arena REIT has announced that its registered office and principal place of business for Arena REIT Limited and Arena REIT Management Limited has moved to Level 15, 8 Exhibition Street, Melbourne, Victoria. The change of address is effective immedi...
Arena REIT Director Increases Stake Through On‑Market Purchase
Sep 3, 2026
Arena REIT has disclosed a change in director Adam Tindall’s holdings, with the company lodging an updated director’s interest notice with the ASX. The filing forms part of the trust’s ongoing compliance with listing rules govern...
Arena REIT Director Nacard Acquires First Stake in Stapled Securities
Sep 3, 2026
Arena REIT has disclosed a change in director Matthew Nacard’s interests, with an affiliated entity purchasing 40,000 ordinary stapled securities on market. The transaction, executed via Nacvans Pty Ltd on 28 August 2026 for $91,972, marks N...
Arena REIT Director Justin Bailey Increases Stapled Security Holding
Sep 3, 2026
Arena REIT has disclosed a change in the securities held by director Justin Bailey, reporting an on‑market purchase of 26,596 ordinary stapled securities on 28 August 2026. Following the transaction, Bailey’s direct holding increased t...
Arena REIT Sets Date for 2026 AGM and Director Elections
Sep 3, 2026
Arena REIT has scheduled its 2026 Annual General Meeting of securityholders for 10.00am on Friday, 20 November 2026, with further details to be provided in a formal Notice of Meeting closer to the date. An election of directors will be held at the...
Arena REIT moves to safeguard income amid Edge Early Learning administration
Sep 3, 2026
Arena REIT has provided an update on its exposure to Edge Early Learning after the childcare operator was placed into administration and the administrators began seeking urgent expressions of interest for a sale of all or part of the business. The...
Arena REIT director Justin Bailey increases indirect stapled security holding
Aug 28, 2026
Arena REIT has disclosed a change in the holdings of director Justin Bailey, in line with ASX listing rule 3.19A.2 governing director interest notices. The filing details both his direct and indirect interests in the trust’s ordinary stapled...
Arena REIT faces tenant administration as Edge Early Learning enters voluntary administration
Aug 26, 2026
Arena REIT has disclosed that its tenant Edge Early Learning has entered voluntary administration, creating uncertainty over the future of leases on Arena-owned properties occupied by Edge. The administrator has yet to outline its plans for these ...
Arena REIT posts higher FY2026 profits and navigates tenant default risk
Aug 20, 2026
Arena REIT is an Australian real estate investment trust specialising in social infrastructure, primarily early learning centres, with a fully occupied national portfolio of long-lease properties. It focuses on stable, income-generating assets bac...
Arena REIT Lifts 2026 Profit, Maintains Steady Investor Distributions
Aug 20, 2026
Arena REIT reported a strong financial performance for the year ended 30 June 2026, with total income from ordinary activities rising 39% to A$162.4 million. Net profit after tax attributable to stapled security investors increased 62% to A$131.8 ...
Arena REIT Sets Date for FY2026 Results and Investor Briefing
Aug 17, 2026
Arena REIT has announced it will release its FY2026 financial results to the ASX on 21 August 2026 and will host an investor webcast and teleconference the same day. The events will provide an overview of the company’s operating activities a...
Arena REIT delays FY2026 results as key childcare tenant defaults on rent
Aug 9, 2026
Arena REIT has disclosed that tenant Edge Early Learning, which leases 31 childcare properties and accounts for about 14% of its rental income, has missed an August rent payment after seeking rent deferrals or abatements as part of a corporate res...
Arena REIT Director Justin Bailey Increases Stake via Distribution Reinvestment Plan
Aug 6, 2026
Arena REIT has disclosed a change in the interests of director Justin Bailey, following his participation in the company’s distribution reinvestment plan. Bailey increased his direct holding of ordinary stapled securities by 1,155 units, bri...
Arena REIT Director Increases Holding via Distribution Reinvestment Plan
Aug 6, 2026
Arena REIT has reported a small increase in the equity stake held by director Helen Thornton following participation in the company’s distribution reinvestment plan. Her direct holding rose from 34,866 to 35,154 ordinary stapled securities a...
Arena REIT director boosts holding via distribution reinvestment plan
Aug 6, 2026
Arena REIT has disclosed a change in the security holdings of director Rosemary Hartnett, in line with ASX listing rule requirements for director interest notices. Hartnett’s direct holding increased from 42,911 to 43,561 ordinary stapled se...
Arena REIT Seeks ASX Quotation for New Stapled Securities
Aug 6, 2026
Arena REIT has lodged an application with the ASX for quotation of 1,661,265 fully paid stapled ordinary securities. The new securities are being issued under a dividend or distribution plan, modestly increasing the trust’s listed unit base ...
Arena REIT details June quarter distribution and tax components
Jul 29, 2026
Arena REIT has declared a June quarter distribution of 4.8125 cents per stapled security for the period from 1 April to 30 June 2026, with a record date of 30 June and payment and DRP issue scheduled for 6 August. The distribution components are d...
Arena REIT Sets Date for FY2026 Results and Investor Briefing
Jul 8, 2026
Arena REIT has scheduled the release of its FY2026 full-year results to the ASX for Wednesday 12 August 2026, covering operating activities and financial performance for the year to 30 June 2026. The company will host an investor webcast and telec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.