Arena REIT (ARF) AI Stock Analysis

• Market Cap: AU$1.44B
• Dividend Yield: 5.05%
• Average Volume (3M): 676.01K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.98
• Revenue Growth: 9.82%
• EPS Growth: 67.46%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Specialty
• EPS (TTM): 0.09
• Shares Outstanding: 400,017,360
• 10 Day Avg. Volume: 880,223
• 30 Day Avg. Volume: 676,011
• PEG Ratio: -0.23
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -114.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.15
• Price Target Upside: 13.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: AU$4.50 ▲(23.29%Upside)

Arena REIT's score is primarily driven by its strong financial performance and solid valuation. Technical analysis shows moderate market momentum, contributing to a balanced view. The absence of earnings call data and corporate events reduces potential volatility, resulting in a stable overall score.

Arena REIT Business Overview & Revenue Model

Company Description

Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia. Our current portfolio of social infrastructure properties is leased to a diversified tenant base in the growing early learning and healthcare sectors.

How the Company Makes Money

Arena REIT generates revenue primarily through rental income derived from leasing its properties to tenants. The company's key revenue streams include long-term lease agreements with high-quality tenants in the childcare and healthcare sectors, which typically provide stable and predictable cash flows. Additionally, Arena REIT may engage in property development and strategic acquisitions to enhance its portfolio and drive growth. The trust's earnings are also supported by its ability to manage and optimize its property assets effectively, ensuring high occupancy rates and tenant satisfaction. While the company may form partnerships or joint ventures to expand its asset base, specific significant partnerships are not disclosed. External factors such as economic conditions, interest rates, and government policies in the sectors it operates in can also influence its financial performance.

Arena REIT Financial Statement Overview

Summary

Arena REIT shows strong financial health with solid revenue growth and efficient cash generation. The income statement highlights stable operations with some pressure on net margins, while the balance sheet indicates a strong capital structure with prudent debt management. There is potential for improvement in return on equity.

Income Statement

Arena REIT has demonstrated solid revenue growth, with a 5.3% increase from the previous year. The gross profit margin remains strong at 92.1%, indicating efficient cost management. However, the net profit margin has decreased from the previous year, suggesting increased financial expenses or other costs. Overall, the income statement shows a stable and growing revenue base with some pressure on net profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.35, indicating prudent leverage management. Stockholders' equity has decreased slightly, but the equity ratio remains robust at 66.0%, showcasing a strong capital structure. Despite the solid foundation, there is room for improvement in enhancing return on equity, which currently stands at 5.4%.

Cash Flow

Arena REIT has shown impressive growth in free cash flow, transitioning from negative in prior years to a positive $62.5 million, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 1.09, reflecting efficient conversion of earnings into cash. This positive cash flow trend enhances the company's financial flexibility and potential for reinvestment.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	102.45M	98.18M	93.23M	81.24M	68.90M	60.41M
Gross Profit	94.08M	90.43M	86.06M	80.67M	68.22M	59.80M
EBITDA	0.00	71.19M	85.64M	61.55M	55.37M	49.58M
Net Income	74.38M	57.51M	74.24M	334.29M	165.35M	76.64M
Balance Sheet
Total Assets	1.78B	1.62B	1.57B	1.52B	1.15B	1.01B
Cash, Cash Equivalents and Short-Term Investments	19.25M	12.43M	16.11M	22.20M	14.02M	76.33M
Total Debt	382.27M	377.32M	340.79M	323.21M	240.07M	213.95M
Total Liabilities	412.97M	409.05M	368.99M	349.59M	272.59M	260.70M
Stockholders Equity	1.21B	1.07B	1.20B	1.17B	878.92M	751.88M
Cash Flow
Free Cash Flow	30.80M	62.53M	-11.47M	-45.90M	-54.63M	-44.55M
Operating Cash Flow	66.48M	62.53M	59.85M	58.10M	51.43M	42.06M
Investing Cash Flow	-186.72M	-56.76M	-38.21M	-87.50M	-87.49M	-75.90M
Financing Cash Flow	120.74M	-9.45M	-27.73M	37.59M	-26.25M	102.03M

Arena REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARF, the sentiment is Negative. The current price of 3.65 is below the 20-day moving average (MA) of 3.75, below the 50-day MA of 3.77, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.33 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARF.

Arena REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARF	75 Outperform	AU$1.44B	17.22	6.13%	5.05%	9.82%	67.46%
Sector *	67 Neutral	€6.37B	-12.96	506.30%	7.01%	7.07%	23.52%
FKKEF		$696.42M	47.85	1.57%	5.40%	―	―
CNI	70 Outperform	AU$1.45B	20.19	4.97%	5.96%	13.48%	-8.15%
HMC	70 Neutral	AU$1.57B	6.89	15.75%	3.16%	107.77%	257.12%
WPR	67 Neutral	AU$1.62B	12.62	7.13%	6.73%	0.43%	―
GOZ	55 Neutral	AU$1.80B	―	-10.45%	7.61%	2.70%	-8.39%

Arena REIT Corporate Events

Arena REIT Announces $18 Million Portfolio Revaluation Boost

Arena REIT has announced a net $18 million revaluation increase in its portfolio as of June 30, 2025, boosting the net asset value per security by approximately $0.04. This revaluation, which includes 55 early learning centers and three healthcare assets, reflects the company’s strong market positioning and strategic focus on sectors with robust macroeconomic drivers. The portfolio’s weighted average passing yield increased slightly, indicating stable performance. Arena’s long-term leases and high occupancy rates, coupled with favorable government policies supporting childcare and healthcare, position the company well for future growth.

The most recent analyst rating on (AU:ARF) stock is a Hold with a A$4.65 price target. To see the full list of analyst forecasts on Arena REIT stock, see the AU:ARF Stock Forecast page.

Arena REIT Announces New Dividend Distribution

Arena REIT has announced a new dividend distribution for its fully paid ordinary units stapled securities, with a distribution amount of AUD 0.045625 per unit. The record date for this distribution is set for June 30, 2025, with payment scheduled for August 7, 2025. This announcement reflects Arena REIT’s ongoing commitment to providing returns to its investors and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:ARF) stock is a Hold with a A$4.65 price target. To see the full list of analyst forecasts on Arena REIT stock, see the AU:ARF Stock Forecast page.

Arena REIT Announces Quarterly Distribution and DRP Details

Arena REIT has announced a quarterly distribution of 4.5625 cents per stapled security for the quarter ending 30 June 2025, aligning with their FY25 distribution guidance. The Dividend and Distribution Reinvestment Plan (DRP) will be available for this distribution, offering securityholders a 1.5% discount on new securities, potentially enhancing shareholder value and reinforcing Arena REIT’s commitment to its investors.

The most recent analyst rating on (AU:ARF) stock is a Hold with a A$4.65 price target. To see the full list of analyst forecasts on Arena REIT stock, see the AU:ARF Stock Forecast page.

Arena REIT Director Increases Stake Through Reinvestment Plan

Arena REIT has announced a change in the director’s interest, with Director Rosemary Hartnett acquiring an additional 525 ordinary stapled securities through a distribution reinvestment plan. This change reflects the director’s increased investment in the company, potentially signaling confidence in Arena REIT’s future performance and stability.

Arena REIT Director Increases Stake Through Reinvestment Plan

Arena REIT announced a change in the director’s interest, with Director Helen Thornton acquiring 200 additional ordinary stapled securities through participation in a distribution reinvestment plan. This change reflects a slight increase in Thornton’s holdings, potentially indicating confidence in the company’s performance and future prospects.

Arena REIT Announces Quotation of New Securities on ASX

Arena REIT has announced the application for quotation of 1,486,917 fully paid ordinary units stapled securities on the Australian Securities Exchange (ASX). This move is part of a dividend or distribution plan, which could potentially enhance liquidity and provide additional capital for the company, thereby strengthening its position in the real estate investment sector.

Arena REIT Announces March 2025 Quarter Distribution

Arena REIT has announced the March 2025 quarter distribution for its managed investment trusts, Arena REIT No. 1 and Arena REIT No. 2. The distribution per stapled security is set at 4.5625 cents, with the record date on 31 March 2025 and payment date on 8 May 2025. This announcement is significant for custodians and intermediary investors as it outlines the components of the distribution for taxation purposes, highlighting Arena REIT’s continued focus on providing returns to its stakeholders.

Arena REIT Updates Dividend Distribution Details

Arena REIT has updated its previous announcement regarding the dividend distribution for its fully paid ordinary units stapled securities. The update provides the Dividend Reinvestment Plan (DRP) price for the distribution related to the quarter ending on March 31, 2025. This announcement is significant for stakeholders as it clarifies the financial details of the dividend distribution, impacting investor decisions and the company’s financial planning.