Arena REIT (ARF) AI Stock Analysis

• Market Cap: AU$1.53B
• Dividend Yield: 4.68%
• Average Volume (3M): 567.83K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.02
• Revenue Growth: 9.82%
• EPS Growth: 67.46%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Specialty
• EPS (TTM): 0.21
• Shares Outstanding: 400,017,360
• 10 Day Avg. Volume: 568,118
• 30 Day Avg. Volume: 567,834
• PEG Ratio: 1.15
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.40
• 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$4.04
• Price Target Upside: 5.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Arena REIT's strong financial performance, characterized by solid revenue growth and cash flow improvements, underpins its robust market position. Technical indicators suggest stability without clear bullish or bearish signals. The stock's moderate valuation, combined with a high dividend yield, enhances its attractiveness to income-focused investors. Despite some pressure on net margins, the overall outlook remains positive, with potential for sustainable growth.

Arena REIT Business Overview & Revenue Model

Company Description

Arena REIT (ARF) is an Australian Real Estate Investment Trust that specializes in investing in, owning, and managing a portfolio of social infrastructure properties. The company's primary focus is on sectors such as childcare, healthcare, and education, providing essential services to communities. Arena REIT offers long-term, stable rental income through its diversified property portfolio, which includes childcare centers, healthcare facilities, and educational institutions.

How the Company Makes Money

Arena REIT generates revenue primarily through the leasing of its property portfolio. The company earns rental income from long-term lease agreements with tenants in the childcare, healthcare, and education sectors. These leases often include fixed annual rental increases or market rent reviews, providing a predictable and inflation-protected income stream. Additionally, Arena REIT may engage in property acquisitions, development, and active asset management to enhance the value of its portfolio and increase rental income. Strategic partnerships with operators in the childcare and healthcare industries, coupled with a focus on high-quality properties in growth sectors, further bolster the company's earnings potential.

Arena REIT Financial Statement Overview

Summary

Arena REIT displays a robust financial position with strong revenue growth and efficient cash generation. The balance sheet is solid, although there is potential to improve returns on equity. The income statement suggests stable operations, albeit with some pressure on net margins. Overall, the company is well-positioned for sustainable growth, with a healthy cash flow supporting future expansion.

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
	EBIT
94.08M	90.43M	86.06M	98.62M	67.77M	50.11M
	EBITDA
0.00	71.19M	85.64M	61.55M	55.37M	49.58M
	Net Income Common Stockholders
74.38M	57.51M	74.24M	334.29M	165.35M	76.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.25M	12.43M	16.11M	22.20M	14.02M	76.33M
	Total Assets
1.78B	1.62B	1.57B	1.52B	1.15B	1.01B
	Total Debt
382.27M	377.32M	340.79M	323.21M	240.07M	213.95M
	Net Debt
367.17M	364.89M	324.68M	301.01M	226.05M	137.62M
	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: Positive
• Last Price: 3.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.82 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.62, and below the 200-day MA of 3.82, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 29.11 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCX	74 Outperform	$10.72B	13.05	7.73%	6.04%	1.97%	156.14%
ARF	72 Outperform	AU$1.53B	17.97	6.13%	4.68%	9.82%	67.46%
SCG	64 Neutral	$18.94B	17.99	5.94%	4.87%	5.05%	500.30%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%
DXS	58 Neutral	$7.78B	―	-9.22%	5.73%	0.32%	28.89%
GPT	54 Neutral	$8.96B	―	-1.94%	5.46%	8.59%	16.36%
CHC	54 Neutral	$8.66B	298.53	1.03%	3.01%	-19.75%	―

Arena REIT Corporate Events

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.

Arena REIT Director Increases Stake in Company

Arena REIT has announced a change in the director’s interest, with Helen Thornton acquiring an additional 10,985 ordinary stapled securities through an on-market trade. This acquisition increases her total holdings to 33,604 securities, reflecting confidence in the company’s market position and potential growth, which may positively influence stakeholder perceptions.

Arena REIT Declares Quarterly Distribution with DRP Discount

Arena REIT announced a quarterly distribution of 4.5625 cents per stapled security for the quarter ending 31 March 2025, aligning with its FY25 distribution guidance. The company’s Dividend and Distribution Reinvestment Plan offers securityholders new securities at a 1.5% discount, potentially enhancing shareholder value and supporting capital growth.

Arena REIT Declares Quarterly Distribution

Arena REIT has announced a new quarterly distribution of AUD 0.045625 per unit for its fully paid ordinary units stapled securities. The record date for this distribution is set for March 31, 2025, with the payment scheduled for May 8, 2025. This announcement reflects Arena REIT’s ongoing commitment to providing consistent returns to its investors, reinforcing its stable position within the real estate investment sector.