Arena REIT reaffirms full-year distribution guidance
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The news: Childcare and healthcare property landlord Arena REIT has reaffirmed its full-year distribution guidance after completing a spate of acquisitions.
The numbers: Arena reaffirmed full year 2025 distribution guidance of 18.256 cents per security, reflecting a 4.9% increase over the previous year.
The company acquired 10 early learning centre properties during the first half for $85 million at an average net initial yield of 6.1%, with an initial weighted average lease expiry of 14 years.
Development of six ELC projects was also completed for $40 million at an average net initial yield of 5.7%, with an initial weighted average lease expiry of 20 years.
The context: Arena said strong macroeconomic drivers continued to support the Australian childcare sector, with rising female workforce participation driving demand for services and increases in long day care participation rates.
The federal government’s recently announced additional funding to support a 15% wage increase for early childcare education and care workers in services is expected to result in improved staff availability and better outcomes for families, it said.
Meanwhile, the company has also agreed to acquire a key worker accommodation property in Victoria from Bendigo Health for $35 million on a passing yield of 6.2% with 19 years term remaining on the lease.
The source: ASX announcement
