Arena REIT reports 42% profit growth, CEO Rob de Vos resigns
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The news: Real estate investor Arena REIT has reported a 42% increase in statutory net profit for the 2025 financial year, driven by rent increases and portfolio divestments during the period.
The company also announced the resignation of managing director and chief executive Rob de Vos.
The numbers: Arena’s statutory net profit came in at $81 million, above last year’s total of $57.5 million, while net operating profit came in at $73 million, 17% higher than the $62 million posted last year.
Market consensus estimates, according to Visible Alpha, were for statutory net profit of $94.7 million.
The company reported distributions per share of 18.25 cents, up 4.9% year on year. It has guided distributions per share of 19.25%, or 5.5% growth, in FY26.
The context: Arena said the key contributors to its full-year result were income growth from contracted annual and market rent reviews, and acquisitions and development projects completed in FY24 and FY25.
The company saw an average like-for-like rent increase of 3.5%, while 30 market rent reviews were resolved at an average increase of 6.8%.
Arena also divested five early learning centre (ELC) properties during FY25, with proceeds of $37.5 million. It acquired one healthcare and 10 ELC properties for a total cost of $129 million.
On the CEO succession, Arena confirmed that chief investment officer Justin Bailey has been appointed CEO-designate. De Vos will continue in his role during a transition period, and is expected to step down following the company's annual general meeting in November. Bailey joined Arena as CIO in February 2024.
