Arena REIT (ASX:ARF) Announces H1 2025 Results
Financial Performance
Arena REIT reported a statutory net profit of $36 million for the half-year 2025, an increase of 87% compared to HY2024. Earnings per security rose by 5.5% to 9.20 cents. The net operating profit reached $35.8 million, up by 16% on HY2024. The company reaffirmed its FY2025 distribution guidance of 18.25 cents per security, a 4.9% increase on FY2024.
Sustainability
Arena REIT achieved 100% of its Sustainability Linked Loan margin discount for FY2024 performance targets. Solar renewable energy systems have been installed on 93% of its property portfolio. The company has also adopted an Emission Reduction Plan targeting net zero financed emissions by 2050, with an interim target of a 60-70% reduction by 2030.
Portfolio Update
The portfolio expanded to 289 properties, including the acquisition of 11 operating properties and the completion of six ELC development projects. The ELC development pipeline now comprises 19 projects. The weighted average lease expiry (WALE) stands at 18 years, with a portfolio occupancy rate of 99.3%.
Outlook
Arena REIT is well-positioned for growth, with a $131 million development pipeline and substantial undrawn debt capacity of $118 million. The company expects strong social and macroeconomic drivers to continue supporting the early learning and healthcare sectors. Arena maintains a disciplined investment approach with a gearing ratio of 20.8%.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.