- Statutory net profit $165.4 million, up 116%
- Net operating profit $51.9 million, up 18.5%
- Property valuations up $107.6 million
Earlier this week, The Property Tribune reported on Centuria Capital Group (ASX: CNI), Centuria Industrial REIT (ASX: CIP), and Charter Hall Long WALE REIT (ASX: CLW).
Today, Arena REIT (ASX: ARF) released the full-year results, reporting a statutory net profit that rose 116% to $165.4 million. The net operating profit also rose, up 18.5% to $51.9 million.
Arena noted that key contributors to higher operating income include growth in contracted annual rental growth and market rent reviews, acquisition of operating early learning centre (ELC) properties and development projects completed during FY20 and FY21.
“Despite a challenging external environment, Arena has achieved strong portfolio and investment outcomes in FY21,” said Arena’s Managing Director Mr Rob de Vos.
“Our portfolio of social infrastructure property has also facilitated positive outcomes for the Australian communities that access our properties to utilise the essential services provided by our tenant partners.”
| Statutory net profit | $165.4 million |
| Net operating profit | $51.9 million |
| Earnings per security | 15.2 cents |
| Distributions per security | 14.8 cents |
| Total assets | $1.1515 billion |
| Net asset value | $2.56 |
| Gearing | 19.90% |
| FY22 DPS guidance | 15.8 cents |
The company was “largely unaffected” by Covid, with 100% of contracted rent received. Arena’s medical centre properties are assisting in the national COVID-19 vaccination program and there is precedent for a strong recovery in elective procedures following easing of any COVID-19 related restrictions.
Occupancy was maintained at 100% and the portfolio’s existing long WALE was further increased to 20.1 years following the acquisition of seven operating ELC properties; rent reviews during the year resulted in an average like-for-like rent increase of 3.3%.
Portfolio valuations were made at $1.112 billion, representing a $107.6 million rise since last financial year. The portfolio comprised 226 early learning centres, with twelve on the way, and eleven healthcare properties.
Mr de Vos was confident that the company finances will be in good shape over the next year:
“Early learning and healthcare services are integral to economic recovery and improving community outcomes,” he said.
“Arena remains well positioned to navigate the ongoing and emerging challenges arising from COVID-19, including potential changes in economic conditions. We also remain well positioned to consider new opportunities that are consistent with strategy and deliver on Arena’s investment objective.”
