Arena AGM statement confirms positive outlook
The Sector > Economics > Property > Arena AGM statement confirms positive outlook

Arena AGM statement confirms positive outlook

by Jason Roberts

November 21, 2018
Arena results

Arena REIT, the ASX 300 listed property group that manages and develops social infrastructure property assets including early learning centres, today released its Annual General Meeting Chairman’s Address and Presentation.


Chairman, David Ross, noted the “early learning centre (ELC) and healthcare sectors remain supported by strong structural macroeconomic drivers” and that the Arena portfolio is “proactively positioned for the current cyclical challenges and opportunities.”


Additional highlights from the statement and presentation concerning the early childhood education and care (ECEC) sector include:


  • Arena’s portfolio of 207 early learning centres is fully leased and sits at 100 per cent


  • Rent increases were 2.6 per cent across the whole portfolio


  • ECEC tenants increased fees by on average 5.3 per cent in the last 12 months and saw marginal decreases in occupancy


  • ECEC tenant revenues rose by 2 per cent on average and centre EBITDA by 5 per cent on average


  • The rent to revenue ratio rose to 11.2 per cent from 10.9 per cent


  • Tenants are focusing on optimising profitability in existing centres


The group completed 14 new developments in 2018 adding 1,725 long day care places. The remaining development pipeline is 5 projects with a total cost of $31 million.


Arena confirmed that 224 new centres were added in 2018 and a further 300 are under construction,  also confirming that financing terms had tightened for smaller developers and tenants making it harder for them to raise finance to build new centres.


The AGM was held at Hall & Wilcox, Level 11 Rialto South Tower, 525 Collins Street, Melbourne, VIC 3000.

Download The Sector's new App!

ECEC news, jobs, events and more anytime, anywhere.

Download App on Apple App Store Button Download App on Google Play Store Button