Arena REIT reports $18m uplift across early learning centre portfolio as sector demand remains strong

Arena REIT has reported an $18 million uplift in the value of its early learning centre (ELC) portfolio, highlighting continued confidence in the early learning property market and strong long-term demand across the sector.

Arena REIT has released a market update indicating a net $18 million increase in the valuation of its early learning centre (ELC) portfolio as at 30 June 2025. This growth, equivalent to approximately $0.04 in net asset value per security, follows independent valuations of 55 ELCs and three healthcare assets.

The uplift reflects sustained demand for early learning services across the country, supported by macroeconomic conditions including rising female workforce participation and significant federal government investment in affordable early learning. Arena’s ELC portfolio remains 99.3 per cent occupied, demonstrating continued strength in underlying demand.

Arena’s ELC properties now have a weighted average passing yield of 5.41 per cent, up 5 basis points since December 2024. Like-for-like operator occupancy remains steady, while average daily fees across Arena’s ELC tenants have risen to $155.29, a 9.75 per cent increase compared to March 2024.

In FY2025, Arena completed 11 ELC development projects worth $83 million and acquired 10 additional ELC properties as part of a broader $129 million in acquisitions. The company currently holds a $106 million development pipeline with 14 projects underway.

Arena has also committed to a range of sustainability initiatives, with solar energy systems now installed on 92 per cent of its properties and the business achieving zero scope 1 and 2 emissions. It has submitted a draft Reflect Reconciliation Action Plan and is due to release its FY2025 sustainability report in September.

Arena’s Managing Director Rob de Vos said the business was well positioned to pursue further growth, stating that “Arena’s investment activity accelerated in financial year 2025 as our expanded and experienced management team capitalised on our competitive cost of capital and deal sourcing expertise.”

The full FY2025 results are expected to be released to the ASX on Wednesday 13 August 2025.