Arena REIT reports $79M net profit in FY26
- Arena REIT posted a full-year net operating profit of $79.1 million, representing an 8% increase compared to the previous financial year.
- Following the financial report release, the company's share price traded down at $2.49.
- Management pointed to contracted rental growth, acquisitions, and development projects as key drivers for the annual earnings increase.
Arena REIT (ASX:ARF) reported a net operating profit of $79.1 million for the full year ended June 30, marking an 8% increase from the prior year.
Statutory net profit rose 62% to $132 million.
"Throughout the year we continued to improve portfolio quality through disciplined capital allocation, development activity and targeted divestments," said Arena REIT Managing Director Justin Bailey.
The company closed the financial year with total assets valued at $2 billion and a gearing ratio of 24.5%.
Rent due from Edge has been fully paid up to July 31, and Arena holds approximately $4 million of bank guarantees and security deposits from Edge supporting its lease obligations.
The company stated that its FY27 distribution guidance is estimated at no less than 18 cents per security.
"Our FY27 guidance reflects a prudent approach and assumes no income from the Edge Portfolio from Aug. 1 beyond the application of the existing $4 million security pool," added Bailey.
Following the announcement, the Arena REIT share price was down at $2.49.
Arena has a current committed capital expenditure of $121 million across its development pipeline, which is fully funded within its existing borrowing facility.
The group operates as an Australian real estate investment trust focusing on social infrastructure properties across the country.
