Arena REIT updates guidance after child care deal

• Arena REIT has increased its FY27 distribution guidance to a range of 19 cents to 20.2 cents per security, up from 18 cents.
• Following the announcement, the stock drew market focus as portfolio transactions advanced.
• The guidance adjustment reflects positive portfolio developments, including transactions involving Edge Early Learning centres.

Arena REIT (ASX:ARF) upgraded its FY27 distribution guidance to a range of 19 to 20.2 cents per security following portfolio progress.

The update follows previous disruptions after tenant Edge Early Learning entered voluntary administration due to missed rental payments in August.

Goodstart Early Learning moved to acquire 31 centres operated by Edge, which includes 20 centres owned by Arena.

The transactions remain subject to required due diligence and formal service approvals before completion.

Arena stated that the higher guidance assumes no new acquisitions or material market changes occur during the period.

Following the announcement, the Arena REIT share price was unchanged at $2.50.

The social infrastructure firm continues to divest lower prospect assets, executing $16.6 million in property sales at a 10.9% premium to book value.