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ARF

Arena REITASX:ARF Stock Report

Last Price

AU$4.77

Market Cap

AU$1.6b

7D

-1.6%

1Y

61.7%

Updated

20 Jan, 2022

Data

Company Financials +
ARF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends3/6

ARF Stock Overview

Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Arena REIT
Historical stock prices
Current Share PriceAU$4.77
52 Week HighAU$4.99
52 Week LowAU$2.81
Beta1.16
1 Month Change3.25%
3 Month Change7.92%
1 Year Change61.70%
3 Year Change84.88%
5 Year Change151.05%
Change since IPO354.29%

Recent News & Updates

Shareholder Returns

ARFAU REITsAU Market
7D-1.6%-1.4%-1.7%
1Y61.7%18.3%7.7%

Return vs Industry: ARF exceeded the Australian REITs industry which returned 18.3% over the past year.

Return vs Market: ARF exceeded the Australian Market which returned 7.7% over the past year.

Price Volatility

Is ARF's price volatile compared to industry and market?
ARF volatility
ARF Average Weekly Movement3.3%
REITs Industry Average Movement3.2%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

Stable Share Price: ARF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ARF's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aRob de Voshttps://www.arena.com.au

Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia. Our current portfolio of social infrastructure properties is leased to a diversified tenant base in the growing early learning and healthcare sectors.

Arena REIT Fundamentals Summary

How do Arena REIT's earnings and revenue compare to its market cap?
ARF fundamental statistics
Market CapAU$1.65b
Earnings (TTM)AU$165.35m
Revenue (TTM)AU$70.81m

10.0x

P/E Ratio

23.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARF income statement (TTM)
RevenueAU$70.81m
Cost of RevenueAU$5.85m
Gross ProfitAU$64.96m
Expenses-AU$100.39m
EarningsAU$165.35m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)0.48
Gross Margin91.73%
Net Profit Margin233.51%
Debt/Equity Ratio27.9%

How did ARF perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

95%

Payout Ratio

Valuation

Is Arena REIT undervalued compared to its fair value and its price relative to the market?

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARF (A$4.77) is trading below our estimate of fair value (A$5.61)

Significantly Below Fair Value: ARF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARF is poor value based on its PE Ratio (10x) compared to the Australian REITs industry average (9.8x).

PE vs Market: ARF is good value based on its PE Ratio (10x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: ARF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ARF is overvalued based on its PB Ratio (2.2x) compared to the AU REITs industry average (1.2x).


Future Growth

How is Arena REIT forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARF's earnings are forecast to decline over the next 3 years (-12.8% per year).

Earnings vs Market: ARF's earnings are forecast to decline over the next 3 years (-12.8% per year).

High Growth Earnings: ARF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARF's revenue (5.5% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: ARF's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARF's Return on Equity is forecast to be low in 3 years time (7.4%).


Past Performance

How has Arena REIT performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARF has a large one-off gain of A$99.1M impacting its June 30 2021 financial results.

Growing Profit Margin: ARF's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: ARF's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: ARF's earnings growth over the past year (115.7%) exceeds its 5-year average (7% per year).

Earnings vs Industry: ARF earnings growth over the past year (115.7%) exceeded the REITs industry 106.4%.


Return on Equity

High ROE: ARF's Return on Equity (18.8%) is considered low.


Financial Health

How is Arena REIT's financial position?


Financial Position Analysis

Short Term Liabilities: ARF's short term assets (A$25.9M) do not cover its short term liabilities (A$26.2M).

Long Term Liabilities: ARF's short term assets (A$25.9M) do not cover its long term liabilities (A$246.4M).


Debt to Equity History and Analysis

Debt Level: ARF's net debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: ARF's debt to equity ratio has reduced from 39.3% to 27.9% over the past 5 years.

Debt Coverage: ARF's debt is well covered by operating cash flow (21%).

Interest Coverage: ARF earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Arena REIT current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARF's dividend (3.1%) is higher than the bottom 25% of dividend payers in the Australian market (2.21%).

High Dividend: ARF's dividend (3.1%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: ARF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ARF's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (94.9%), ARF's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARF's dividends in 3 years are forecast to be covered by earnings (97.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Rob de Vos

2.92yrs

Tenure

AU$1,113,832

Compensation

Mr. Robert Andrew de Vos, also known as Rob, has been CEO, Managing Director and Director at Arena REIT since February 19, 2019. Mr. de Vos served as Head of Property at Arena REIT until February 19, 2019,...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD804.27K) is about average for companies of similar size in the Australian market ($USD931.63K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ARF's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ARF's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arena REIT's employee growth, exchange listings and data sources


Key Information

  • Name: Arena REIT
  • Ticker: ARF
  • Exchange: ASX
  • Founded: 2014
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: AU$1.649b
  • Shares outstanding: 345.60m
  • Website: https://www.arena.com.au

Location

  • Arena REIT
  • 41 Exhibition Street
  • Level 5
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 16:11
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.