| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
ARF Stock Overview
Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$4.77 |
| 52 Week High | AU$4.99 |
| 52 Week Low | AU$2.81 |
| Beta | 1.16 |
| 1 Month Change | 3.25% |
| 3 Month Change | 7.92% |
| 1 Year Change | 61.70% |
| 3 Year Change | 84.88% |
| 5 Year Change | 151.05% |
| Change since IPO | 354.29% |
Recent News & Updates
Shareholder Returns
| ARF | AU REITs | AU Market | |
|---|---|---|---|
| 7D | -1.6% | -1.4% | -1.7% |
| 1Y | 61.7% | 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
| ARF volatility | |
|---|---|
| ARF Average Weekly Movement | 3.3% |
| REITs Industry Average Movement | 3.2% |
| Market Average Movement | 8.5% |
| 10% most volatile stocks in AU Market | 15.3% |
| 10% least volatile stocks in AU Market | 3.6% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2014 | n/a | Rob de Vos | https://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
| ARF fundamental statistics | |
|---|---|
| Market Cap | AU$1.65b |
| Earnings (TTM) | AU$165.35m |
| Revenue (TTM) | AU$70.81m |
10.0x
P/E Ratio23.3x
P/S RatioIs ARF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ARF income statement (TTM) | |
|---|---|
| Revenue | AU$70.81m |
| Cost of Revenue | AU$5.85m |
| Gross Profit | AU$64.96m |
| Expenses | -AU$100.39m |
| Earnings | AU$165.35m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 10, 2022
| Earnings per share (EPS) | 0.48 |
| Gross Margin | 91.73% |
| Net Profit Margin | 233.51% |
| Debt/Equity Ratio | 27.9% |
How did ARF perform over the long term?
See historical performance and comparisonDividends
3.1%
Current Dividend Yield95%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 16:11 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.