Arena REIT
Market Cap
AU$1.0b
Last Updated
2021/02/26 07:12 UTC
Data Sources
Company Financials +
Executive Summary
Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 0.9% per year for the next 3 years
Snowflake Analysis
Adequate balance sheet and fair value.
Share Price & News
How has Arena REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ARF's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.7%
ARF
-0.08%
AU REITs
-1.7%
AU Market
1 Year Return
2.7%
ARF
-13.5%
AU REITs
8.7%
AU Market
Return vs Industry: ARF exceeded the Australian REITs industry which returned -14.9% over the past year.
Return vs Market: ARF underperformed the Australian Market which returned 7.6% over the past year.
Shareholder returns
| ARF | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | -0.08% | -1.7% |
| 30 Day | 5.8% | -4.0% | -1.6% |
| 90 Day | 10.0% | -8.2% | 2.8% |
| 1 Year | 8.4%2.7% | -9.9%-13.5% | 12.3%8.7% |
| 3 Year | 57.8%34.5% | 25.2%8.6% | 28.5%13.0% |
| 5 Year | 109.4%59.2% | 42.7%11.4% | 61.9%30.4% |
Long-Term Price Volatility Vs. Market
How volatile is Arena REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
How Many Arena REIT (ASX:ARF) Shares Do Institutions Own?5 months ago | Simply Wall St
Are Institutions Heavily Invested In Arena REIT's (ASX:ARF) Shares?8 months ago | Simply Wall St
What Type Of Shareholder Owns Arena REIT's (ASX:ARF)?Valuation
Is Arena REIT undervalued compared to its fair value and its price relative to the market?
14.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARF (A$3.08) is trading below our estimate of fair value (A$3.61)
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 good value based on its PE Ratio (10.4x) compared to the AU REITs industry average (16.4x).
PE vs Market: ARF is good value based on its PE Ratio (10.4x) compared to the Australian market (21.4x).
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 (1.6x) compared to the AU REITs industry average (1.1x).
Next Steps
Future Growth
How is Arena REIT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-0.9%
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 (-0.9% per year).
Earnings vs Market: ARF's earnings are forecast to decline over the next 3 years (-0.9% per year).
High Growth Earnings: ARF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ARF's revenue (5.6% per year) is forecast to grow faster than the Australian market (5.2% per year).
High Growth Revenue: ARF's revenue (5.6% 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%).
Next Steps
Past Performance
How has Arena REIT performed over the past 5 years?
-2.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARF has a large one-off gain of A$45.3M impacting its December 31 2020 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 declined by 2.4% per year over the past 5 years.
Accelerating Growth: ARF's earnings growth over the past year (41.7%) exceeds its 5-year average (-2.4% per year).
Earnings vs Industry: ARF earnings growth over the past year (41.7%) exceeded the REITs industry -1%.
Return on Equity
High ROE: ARF's Return on Equity (12%) is considered low.
Next Steps
Financial Health
How is Arena REIT's financial position?
Financial Position Analysis
Short Term Liabilities: ARF's short term assets (A$32.1M) exceed its short term liabilities (A$23.3M).
Long Term Liabilities: ARF's short term assets (A$32.1M) do not cover its long term liabilities (A$244.6M).
Debt to Equity History and Analysis
Debt Level: ARF's debt to equity ratio (30.8%) is considered satisfactory.
Reducing Debt: ARF's debt to equity ratio has reduced from 39.1% to 30.8% over the past 5 years.
Debt Coverage: ARF's debt is not well covered by operating cash flow (19%).
Interest Coverage: ARF's interest payments on its debt are well covered by EBIT (7.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Arena REIT current dividend yield, its reliability and sustainability?
4.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARF's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).
High Dividend: ARF's dividend (4.55%) is low compared to the top 25% of dividend payers in the Australian market (5.24%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79%), 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 (98.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Rob de Vos
2yrs
Tenure
AU$1,036,293
Compensation
Mr. Robert Andrew de Vos, also known as Rob, has been CEO, Managing Director and Director at Arena REIT since February 19, 2019. Mr. de Vos served as Head of Property at Arena REIT until February 19, 2019,...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD824.81K) is about average for companies of similar size in the Australian market ($USD955.18K).
Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2yrs | AU$1.04m | 0.17% A$ 1.8m | |
| Company Secretary | 6.17yrs | AU$839.05k | 0.18% A$ 1.9m | |
| Head of Investor Relations | 2.67yrs | no data | no data | |
| Head of Risk & Compliance - Arena REIT Management Limited | no data | no data | no data | |
| Head of Property | 2.08yrs | no data | no data | |
| Fund Financial Controller - Arena REIT Management Limited | 9.08yrs | no data | no data | |
| Financial Controller | 0.83yr | no data | no data |
2.4yrs
Average Tenure
Experienced Management: ARF's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2yrs | AU$1.04m | 0.17% A$ 1.8m | |
| Company Secretary | 6.17yrs | AU$839.05k | 0.18% A$ 1.9m | |
| Independent Non-Executive Director | 9.17yrs | AU$120.00k | 0.051% A$ 528.6k | |
| Independent Non-Executive Director | 8.83yrs | AU$115.00k | 0.063% A$ 663.8k | |
| Independent Non-Executive Chairman | 8.33yrs | AU$207.00k | 0.062% A$ 651.4k | |
| Independent Non Executive Director | 1.5yrs | AU$101.80k | 0.0029% A$ 29.9k |
7.3yrs
Average Tenure
Experienced Board: ARF's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 13.9%.
Top Shareholders
Company Information
Arena REIT's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arena REIT
- Ticker: ARF
- Exchange: ASX
- Founded: 2014
- Industry: Health Care REITs
- Sector: Real Estate
- Market Cap: AU$1.046b
- Shares outstanding: 342.88m
- Website: https://www.arena.com.au
Location
- Arena REIT
- 41 Exhibition Street
- Level 5
- Melbourne
- Victoria
- 3000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARF | ASX (Australian Securities Exchange) | Yes | Ordinary Stapled Units | AU | AUD | Jun 2013 |
| ARF | CHIA (Chi-X Australia) | Yes | Ordinary Stapled Units | AU | AUD | Jun 2013 |
Biography
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 div...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/26 07:12 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.