Arena REIT
Market Cap
AU$891.4m
Last Updated
2019/10/22 10:34 UTC
Data Sources
Company Financials +
Executive Summary
Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure property assets across Australia.
Snowflake
Fundamentals
Fair value with acceptable track record.
Share Price & News
How has Arena REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
4.2%
ARF
0.8%
AU REITs
0.1%
AU Market
1 Year Return
28.3%
ARF
20.1%
AU REITs
11.9%
AU Market
Return vs Industry: ARF exceeded the Australian REITs industry which returned 20.1% over the past year.
Return vs Market: ARF exceeded the Australian Market which returned 11.9% over the past year.
Shareholder returns
| ARF | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 0.8% | 0.1% |
| 30 Day | 4.5% | 1.8% | -1.1% |
| 90 Day | 8.7% | -1.4% | -1.4% |
| 1 Year | 34.9%28.3% | 26.2%20.1% | 18.5%11.9% |
| 3 Year | 79.5%52.2% | 48.1%26.7% | 36.4%18.1% |
| 5 Year | 178.5%109.1% | 100.8%55.9% | 50.9%16.7% |
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
2 months ago | Simply Wall St
Is Arena REIT (ASX:ARF) A Healthy REIT?3 months ago | Simply Wall St
Introducing Arena REIT (ASX:ARF), The Stock That Zoomed 120% In The Last Five Years4 months ago | Simply Wall St
With A Return On Equity Of 11%, Has Arena REIT's (ASX:ARF) Management Done Well?Valuation
Is Arena REIT undervalued compared to its fair value and its price relative to the market?
11.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARF (A$2.99) is trading below our estimate of fair value (A$3.38)
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 (13.8x) compared to the REITs industry average (16.2x).
PE vs Market: ARF is good value based on its PE Ratio (13.8x) compared to the Australian market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: ARF is poor value based on its PEG Ratio (18.6x)
Price to Book Ratio
PB vs Industry: ARF is overvalued based on its PB Ratio (1.7x) compared to the AU REITs industry average (1.2x).
Next Steps
Future Growth
How is Arena REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARF's forecast earnings growth (0.7% per year) is below the savings rate (2.3%).
Earnings vs Market: ARF's earnings (0.7% per year) are forecast to grow slower than the Australian market (10.2% per year).
High Growth Earnings: ARF's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARF's revenue (4.3% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: ARF's revenue (4.3% 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%).
Next Steps
Past Performance
How has Arena REIT performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ARF's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: ARF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARF had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).
Return on Equity
High ROE: ARF's Return on Equity (9.7%) is considered low.
Return on Assets
ROA vs Industry: ARF has a higher Return on Assets than the REITs industry average last year.
Return on Capital Employed
ROCE Improving: ARF has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Arena REIT's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: ARF has a high level of physical assets or inventory.
Debt Coverage by Assets: ARF's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: ARF's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if ARF has a sufficient allowance for bad loans.
Low Risk Liabilities: ARF reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if ARF has an acceptable proportion of non-loan assets held.
Low Risk Deposits: ARF has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if ARF has an appropriate level of bad loans.
Next Steps
Dividend
What is Arena REIT's current dividend yield, its reliability and sustainability?
4.78%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ARF's dividend (4.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: ARF's dividend (4.78%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).
Stable Dividend: Whilst dividend payments have been stable, ARF has been paying a dividend for less than 10 years.
Growing Dividend: ARF's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.2%), ARF's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARF's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).
Next Steps
Management
What is the CEO of Arena REIT's salary, the management and board of directors tenure and is there insider trading?
1.3yrs
Average management tenure
CEO
Rob de Vos 0
0.7yrs
Tenure
AU$813,797
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.
Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
1.3yrs
Average Tenure
Experienced Management: ARF's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Age and Tenure
5.9yrs
Average Tenure
Experienced Board: ARF's board of directors are considered experienced (5.9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 32,260 |
| Max Price | AU$2.80 |
| Entity | Company |
| Shares | 14,936 |
| Max Price | AU$2.81 |
| Entity | Company |
| Shares | 34,920 |
| Max Price | AU$2.80 |
| Entity | Company |
| Shares | 1,751,695 |
| Max Price | AU$2.85 |
| Entity | Company |
| Shares | 536,330 |
| Max Price | AU$2.71 |
| Entity | Company |
| Shares | 9,803,235 |
| Max Price | AU$2.93 |
| Entity | Company |
| Shares | 2,898,571 |
| Max Price | AU$2.87 |
| Entity | Company |
| Shares | 9,629,000 |
| Max Price | AU$2.67 |
| Entity | Company |
| Shares | 1,063,905 |
| Max Price | AU$2.27 |
| Entity | Company |
| Shares | 4,809,909 |
| Max Price | AU$2.49 |
| Entity | Company |
| Shares | 1,507,217 |
| Max Price | AU$2.26 |
Ownership Breakdown
Management Team
Sam Rist
Head of Investor Relations
- Tenure: 1.3yrs
Gareth Winter
Company Secretary
- Tenure: 4.8yrs
- Compensation: AU$759.33k
Rob de Vos
CEO, MD & Director
- Tenure: 0.7yrs
- Compensation: AU$813.80k
Joanne Ross
Head of Risk & Compliance - Arena REIT Management Limited
- Tenure: 0yrs
Stuart Andrews
Head of Portfolio Management
- Tenure: 0.8yrs
Kimberly Allen
Fund Financial Controller - Arena REIT Management Limited
- Tenure: 7.8yrs
Board Members
Dennis Wildenburg
Independent Non-Executive Director
- Tenure: 7.8yrs
- Compensation: AU$116.00k
Simon Parsons
Independent Non-Executive Director
- Tenure: 7.5yrs
- Compensation: AU$111.00k
David Ross (58yo)
Independent Non-Executive Chairman
- Tenure: 7yrs
- Compensation: AU$199.00k
Gareth Winter
Company Secretary
- Tenure: 4.8yrs
- Compensation: AU$759.33k
Rob de Vos
CEO, MD & Director
- Tenure: 0.7yrs
- Compensation: AU$813.80k
Rosemary Hartnett
Independent Non Executive Director
- Tenure: 0.2yrs
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$891.428m
- Shares outstanding: 299.14m
- 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 property assets across Australia. Our current portfolio of social infrastructure property is leased to a ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 10:34 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.