Half Year 2024 Arena Reit No 1 Earnings Call Transcript
Key Points
- Arena REIT (ASX:ARF) reported a statutory profit of $19 million and an underlying cash-based net operating profit of $31 million, up 3% from the previous half year.
- The company completed three early learning center development projects and added seven new projects to its development pipeline, supporting future earnings growth.
- Arena REIT (ASX:ARF) achieved all targets on its sustainability-linked loan and advanced its solar renewable energy projects, now installed at 88% of the portfolio.
- The portfolio maintained a high occupancy rate of 99.7%, reflecting the quality of assets and strong community demand for services.
- Arena REIT (ASX:ARF) reaffirmed its distribution guidance for FY24 at $0.174 per security, reflecting a 3.6% increase from FY23.
- The real estate investment environment remains challenged by higher interest rates, impacting the development and acquisition market.
- Finance costs increased by $1.7 million due to higher interest rates and increased debt volume.
- The statutory profit was lower at $19 million, primarily due to negative asset revaluations and derivative valuations.
- Construction cost inflation has been a challenge, although there are early signs of moderation.
- The healthcare sector faces short-term challenges, although there is potential for medium-term opportunities.
Thank you for standing by, and welcome to the Arena REIT Half Year 2024 Results. (Operator Instructions)
I would now like to turn the conference over to Mr. Rob de Vos, Managing Director. Please go ahead.
Good morning, everyone, and a very warm welcome to Arena REIT's First Half Financial Year 2024 Results Presentation. I'm Rob de Vos, Managing Director of Arena; and joining me is Gareth Winter, our Chief Financial Officer.
Today's presentation will highlight Arena's achievements over the last 6 months and provide an update on our views on the social infrastructure property market and in that context, the performance of the business against its investment objective and strategy. Gareth will provide detail on Arena's financial results and capital management position and I'll finish the presentation by discussing the portfolio and sharing my thoughts on Arena's outlook in the current investment environment.
As always, we'll have plenty of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
