Arena REIT (ASX:ARF) Portfolio Revaluation Update

Arena REIT (ASX:ARF) has announced an expected net revaluation decrease of approximately $4 million for the six-month period ending 31 December 2023 (HY2024). This represents a 0.2% decrease from the previous period and a $0.01 decrease in Net Asset Value (NAV) per security. The portfolio revaluations, including Early Learning Centre (ELC) assets and healthcare assets, are subject to review by Arena's external auditors.

Arena REIT's Outlook on Early Learning Centre Sector

The Australian childcare sector continues to be supported by strong macroeconomic drivers, with rising female workforce participation driving demand for childcare services. The recent measures introduced by the Federal Government aim to improve the affordability of childcare services, benefiting Australian families and contributing to the economic growth over the medium to long term. The reports from the ACCC and the Productivity Commission align with the government's commitment to reform the childcare system, which is expected to create a new and integrated approach to the early years, delivering cheaper childcare, boosting workforce participation, and driving productivity growth.

Arena REIT's Future and Distribution Guidance

Despite the slight portfolio revaluation decrease, Arena REIT (ASX:ARF) remains optimistic about the future of the ELC sector, with robust underlying business operating data reported by ELC tenant partners. The completion of ELC development projects and the addition of new projects to the development pipeline reflect the company's commitment to growth. Additionally, Arena reaffirms its full-year 2024 distribution guidance of 17.4 cents per security, reflecting a 3.6% growth over the previous financial year. The company intends to release further details of revaluations, portfolio performance, and financial results in the HY2024 results, providing a comprehensive outlook on its performance and future prospects.