Arena REIT’s first-half result was in line with Credit Suisse’s expectations in terms of operating profit and earnings per share. The REIT’s distribution guidance for FY21, maintained at 14.8c, is considered conservative by the broker with market rent providing scope for upside.
The broker highlights favourable industry dynamics including a resilient childcare sector that has helped Arena maintain 100% portfolio occupancy while increasing its portfolio weighted average lease expiry.
Neutral retained. Target is raised to $3.04 from $2.91.
Sector: Real Estate.
Target price is $3.04.Current Price is $3.08. Difference: ($0.04) – (brackets indicate current price is over target). If ARF meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
