Arena REIT’s earnings were broadly in line with Macquarie. FY22 dividend guidance has been upgraded by 1%, reflecting underlying portfolio strength. Operational metrics are indicative of solid fundamentals underpinning the Early Learning Centre sub-sector.
The REIT’s rent review structure will drive growth in the medium term, the broker suggests. Valuation is a bit rich, but balancing out strong fundamentals and robust earnings growth, the broker retains Neutral. Target rises to $4.90 from $4.89.
Sector: Real Estate.
Target price is $4.90.Current Price is $4.89. Difference: $0.01 – (brackets indicate current price is over target). If ARF meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
