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Arena REIT

ASX:ARF
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARF
ASX
A$864M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure property assets across Australia. The last earnings update was 98 days ago. More info.


Add to Portfolio Compare Print
ARF Share Price and Events
7 Day Returns
-1.4%
ASX:ARF
2.4%
AU REITs
0.9%
AU Market
1 Year Returns
25.4%
ASX:ARF
22%
AU REITs
16.3%
AU Market
ARF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arena REIT (ARF) -1.4% -4% 1.8% 25.4% 56.7% 83.9%
AU REITs 2.4% 1.9% 1.7% 22% 35.2% 57.9%
AU Market 0.9% 1.9% 5.1% 16.3% 22.3% 22.5%
1 Year Return vs Industry and Market
  • ARF outperformed the REITs industry which returned 22% over the past year.
  • ARF outperformed the Market in Australia which returned 16.3% over the past year.
Price Volatility
ARF
Industry
5yr Volatility vs Market

Value

 Is Arena REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arena REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arena REIT.

ASX:ARF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Funds From Operations
Levered Funds From Operations Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:ARF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.467 (1 + (1- 30%) (22.77%))
0.693
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:ARF using 2 Stage Free Cash Flow to Equity using Funds From Operations Model

ASX:ARF Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.37
Current discount Discount to share price of A$2.86
= -1 x (A$2.86 - A$3.37) / A$3.37
15.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arena REIT is available for.
Intrinsic value
15%
Share price is A$2.86 vs Future cash flow value of A$3.37
Current Discount Checks
For Arena REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arena REIT's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Arena REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arena REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arena REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ARF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.22
ASX:ARF Share Price ** ASX (2019-11-18) in AUD A$2.86
Australia REITs Industry PE Ratio Median Figure of 35 Publicly-Listed REITs Companies 16.29x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arena REIT.

ASX:ARF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:ARF Share Price ÷ EPS (both in AUD)

= 2.86 ÷ 0.22

13.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arena REIT is good value based on earnings compared to the AU REITs industry average.
  • Arena REIT is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Arena REIT's expected growth come at a high price?
Raw Data
ASX:ARF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
0.7%per year
Australia REITs Industry PEG Ratio Median Figure of 30 Publicly-Listed REITs Companies 1.17x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

ASX:ARF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.16x ÷ 0.7%

17.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arena REIT is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arena REIT's assets?
Raw Data
ASX:ARF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.75
ASX:ARF Share Price * ASX (2019-11-18) in AUD A$2.86
Australia REITs Industry PB Ratio Median Figure of 40 Publicly-Listed REITs Companies 1.18x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:ARF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ARF Share Price ÷ Book Value per Share (both in AUD)

= 2.86 ÷ 1.75

1.63x

* Primary Listing of Arena REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arena REIT is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess Arena REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Arena REIT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arena REIT expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arena REIT expected to grow at an attractive rate?
  • Arena REIT's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Arena REIT's earnings growth is positive but not above the Australia market average.
  • Arena REIT's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ARF Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ARF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 0.7%
ASX:ARF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.4%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:ARF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ARF Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 63 48 59 5
2021-06-30 60 46 61 6
2020-06-30 57 44 56 6
2019-11-18
ASX:ARF Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 56 37 59
2019-03-31 54 36 60
2018-12-31 53 36 62
2018-09-30 51 35 63
2018-06-30 49 34 64
2018-03-31 46 33 69
2017-12-31 44 31 74
2017-09-30 41 30 86
2017-06-30 39 29 97
2017-03-31 37 28 94
2016-12-31 35 26 91
2016-09-30 34 26 82

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arena REIT's earnings are expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
  • Arena REIT's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:ARF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Arena REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ARF Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.20 0.23 0.16 2.00
2021-06-30 0.20 0.23 0.15 3.00
2020-06-30 0.21 0.21 0.21 2.00
2019-11-18
ASX:ARF Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.22
2019-03-31 0.22
2018-12-31 0.23
2018-09-30 0.24
2018-06-30 0.24
2018-03-31 0.27
2017-12-31 0.30
2017-09-30 0.36
2017-06-30 0.41
2017-03-31 0.40
2016-12-31 0.39
2016-09-30 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arena REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arena REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arena REIT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arena REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arena REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arena REIT's year on year earnings growth rate has been positive over the past 5 years.
  • Arena REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Arena REIT's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.
Earnings and Revenue History
Arena REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arena REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ARF Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 55.81 59.32
2019-03-31 54.18 60.43
2018-12-31 53.00 61.53
2018-09-30 51.06 62.98
2018-06-30 48.66 64.43
2018-03-31 46.30 69.36
2017-12-31 43.95 74.28
2017-09-30 41.43 85.53
2017-06-30 38.92 96.79
2017-03-31 37.01 93.78
2016-12-31 35.10 90.78
2016-09-30 34.34 81.70
2016-06-30 33.59 72.62
2016-03-31 34.36 76.78 1.71
2015-12-31 35.14 80.94 3.43
2015-09-30 34.60 70.95 3.43
2015-06-30 34.05 60.97 3.43
2015-03-31 34.15 57.18 1.94
2014-12-31 34.25 53.39 0.45
2014-09-30 32.44 48.98 0.64
2014-06-30 30.64 44.56 0.84
2014-03-31 26.64 33.84 0.86
2013-12-31 22.64 23.11 0.88
2013-09-30 23.14 20.17 0.92
2013-06-30 23.64 17.22 0.97
2013-03-31 24.51 18.47 1.02
2012-12-31 25.37 19.71 1.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arena REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arena REIT used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Arena REIT has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arena REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arena REIT has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arena REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arena REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arena REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Arena REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arena REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arena REIT Company Filings, last reported 4 months ago.

ASX:ARF Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 610.33 196.75 8.13
2019-03-31 610.33 196.75 8.13
2018-12-31 551.22 197.72 7.76
2018-09-30 551.22 197.72 7.76
2018-06-30 531.64 179.05 8.65
2018-03-31 531.64 179.05 8.65
2017-12-31 518.54 168.17 9.03
2017-09-30 518.54 168.17 9.03
2017-06-30 432.48 171.66 9.08
2017-03-31 432.48 171.66 9.08
2016-12-31 407.04 162.61 7.93
2016-09-30 407.04 162.61 7.93
2016-06-30 357.49 140.62 9.45
2016-03-31 357.49 140.62 9.45
2015-12-31 335.84 131.39 8.40
2015-09-30 335.84 131.39 8.40
2015-06-30 303.49 131.17 10.89
2015-03-31 303.49 131.17 10.89
2014-12-31 249.47 140.88 6.70
2014-09-30 249.47 140.88 6.70
2014-06-30 238.20 126.11 3.95
2014-03-31 238.20 126.11 3.95
2013-12-31 216.86 82.00 5.56
2013-09-30 216.86 82.00 5.56
2013-06-30 210.07 24.57 5.00
2013-03-31 210.07 24.57 5.00
2012-12-31 134.58 102.55 13.75
  • Arena REIT's level of debt (32.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53% vs 32.2% today).
  • Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Arena REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arena REIT has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Arena REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5%
Current annual income from Arena REIT dividends. Estimated to be 5.2% next year.
If you bought A$2,000 of Arena REIT shares you are expected to receive A$100 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arena REIT's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • Arena REIT's dividend is below the markets top 25% of dividend payers in Australia (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:ARF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:ARF Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.16 5.00
2021-06-30 0.15 6.00
2020-06-30 0.14 6.00
2019-11-18
ASX:ARF Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-09-19 0.143 4.917
2019-05-20 0.135 4.824
2019-03-18 0.135 4.853
2018-12-13 0.135 5.217
2018-09-18 0.135 5.795
2018-06-18 0.128 5.717
2018-03-15 0.128 5.806
2017-12-12 0.128 5.674
2017-09-14 0.128 5.558
2017-06-15 0.123 5.571
2017-03-21 0.123 5.692
2016-12-15 0.117 5.951
2016-09-16 0.117 6.101
2016-08-24 0.111 5.206
2015-06-17 0.100 5.592
2015-02-24 0.100 5.971
2014-08-25 0.088 5.762
2013-08-30 0.080 6.818

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Arena REIT has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Arena REIT only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Arena REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (306.7x coverage).
X
Income/ dividend checks
We assess Arena REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arena REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arena REIT has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Arena REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob de Vos
COMPENSATION A$813,797
TENURE AS CEO 0.8 years
CEO Bio

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, was responsible for Arena’s asset management programs, acquisitions, developments and investments. He served as an Executive Director of Asset Management at Ceramic Funds Management Limited. Mr. de Vos has been involved in the Australian investment property industry full-time since 1993. He has over 20 years’ property and funds management experience and has particular expertise in developing investment management strategies across broad portfolios of real estate and real estate securities. He served senior roles with Jones Lang LaSalle, Becton Property Group and Ceramic Funds Management. He served for major financial institutions, property developers and State and local governments in various roles including tenant representation, acquisition and divestment due diligence, budgeting and cash flow management, leasing and facilities management. Mr. de Vos served as an Executive Director of Asset Management and Director of Australian Social Infrastructure Fund. He served as a Director of Ceramic Funds Management Limited since August 14, 2003. He is a Member of the Securities Institute of Australia and the Property Council of Australia (PCA). He is a Member of Victorian Asset and Technical Management Committee of the PCA. He has Diplomas of Property Operations and Financial Markets and is a Licensed Real Estate Agent with a background in building compliance matters.

CEO Compensation
  • Rob's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Rob's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Arena REIT management team in years:

1.4
Average Tenure
  • The average tenure for the Arena REIT management team is less than 2 years, this suggests a new team.
Management Team

Rob de Vos

TITLE
CEO, MD & Director
COMPENSATION
A$814K
TENURE
0.8 yrs

Gareth Winter

TITLE
Company Secretary
COMPENSATION
A$759K
TENURE
7.7 yrs

Sam Rist

TITLE
Head of Investor Relations
TENURE
1.4 yrs

Joanne Ross

TITLE
Head of Risk & Compliance - Arena REIT Management Limited

Stuart Andrews

TITLE
Head of Portfolio Management
TENURE
0.8 yrs

Kimberly Allen

TITLE
Fund Financial Controller - Arena REIT Management Limited
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure of the Arena REIT board of directors in years:

6
Average Tenure
  • The tenure for the Arena REIT board of directors is about average.
Board of Directors

David Ross

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$199K
AGE
58
TENURE
7.1 yrs

Rob de Vos

TITLE
CEO, MD & Director
COMPENSATION
A$814K
TENURE
0.8 yrs

Gareth Winter

TITLE
Company Secretary
COMPENSATION
A$759K
TENURE
4.9 yrs

Dennis Wildenburg

TITLE
Independent Non-Executive Director
COMPENSATION
A$116K
TENURE
7.9 yrs

Simon Parsons

TITLE
Independent Non-Executive Director
COMPENSATION
A$111K
TENURE
7.6 yrs

Rosemary Hartnett

TITLE
Independent Non Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
31. Jul 19 Buy Realindex Investments Pty Limited Company 22. Jul 19 22. Jul 19 14,936 A$2.81 A$41,972
31. Jul 19 Sell First Sentier Investors (Australia) IM Ltd Company 29. Jul 19 29. Jul 19 -32,260 A$2.80 A$-90,328
31. Jul 19 Buy First Sentier Investors (Australia) IM Ltd Company 19. Jul 19 19. Jul 19 34,920 A$2.80 A$97,601
22. Jul 19 Buy Realindex Investments Pty Limited Company 09. May 19 18. Jul 19 536,330 A$2.71 A$1,453,887
22. Jul 19 Buy First Sentier Investors (Australia) IM Ltd Company 09. May 19 18. Jul 19 1,751,695 A$2.85 A$4,729,432
26. Jun 19 Sell The Vanguard Group, Inc. Company 20. Dec 17 21. Jun 19 -2,898,571 A$2.87 A$-7,924,732
26. Jun 19 Buy The Vanguard Group, Inc. Company 11. Apr 17 21. Jun 19 9,803,235 A$2.93 A$26,057,756
27. May 19 Sell Australian Unity Funds Management Limited Company 24. May 19 24. May 19 -9,629,000 A$2.67 A$-25,709,420
02. May 19 Buy Realindex Investments Pty Limited Company 03. Nov 17 12. Apr 19 1,063,905 A$2.27 A$2,418,951
02. May 19 Sell First Sentier Investors (Australia) IM Ltd Company 12. Sep 17 01. May 19 -4,809,909 A$2.49 A$-11,600,860
02. May 19 Buy First Sentier Investors (Australia) IM Ltd Company 12. Sep 17 11. Feb 19 1,507,217 A$2.26 A$3,397,171
X
Management checks
We assess Arena REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arena REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Arena REIT (ASX:ARF) A Healthy REIT?

ASX:ARF Historical Debt, July 23rd 2019 Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. … The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. … Take a look at our free research report of analyst consensus for ARF’s outlook.

Simply Wall St -

Introducing Arena REIT (ASX:ARF), The Stock That Zoomed 120% In The Last Five Years

Check out our latest analysis for Arena REIT While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During five years of share price growth, Arena REIT achieved compound earnings per share (EPS) growth of 11% per year. … As it happens, Arena REIT's TSR for the last 5 years was 194%, which exceeds the share price return mentioned earlier.

Simply Wall St -

With A Return On Equity Of 11%, Has Arena REIT's (ASX:ARF) Management Done Well?

Check out our latest analysis for Arena REIT How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Arena REIT: 11% = AU$62m ÷ AU$551m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Arena REIT's Debt And Its 11% ROE While Arena REIT does have some debt, with debt to equity of just 0.36, we wouldn't say debt is excessive.

Simply Wall St -

What Kind Of Shareholders Own Arena REIT (ASX:ARF)?

The big shareholder groups in Arena REIT (ASX:ARF) have power over the company. … Arena REIT is a smaller company with a market capitalization of AU$758m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Arena REIT ASX:ARF Ownership Summary, May 20th 2019 What Does The Institutional Ownership Tell Us About Arena REIT?

Simply Wall St -

How Does Arena REIT (ASX:ARF) Fare As A Dividend Stock?

Could Arena REIT (ASX:ARF) be an attractive dividend share to own for the long haul? … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Arena REIT is a new dividend aristocrat in the making.

Simply Wall St -

How Should You Analyze REIT Stock Arena REIT (ASX:ARF)?

real estate investment trust (REIT) based in Melbourne, Australia. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent … FFO is a cleaner and more representative figure of how much ARF actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation

Simply Wall St -

Did Business Growth Power Arena REIT's (ASX:ARF) Share Price Gain of 133%?

For example, the Arena REIT (ASX:ARF) share price has soared 133% in the last half decade. … During five years of share price growth, Arena REIT achieved compound earnings per share (EPS) growth of 11% per year. … This EPS growth is lower than the 18% average annual increase in the share price.

Simply Wall St -

Arena REIT (ASX:ARF): The Yield That Matters The Most

If you are currently a shareholder in Arena REIT (ASX:ARF), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Is Arena REIT generating enough cash. … Arena REIT generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

Taking A Look At Arena REIT's (ASX:ARF) ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should You Analyze REIT Stock Arena REIT (ASX:ARF)?

real estate investment trust (REIT) based in Melbourne, Australia. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent … FFO is a cleaner and more representative figure of how much ARF actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation

Simply Wall St -

Company Info

Description

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 diversified tenant base in the growing early learning and healthcare sectors.

Details
Name: Arena REIT
ARF
Exchange: ASX
Founded: 2014
A$864,070,012
300,024,310
Website: http://www.arena.com.au
Address: Arena REIT
41 Exhibition Street,
Level 5,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ARF Ordinary Stapled Units Australian Securities Exchange AU AUD 13. Jun 2013
CHIA ARF Ordinary Stapled Units Chi-X Australia AU AUD 13. Jun 2013
Number of employees
Current staff
Staff numbers
0
Arena REIT employees.
Industry
Health Care REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 10:35
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/01
Last earnings filing: 2019/08/12
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.