Arena Reit · ASX:ARF
Arena Reit — FY2025 Earnings Presentation
35 slides from Arena Reit's earnings presentation, Aug 13, 2025
Slide 1: Full Year 2025 Results Presentation
Arena REIT FULL YEAR 2025 RESULTS PRESENTATION 13 August 2025 Better Communities. Together. r Title
Slide 2: Agenda
Arena REIT acknowledges Agenda the traditional custodians of the lands on which our business and assets operate, and recognises their ongoing connection to land, waters and community. 4 Highlights 6 Sustainability 7 Financial Results 12 Portfolio Update 21 Outlook 22 Questions 23 Appendices 35 Impor
Slide 3: Experienced and Capable Team
Experienced and Capable Team Expanded management team with three new appointments ROB DE VOS GARETH WINTER JUSTIN BAILEY SUSIE MCPHERSON JOANNE ROSS ISABELLA WALKER Managing Director Chief Investment Chief Corporate Affairs Head of Risk & Investor Relations & Chief Financial Officer & CEO Officer &
Slide 4: FY2025 Highlights
FY2025 Highlights Disciplined investment activity underpins strong results and outlook Statutory net profit Total assets Average like-for-like rent increase $81.5 million $1.9 billion 3.5% FY2026 Distribution per security (DPS) Guidance3 +42% on FY2024 +15% on FY2024 on FY2024 19.25 cents +5.5% on F
Slide 5: Delivering on Strategy
Delivering on Strategy Predictable income; future investment program secured Portfolio management Working in partnership • Long term WALE (by income) of • Continue to progress solar renewable 18.4 years energy program; currently installed on 92% • Portfolio weighted average of Arena’s property portf
Slide 6: Sustainability in Focus
Sustainability in Focus Progressing towards 2030 target of a reduction of 60- 70% in the intensity of Arena’s Financed Emissions • Sustainability is integral to Arena’s investment approach and best positions Arena to achieve positive long term commercial and community outcomes • Sustainability outco
Slide 7: Financial Results
Financial Results Gareth Winter CHIEF FINANCIAL OFFICER Better Communities. Together. r Title
Slide 8: Financial Performance
Financial Performance EPS growth supported by rent growth and disciplined capital management FY2025 FY2024 Change Change • 5.1% increase in EPS supported by contracted rental growth; full year FY2024 and part year $’000 $’000 $’000 % FY2025 effect of acquisitions and development completions Property
Slide 9: Contributors to EPS Growth
Contributors to EPS Growth Contracted rental growth, transactions and development completions underpin 5.1% EPS growth 22 1.50 (0.10) (0.10) (1.10) 20 0.70 18.55 18 17.65 16 14 12 10 FY2024 EPS Contracted like-for-like Completed developments Net operating expenses Asset disposals Funding mix and cos
Slide 10: Financial Position
Financial Position Strong balance sheet with capacity to fund future investment program As at 30 June 2025 30 June 2024 Change • Growth in total assets driven by acquisitions and ELC development $m $m % project capex • NAV per security increase from ELC Total assets 1,859 1,623 15% portfolio revalua
Slide 11: Capital Management
Capital Management Debt maturity extended and facility expanded • Debt facility increased by $100 million to 30 June 30 June $600 million and facility term extended As at 2025 2024 Change • Facility comprises three tranches of $200 million, expiring 31 May 2028; 31 May 2029; Borrowings $437m $377m $
Slide 12: Portfolio Update
Portfolio Update Justin Bailey CHIEF INVESTMENT OFFICER Better Communities. Together. r Title
Slide 13: Portfolio Overview
Portfolio Overview Number of 30 June 2025 Net valuation movement 30 June 2025 Change vs assets valuation passing yield 30 June 2024 $m $m % % bps Early learning portfolio (excluding devt assets)1 271 1,570 30 1.9 5.41 5bps Healthcare portfolio 10 167 (6) (3.4) 6.09 41bps Total portfolio 281 1,737 24
Slide 14: Actively Managing Portfolio
Actively Managing Portfolio Weighted average lease expiry stable at 18.4 years 35% • Acquisitions, disposals and lease extensions maintain stability of Total portfolio (%) 30.5% 30% portfolio WALE at 18.4 years • Focus on extending portfolio WALE 25% bearing results – WALE has increased % of income
Slide 15: Annual Rent Reviews
Annual Rent Reviews Attractive rent review structure with embedded income growth 100% 10% 7% 11% 12% • FY2025 average portfolio like-for- 5% like rental increase of 3.5% 5% 5% 4% 6% 7% 80% 8% 8% • 30 FY2025 market rent reviews resolved at an average increase of % of income 60% 6.8%1 • 10% of income
Slide 16: Transactions Enhancing Portfolio Quality
Transactions Enhancing Portfolio Quality Focus on portfolio curation and investment discipline Acquisition and development capital expenditure ($m) • Eleven acquisitions completed in FY2025 for a total cost of $129 million at a net initial yield on purchase price of 6.1%1 $250 $224 • 10 operating EL
Slide 17: Developments Completed and Pipeline Replenished
Developments Completed and Pipeline Replenished Delivering high-quality, purpose-built properties • Twelve ELC development projects completed in FY2025 Completed developments FY2025 Number of projects 12 • Total cost of $83.1 million and initial yield on total Total cost $83.1 million cost of 5.8% I
Slide 18: ELC Portfolio and Operating Environment
ELC Portfolio and Operating Environment Asset quality supporting portfolio strength Arena ELC portfolio – net rent to gross operator revenue ratio2 14% • 100% portfolio occupancy as at 30 June 20251 12% • Arena’s ELC portfolio tenant operating data2 to 31 March 2025: 10% o Average daily fee of $155.
Slide 19: ELC Operating and Regulatory Environment
ELC Operating and Regulatory Environment Government focus on affordability, access and quality • The benefits of childcare are well established and include Policy reforms focused on affordability and access 3 lifelong education benefits for children, greater workforce • The Cheaper Childcare Package
Slide 20: Healthcare Sector and Portfolio
Healthcare Sector and Portfolio Portfolio performing in line with expectations • Longer-term social and economic drivers remain supportive, with a Bendigo Key Health Worker growing and ageing population expected to increase demand for accommodation highlights Arena’s healthcare services investment c
Slide 21: Outlook
Investment objective Outlook To deliver an attractive and predictable distribution to investors with earnings FY2026 distribution guidance of 19.25cps1, growth prospects over the medium to long term. up 5.5% on FY2025 • Strong social and macroeconomic drivers continue to support the early learning a
Slide 22: Questions
Questions Better Communities. Together. r Title
Slide 23: Appendices
Appendices Better Communities. Together. r Title
Slide 24: Financial Performance
Financial Performance FY2025 FY2024 Change Change $’000 $’000 $’000 % Property income 92,112 80,222 11,890 15% Other income 1,208 678 530 78% Total operating income 93,320 80,900 12,420 15% Property expenses (682) (573) (109) 19% Operating expenses (6,157) (5,419) (738) 14% Finance costs (13,408) (1
Slide 25: Balance Sheet
Balance Sheet 30 June 2025 30 June 2024 Change Change Covenant Facility Ratio $’000 $’000 $’000 % requirement Cash 16,572 12,434 4,138 33% Loan to value ratio (LVR) Maximum 50% 24.7% Receivables and other assets 21,312 6,161 15,151 246% Interest cover ratio (ICR) Minimum 2x 5.6x Investment propertie
Slide 26: Portfolio Composition and Movement
Portfolio Composition and Movement Portfolio movements (30 June 2024 to 30 June 2025)1,2 300 -1 14 280 14 11 -5 12 11 260 Number of properties 240 288 220 276 275 281 281 264 264 200 180 160 30-Jun-24 Development sites Development projects Operating properties Operating properties Development 30-Jun
Slide 27: ELC Portfolio Valuations
ELC Portfolio Valuations As at 30 June 2025 Number of Value Passing yield properties1 $m1 % Independent ELC freehold valuations Queensland 19 117.5 5.3 Victoria 16 96.3 5.4 New South Wales 8 29.9 5.0 Western Australia 5 24.8 4.6 South Australia 5 36.3 5.8 Northern Territory 1 4.0 6.1 Total independe
Slide 28: ELC Portfolio Metrics
ELC Portfolio Metrics 30 June 20251 30 June 2024 Change Leased ELCs 271 255 16 Development sites 142 12 2 Total ELCs 285 267 18 WALE (by income) (years) 19.3 19.4 (0.1yr) Tenanted occupancy (%) 1001 99.7 30bps Average passing yield (%) 5.41 5.36 5bps Portfolio value ($m) 1,625 1,444 12.5% Average re
Slide 29: Healthcare Portfolio Metrics
Healthcare Portfolio Metrics 30 June 2025 30 June 2024 Change Total healthcare properties 10 9 1 WALE (by income) (years) 10.9 9.6 1.25 Tenanted occupancy (%) 100 100 - Average passing yield (%) 6.09 5.68 41bps Property portfolio ($m) 167 135 24% Average rental increase (%) 3.2 4.2 (100bps) Portfoli
Slide 30: Portfolio Location Map
Portfolio Location Map 1. Excludes 15 projects conditionally contracted at 30 June 2025 FY2025 Results Better Communities. Together. 13 August 2025 | 30 r Title
Slide 31: ELC Market Transactions
ELC Market Transactions VIC passing yields NSW passing yields QLD passing yields 10% 10% 10% 9% 9% 9% 8% 8% 8% 7% 7% 7% 6% 6% 6% 5% 5% 5% 4% 4% 4% 3% 3% 3% 2% 2% 2% Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Ju
Slide 32: ELC Sales Yields versus 10 Year Bond Yields
10.00% 0.00% 1.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2.00% 9.00% FY2025 Results Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 r Title Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Better Communities. Together. Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-1
Slide 33: ELC Operating Environment
ELC Operating Environment Strong social and macroeconomic drivers continue to support early learning sector Australian Parent Workforce Participation Rate1 LDC Participation Rate2 100% 60% 95% 58% 90% 55% 85% 53% 80% 50% Males Females 75% 48% 70% 45% 65% 43% 60% 40% 55% 38% 50% 35% 1. ABS Labour For
Slide 34: ELC Sector Reviews
ELC Sector reviews Focus on affordability, access and quality FY2025 Results Better Communities. Together. 13 August 2025 | 34 r Title
Slide 35: Important Notice
Important Notice This presentation has been prepared by Arena REIT (Arena) comprising Arena REIT Limited (ACN 602 365 186), Arena REIT Management Limited (ACN 600 069 761 AFSL No. 465754) as responsible entity of Arena REIT No.1 (ARSN 106 891 641) and Arena REIT No.2 (ARSN 101 067 878) and is author