AUS
NZ
UK
CA
USA
IND
Real estate company, Arena REIT (ASX:ARF) has announced the acquisition of a portfolio of three specialist disability accommodation properties located in metropolitan Adelaide for a combined purchase price of $23.95 million. The properties are leased on a long- term basis to SACARE, a leading provider of disability care and rehabilitation services in South Australia.
The acquisition is consistent with Arenaâs strategy to grow and diversify its existing healthcare portfolio and further diversify its portfolio of social infrastructure property. The investment will return an initial income yield of 6% on the purchase price, and each of the leases has a 15- year initial term and the rent will be reviewed annually by CPI+0.5%. Specialist Disability Accommodation (SDA) provides specialised solutions to people with significant functional impairment and/or high support needs.
The three acquired specialist disability accommodation properties are as follows:
The Gums â Salisbury SA, is a purpose- built state of the art property completed in late 2018 with capacity for 20 clients. The facility offers high-quality accommodation and rehabilitation services for clients who require 24- hour high care or transition to supported living.
Briarholm House â Kingswood SA, was significantly refurbished in 2016 and has the capacity for nine clients. The facility offers high-quality accommodation and rehabilitation service for clients who require 24 hours high and complex care.
Barton House â North Adelaide SA, is a refurbished and extended property with capacity for six clients. The facility offers high-quality accommodation for clients who require 24 hours high and complex care.
Arenaâs Head of Property, Mr Rob de Vos said that the company was pleased to have acquired the portfolio of high quality, specialised high care facilities which enable people with a disability to live enriched and fulfilled lives.
SACAREâs Chairman Andrew Marshall and Technology and Development Manager Alex Marshall said that SACARE is looking forward to work with Arena as a long- term real estate capital partner, allowing it to focus on its core services of delivering high-quality care to its clients.
On 30 January 2019, ARF notified that it intended to release its HY19 Results to the ASX on 19 February 2019. An investor teleconference would be held to provide an overview of the operating activities and financial results for the half-year to 31 December 2018.
On 14 December, ARF announced distribution of 3.375 cents per stapled security, for the quarter ending 31 December 2018. The distribution was in accordance with ARFâs earlier notified FY17 distribution guidance of 13.5 cps. Arenaâs Dividend and Distribution Reinvestment Plan (DRP) would operate with respect to this distribution. Securityholders participating in the DRP would be issued new securities priced at a 1.5% discount to the 15- day volume weighted average trading price during the Pricing Period.
On 27 September 2018, ARF published its annual report ending 30 June 2018. It was another strong year for Arena, with a net operating profit of $34.7 million, an increase of 21% on the prior year. Key contributors to the result were rental income growth from annual rent reviews and income from acquisitions and development projects completed in FY17 and FY18. At 30 June 2018, Arenaâs property portfolio comprised 207 early learning centre (ELC) properties and development sites (88% of portfolio value) and seven healthcare properties (12% of portfolio value).
The stock of the company last traded at A$2.750 (as at 18 February 2019), up by 1.103% or 0.030 points at the close of trading session.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.