Arena REIT (ASX: ARF) has announced the quarterly ordinary dividend distribution of 3.375 cents per share for its December 31, 2018 quarter ending. The distribution is consistent with the company’s previously announced distribution guidance for FY 2019. The primary currency for the distribution is AUD.
The ex-distribution date is Friday, 28 December 2018 and the record date of the dividend is Monday, 31 December 2018. The last date to change/ elect the dividend/dividend reinvestment plan (DRP) participation however is on Wednesday, 2 January 2019.
The security holders can participate in the DRP by the completion of an application online or through the call. The dividend payment date is on Thursday, 7 February 2019.
As the company clarified, the application in DRP participation is unconditional, and there is no minimum or maximum dollar amount or securities required for participation in the DRP by the shareholders.
Arena is a real estate investment trust which is internally managed. It invests in various sectors like childcare, healthcare, education, and long-term leased facilities for government tenants. The objective for the strategic investment is to generate attractive distribution to the investors and to enhance the growth of earnings over a period of medium to long-term.
Arena is dually listed in ASX and S&P as well. The company is into investment in social infrastructure property assets, available in the growing sectors which derives an advantage from favourable demographic and economic trends. The company has leased a portfolio of more than 200 social infrastructure facility assets to an extensive range of tenant base. This tenant base is primarily into the growing childcare and healthcare sectors.
Since the company is more concerned about earnings predictability and stability, all the leases of the company are long-term in nature and include annual rent reviews. The net lease structure helps this upside return potential to pass to the investors, whereas the majority of expenses, maintenance, and capital expenditures are borne by the tenants.
The company specializes in active property managing businesses. It is responsible for increasing the quality and standard of the portfolio of investments and mitigate the risk in an optimum possible way. The quality of investments and maneuvering its risk is done through diversification and strong tenant covenants. The company has a priority of investing in long-term opportunities. It actively manages its assets to timely recycle and rebalance them to optimize the performance of the portfolio.
The company strategically with its tenants works as property partners to generate value as well. The company possesses an experienced team who has the ability to assess and identify any development opportunities accurately. It has an efficient management team of project risk and completion of quality projects. The collective approach of the company toward the progress of the business has consistently delivered customized facilities for its tenants and attractive investment returns to its investors.
The stock of the company is currently $2.450. It has a current market capitalization of $664.74 million. The company is trading at a price-earnings ratio of 10.070 with an EPS of AUD 0.243. The stock had a mixed performance over the year and had generated a YTD of 8.41%.