A STRONG leasing performance over past six months has underpinned Arena REIT’s 4.2% portfolio revaluation uplift of $23.8 million.
Lease terms were extended across 102 properties by an average of 6.2 years, with the portfolio’s weighted average lease expiry increasing to 12.8 years.
“It has been an active six month period with several positive portfolio outcomes achieved. This has flowed through to another strong revaluation result for the portfolio,” Arena’s Managing director, Bryce Mitchelson said.
“We believe the portfolio’s average passing yield of 6.8% remains attractive in the context of recent sales evidence and the low interest rate environment.”
Over the full year ending June 30th, revaluations boosted the investment portfolio’s worth by 13.7%, or $67.3 million.
The latest round of valuations saw 63 early learning centres (ELC) and three healthcare assets independently valued, and remainder internally.
Arena’s ELC portfolio received a 3.7% uplift of $16.9 million, and market rent reviews across reflected an average increase of 6.2% over the 2017 financial and 6.3% for 2018.
Its healthcare portfolio achieved a 3.9% increase of $3.1 million.
Development projects received a 10.0% increase. Eight developments will be completed by the end of the current financial year, and the pipeline now comprises nine projects with an investment of $48 million.
The overall revaluation reflected an increase in net asset value of $0.10 per security.
Australian Property Journal