Australia's Arena REIT falls; Jefferies downgrades, Morningstar cuts valuation

Arena REIT No 1

11/08/2026 02:23

Updates
** Australia's Arena REIT ARF.AX falls as much as 9.8% to A$2.31, lowest level since mid-August 2020
** Morningstar cuts its fair value estimate on Arena by 8% to A$3.50
** Morningstar says Edge Early Learning, an Australian childcare-centre operator, accounts for about 14% of Arena REIT's annual property income and warns that finding replacement tenants for 31 childcare centres could take time if the operator defaults
** Jefferies downgrades Arena to "hold" from "buy"
** Jefferies cuts its earnings forecasts for FY27 and FY28 by 6% and 11%, respectively, assuming downtime and lower rents across Edge-leased properties
** ARF down 35.7% YTD, including session moves

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))