Australia's Arena REIT rises as Jefferies lifts PT on annual distribution outlook upgrade

Arena REIT No 1

20/10/2026 01:40

Updates
** Shares of Australia's Arena REIT No. 1 ARF.AX gain as much as 4%, their highest since August 10
** Analysts at Jefferies raise the price target to A$2.88 from A$2.65; reiterates "buy" rating
** The firm on Monday upgraded its FY27 distribution outlook to a range of 19 to 20.2 Australian cents per share, representing an increase of between 5.6% and 12.2% from previous forecast
** Company said the upgrade reflects progress on the resolution of Edge Early Learning, a childcare services provider, after it defaulted rent to Arena in August
** Jefferies says the outlook upgrade, coupled with the speed of finding replacement tenants and depth of bidder interest for Edge assets, shows this was an isolated, tenant-specific event rather than a sector or portfolio-wide issue 
** With Arena's stock still 24% below where it was when Edge portfolio's troubles were first reported, we continue to see upside - Jefferies
** Stock down 27.7% YTD, including the session's moves

 (Reporting by Keshav Singh Chundawat in Bengaluru)
 ((Keshav.singhchundawat@thomsonreuters.com))