Jefferies lifts Arena REIT's PT on stronger annual distribution forecast

Arena REIT No 1

19/10/2026 21:01

** Analysts at Jefferies raise the price target for Australia's Arena REIT No. 1 ARF.AX to A$2.88 from A$2.65; reiterate "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
** Co 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
** ARF down 30.1% YTD

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