Arena REIT has now finalised rental agreements with it operating partners and is able to provide distribution guidance to its investors.
Arena anticipates paying a final FY20 distribution for the second half of FY20 in the range of 6.75 to 6.85 cents per security. This will bring the full year FY20 distribution per security to between 13.9 to 14.0 cents and represents a minor drop on its February forecast of 14.3 cents. The group has also confirmed that it maintains liquidity in excess of its obligations and is operating well within its lending covenants.
All of Arena’s operating properties remain open with support from the Australian Federal Government’s JobKeeper allowance and Early Childhood Education and Care (ECEC) relief package. The package, which only continues through to 30th June is being reviewed and as such future support of the sector beyond 30 June 2020 remains uncertain.
Arena also stressed that "early learning operating conditions remain challenging as a result of increasing attendances and therefore rising costs being incurred at a time when government funding has been fixed and operators are unable to charge fees."
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