Arena REIT Eyes a Distribution Per Security Of 6.75 To 6.85 Australian Cents In The Second Half Of FY2020
May 21, 2020 — 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 is expected to bring the full year FY20 distribution per security to 13.9 to 14.0 cents.
The REIT also said in a disclosure that all of its operating portfolio of properties remain open and continue to accommodate the provision of essential services to Australian communities.
Each of Arena’s early learning centre tenant partners qualify for the Australian Federal Government’s JobKeeper allowance and Early Childhood Education and Care (ECEC) relief package.
“As a result of Government support for our tenant partners to 30 June 2020 and rent relief agreements reached to date where justified, we are now in a position to provide the above FY20 distribution guidance. 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,” the REIT said.
The Federal Government is reviewing the ECEC relief package and future support of the early learning sector beyond 30 June 2020 and until this is clarified, uncertainties will remain.
As announced on 23 March 2020, Arena maintains liquidity in excess of its obligations and is operating well within its lending covenants.
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