you forgot to include the development pipeline i.e. where is the...

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Nige456

4,567 Posts.

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21/02/20

22:06

Post #: 43082599
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Originally posted by Timbooooo: ↑

I do love my Arena holding. It's the old and reliable that just keeps on delivering what it says it will.
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Given the way the share price shot up this last week, I listened to the presentation hoping to hear a gold nugget. Not sure there was gold, but they did speak about their development pipeline leading to an increased rental income of 5mil+. One would assume then, that this would lead to a 25% growth in the distributions + "normal" distribution growth. Perhaps that's why people are pushing this stock higher? (And, my wife knows the script now: 'It's too overpriced!! Look at the NTA!!" - not that we have any intention to sell)

Current yield is 4.38% - this is the lowest I've ever seen it, but still, beats the banks!

Welcome to all new holders. Prepare to watch the most boring stock on the ASX - no profit warnings. no profit upgrades. just exactly what they say they'll do.

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you forgot to include the development pipeline i.e. where is the money coming from to pay this? Balance sheet has no cash on hand page 7. its too simplistic to just use $5Mil. You need to deduct the costs of the borrowing. So you use $86M dev pipeline at 6% odd say a spread of 3%(cost of debt 3.5%) and i'm getting closer to 2.0million half that number as management costs need to be deducted. so it appears fair value at these levels of 4.4% yield in my opinion. Other reits on about 6% yield without development e.g. CQR, COF.

Last edited by Nige456: 21/02/20

ARF Price at posting: $3.32 Sentiment: None Disclosure: Held
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0 Great analysis

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