- Arena REIT (ARF) strikes a deal with Goodstart Early Learning, its largest tenant partner, to renegotiate leases on 87 properties across Australia
- One of the key terms of the agreement was the installation of solar renewable energy systems across all Arena-owned Goodstart properties
- Arena’s portfolio pro forma weighted average lease expiry is 20.1 years, thanks to the 25-year lease term increase across the renegotiated portfolio
- The company said all market rent evaluations for FY20, FY21, and FY22 have been agreed upon at a 6.5 per cent rise on average
- Arena REIT is down 1.80 per cent to $3.56 per share at 12:10 pm AEST
Arena REIT (ARF) has reached an agreement with its largest tenant partner, Goodstart Early Learning, to renegotiate leases on a portfolio of 87 properties across Australia.
Key terms of the agreement include installation of solar renewable energy systems across all Arena owned Goodstart properties, renegotiated portfolio lease increased by 25 years and resolution of all FY2, FY 21, and FY 22 market rent reviews.
The solar system installations will save Goodstart money in the long run by lowering energy expenses and reducing CO2 emissions by about 1000 tonnes per year.
Goodstart chief executive officer Julia Davison said the savings from using renewable energy would be spent on children and their education.
“We’re very excited about this initiative,” she said. “As a not for profit provider every dollar we can save from reducing our power costs means we have more money to put back into our centres and the children they support.”
Arena managing director Rob de Vos said the organisations were pleased to have collaborated on such an important issue.
“Goodstart was founded on a vision of giving children the best possible start in life through access to quality early learning, and we are working towards giving children the best possible future by this commitment to reducing carbon emissions,” he said.
Arena’s portfolio proforma weighted average lease expiry as of June 30, 2021 is 20.1 years, up from 14.7 years at HY 21, thanks to the 25-year lease term increase across the renegotiated portfolio.
The company said all market rent evaluations for FY20, FY21, and FY22 have been agreed upon at a 6.5 per cent rise on average. Arena said prior period market rent reviews are retroactively applied to the date of the scheduled review.
Arena recorded a $72 million, or seven per cent, uplift in its more than $1 billion portfolio after a recent valuation across its healthcare and early learning centres.
Arena REIT is down 1.80 per cent to $3.56 per share at 12:10 pm AEST.