# Arena REIT (ARF.AU)

Canonical: https://gigainvestors.com/s/ARF.AU

Analysis as of: 2026-10-16T07:45:30.939Z. Financial observations: FY2009–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 2.46 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.86×

- FY2018: 0.90×

- FY2019: 1.20×

- FY2020: 0.83×

- FY2021: 0.91×

- FY2022: 1.21×

- FY2023: 0.92×

- FY2024: 0.92×

- FY2025: 0.92×

- FY2026: 0.98×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.2%

- ROIC, second-lowest year: 4.8%

- Typical minus recent gross margin: 2.2 pp

- Typical gross margin (annual median): 94.3%

- Recent gross margin (lower of latest and 3-year median): 92.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 130.8%

- ROIC including acquisitions, ten-year median: 6.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.2%

- FY2018: 4.9%

- FY2019: 9.8%

- FY2020: 4.8%

- FY2021: 5.2%

- FY2022: 6.8%

- FY2023: 5.7%

- FY2024: 6.3%

- FY2025: 4.9%

- FY2026: 5.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.22×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 145M

- Net income, five-year total: AUD 669M

- Return on incremental invested capital: 4.5%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: -14.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.87×

- FY2023: 0.51×

- FY2024: -0.03×

- FY2025: -1.29×

- FY2026: -0.64×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.9% vs 5.1%

- Per-share earnings: 0.31 to 0.20 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.7%

- Ordinary dilution, 5-year annual growth: 3.4%

- Market cap gain: AUD 674M

- Cumulative retained earnings: AUD 542M

- Diluted shares, 10-year annual growth: 5.7%

- Diluted shares, 5-year annual growth: 3.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -5.2%

- Per-share value change: AUD -0.11

- Per-share value, starting three-year median: AUD 0.31

- Per-share value, ending three-year median: AUD 0.20

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 3.4%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 11M

- Cumulative net income, 10 years: AUD 1.1B

- ROIC, first three-year median: 4.9%

- ROIC, last three-year median: 5.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.37

- FY2018: AUD 0.24

- FY2019: AUD 0.20

- FY2020: AUD 0.22

- FY2021: AUD 0.48

- FY2022: AUD 0.96

- FY2023: AUD 0.21

- FY2024: AUD 0.15

- FY2025: AUD 0.20

- FY2026: AUD 0.30

### accounting: pass

- Sloan accruals: 2.2%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.64×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 10.9%

- FY2018: 4.2%

- FY2019: 2.7%

- FY2020: 3.4%

- FY2021: 9.9%

- FY2022: 18.2%

- FY2023: 0.9%

- FY2024: -0.3%

- FY2025: 0.4%

- FY2026: 2.2%

## Holders

## Price story

Down 50% since Dec 2021 · sales +6.5%

Story as of 2026-10-16T10:00:13.417Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +6.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 39M 

- FY2018: AUD 49M 

- FY2019: AUD 56M 

- FY2020: AUD 60M 

- FY2021: AUD 71M 

- FY2022: AUD 81M 

- FY2023: AUD 93M 

- FY2024: AUD 98M 

- FY2025: AUD 110M 

- FY2026: AUD 117M 

### Gross margin · FY2026

gross margin 99.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 86.6% 

- FY2018: 90.4% 

- FY2019: 99.2% 

- FY2020: 99.0% 

- FY2021: 96.4% 

- FY2022: 99.3% 

- FY2023: 92.3% 

- FY2024: 92.1% 

- FY2025: 92.1% 

- FY2026: 99.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are AUD 117.3 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2026: revenue 117258000; grossProfit 116350000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 92.1% to 99.2% during 2024–26; it earns 5.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2024: grossProfit / revenue = 92.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2025: grossProfit / revenue = 92.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2026: grossProfit / revenue = 99.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); 10-year return on capital observations [[2017,0.042391139668320275],[2018,0.04861011024172945],[2019,0.09815311355634969],[2020,0.048013647836263086],[2021,0.05231904960815184],[2022,0.06758632127420296],[2023,0.05687195961328891],[2024,0.06342875820477606],[2025,0.04877196038436497],[2026,0.05079592975022089]]; median 0.051557489679186365. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2017: growth capex 70431369.75461824; upkeep -29886369.754618242; owner earnings 93101369.75461824. Growth capex / owner earnings = 0.7565019713485422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2018: growth capex 126723000; upkeep -43689000; owner earnings 64432000. Growth capex / owner earnings = 1.966771169605165.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2019: growth capex 73428000; upkeep -4285000; owner earnings 59323000. Growth capex / owner earnings = 1.2377661278087757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2020: growth capex 56304978.493912615; upkeep 30305021.506087385; owner earnings 40403978.493912615. Growth capex / owner earnings = 1.393550353027628.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2021: growth capex 91156448.18034667; upkeep 14906551.819653332; owner earnings 140902248.18034667. Growth capex / owner earnings = 0.6469481456652965.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2022: growth capex 60191548.229885; upkeep 43804451.770115; owner earnings 291485348.229885. Growth capex / owner earnings = 0.20649939557995858.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); FY2023: growth capex 34523017.246378794; upkeep 36802982.753621206; owner earnings 37957817.246378794. Growth capex / owner earnings = 0.9095100759428499.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); Dividend observations: [[2017,21557000],[2018,28607000],[2019,29565000],[2020,23550000],[2021,48818000],[2022,44077000],[2023,44633000],[2024,43398000],[2025,49989000],[2026,54116000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 2.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARF.AU SharesStats.PercentInsiders = 2.705 percentage points; cache date 2026-10-16.

### What the price says

The price is 8.5 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:30.939Z); Closing price 2.46 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 0.2883617986646501; price multiple 8.530949700660083. FY2026 cash earnings/share -0.19303306405006948. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 1.94 per share

- 2016-11: AUD 1.81 per share

- 2016-12: AUD 1.87 per share

- 2017-01: AUD 1.87 per share

- 2017-02: AUD 2.11 per share

- 2017-03: AUD 2.10 per share

- 2017-04: AUD 2.13 per share

- 2017-05: AUD 2.20 per share

- 2017-06: AUD 2.25 per share

- 2017-07: AUD 2.06 per share

- 2017-08: AUD 2.31 per share

- 2017-09: AUD 2.30 per share

- 2017-10: AUD 2.24 per share

- 2017-11: AUD 2.50 per share

- 2017-12: AUD 2.26 per share

- 2018-01: AUD 2.29 per share

- 2018-02: AUD 2.30 per share

- 2018-03: AUD 2.16 per share

- 2018-04: AUD 2.23 per share

- 2018-05: AUD 2.19 per share

- 2018-06: AUD 2.15 per share

- 2018-07: AUD 2.30 per share

- 2018-08: AUD 2.30 per share

- 2018-09: AUD 2.36 per share

- 2018-10: AUD 2.17 per share

- 2018-11: AUD 2.40 per share

- 2018-12: AUD 2.41 per share

- 2019-01: AUD 2.69 per share

- 2019-02: AUD 2.61 per share

- 2019-03: AUD 2.78 per share

- 2019-04: AUD 2.93 per share

- 2019-05: AUD 2.75 per share

- 2019-06: AUD 2.74 per share

- 2019-07: AUD 2.84 per share

- 2019-08: AUD 2.85 per share

- 2019-09: AUD 2.86 per share

- 2019-10: AUD 3.03 per share

- 2019-11: AUD 2.96 per share

- 2019-12: AUD 2.85 per share

- 2020-01: AUD 3.09 per share

- 2020-02: AUD 3.00 per share

- 2020-03: AUD 1.70 per share

- 2020-04: AUD 2.26 per share

- 2020-05: AUD 2.47 per share

- 2020-06: AUD 2.19 per share

- 2020-07: AUD 2.25 per share

- 2020-08: AUD 2.57 per share

- 2020-09: AUD 2.72 per share

- 2020-10: AUD 2.64 per share

- 2020-11: AUD 2.80 per share

- 2020-12: AUD 2.88 per share

- 2021-01: AUD 2.89 per share

- 2021-02: AUD 3.08 per share

- 2021-03: AUD 3.15 per share

- 2021-04: AUD 3.24 per share

- 2021-05: AUD 3.43 per share

- 2021-06: AUD 3.60 per share

- 2021-07: AUD 3.54 per share

- 2021-08: AUD 4.17 per share

- 2021-09: AUD 4.22 per share

- 2021-10: AUD 4.50 per share

- 2021-11: AUD 4.47 per share

- 2021-12: AUD 4.93 per share

- 2022-01: AUD 4.69 per share

- 2022-02: AUD 4.93 per share

- 2022-03: AUD 4.91 per share

- 2022-04: AUD 4.85 per share

- 2022-05: AUD 4.31 per share

- 2022-06: AUD 4.27 per share

- 2022-07: AUD 4.81 per share

- 2022-08: AUD 4.20 per share

- 2022-09: AUD 3.33 per share

- 2022-10: AUD 3.93 per share

- 2022-11: AUD 3.90 per share

- 2022-12: AUD 3.83 per share

- 2023-01: AUD 3.73 per share

- 2023-02: AUD 3.86 per share

- 2023-03: AUD 3.63 per share

- 2023-04: AUD 3.73 per share

- 2023-05: AUD 3.72 per share

- 2023-06: AUD 3.76 per share

- 2023-07: AUD 3.80 per share

- 2023-08: AUD 3.71 per share

- 2023-09: AUD 3.36 per share

- 2023-10: AUD 3.17 per share

- 2023-11: AUD 3.35 per share

- 2023-12: AUD 3.71 per share

- 2024-01: AUD 3.50 per share

- 2024-02: AUD 3.43 per share

- 2024-03: AUD 3.97 per share

- 2024-04: AUD 3.70 per share

- 2024-05: AUD 3.74 per share

- 2024-06: AUD 3.87 per share

- 2024-07: AUD 3.86 per share

- 2024-08: AUD 3.98 per share

- 2024-09: AUD 4.16 per share

- 2024-10: AUD 4.01 per share

- 2024-11: AUD 4.14 per share

- 2024-12: AUD 3.89 per share

- 2025-01: AUD 3.89 per share

- 2025-02: AUD 3.67 per share

- 2025-03: AUD 3.45 per share

- 2025-04: AUD 3.72 per share

- 2025-05: AUD 3.75 per share

- 2025-06: AUD 3.71 per share

- 2025-07: AUD 3.68 per share

- 2025-08: AUD 4.05 per share

- 2025-09: AUD 3.88 per share

- 2025-10: AUD 3.65 per share

- 2025-11: AUD 3.58 per share

- 2025-12: AUD 3.56 per share

- 2026-01: AUD 3.55 per share

- 2026-02: AUD 3.42 per share

- 2026-03: AUD 3.27 per share

- 2026-04: AUD 3.31 per share

- 2026-05: AUD 3.20 per share

- 2026-06: AUD 3.11 per share

- 2026-07: AUD 3.19 per share

- 2026-08: AUD 2.32 per share

- 2026-09: AUD 2.12 per share

- 2026-10: AUD 2.40 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 2.93 per share, central AUD 3.33 per share, high AUD 3.86 per share

- FY2018: low AUD 3.53 per share, central AUD 4.01 per share, high AUD 4.65 per share

- FY2019: low AUD 3.12 per share, central AUD 3.54 per share, high AUD 4.11 per share

- FY2020: low AUD 2.78 per share, central AUD 3.13 per share, high AUD 3.60 per share

- FY2021: low AUD 3.48 per share, central AUD 4.62 per share, high AUD 5.40 per share

- FY2022: low AUD 4.17 per share, central AUD 5.84 per share, high AUD 6.85 per share

- FY2023: low AUD 3.12 per share, central AUD 3.56 per share, high AUD 4.13 per share

- FY2024: low AUD 2.25 per share, central AUD 3.11 per share, high AUD 3.65 per share

- FY2025: low AUD 1.48 per share, central AUD 2.00 per share, high AUD 2.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.