Arena REITASX:ARF +1.61%85 Return-on-Tangible-Equity is 17.37% as of Dec. 2025, which is 26% above its 10-year median of 13.84. GuruFocus rates ASX:ARF with a GF Score™ of 85/100 and a GF Value™ of A$3.53 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 933 REITs companies, Arena REIT ranks better than 81.24% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arena REIT's annualized net income for the quarter that ended in Dec. 2025 was A$219.3 Mil. Arena REIT's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$1,262.5 Mil. Therefore, Arena REIT's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 17.37%.
The historical rank and industry rank for Arena REIT's Return-on-Tangible-Equity or its related term are showing as below:
ASX:ARF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.46 Med: 13.84 Max: 38.72
Current: 12.47
During the past 13 years, Arena REIT's highest Return-on-Tangible-Equity was 38.72%. The lowest was 5.46%. And the median was 13.84%.
ASX:ARF's Return-on-Tangible-Equity is ranked better than 81.24% of 933
companies
in the REITs industry
Industry Median: 6.26
vs ASX:ARF: 12.47
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arena REIT Return-on-Tangible-Equity Related Terms
Arena REIT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arena REIT's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:ARF vs EQIX, AMT, DLR: Return-on-Tangible-Equity Comparison
For the REIT - Specialty subindustry, Arena REIT's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arena REIT Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Arena REIT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arena REIT's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.37% mean?
Arena REIT (ASX:ARF) has a Return-on-Tangible-Equity of 17.37% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arena REIT and its competitors. This is 26% above median its historical median of 13.84. Over the past decade, Arena REIT's Return-on-Tangible-Equity has ranged from 5.46 to 38.72. According to the industry distribution chart, Arena REIT ranks #175 out of 933 companies in the REITs industry, placing it in the top 18.8%.
Is Arena REIT's Return-on-Tangible-Equity too high?
Arena REIT's current Return-on-Tangible-Equity of 17.37% is 26% above median its 10-year median of 13.84. Over the past 10 years, this metric has ranged from a low of 5.46 to a high of 38.72. The REITs industry median Return-on-Tangible-Equity is 6.26. Arena REIT's value of 17.37% is 177.5% above this industry median. Based on the distribution chart, Arena REIT ranks #175 out of 933 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Arena REIT has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arena REIT's Return-on-Tangible-Equity compare to EQIX and AMT?
According to the REITs industry distribution chart, Arena REIT ranks #175 out of 933 companies for Return-on-Tangible-Equity. This places Arena REIT in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.26. Arena REIT's value of 17.37% is 177.5% above this benchmark. Historically, Arena REIT's own Return-on-Tangible-Equity has ranged from 5.46 to 38.72 over the past decade. While the company's 10-year median is 13.84 vs. the industry median of 6.26, Arena REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.26, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arena REIT's current Return-on-Tangible-Equity of 17.37% is 177.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arena REIT and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arena REIT's current Return-on-Tangible-Equity is 17.37%, which is 26% above median its own 10-year median of 13.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arena REIT stock overvalued right now?
Based on GuruFocus' analysis, Arena REIT (ASX:ARF) is currently considered Modestly Undervalued. The stock's GF Value™ is A$3.53, compared to a current price of A$3.15 — trading 10.8% below its estimated fair value. The current Return-on-Tangible-Equity is 17.37%, which is 26% above median its 10-year median of 13.84 and 177.5% above the REITs industry median of 6.26. Arena REIT's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arena REIT (ASX:ARF), the current Return-on-Tangible-Equity is 17.37% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arena REIT (ASX:ARF) Overvalued in 2026?
Based on GuruFocus' analysis, Arena REIT stock appears to be undervalued.
The current stock price of A$3.15 is trading 10.8% below its estimated GF Value™ of A$3.53.
GuruFocus considers Arena REIT to be Modestly Undervalued.
Key valuation signals for ASX:ARF:
Return-on-Tangible-Equity: 17.37% (26% above median its 10-year median of 13.84)
GF Value™: A$3.53 vs. price of A$3.15 (10.8% below fair value)
Industry Position: 177.5% above the REITs median (#175 of 933)
No single metric tells the full story. See the ASX:ARF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arena REIT is an internally managed Australian property trust. The REIT specializes in leasing social infrastructure properties, with close to 300 childcare centers and about a dozen healthcare facilities in its portfolio. Typically, tenants enter into long-term leases with inflation-linked or fixed rental escalations every year. All leases are "triple net," meaning tenants pay for all statutory and operating outgoings and costs, such as land tax, insurance, electricity, and maintenance. The tenant profile is concentrated—almost three quarters of rents are generated from the top five tenants. Arena actively grows its property book through acquisitions and developments, and historically added on average 10 sites, net of divestments, per year.
85GF Score
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