Arena REITASX:ARF +0.63%83 3-Year ROIIC % is 7.70 as of Jun. 2025, which is 48% above its 10-year median of 5.21. GuruFocus rates ASX:ARF with a GF Score™ of 83/100 and a GF Value™ of A$3.53 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 695 REITs companies, Arena REIT ranks better than 72.81% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Arena REIT's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 7.70%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arena REIT's 3-Year ROIIC % or its related term are showing as below:
ASX:ARF's 3-Year ROIIC % is ranked better than 72.81% of 695
companies
in the REITs industry
Industry Median: 3.49
vs ASX:ARF: 7.70
Arena REIT (ASX:ARF) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Arena REIT 3-Year ROIIC % Related Terms
Arena REIT 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Arena REIT's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the REIT - Specialty subindustry, Arena REIT's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Arena REIT's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arena REIT's 3-Year ROIIC % falls into.
Arena REIT's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 99.259 (Jun. 2025) - 75.123 (Jun. 2022) )
/
( 1807.274 (Jun. 2025) - 1493.778 (Jun. 2022) )
=
24.136
/
313.496
=
7.70%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Arena REIT (ASX:ARF) has a 3-Year ROIIC % of 7.70 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arena REIT and its competitors. This is 48% above median its historical median of 5.21. Over the past decade, Arena REIT's 3-Year ROIIC % has ranged from 3.80 to 7.70. According to the industry distribution chart, Arena REIT ranks #189 out of 695 companies in the REITs industry, placing it in the top 27.2%.
Is Arena REIT's 3-Year ROIIC % too high?
Arena REIT's current 3-Year ROIIC % of 7.70 is 48% above median its 10-year median of 5.21. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 7.70. The REITs industry median 3-Year ROIIC % is 3.49. Arena REIT's value of 7.70 is 120.6% above this industry median. Based on the distribution chart, Arena REIT ranks #189 out of 695 companies in the REITs industry, which is above the industry midpoint. Overall, Arena REIT has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arena REIT's 3-Year ROIIC % compare to EQIX and AMT?
According to the REITs industry distribution chart, Arena REIT ranks #189 out of 695 companies for 3-Year ROIIC %. This puts Arena REIT in the upper half of its industry. The industry median 3-Year ROIIC % is 3.49. Arena REIT's value of 7.70 is 120.6% above this benchmark. Historically, Arena REIT's own 3-Year ROIIC % has ranged from 3.80 to 7.70 over the past decade. While the company's 10-year median is 5.21 vs. the industry median of 3.49, 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 3-Year ROIIC % for a REITs company?
The median 3-Year ROIIC % among REITs companies is 3.49, based on 695 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arena REIT's current 3-Year ROIIC % of 7.70 is 120.6% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arena REIT and its competitors. For the REITs industry, the median 3-Year ROIIC % is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arena REIT's current 3-Year ROIIC % is 7.70, which is 48% above median its own 10-year median of 5.21. 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$3.17 — trading 10.2% below its estimated fair value. The current 3-Year ROIIC % is 7.70, which is 48% above median its 10-year median of 5.21 and 120.6% above the REITs industry median of 3.49. Arena REIT's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Arena REIT (ASX:ARF), the current 3-Year ROIIC % is 7.70 as of Jun. 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$3.17 is trading 10.2% below its estimated GF Value™ of A$3.53.
GuruFocus considers Arena REIT to be Modestly Undervalued.
Key valuation signals for ASX:ARF:
3-Year ROIIC %: 7.70 (48% above median its 10-year median of 5.21)
GF Value™: A$3.53 vs. price of A$3.17 (10.2% below fair value)
Industry Position: 120.6% above the REITs median (#189 of 695)
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.
83GF Score
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