Smooth Sailing for Childcare REITS as Australian Census Indicates Lots of Working Mothers

We maintain our fair value estimates of AUD 3.20 for no-moat Arena REIT and AUD 3.60 for no-moat Charter Hall Social Infrastructure REIT following the first published results of the 2021 Australian Census. Although Arena and Charter Hall Social Infrastructure REIT's portfolios are diversified from an asset perspective and have occupancy rates of virtually 100%, they are heavily exposed to the childcare sector and vulnerable to demographic headwinds.