SDA Property Resale: Returns and Yields

For those wondering what the market would pay for their SDA property once they have built and have a history of rental income, ARENA Real Estate Investment Trust recently bought SDA properties in Adelaide that returned a massive 6% yield. This is an outstanding result for our sector when an ASX 300 listed trust is prepared to buy SDA property on that yield.

Below is a table based on the rental income (net of management and care fees) from our Freedom 4 properties, and the purchase price if a buyer was willing to pay based on the yield in the left-hand column.

Yield (%)Value
6$5,372,500
7$4,605,000
8$4,029,375
9$3,581,667

These are for an example purpose only and returns can vary from multiple factors.

Of course, one listed trusts’ purchase does not establish a market of its own; however, given the yields on other commercial property, the yield they paid achieves a better return for their investors than most other properties.

* Note: This information is based on what someone has paid and what a property resale would look like if someone else was willing to pay.

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