Childcare centre landlord Arena REIT expects to lift distributions to its investors by 5.9 per cent in the 2020 financial year as a supply glut in the sector eases and rental income increases.

Led by managing director Rob de Vos, Arena has seen off a potential over-supply of  childcare centres as start-up operators rushed into the sector. The landlord is now reaping the benefit of improved affordability from federal childcare subsidies.