Arena REIT managing director Rob de Vos has tipped the heavily subsidised childcare sector to avoid any “material” write-downs in asset values after the country’s second-biggest early learning centre landlord eked out a 1.2 per cent – or $17 million – valuation gain over the prior financial year.

The small gain – the net result of an $18 million rise in the first half of the financial year, and a $1 million fall in the second half – bucked the trend of large asset write-downs occurring across the listed commercial property sector this reporting season as higher funding costs kick in.