RAM Essential Services Property Fund (REP) H1 2025 earnings summary

Executive summary

• Portfolio delivered stable half-year performance with 97% occupancy and a 7-year WALE, supported by robust leasing, a resilient tenant mix, and a strategic shift toward healthcare assets.

• Capital recycling program resulted in $119m of non-core asset sales at a 5.7% yield, with proceeds redeployed into debt reduction, share buybacks, and new healthcare acquisitions.

• Strategic focus on healthcare, targeting an 80:20 healthcare-led portfolio, with new acquisitions in high-performing sub-sectors and key tenants like Ramsay Health Care and St John of God.

• Share buyback program executed, scheduled to conclude by March 2025 after acquiring 18 million securities.

Financial highlights

• Funds from operations (FFO) for the half-year at $10.9m, with distributions per security of 2.51c and NTA per security at $0.81.

• Gearing at 35.4%, with $252m in borrowings and $115m headroom for future opportunities.

• Comparable NOI growth of 3.1% year-over-year; annualised distribution of 5.0c per security, representing an 8% yield.

• Statutory net loss of $22.9m due to unrealised fair value losses on investment properties.

Outlook and guidance

• FY25 distribution per security guidance reaffirmed at 5.00–5.20c, with a forecast yield of 8% and 90% tax deferred.

• Management expects continued growth through accretive healthcare acquisitions, value-add developments, and further capital recycling.

• Portfolio expected to benefit from stabilised cap rates, ongoing tenant demand, and improved gearing.