RAM Essential Services Property Fund (REP) H1 2026 earnings summary

Executive summary

• Portfolio remains resilient with occupancy at 97–98.09%, a seven-year WALE, and diversified assets valued at $675.5 million as of 31 December.

• Transition to 80% healthcare is progressing, with a term sheet agreed for the sale of five retail assets, retaining 10% ownership and supporting strategic repositioning.

• Leasing spreads averaged 6.1% across 20 deals, with new agreements with major tenants and consistent DPU at 0.05, yielding over 9%.

• Statutory net profit for HY26 was $4.9 million, a turnaround from a $22.9 million loss in the prior period.

• Distribution per security guidance reaffirmed at 5.0c for FY26, with a forecast yield over 9% and approximately 90% tax deferred.

Financial highlights

• Normalised FFO was $9.1 million, down from $10.9 million, impacted by one-off transaction costs and vacancies.

• Net profit for HY26 was $4.9 million, reversing a prior $22.9 million loss.

• NOI growth was 2.1%, lower than prior periods, due to increased repairs and vacancies.

• NTA per security at $0.79, down from $0.81, mainly due to fair value adjustments.

• Gearing post-transaction expected in the low 20% range, with current gearing at 40.13%.

Outlook and guidance

• Full-year projections remain on target, with payout ratio expected to normalize to 100% by June.

• FY26 DPS guidance of 5.00c per security reaffirmed, with a forecast yield above 9%.

• Proceeds from retail asset sales will be allocated to healthcare acquisitions, debt management, and potential buyback.

• The fund is positioned for resilience through capital recycling and a transition to healthcare assets, targeting gearing of 30%-40% post-divestments.