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

Executive summary

• Portfolio remains resilient with 97% occupancy, a WALE of 7 years, and diversified tenant base across 26 assets valued at AUD 675.5 million as of 31 December, with healthcare WALE nearing 10 years.

• Transition to 80% healthcare is progressing, with a term sheet agreed for the sale of five retail assets to an institutional investor, retaining a minority interest.

• Achieved strong leasing outcomes with average positive spreads of 6.1% across 20 deals, including new agreements with major tenants such as Coles, Big W, Virtus Health, and Miami Private Hospital.

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

• Strengthened healthcare capability with the appointment of George Websdale as Head of Funds Management, bringing significant sector expertise.

Financial highlights

• Normalised FFO for HY26 was AUD 9.1 million, down from AUD 10.9 million, impacted by one-off transaction costs and unforeseen vacancies.

• Net profit for HY26 was AUD 4.9 million, a turnaround from a AUD 22.9 million loss in HY25.

• NOI growth was 2.1% year-over-year, with revenue stable at AUD 28.4 million.

• NTA per security at AUD 0.79, slightly down from AUD 0.81 at HY25.

• Distribution per security was 2.50 cps, with a payout ratio of 137.5% of normalised FFO.

Outlook and guidance

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

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

• Targeting an 80% healthcare weighting post-retail divestment, with a significant pipeline of accretive acquisitions.

• Buyback under consideration post-portfolio transaction.