RAM Essential Services Property Fund (REP) H2 2024 earnings summary

Executive summary

• Achieved FY24 distribution of 5.6 cents per security, in line with guidance, yielding 8.5%.

• Announced a strategic shift to increase healthcare portfolio weighting from 50:50 to 80:20 versus essential retail.

• Like-for-like net operating income grew 4.8% year-over-year.

• Capital recycling program ahead of schedule, with $84 million divested from low-growth assets.

• Expansion agreement finalized for North West Hospital in Tasmania, supporting key healthcare tenant.

Financial highlights

• Distribution per security (DPS) of 5.6 cents for FY24, matching guidance.

• Current yield stands at 8.5% based on recent closing price.

• Gearing reduced to 33.5% post recent asset sales.

• Occupancy stable at 98% as of July 2024.

• 31 new leasing deals and renewals executed, including major tenants.

Outlook and guidance

• FY25 DPS guidance set at 5.00–5.20 cents per security, with over 90% tax deferred and a forecast yield of 8%.

• Pursuing over $100 million in further divestments and maintaining a strong acquisition pipeline.

• Healthcare sector fundamentals remain robust, supporting the strategic shift.