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

Executive summary

• Portfolio occupancy remains high at 97–98.09%, with a WALE of 7–7.05 years and healthcare WALE nearing 10 years, underpinned by essential services tenants.

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

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

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

• Defensive characteristics supported by high tenant diversification, long-term leases, and strong leasing outcomes with positive spreads.

Financial highlights

• Normalised FFO for HY26 was $9.1 million, down from $10.9 million, with FFO per security at 1.70c and normalised FFO per security at 1.82c.

• Net profit for HY26 was $4.9 million, reversing a $22.9 million loss in HY25.

• Revenue for HY26 was $28.4 million, stable year-over-year.

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

• Distribution per security was 2.50 cps for the half, 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.

• Final stages of transition to 80% healthcare weighting, with significant pipeline of accretive acquisitions.

• Buyback under consideration post-portfolio transaction.

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