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

Executive summary

• Delivered FY2024 distribution of 5.6 cents per security, in line with guidance, with like-for-like net operating income (NOI) growth of 4.8% year-over-year.

• Maintained a resilient portfolio focused on essential services and medical assets, with 98% occupancy and a WALE of 6.8 years.

• Actively managed capital through asset recycling, reducing gearing, and executing a share buy-back program.

Financial highlights

• Statutory net loss of $24.5 million for FY2024, compared to a $16.6 million loss in FY2023, primarily due to property revaluations and disposal losses.

• Funds from Operations (FFO) of $28.6 million (5.59 cps), down from $30.6 million (5.87 cps) in FY2023.

• Distributions per security of 5.6 cps, with a payout ratio of 101.2%.

• Total assets at $751.5 million, with investment properties valued at $683.3 million.

• Net tangible assets (NTA) per security at $0.88, down from $0.97 last year.

Outlook and guidance

• Portfolio expected to remain stable through 2025 and beyond, with embedded growth drivers mitigating interest costs.

• Continued focus on capital recycling, prudent gearing, and targeting accretive acquisitions.

• Conservative financial modelling anticipates stability despite potential prolonged economic volatility.