We’re pleased to share an update following the release of our HY26 results for the RAM Essential Services Property Fund’s (ASX: REP).
The Fund continues to demonstrate resilience and performed well in the last six months to 31 December 2025. The Fund delivered a quarterly distribution of 1.25 cents per security, reaffirming FY26 DPS guidance of 5.0 cps, equating to a current yield of over 9%1. Operational performance remained robust with leasing spreads of 6.1% and a 3.6% WARR, supported by anchor tenant renewals across both retail and healthcare.
A significant milestone is the successful negotiation of a term sheet with a major institutional investor for the sale of Coomera Square, Springfield Fair, Coles Rutherford, Keppel Bay Plaza and Mowbray Marketplace. This will accelerate the Fund’s capability to allocate proceeds to paydown debt and re-commence the security buy-back program.
The Fund will retain a minority interest in these assets, enabling a stronger focus on repositioning the portfolio to a target weighting of 80% healthcare-led investment vehicle.
As the healthcare opportunity set deepens, the Fund will benefit from increased exposure to healthcare and will continue to redeploy capital into higher growth, higher yielding medical assets and value-add opportunities.
Medical assets typically require lower capital expenditure through triple-net lease structures and longer average WALEs reduce tenant churn and income volatility. In an environment where interest rates are expected to stay higher for longer, this approach reduces capital requirements and lowers expense volatility.
REP also strengthened its healthcare capability during the half year with the appointment of George Websdale, Executive Director and Head of Funds Management – Real Estate, who brings over 30 years of specialised healthcare real estate experience. His appointment further reinforces RAM’s institutional expertise as the Fund accelerates its transition toward a healthcare led portfolio.
HY26 Highlights
- FY25 DPS guidance reaffirmed at 5.0–5.2 cps2.
- Term sheet agreed with institutional investor to acquire 5 retail assets including Coomera Square, Springfield Fair, Coles Rutherford, Keppel Bay Plaza and Mowbray Marketplace.
- Fund will retain a minority interest in the assets with transaction allowing Fund to continue with its strategy to pivot towards healthcare, manage debt and to implement a renewed share buy-back.
- Strong leasing outcomes, with 20 deals completed at a positive spread increasing to 6.1%.
- Agreements with major national retailers including Coles Supermarkets and Big W, as well as leading healthcare operators including Virtus Health and Miami Private Hospital.
- Portfolio occupancy at 97%3 and sustained through a WALE of 7.0 years demonstrating portfolio resilience.
- Enhanced tenant mix and strong healthcare tenant performances with nil arrears across major private hospitals.
- Portfolio valuations are firm, with WACR remaining at 6.09%, and 75% of assets externally revalued over the past 12 months.
- Balance sheet capacity, supporting the ability to pursue further accretive opportunities
1. Based on a closing price of $0.535 on 24 February 2026.
2. Guidance adopts average 3-month BBSY consensus and implementation of divestments and accretive acquisitions as forecast.
3. By income and includes signed HoA’s excluding areas withheld for development
About RAM Essential Services Property Fund (ASX: REP)
RAM Essential Services Property Fund (REP) is a stapled real estate investment trust listed on the ASX. REP consists of a geographically diversified and defensive portfolio of medical and essential retail-based properties, underpinned by a high-quality tenant profile including leading national supermarkets and private hospital operators, and offers growth opportunities through significant value-add development potential. REP’s objective is to provide Securityholders with stable and secure income with the potential for both income and capital growth through exposure to a high quality, defensive portfolio of assets with favourable sector trends.
RAM Property Funds Management Limited (ABN 28 629 968 163, AFSL 514485) as responsible entity of RAM Australia Retail Property Fund (ARSN 634 136 682) and RAM Australia Medical Property Fund (ARSN 645 964 601), of address Suite 15.01, Level 15, Chifley Tower, 2 Chifley Square, Sydney, NSW, 2000.
Important Information: This document is prepared and distributed by RAM Property Funds Management Limited (ABN 28 629 968 163, AFSL 514484) (RAM). The information contained in this document is not personal financial product advice and does not take into account the personal investment objectives, financial situation, tax position or particular needs of any specific recipient. Therefore, you should not rely on this document in making any investment decisions. This material is for distribution only under such circumstances as may be permitted by applicable law and is intended for the recipient only. RAM specifically prohibits the redistribution of this material in whole or in part without the written permission of RAM and RAM accepts no liability whatsoever for the actions of third parties in this respect. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of any securities, markets, developments, legislation or other information referred to in the materials. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of RAM as a result of using different assumptions and criteria. Neither RAM nor any of its affiliates, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material. To the extent that RAM has sourced any material in this document from a third party, RAM accepts no liability for the accuracy, currency or completeness of that material. All information is correct at the time of publication only and is subject to change without notice.
This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned or an official confirmation. This communication is solely for the addressee(s) and may contain confidential and privileged information. Any unauthorised form of reproduction or disclosure of this message is prohibited. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. The use of this e-mail for any illegal purpose, or for any purpose other than as permitted by Real Asset Management Group, is prohibited and such use may result in legal action. Unless indicated, these views are the author’s and may differ from those of Real Asset Management Group or others in the Firm. We do not represent this is accurate or complete and we may not update this. Past performance is not indicative of future returns.
