REAL Asset Management\u02bcs RAM Essential Services Property Fund (REP) remains confident in the healthcare real estate sector, despite a \u201cchallenging\u201d environment for capital markets.
The fund achieved distributions per security (DPS) guidance in FY24, at 5.6c per security, equating to a yield of 8.5%.<\/p>\n\n\n\n
It offered DPS guidance of 5.00c to 5.20c per security for FY25, with over 90% tax deferred and a forecast yield of 8%.<\/p>\n\n\n\n
Leasing saw 8% spreads to the positive, driving like-for-like net operating income of 4.8%.
Occupancy stable at 98%, with 31 new leasing deals and renewals executed, including major tenant deals with Woolworths and private hospital operators, Healthe Care.<\/p>\n\n\n\n
\u201cThe local healthcare sector is underpinned by supportive megatrends and fundamentals, including an ageing population, increasing wealth, and a rise in chronic illness and service utilisation,\u201d said RAM\u02bcs executive director and head of real estate, Matthew Strotton.<\/p>\n\n\n\n
\u201cThese trends have given rise to a growing number of high-quality opportunities in our deal pipeline. REP is well-positioned to capitalise on these opportunities as they arise.\u201d<\/p>\n\n\n\n
The portfolio\u02bcs weighted average lease expiry extended by 10.5% in the second half to 6.84 years, \u201creflecting an enhanced tenant profile and lower volatility\u201d.<\/p>\n\n\n\n
Asset disposals worth $84 million show that \u201cREP\u02bcs balance sheet is well-positioned despite challenges facing the REIT sector\u201d.<\/p>\n\n\n\n
\u201cCapital markets are still challenging. However, as RAM demonstrated with asset sales, we have successfully generated strong buying interest, proving once again our ability to access liquidity.\u201d
It is using proceeds from the sale to pay down debt and, over time, will pursue \u201cmore accretive\u201d acquisitions.<\/p>\n\n\n\n
The fund has also finalised an agreement for the expansion of the North West Hospital in Tasmania. The expanded facility is part of the private hospital leased to Healthe Care.<\/p>\n","protected":false},"excerpt":{"rendered":"
REAL Asset Management\u02bcs RAM Essential Services Property […]<\/p>\n","protected":false},"author":1,"featured_media":26592,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[],"post-type":[],"class_list":["post-31658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-the-media-zh-hant"],"acf":[],"yoast_head":"\n