Ram Essential Services Property Fund · ASX:REP
Ram Essential Services Property Fund — Investor Presentation (November 2022)
17 slides from Ram Essential Services Property Fund's investor presentation, Nov 17, 2022
Slide 1: ASX Announcement: Investor Presentation
RAM ESSENTIAL SERVICES PROPERTY FUND (ASX CODE: REP) ASX ANNOUNCEMENT For personal use only 17 November 2022 INVESTOR PRESENTATION RAM Essential Services Property Fund (ASX: REP) provides the attached materials to be referred to in investor meetings and desk briefings. This announcement is authorise
Slide 2: RAM Essential Services Property Fund Investor Update November 2022
For personal use only RAM ESSENTIAL SERVICES PROPERTY FUND Investor Update November 2022
Slide 3: A unique portfolio of medical and essential retail real estate
RAM ESSENTIAL SERVICES PROPERTY FUND (ASX: REP) A unique portfolio of medical and essential retail real estate, with exposure to essential services tenants, long-WALE profile and the opportunity for income and capital growth For personal use only AS AT 30 JUNE 2022 PROPERTIES PORTFOLIO VALUATION OCC
Slide 4: Strong underlying performance and execution
STRONG UNDERLYING PERFORMANCE AND EXECUTION Delivered IPO objectives and optimised portfolio through active management For personal use only AS AT 30 JUNE 2022 $798m $44m+ 50% $200m+ Portfolio Portfolio Value Off-market Medical Income Identified Healthcare Acquisitions Exposure Value-add Pipeline Pe
Slide 5: FY23 Outlook
FY23 OUTLOOK Earnings have not declined despite higher interest costs For personal use only Does not include the potential impact of acquisitions or disposals Conservative estimate for interest rates1 Targeting 90% - 100% payout of the Fund’s FFO Quarterly distributions Gearing expected to remain at
Slide 6: Targeted approach to portfolio optimisation
TARGETED APPROACH TO PORTFOLIO OPTIMISATION Key optimal investment metrics For personal use only Retail Assets Healthcare Assets 1. High population growth corridors underpinned by infrastructure 1. Hospitals and Medical Centres underpinned by strong and spend established businesses that provide a di
Slide 7: Cash flows remain robust
CASH FLOWS REMAIN ROBUST Improved quality & resilience For personal use only At IPO 31 Dec 21 30 June 22 Number of Properties 33 33 35 94% of fund income has exposure to highly Total Property Value $706.3m $736.9m $798.2m resilient essential service and medical income 1. WACR 5.85% 5.64% 5.45% 99% o
Slide 8: Natural inflation hedge
NATURAL INFLATION HEDGE For personal use only The Fund’s income has strong exposure to CPI and fixed annual reviews, $ providing a high degree of built-in growth Annual Rental Review Profile 32% 1 of rental escalators linked to CPI, 80%¹ of (31% at HY22) which are uncapped. 47% 1 of fund income expo
Slide 9: Cap rates are holding up
CAP RATES ARE HOLDING UP Valuations remain attractive relative to recent transactions For personal use only Property Anchor Tenant Sale / Settlement Date Sale Price (Mil) Yield Essential Retail Woolworths Hawthorn Woolworths Aug-22 $12.85 3.30% Supa IGA Thomastown Supa IGA Aug-22 $11.30 4.15% Ormeau
Slide 10: Growth opportunity in the pipeline
GROWTH OPPORTUNITY IN THE PIPELINE Project Overview Development Update Phase 1 – Phase 2 – Phase 3 – Property Name Sector Development Approval Income Pre-commitment Construction^ For personal use only Completed / Underway Projects Ballina Central – Stage 1 Essential Retail Keppel Bay Plaza - Stage 1
Slide 11: Appendix
For personal use only APPENDIX REAL ASSET MANAGEMENT I PAGE 9
Slide 12: Debt is actively managed
DEBT IS ACTIVELY MANAGED Strong balance sheet management with gearing at 29.9%. For personal use only 11% increase in NTA during the period to 30 June 2022. Debt headroom to peruse active portfolio management and accretive opportunities. Capital recycling for $44m in off market transactions. Additio
Slide 13: Tenant mix upweighted to healthcare
TENANT MIX UPWEIGHTED TO HEALTHCARE Underpinned by leading national supermarket and private hospital operators For personal use only Concentrated and Increase exposure to high-quality tenants healthcare tenants driving secure within the top 5 underlying cash flow Top 5 tenants – 35% of total portfol
Slide 14: Positive Sector Trends
For personal use only POSITIVE SECTOR TRENDS REAL ASSET MANAGEMENT I PAGE 12 PANACEUM MEDICAL CENTRE
Slide 15: RAM's view: what we are seeing in health
RAM’S VIEW: WHAT WE ARE SEEING IN HEALTH Overwhelming demand drivers, emerging technology and lifestyle disruptions, make Australian healthcare ever changing. For personal use only REP TENANT PERFORMANCE The Public system needs Private support. Private practices have experienced increased WHY REP IS
Slide 16: Why neighbourhood retail centres?
WHY NEIGHBOURHOOD RETAIL CENTRES? “Retail spending has remained resilient with all states posting consecutive months of positive spending growth” - JLL For personal use only Essential Retail Positive Investment Metrics Neighbourhood Retail transaction volume remains stable supporting continued liqui
Slide 17: Important Information
IMPORTANT INFORMATION The information contained herein does not have any regard to the specific investment objectives, financial situation or the particular needs of any person. The information is this presentation is not intended to be personal financial advice. This material has been prepared by F
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