Ram Essential Services Property Fund · ASX:REP
Ram Essential Services Property Fund — H1 FY2022 Earnings Presentation
24 slides from Ram Essential Services Property Fund's earnings presentation, Feb 22, 2022
Slide 1: RAM Essential Services Property Fund 1H FY22 Financial Results Presentation
RAM Essential Services Property Fund 1H FY22 Financial Results Presentation 22 February 2022
Slide 2: Agenda
AGENDA 1. Team 2. Highlights 3. Portfolio Update 4. Value-Add Program 5. Financial Performance In the spirit of reconciliation the Real Asset Management Group acknowledges the traditional custodians of country throughout Australia and their connections to land, sea and community. We pay our respect
Slide 3: Adding Bench Strength to a Talented Team
ADDING BENCH STRENGTH TO A TALENTED TEAM Scott Kelly William Gray Matthew Strotton Doug Rapson Ben Bochow Managing Director, Head of Head of Funds Director Chief Financial Officer – CEO Australia Real Estate Management – Real Estate Asset Management Real Estate 28+ years of global wealth 20+ years e
Slide 4: Highlights
HIGHLIGHTS Portfolio $ 67% $44M+ 50% $200M+ Externally revalued Recently secured off market Medical income Ongoing activated as at 31-December-2021 healthcare transactions exposure1 value-add pipeline Financial + + +7.4% 25.8% 1.09c 4.0c NTA growth Gearing3 December-2021 DPU 20-October-2021 to 30-Ju
Slide 5: Strengthening the Investment Case
STRENGTHENING THE INVESTMENT CASE A unique portfolio of medical and essential retail real estate, with exposure to essential services tenants, long-WALE profile and the opportunity for capital growth. High quality, 11 settlements undertaken during December-2021 quarter, all high-quality medical acqu
Slide 6: Portfolio Update
2. PORTFOLIO UPDATE REAL ASSET MANAGEMENT I PAGE 5 NORTH WEST PRIVATE HOSPITAL
Slide 7: Well positioned for a higher inflationary environment
PORTFOLIO UPDATE Well positioned for a higher inflationary environment The Funds income has a strong Annual Rental Review Profile $ exposure to annual CPI and CPI indexed reviews. Formula Turnover Formula 46% 1 of fund income exposed to fixed 8% 15% reviews with a high WARR of 3.4%1. Fixed CPI 35% o
Slide 8: Essential service exposure provides resilience
PORTFOLIO UPDATE Essential service exposure provides resilience Essential Service & Medical Income Exposure Non Essential 98.5% 99% 3% Gym & Fitness 3% Essential Robust cash collections Occupancy remains 45% across the portfolio at strong reflecting 99%1. Medical 98.5% for the HY22. 50% 94% 7.3yrs 9
Slide 9: High quality and diversified tenant mix with organic growth
PORTFOLIO UPDATE High quality and diversified tenant mix with organic growth Strategic relationships being actively leveraged Top 20 tenants encompass 55% into real investment opportunities - 70% of our of fund income1. top 20 tenants' income exposure. Rank Tenant Category % of Rank Tenant Category
Slide 10: Relative value proposition shining through
PORTFOLIO UPDATE Relative value proposition shining through 67% portfolio externally revalued WACR now at 5.64% down from 5.85% (21bps compression) Property type WACR WACR WACR mvt at IPO at Dec 21 Medical 5.60% 5.34% (0.26%) Essential retail 6.02% 5.87% (0.15%) Total 5.85% 5.64% (0.21%) Portfolio P
Slide 11: Active portfolio management
PORTFOLIO UPDATE Active portfolio management $35.1m Unsolicited offer provided purchase price opportunity to divest asset at a 4.54% circa 140 bps compression on the cap rate prior independent cap rate, circa 12.0 year 25% increase in underlying value. WALE Perth Day Hospitals Divestment proceeds pr
Slide 12: Active portfolio management
PORTFOLIO UPDATE Active portfolio management Existing Portfolio Enhanced Portfolio At IPO 31 Dec 21 Acquisitions Divestments Post Transactions Number of Properties 33 33 3 1 35 Total Property Value $706.3M $736.9M $43.97M $20.25M $760.6M WACR 5.85% 5.64% 4.80% 5.35% 5.60% Gross Lettable Area (GLA) 1
Slide 13: Value-Add Program
3. VALUE-ADD PROGRAM REAL ASSET MANAGEMENT I PAGE 12 KEPPEL BAY PLAZA
Slide 14: Value-Add Pipeline
VALUE-ADD PIPELINE Good progress on activated and ongoing value-add pipeline Increased opportunity of $200m+ Activated over 5 years pipeline driving income growth Improved exposure to land rich medical assets and value Strong yield on cost outcomes expected - accretive in nature Miami Private Hospit
Slide 15: Value-Add Pipeline – Program Update
VALUE-ADD PIPELINE – PROGRAM UPDATE Project Overview Development Update Phase 1 – Phase 2 – Phase 3 – Property Name Sector Development Approval Income Pre-commitment Construction^ Immediate Value-Add Projects Ballina Central Essential Retail Keppel Bay Plaza - Stage 1 Essential Retail Coles Gunnedah
Slide 16: Financial Performance
4. FINANCIAL PERFORMANCE REAL ASSET MANAGEMENT I PAGE 15 RUTHERFORD SHOPPING CENTRE
Slide 17: Financial Results
FINANCIAL RESULTS HY221 (Oct 21 – Dec 21) Property income growth and revaluations driving revenue $'m performance. Property Income 9.9 FV Increase 33.1 Other Income 0.4 Operational performance Total Revenue 43.4 driving FFO in line with expectations. Property Expenses (3.0) IM Fees (0.9) Finance Cos
Slide 18: Balance Sheet and Capital Management
BALANCE SHEET AND CAPITAL MANAGEMENT Pro 31 Dec Key metrics Strong balance sheet Forma1 2021 management with gearing within target range. Total drawn debt ($m) 253.1 224.8 Gearing3 (%) 28.6 25.8 Debt headroom to pursue active portfolio management Cost of debt2 (%) 2.2 2.2 and accretive opportunities
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK Strong execution of the plan outlined in the pre-IPO presentations, meeting or exceeding guidance . Recent transactions mean we have moved to the target weight of 50% medical exposure whilst increasing DPU guidance and maintaining gearing at lower end of range. Natural inflation
Slide 20: Annexures
ANNEXURES REAL ASSET MANAGEMENT I PAGE 19 MIAMI PRIVATE HOSPITAL
Slide 21: Income Statement
INCOME STATEMENT REVENUE HY22 (Oct 21 – Dec 21) Gross property income $m 9.9 Unrealised gain on fair value investment properties $m 33.1 Unrealised gain on fair value derivatives $m 0.4 Interest income $m 0.0 Total revenue $m 43.4 EXPENSES Direct property expenses $m (2.9) Transaction costs $m (10.8
Slide 22: FFO Reconciliation
FFO RECONCILIATION HY22 (Oct 21 – Dec 21) $'000 Net profit after tax for the period 27,217 Adjusted for: (194) Reversal of straight-line lease revenue recognition Reversal of unrealised fair value (gain) on investment properties (33,105) Reversal of unrealised fair value (gain) on derivatives (435)
Slide 23: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET 31 Dec 2021 $'000 Cash and equivalents 31,469 Investment properties 736,893 Other assets 12,065 Total assets 780,427 Borrowings 222,382 Distributions payable 5,690 Other liabilities 20,789 Total liabilities 248,861 Net assets 531,566 Stapled securities on issue (thousands)
Slide 24: 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 R
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