Ram Essential Services Property Fund · ASX:REP
Ram Essential Services Property Fund — FY2022 Earnings Presentation
26 slides from Ram Essential Services Property Fund's earnings presentation, Aug 22, 2022
Slide 1: FY22 Financial Results
© RAM EAL RETURN RAM ESSENTIAL SERVICES PROPERTY FUND FY22 Financial Results 22 August 2022
Slide 2: Agenda
AGENDA 1. Highlights 2. Financial Performance 3. Portfolio Update 4. Strategy 5. Outlook 6. Other Information KEPPEL BAY PLAZA In the spirit of reconciliation, the Real Asset Management Group acknowledges the traditional custodians of country throughout Australia and their connections to land, sea a
Slide 3: Strong and Consistent Investment Case
STRONG AND CONSISTENT 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 income and capital growth oO High quality, geographically diverse portfolio Defensive income profile Organic gr
Slide 4: Highlights
HIGHLIGHTS Delivered IPO objectives and optimised portfolio through active management g Identified r $798m $44m+ © Portfolio Portfolio Value Off-market Performance Medical Income Healthcare Acquisitions Exposure Value-add Pipeline +15% growth since IPO! Using recycled capital Vs 45% at IPO +$100m si
Slide 5: ESG at Real Asset Management
ESG AT REAL ASSET MANAGEMENT RAM is committed to creating an inclusive and thriving work environment and culture INCLUSIVE EMPLOYER 2021-2022 &= INCLUSIVE EMPLOYER 2021-2022 RAM is proud to be named as an Inclusive Employer in their 2021-2022 iteration. This achievement recognises that we are active
Slide 6: Improving Sustainability
KEPPEL BAY PLAZA IMPROVING SUSTAINABILITY Developing sustainability frameworks to be implemented and documented across all assets
Slide 7: Financial Performance
7 NORTH WEST PRIVATE HOSPITAL PERFORMANCE FINANCIAL 2
Slide 8: Financial Results FY2022
FINANCIAL RESULTS FY2022 @ Strong earnings driven by property income growth and revaluations in the period. @ Underlying operational performance driving FFO in line with expectations. @ Achieved FY22 DPS target in line with guidance (ahead of IPO DPS forecasts). @ FFO payout ratio as per guidance at
Slide 9: Balance Sheet and Capital Management
BALANCE SHEET AND CAPITAL MANAGEMENT @ Strong balance sheet management with gearing at 29.9%. 2 11% increase in NTA during the period. 2 Debt headroom to peruse active portfolio management and accretive opportunities. 2 Capital recycling for $44m in off market transactions. 2 Recent additional hedge
Slide 10: Portfolio Update
3. PORTFOLIO UPDATE WEMBLEY DAY SURGERY
Slide 11: Improved Rental Escalators
IMPROVED RENTAL ESCALATORS 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%' of rental escalators linked to CPI, 80%’ of which are uncapped. (31% at HY22) 1 47% of fund income exposed to fixed reviews (
Slide 12: High Quality & Stable Income Underpins Relative Value
HIGH QUALITY & STABLE INCOME UNDERPINS RELATIVE VALUE Improved quality & resilience 9 . . 94 Yo of fund income has exposure to highly resilient essential service and medical income’. 99% occupancy remains strong despite difficult economic backdrop?. 7.0 years long WALE with limited specialty leasing
Slide 13: Strategy
4. STRATEGY
Slide 14: Strategy: Culture of Active Management
STRATEGY: CULTURE OF ACTIVE MANAGEMENT OBJECTIVE Deliver stable and secure income with potential for both income and capital growth underpinned by high quality, defensive assets exposed to favourable sector trends ACTIVE ASSET DELIVER ORGANIC ACQUISITION MANAGEMENT GROWTH PIPELINE Apply our extensiv
Slide 15: Prudent Asset & Capital Management
PRUDENT ASSET & CAPITAL MANAGEMENT Active management around highly stable and contractual rent flows HEALTHCARE ACQUISITION OPPORTUNITIES POTENTIAL DIVESTMENT OPPORTUNITIES CAPITAL STRENGTHENED RECYCLING TO CAPITAL FUND GROWTH MANAGEMENT ACCRETIVE CAPITAL VALUE-ADD STRUCTURE CONTINUING TO CONSIDERAT
Slide 16: Recycled Capital to Drive Portfolio Enhancement
RECYCLED CAPITAL TO DRIVE PORTFOLIO ENHANCEMENT Lk) Divested low growth retail asset © Acquired long WALE healthcare Ly - oy - $35.1m $20.25m & purchase price sale price 4 4.54% 5.35% ad + a cap rate cap rate ; 12.0 year 3.9 year WALE WALE $8.87m purchase price 5.75% cap rate 8.0 year WALE Lakes Med
Slide 17: Value-Add Pipeline Overview
VALUE-ADD PIPELINE OVERVIEW @ ATTRIBUTES @ UPDATE AND FORECAST Ea Organically evolved from existing asset @ base across medical and essential retail asset classes. First wave of value-add projects completed post listing Expanded scope of works driven by medical demand HQ = Largely a collection of sm
Slide 18: Value-Add Pipeline — Program Update
VALUE-ADD PIPELINE —- PROGRAM UPDATE P ty N Sect Phase 1 - Phase 2 - Phase 3 - roperty Name ector Development Approval | Income Pre-commitment Construction* Completed / Underway Projects Ballina Central — Stage 1 Essential Retail e e e Keppel Bay Plaza - Stage 1 & Essential Retail e e e Coomera Squa
Slide 19: 5. Outlook
Slide 20: FY23 Outlook
FY23 OUTLOOK Continuation of the strategy @ Does not include the potential impact of acquisitions or disposals @ Conservative estimate for interest rates! @ Targeting 90% - 100% payout of the Fund’s FFO @ Quarterly distributions @ Gearing expected to remain at lower end of the 5.7-5.8 cents Fund's t
Slide 21: Summary
SUMMARY Strong execution of the plan. Fund is well positioned against an uncertain economic backdrop and outperforming expectations. Driving further improved quality and resilience through an active management approach. Prudent approach to risk management. High proportion of fund income exposed to a
Slide 22: 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
Slide 23: 6. Other Information
Pe — PANACEUM MEDICAL CENTRE INFORMATION 6.
Slide 24: Income Statement
INCOME STATEMENT REVENUE FY22 (Oct 21 — Jun 22) Gross property income $m 36.5 Unrealised gain on fair value investment properties $m 52.5 Unrealised gain on fair value derivatives $m 6.3 Realised gain on fair value investment properties $m 3.3 Total revenue $m 98.6 Direct property expenses $m (11.3)
Slide 25: Reversal of amortisation of intangibles assest
Reversal of amortisation of intangibles assest
Slide 26: Consolidated Balance Sheet Jun 2022
CONSOLIDATED BALANCE SHEET 30 Jun 2022 $m Cash and equivalents 15.8 Investment properties 798.2 Other assets 18.3 Total assets 832.3 Borrowings (259.2) Distributions payable (7.5) Other liabilities (15.0) Total liabilities (281.7) Stapled securities on issue (millions) 521.1 NTA per security ($) 1.0
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