Full Year 2024 RAM Essential Services Property Fund Earnings Call Transcript
Key Points
- Achieved DPS guidance at $0.056 per security, equating to an attractive yield of over 8.5%.
- Occupancy levels maintained at a strong 98%, with income underpinned by major retail and healthcare anchor tenants.
- Like-for-like net operating income rose by 4.8%, demonstrating growth.
- Successfully executed a share buyback program, repurchasing $8 million worth of securities.
- Gearing reduced to 33.5%, providing flexibility for future opportunities.
- FFO for FY24 stands at $28.6 million, reflecting a reduction due to asset sales.
- The cost of debt is managed at a competitive 4.83%, which may still be considered high in a challenging interest rate environment.
- Divested six assets at a modest discount to book value, indicating potential valuation concerns.
- Guidance for FY25 is lower, with a range of $0.05 to $0.052 per security, reflecting higher borrowing costs.
- The transition to 80% healthcare weighting may take 12-24 months, indicating a period of strategic adjustment.
Thank you very much, Rachel, and good morning, everybody. We're pleased to be able to present a solid set of results for the RAM Essential Services Property Fund this morning. The plan is that it will take 20 minutes or so to run through the presentation and leave time for questions thereafter.
In terms of the agenda, you will see that I'll take you through the highlights and I'll hand over to Peter Granato, the Lead Portfolio Manager of the Fund, to run through the portfolio performance. Andrew Petrik, the Head of Finance in the Real Estate Division, will take you through the key financial numbers. Doug Rapson will then give you an update on capital recycling program before Matthew Strotton talks about our future strategy. I'll sum up and leave you some time for Q&A.
Turning to slide 4, you'll see that we have hit DPS guidance at $0.056 per security, which equates to an attractive yield of over 8.5% on today's opening price -- actually, not the current price.
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