This article is from the Australian Property Journal archive
REAL Asset Management Group (RAM) has delivered full-year funds from operations ahead of PDS forecasts in its first annual result since listing, and is expecting distributions growth in the coming year.
The REIT’s $21.7 million in FFO equated to 4.2c per security and was $400,000 ahead of PDS forecasts.
Distributions per security was 4.0c, in line with upgraded guidance given at the half year. It is forecasting FY23 distributions of 5.7 to 5.8c.
RAM launched its first real estate investment trust in September last year, the $521.1 million RAM Essential Services Property Fund, adding to the growing institutional popularity of daily needs and healthcare tenanted real estate.
“By taking an active management approach, we reached our target of 50% medical exposure within weeks of listing,” RAM CEO Scott Kelly said, adding that it had continued to optimise the portfolio throughout the year and strengthened its defensive characteristics.
“The geographically diverse, high quality tenant mix and resilience of the fund means its well-positioned in the current environment.”
It picked up two healthcare assets from Centuria Healthcare for $16 million, while it bought the inner Brisbane office campus formerly home to Virgin Australian for $71 million from Charter Hall for the RAM Diversified Property Fund.
RAM saw an 11% increase in net tangible assets to $1.04 per security, above the $0.94 given in the PDS. The portfolio is 99% occupied with a weighted average lease expiry of seven years, with 90% of fund income exposed to annual escalators. It recorded positive leasing spreads of 1.5% across 15 deals since IPO.