RAM Essential Services Property Fund (ASX:REP) said its capital recycling strategies are progressing ahead of schedule with AU$92 divested from eight assets, driving it closer to transition towards a healthcare-led portfolio, according to a Tuesday filing with the Australian bourse.
With 5 more assets under conditional contract, the total achieved and projected divestments are about AU$185 million, largely at or near book value, the filing said.
The proceeds will reduce leverage to the early to mid 30% range and support a share buyback program, which has repurchased 16.4 million shares to date.
The Fund is also in exclusive due diligence for two private surgical hospitals, expected to deliver yields over 7%, and is negotiating two additional healthcare acquisitions. The hedging program remains strong, with 76% of debt hedged, the filing added.
The catheterization laboratory development at North West Private Hospital is ahead of schedule, with completion expected in January 2025 which is expected to contribute to accretive earnings for the current fiscal year.
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