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RAM Essential Services Property Fund (AU:REP)
ASX:REP
Australian Market
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RAM Essential Services Property Fund (REP) AI Stock Analysis

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AU:REP

RAM Essential Services Property Fund

(Sydney:REP)

Rating:54Neutral
Price Target:
AU$0.50
▼(-16.67%Downside)
RAM Essential Services Property Fund is facing financial difficulties, with declining revenue and negative profitability, significantly impacting its stock score. The strong cash flow provides a cushion, but high debt levels and negative earnings weigh heavily. Technical analysis suggests a neutral trend, while valuation metrics are unattractive due to negative earnings. The high dividend yield is a notable positive for income investors.

RAM Essential Services Property Fund (REP) vs. iShares MSCI Australia ETF (EWA)

RAM Essential Services Property Fund Business Overview & Revenue Model

Company DescriptionRAM Essential Services Property Fund is an REIT. It invests in high quality Australian medical and essential retail real estate assets, leased to essential services tenants. RAM Essential Services Property Fund is based in Australia.
How the Company Makes MoneyRAM Essential Services Property Fund generates revenue primarily through rental income from its portfolio of properties. The company leases its real estate assets to tenants in the healthcare and essential services sectors, such as medical practices, hospitals, and government agencies, under long-term lease agreements. These leases often include fixed rent increases or rent linked to inflation, providing a stable and predictable income stream. Additionally, REP may benefit from property value appreciation, which can enhance the fund's net asset value and potentially result in gains upon the sale of properties. The fund's strategy of focusing on essential services properties ensures a steady demand for its spaces, contributing to its financial stability. Any partnerships with property managers or other stakeholders could also enhance the operational efficiency and profitability of the fund.

RAM Essential Services Property Fund Financial Statement Overview

Summary
The company is experiencing significant financial challenges, with declining revenue and sustained losses. Despite decent operational efficiency indicated by a 57.53% gross profit margin, the high debt-to-equity ratio, negative profitability metrics, and reliance on debt financing are concerning. The cash flow is a relative strength, with strong operating cash inflow despite net losses, but leverage and profitability need improvement.
Income Statement
45
Neutral
The company shows declining revenue with a revenue growth rate of -9.84% from 2023 to 2024, and consistent negative net income, impacting profitability. The gross profit margin is 57.53% in 2024, indicating decent operational efficiency, but the negative EBITDA and net income margins indicate financial challenges, particularly as the company has been unable to convert revenue into profit over the past two years.
Balance Sheet
55
Neutral
The balance sheet presents a high debt-to-equity ratio of 1.29, highlighting significant leverage and potential financial risk. The equity ratio stands at 29.33%, showing that a substantial portion of the company's assets is financed through equity. Return on equity is negative due to net losses, pointing to inefficiencies in generating returns for shareholders despite a reasonable stockholder's equity base.
Cash Flow
62
Positive
The cash flow statement reveals a strong operating cash flow to net income ratio, indicating good cash generation relative to reported losses. Free cash flow improved significantly to $31.5M, showing robust cash management. However, the high financing cash outflows suggest a focus on debt reduction or dividends, which could impact future liquidity flexibility.
BreakdownJun 2024Jun 2023Jun 2022
Income Statement
Total Revenue50.78M56.32M36.51M
Gross Profit29.21M35.03M30.68M
EBITDA-16.38M-15.38M70.97M
Net Income-11.36M-15.66M42.53M
Balance Sheet
Total Assets751.55M816.83M832.33M
Cash, Cash Equivalents and Short-Term Investments9.41M11.95M15.82M
Total Debt284.51M300.43M257.01M
Total Liabilities307.06M312.56M281.68M
Stockholders Equity220.43M250.60M282.44M
Cash Flow
Free Cash Flow31.50M19.72M5.07M
Operating Cash Flow31.50M19.72M5.07M
Investing Cash Flow18.78M-35.50M-157.73M
Financing Cash Flow-52.82M11.90M160.67M

RAM Essential Services Property Fund Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.60
Price Trends
50DMA
0.58
Positive
100DMA
0.57
Positive
200DMA
0.58
Positive
Market Momentum
MACD
<0.01
Positive
RSI
59.83
Neutral
STOCH
45.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REP, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.58, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REP.

RAM Essential Services Property Fund Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$69.24M9.2734.01%6.98%19.50%31.19%
65
Neutral
€12.74B12.556.83%3.82%15.23%6.82%
54
Neutral
AU$298.19M-4.99%8.33%4.56%35.07%
€66.74M13.195.74%5.46%
46
Neutral
AU$243.77M-2.32%-67.43%-131.40%
AU$121.69M
7.95%
76
Outperform
AU$347.24M20.5730.97%3.91%12.05%23.63%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:REP
RAM Essential Services Property Fund
0.60
0.02
3.45%
DE:T9H
360 Capital Group Limited
0.34
0.01
3.03%
AU:MAM
Microequities Asset Management Group Ltd.
0.53
0.03
6.00%
AU:CVC
CVC Limited
2.10
0.40
23.53%
AU:ENN
Elanor Investors Group
0.82
-0.10
-10.87%
AU:FID
Fiducian Group Ltd
11.68
4.54
63.59%

RAM Essential Services Property Fund Corporate Events

RAM Essential Services Property Fund Announces June 2025 Quarter Distribution
Jul 23, 2025

RAM Essential Services Property Fund announced the distribution details for the June 2025 quarter, with a payment of 1.2500 cents per stapled security scheduled for 30 July 2025. This announcement outlines the tax implications for non-resident investors and highlights the fund’s status as an attribution managed investment trust, emphasizing its commitment to delivering stable returns and growth opportunities to its stakeholders.

The most recent analyst rating on (AU:REP) stock is a Buy with a A$0.75 price target. To see the full list of analyst forecasts on RAM Essential Services Property Fund stock, see the AU:REP Stock Forecast page.

RAM Essential Services Property Fund Announces Quarterly Dividend Distribution
Jun 23, 2025

RAM Essential Services Property Fund announced a new dividend distribution of AUD 0.0125 per fully paid unit stapled security for the quarter ending June 30, 2025. The ex-date for the dividend is June 27, 2025, with a record date of June 30, 2025, and payment scheduled for July 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the real estate investment market.

The most recent analyst rating on (AU:REP) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on RAM Essential Services Property Fund stock, see the AU:REP Stock Forecast page.

RAM Essential Services Property Fund Appoints New Director with Significant Shareholding
Apr 30, 2025

RAM Essential Services Property Fund has announced the appointment of Kieran John Pryke as a director, effective April 30, 2025. Pryke holds 80,000 fully paid ordinary stapled securities in the company as a trustee for the Pryke Family Trust, highlighting his vested interest in the company’s future. This appointment may influence the company’s strategic direction and has potential implications for stakeholders, given Pryke’s significant shareholding.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025