Why this fund manager is ditching malls for private hospitals

This is an extract from an article written by Larry Schlesinger for the Australian Financial Review, published on 28th January 2025.

"Fund manager RAM is

going long on private hospitals despite the financial struggles faced by big operators like Healthscope, arguing the sector still offers “wonderful fundamentals” and income returns above 7 per cent from the right assets.

RAM is in the process of reweighting its ASX-listed Essential Services Property Fund – or REP as it is known by its ticker – away from a near even split between convenience malls and healthcare assets to an 80:20 split in favour of healthcare.

The 20 per cent weighting to retail will involve assets with a “genuine healthcare and/or social infrastructure component” the fund manager said as part of its full-year results in August.

“It’s been our view that people have been distracted by the noise from health insurers and operators. If you go around and see below the noise, then you can put a case forward for investing in healthcare,” Scott Kelly, group CEO of RAM, told The Australian Financial Review.

Read the full article below:
Why this fund manager is ditching malls for private hospitals- The Australian Financial Review

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