RAM Australia Medical Property Fund ARSN 645 964 601

Annual Report - 30 June 2021

RAM Australia Medical Property Fund
Contents
30 June 2021
Directors' report	2
Auditor's independence declaration	8
Statement of profit or loss and other comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Statement of cash flows	12
Notes to the financial statements	13
Directors' declaration	25
Independent auditor's report to the Directors of RAM Australia Medical Property Fund	26

RAM Australia Medical Property Fund Directors' report 30 June 2021

The Directors of RAM Property Funds Management Limited ("RAM"), the Trustee of RAM Australia Medical Property Fund ("the Fund"), present their report together with the Financial Report made in accordance with a resolution of the Directors with respect to the results of the Trust and its controlled entities ("the consolidated entity") for the year ended 30 June 2021, the state of the consolidated entity's affairs as at 30 June 2021 and the Independent Auditor's Report thereon.

The Fund commenced on 28 August 2018.

It is likely that this report will be the last for the Fund as a stand-alone entity as it is anticipated the Fund will be stapled to the RAM Australia Retail Property Fund to form the new stapled entity RAM Essential Services Property Fund in October 2021.

Directors

RAM Property Funds Management Limited were reappointed the Trustee on 8 August 2021. Previous to this Equity Trustees Limited were appointed Trustee on 17 November 2020. Prior to this RAM Australia Funds Management Limited (now known as RAM Property Funds Management Limited) were the Trustee of the Fund from 2 January 2020. Prior to this Real Asset Management Pty Ltd was the Trustee of the Fund since establishment.

The following persons held office as directors of RAM Property Funds Management Limited from 2 January 2020 to 17 November 2020:

Scott Wehl Chairman Scott Kelly Suzanne Hutchinson Enzo Pirillo (retired 2 January 2020) Steven Pritchard (appointed 1 September 2020)

The following persons held office as directors of Equity Trustees Limited from the 17 November 2020 to 8 August 2021: Philip D Gentry Chairman Harvey H Kalman (resigned 1 September 2020) Ian C Westley (resigned 3 July 2020) Michael J O’Brien Russell W Beasley (appointed 1 September 2020)

The following persons held office as RAM Property Funds Management Limited from the 8 August 2021 up to the date of this report:

Scott Wehl Chairman Scott Kelly Suzanne Hutchinson Steven Pritchard (resigned 28 September 2021)

Scott Wehl

Chairman

Scott has over 20 years of experience in Global Wealth Management and Corporate Banking working for top tier global banks in Australia, London, and Hong Kong.

Prior to founding Real Asset Management, Scott was a Managing Director and Head of Banking Products International for UBS Wealth Management (“UBS WM”), leading a team of finance professionals in 17 countries. Over a 13-year career with UBS WM, Scott held various roles including the Head of Banking Products in the United Kingdom, and Head of Banking Products Asia Pacific.

Prior to joining UBS WM, Scott began his finance career in corporate banking with National Australia Bank in Brisbane, Australia.

Scott holds a Bachelor of Commerce from Griffith University Australia, and an Executive MBA jointly from Kellogg Business School and the Hong Kong University of Science and Technology.

RAM Australia Medical Property Fund Directors' report 30 June 2021

Scott Kelly

Managing Director, CEO Australia

Scott has over 25 years of experience in Global Wealth Management and Asset Management, working for top tier financial institutions in Australia and the United Kingdom.

Prior to joining Real Asset Management, Scott was a Managing Director and Head of Investment Products and Services for UBS Wealth Management Australia. There he oversaw the entire product offering for Australia’s premier wealth manager with $A24bn of assets under management.

Scott has also held the position of National Sales Director for Macquarie Private Wealth Australia. Prior to this Scott cofounded and was Managing Director of Corazon Capital, a specialist wealth and asset management business based in Jersey. Scott was also the Joint Head of Private Clients at Kleinwort Benson, after starting his financial career with Mercury Asset Management in London.

Scott holds a B.A. (Hons) degree in Business Management from the University of Leeds and is a Chartered Member of the Chartered Institute of Securities & Investment, UK.

Suzanne Hutchinson

Director

Suzanne is the Human Resources Director for Real Asset Management Australia and is based in Melbourne. Suzanne has worked in professional corporate services organisations for over 24 years, including Boeing and Accenture, and holds a Bachelor of Information Technology.

Steven Pritchard

Director - (appointed 1 September 2020, resigned 28 September 2021)

Steven is the Managing Partner of Rees Pritchard Professional Services and is a Certified Practicing Accountant and a member of the Stock Exchange of Newcastle Limited, a Director of Pritchard & Partners Pty Limited, Rees Pritchard Pty Limited and a number of private and public companies. Steven was previously the Chairman of the Australian Society of Certified Practicing Accountants Newcastle and Hunter Valley Branch and has over 25 years experience in providing financial and investment advice to a wide range of private and corporate clients.

Principal activities

The principal activity of the consolidated entity is the investment in Medical Real Estate assets in Australia.

There has been no significant change in the activities of the Fund during the financial year.

Impact of COVID-19

The events relating to COVID-19 have had an adverse impact on the financial performance of the Fund. These impacts have included:

trading restrictions imposed on some of our tenants
the National Cabinet Mandatory Code of Conduct enacted in each state
increases in operational expenses related to the COVID-19 pandemic
reductions in the fair value of our investment properties

The National Cabinet Mandatory Code of Conduct requires the Fund to offer eligible tenants a proportionate reduction in rent payable during the COVID-19 pandemic period. These reductions take the form of rental waivers and deferrals of up to 100% of the amount of rent ordinarily payable.

The reductions are based on the tenant's trade during the period. Rental waivers must constitute no less than 50% of the total reduction in rent payable with the other 50% in the form of rental deferrals. A total of $34,882 in rental abatements have been made available to tenants by the Fund with $32,153 in rental deferrals being offered during the year.

The Code also provides that Landlords where appropriate waive recovery of any other expense by a tenant while the tenant is unable to trade. A total of $2,326 has been waived from tenant's recurring service charges.

For tenants that are not covered by the Mandatory Code of Conduct, the Fund has accessed the tenants on an individual basis.

Due to the continued uncertainty related to the COVID-19 pandemic, rental income that has been invoiced in the period which remains unpaid due the tenant being granted a COVID-19 rental payment deferral have been provisioned against. A Provision for Doubtful Debt has been raised against all rental payment deferrals in the year totaling $32,153.

RAM Australia Medical Property Fund Directors' report 30 June 2021

Property portfolio

The investment portfolio as at 30 June 2020 consisted of 6 medical properties (30 June 2020: 2 medical properties) valued at $135,070,246 (30 June 2020: $19,921,918).

Acquisitions

On the 21st of December 2020 the Fund acquired 100% interest in the Dubbo Private Hospital, located in Dubbo NSW. The building comprises of private hospital leased to Healthe Care with a purchase price of $18,650,000.

On the 21st of December 2020 the Fund acquired 100% interest in the Mayo Private Hospital, located in Taree NSW. The building comprises of private hospital leased to Healthe Care with a purchase price of $44,000,000.

On the 21st of December 2020 the Fund acquired 100% interest in the North West Private Hospital, located in Cooee TAS. The building comprises of private hospital leased to Healthe Care with a purchase price of $31,559,551.

On the 28th of May 2021 the Fund acquired 100% interest in the Swan Medical Centre, located in Midlands WA. The building comprises of medical centre consisting of a GP clinic, pharmacy, physiotherapy and pathology with a purchase price of $7,780,000.

On the 30th of June 2021, the Fund entered into a contract to acquire 100% interest in the Secret Harbour Medical Centre, located in Secret Harbour WA. The building comprises of a medical centre with a purchase price of $7,900,000. The sale is expected to complete in October 2021.

Disposals

No property disposals occurred during the year.

Review of operations

The profit for the consolidated entity amounted to $3,882,551 (30 June 2020: $1,640,871).

Distributions paid or declared by the consolidated entity to Unitholders during the financial year are set out in Note 11 of the Financial Statements.

	FY21	FY20
Net profit after tax	$3,882,551	$1,640,871
Weighted earnings per unit	$0.1152	$0.2263
Distributions paid or payable	$2,266,777	$393,954
Net assets per unit	$1.2669	$1.1460
Increase / (decrease) unit price	10.55%	13.33%

Contributed Equity

Opening balance New units issued Dividend reinvestments Unit redemptions	FY21 Units 8,514,666 62,777,506 190,904 (1)	FY20 Units 6,061,001 2,445,328 8,337 -
	71,483,075	8,514,666

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial year.

RAM Australia Medical Property Fund Directors' report 30 June 2021

Matters subsequent to the end of the financial year

The Fund completed the following acquisitions after 30 June 2021:

On the 6th of August 2021, RAM Australia Medical Property No. 7 Trust acquired 100% interest in the Madeley Medical Centre, located in Madeley WA. The building comprises of a medical centre with a purchase price of $9,743,358.

On the 21st of July 2021, RAM Australia Medical Property No. 8 Trust acquired 100% interest in the The Banyans Health and Wellness Centre, located in Clear Mountain QLD. The building comprises of a rehabilitation centre with a purchase price of $8,320,000.

On the 5th of July 2021, RAM Australia Medical Property No. 10 Trust acquired 100% interest in the Willets Health Precinct, located in Clear Mountain QLD. The building comprises of a rehabilitation centre with a purchase price of $16,100,000.

On the 11th of August 2021, RAM Australia Medical Property No. 10 Trust acquired 100% interest in further land at the Willets Health Precinct, located in Clear Mountain QLD. The land had a purchase price of $600,000.

The Fund entered into contracts for the following acquisitions after 30 June 2021. These acquisitions are expected to completed before the end of October 2021:

On the 28th of July 2021, RAM Australia Medical Property No. 9 Trust entered into a contract to acquire 100% interest in the Panaceum Medical Centre, located in Geraldton WA. The building comprises of a medical centre with a purchase price of $13,100,000.

On the 13th of July 2021, RAM Australia Medical Property No. 11 Trust entered into a contract to acquire 100% interest in the Parkwood Family Practice, located in Parkwood QLD. The building comprises of a medical centre with a purchase price of $7,400,000.

On the 13th of July 2021, RAM Australia Medical Property No. 11 Trust entered into a contract to acquire 100% interest in the Highlands Health Centre, located in Highland Park QLD. The building comprises of a medical centre with a purchase price of $8,500,000.

On the 3rd of August 2021, RAM Australia Medical Property No. 12 Trust entered into a contract to acquire 100% interest in the Mildura Medical Centre, located in Mildura VIC. The building comprises of a medical centre with a purchase price of $6,065,000.

On the 6th of August 2021, RAM Australia Medical Property No. 13 Trust entered into a contract to acquire 100% interest in the Secret Harbour Medical Centre, located in Secret Harbour WA. The building comprises of a medical centre with a purchase price of $7,550,000.

On the 1st of September 2021, RAM Australia Medical Property No. 15 Trust entered into a contract to acquire 100% interest in the Casuarina Medical Centre, located in Casuarina NT. The building comprises of a medical centre with a purchase price of $14,000,000.

On the 1st of September 2021, RAM Australia Medical Property No. 16 Trust entered into a contract to acquire 100% interest in the Rosebery Convenience and Medical Centre, located in Casuarina NT. The building comprises of a medical centre with a purchase price of $8,400,000.

On the 26th of August 2021, RAM Australia Medical Property No. 17 Trust entered into a contract to acquire 100% interest in the Bowen Hills Day Surgery, located in Bowen Hills QLD. The building comprises of a day surgery with a purchase price of $20,500,000.

On the 30th of August 2021, RAM Australia Medical Property No. 19 Trust entered into a contract to acquire 100% interest in The Gold Coast Surgery Centre, located in Southport QLD. The building comprises of a day surgery with a purchase price of $12,750,000.

On the 17th of August 2021, RAM Australia Medical Property No. 20 Trust entered into a contract to acquire 100% interest in The North Ward Medical Centre, located in North Ward QLD. The building comprises of a day surgery with a purchase price of $4,250,000.

On the 3rd of August 2021, RAM Australia Medical Property No. 18 Trust was incorporated and is 100% owned by RAM Australia Property Mid Trust.

On the 3rd of September 2021, the Fund acquired 50% of the shares in RAM Essential Services FinCo Pty Ltd.

The Fund entered into an Implementation Deed and Stapling Deed on the 30th of September 2021. The Fund is to be stapled to RAM Australia Retail Property Fund to form the Stapled Entity RAM Essential Services Property Fund.

On the 25th of October 2021, the Stapled Entity is to be listed on the Australian Stock Exchange as an Australian Real Estate Investment Trust (REIT). A Product Disclosure Statement was lodged with the ASX on the 30th of September 2021.

RAM Australia Medical Property Fund Directors' report 30 June 2021

On the 24th of September 2021, RAM Essential Services Finco Pty Ltd entered into a Syndicated Facility Agreement with the Commonwealth Bank of Australia and CBA Corporate Services (NSW) Pty Ltd. The Facility will be used to refinance the existing debt facilities for the stapled entities, and to fund the planned acquisitions of the Fund. The facility limit is $250,000,000, with a Loan to Value covenant of 50% and an Interest Coverage Ratio covenant of 2.0 times EBITDA.

No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Likely developments and expected results of operations

The Trustee will continue to pursue medical real estate opportunities and review investment management strategies with a view to optimising both the income and capital return over the investment term.

Environmental regulation

The consolidated entity's operations are subject to various environmental regulations under both Commonwealth and State legislation. The Trustee believes that the consolidated entity has adequate systems in place for the management of its environmental responsibilities and is not aware of any breach of environmental requirements as they may apply to the consolidated entity.

Related parties

Trustee Entity's remuneration

The Trustee charged a trustee fee of 1.00% p.a. (net 0.65% after the reduction of asset management fees), of the gross assets of the consolidated entity calculated monthly. The Trustee is entitled to recover all fees deferred either from consolidated entity earnings or on the winding up of the consolidated entity. The Trustee charges are set out in Note 15 of the Financial Report.

Asset management fees

RAM Australia Property Services Pty Ltd has been appointed as the Asset Manager for the controlled entities. The fee for their services is 0.35% p.a. of the gross assets of the entity. This fee is included within the Trustee's Management Fee.

Directors' interests

No directors of the Trustee held any units in the Trust at the date of this report.

Indemnity and insurance of officers

Indemnification

Under the Trust's Constitution, the Trustees, including its officers and employees, are indemnified out of the consolidated entity's assets for any loss, damage, expense or other liability incurred by it in properly performing or exercising any of its powers, duties or rights in relation to the consolidated entity.

The consolidated entity has not indemnified or made a relevant agreement for indemnifying against a liability in respect of any person who is the auditor of the consolidated entity.

Indemnity and insurance of auditor

The consolidated entity has not indemnified or made a relevant agreement for indemnifying against a liability in respect of any person who is the auditor of the consolidated entity.

Proceedings on behalf of the trust

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the trust, or to intervene in any proceedings to which the trust is a party for the purpose of taking responsibility on behalf of the trust for all or part of those proceedings.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

RAM Australia Medical Property Fund Directors' report 30 June 2021

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

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__ _____ __ Scott Kelly Director

___ ______ Suzanne Hutchins on Di rec t or

12 October 2021

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Sydney Newcastle Level 8, 1 O’Connell Street 755 Hunter Street Sydney NSW 2000 Australia Newcastle West NSW 2302 Australia GPO Box 5446 Sydney NSW 2001 PO Box 2368 Dangar NSW 2309 p +61 2 8346 6000 p +61 2 4962 2688 f +61 2 8346 6099 f +61 2 4962 3245

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RAM Australia Medical Property Fund Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

Note Revenue Interest revenue Rent from investment properties Unrealised gains on revaluation of property Total revenue Expenses Investment property expenses Other expenses Depreciation and amortisation expense Trustee fees Property management fees Finance expenses Total expenses Profit for the year attributable to the owners of RAM Australia Medical Property Fund 12 Other comprehensive income for the year Total comprehensive income for the year attributable to the owners of RAM Australia Medical Property Fund	Consolidated 2021 2020 $ $ 105 2,886 5,000,633 1,151,469 2,835,020 1,274,829	Consolidated 2021 2020 $ $ 105 2,886 5,000,633 1,151,469 2,835,020 1,274,829
	7,835,758	2,429,184
	(117,825) (352,257) (75,481) (2,284,985) (205,577) (917,082)	(151,115) (67,579) (58,674) (161,890) (29,694) (319,361)
	(3,953,207)	(788,313)
	3,882,551 -	1,640,871 -
	3,882,551	1,640,871

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

RAM Australia Medical Property Fund Statement of financial position As at 30 June 2021

Note Assets Current assets Cash and cash equivalents 4 Trade and other receivables 5 Prepayments Other current assets 6 Total current assets Non-current assets Investment properties 7 Other non-current assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 8 Total current liabilities Non-current liabilities Payables 9 Interest bearing loans and borrowings 10 Total non-current liabilities Total liabilities Net assets Units on issue Issued units 11 Undistributed profits 12 Total units on issue	Consolidated 2021 2020 $ $ 3,676,862 1,550,431 221,929 125,010 362,094 15,322 15,280,320 -	Consolidated 2021 2020 $ $ 3,676,862 1,550,431 221,929 125,010 362,094 15,322 15,280,320 -
	19,541,205	1,690,763
	135,070,246 497,571	19,921,918 250,077
	135,567,817	20,171,995
	155,109,022	21,862,758
	2,230,303	501,537
	2,230,303	501,537
	118,458 62,199,230	118,458 11,490,780
	62,317,688	11,609,238
	64,547,991	12,110,775
	90,561,031	9,751,983
	87,630,037 2,930,994	8,436,763 1,315,220
	90,561,031	9,751,983

The above statement of financial position should be read in conjunction with the accompanying notes

RAM Australia Medical Property Fund Statement of changes in equity For the year ended 30 June 2021

Issued units $ 6,061,001 - -	Undistributed profits $ 68,303 1,640,871 -	Total units on issue $ 6,129,304 1,640,871 -
- 2,375,762 -	1,640,871 - (393,954)	1,640,871 2,375,762 (393,954)
8,436,763	1,315,220	9,751,983
Issued units $ 8,436,763 - -	Undistributed profits $ 1,315,220 3,882,551 -	Total units on issue $ 9,751,983 3,882,551 -
- 79,193,274 -	3,882,551 - (2,266,777)	3,882,551 79,193,274 (2,266,777)
87,630,037	2,930,994	90,561,031

The above statement of changes in equity should be read in conjunction with the accompanying notes

RAM Australia Medical Property Fund Statement of cash flows For the year ended 30 June 2021

Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers (inclusive of GST) Interest received Interest and other finance costs paid Net cash from operating activities 19 Cash flows from investing activities Payments for investment property 7 Payments for other assets Net cash used in investing activities Cash flows from financing activities Proceeds from issue of units 11 Proceeds from borrowings Distributions paid 13 Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 4	Consolidated 2021 2020 $ $ 5,370,881 1,126,264 (2,343,146) (301,296)	Consolidated 2021 2020 $ $ 5,370,881 1,126,264 (2,343,146) (301,296)
	3,027,735 836 (805,671)	824,968 2,886 (341,189)
	2,222,900	486,665
	(112,385,718) (15,232,909)	(6,417,588) -
	(127,618,627)	(6,417,588)
	79,193,273 50,595,662 (2,266,777)	2,375,762 5,027,661 (359,206)
	127,522,158	7,044,217
	2,126,431 1,550,431	1,113,294 437,137
	3,676,862	1,550,431

The above statement of cash flows should be read in conjunction with the accompanying notes

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 1. General information

The financial statements cover RAM Australia Medical Property Fund as a Fund consisting of RAM Australia Medical Property Fund and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is RAM Australia Medical Property Fund's functional and presentation currency.

RAM Australia Medical Property Fund is an unlisted Managed Investment Trust, incorporated and domiciled in Australia.

Registered office and principal place of business:

Suite 32.1 264 George Street Sydney NSW 2000

A description of the nature of the Fund's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 12 October 2021. The directors have the power to amend and reissue the financial statements.

Note 2. Summary of significant accounting policies

Basis of preparation

In the directors' opinion, the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the owners of RAM Australia Medical Property Fund. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the owners of RAM Australia Medical Property Fund.

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all controlled entities of RAM Australia Medical Property Fund ('trust' or 'parent entity') as at 30 June 2021 and the results of all controlled entities for the year then ended. RAM Australia Medical Property Fund and its controlled entities together are referred to in these financial statements as the 'consolidated entity'.

The parent entity controls an entity when the parent entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Controlled entities are fully consolidated from the date on which control is transferred to the parent entity. They are de-consolidated from the date that control ceases.

Revenue recognition

Revenue is recognised at the fair value of the consideration received or receivable net of the amount of goods and services tax ("GST") levied. Revenue is recognised for the major business activities as follows:

Rent from investment properties

Rent from investment properties is recognised in the Profit and Loss on a straight-line basis over the lease term. Rent not received at balance date is reflected in the Statement of Financial Position as a receivable or if paid in advance, as rents in advance. Lease incentives granted are recognised over the lease term, on a straight line basis, as a reduction of rent.

Interest income

Interest income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 2. Summary of significant accounting policies (continued)

Income tax

Under current Australian income tax legislation, the Trust and the consolidated entity are not liable for income tax, provided that the taxable income (including any assessable component of any capital gains from the sale of investment assets) is fully distributed to Unitholders each year. Tax allowances for building, plant and equipment depreciation are distributed to Unitholders in the form of tax preferred components of distributions.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

Investment properties

Investment properties principally comprise of freehold land and buildings held for long-term rental and capital appreciation that are not occupied by the Fund. Investment properties are initially recognised at cost, including transaction costs, and are subsequently remeasured annually at fair value. Movements in fair value are recognised directly to profit or loss.

Investment properties are derecognised when disposed of or when there is no future economic benefit expected.

Trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Issued capital

Ordinary units are classified as equity.

Incremental costs directly attributable to the issue of new units or options are shown in equity as a deduction from the proceeds.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Fair value measurement hierarchy

The Fund is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective.

The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.

Note 4. Current assets - cash and cash equivalents

Cash at bank Cash on deposit	Consolidated 2021 2020 $ $ 2,499,339 899,653 1,177,523 650,778	Consolidated 2021 2020 $ $ 2,499,339 899,653 1,177,523 650,778
	3,676,862	1,550,431

Note 5. Current assets - trade and other receivables

Trade Debtors Less: Allowance for expected credit losses	Consolidated 2021 2020 $ $ 221,929 299,669 - (174,659)	Consolidated 2021 2020 $ $ 221,929 299,669 - (174,659)
	221,929	125,010

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 5. Current assets - trade and other receivables (continued)

Allowance for expected credit losses

The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Expected credit loss rate 2021 2020 Consolidated % % Not overdue - - 0 to 3 months overdue - 58% 3 to 6 months overdue - - Over 6 months overdue - -	Carrying amount 2021 2020 $ $ 186,123 - 25,791 299,669 - - 10,015 -	Carrying amount 2021 2020 $ $ 186,123 - 25,791 299,669 - - 10,015 -	Allowance for expected credit losses 2021 2020 $ $ - - - 174,659 - - - -	Allowance for expected credit losses 2021 2020 $ $ - - - 174,659 - - - -
	221,929	299,669	-	174,659

Note 6. Current assets - other current assets

Accrued income Provision for doubtful debts - Covid deferred income Other current assets (i)	Consolidated 2021 2020 $ $ 108,094 - (108,094) - 15,280,320 -	Consolidated 2021 2020 $ $ 108,094 - (108,094) - 15,280,320 -
	15,280,320	-

The provision for doubtful debts is in respect of deferred rent relief provided to tenants as a consequence of the Covid-19 pandemic.

(i) Other current assets consists of deposits paid to vendors for the purchase of property acquisitions in Trust 7, Trust 10 and Trust 14. These acquisitions were completed after the reporting date.

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 7. Non-current assets - investment properties

Miami Day Hospital, Miami QLD Corrimal Private Health Centre, Corrimal NSW Mayo Private Hospital, Taree NSW Dubbo Private Hospital, Dubbo NSW North West Private Hospital, Cooee TAS Swan Medical Centre, Midlands WA	Consolidated 2021 2020 $ $ 17,237,124 13,800,000 6,103,370 6,121,918 47,476,494 - 20,119,517 - 35,840,749 - 8,292,992 -	Consolidated 2021 2020 $ $ 17,237,124 13,800,000 6,103,370 6,121,918 47,476,494 - 20,119,517 - 35,840,749 - 8,292,992 -
	135,070,246	19,921,918

Reconciliation

Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below:

Opening fair value Additions Revaluation increments Capital Expenditure Impairment of assets Closing fair value	19,921,918 101,989,551 2,835,020 10,396,167 (72,410)	12,288,175 6,417,588 1,274,829 - (58,674)
	135,070,246	19,921,918

Lessor commitments

Minimum lease commitments receivable but not recognised in the financial statements: 1 year or less Between 1 and 2 years Between 2 and 3 years Over 3 years	Consolidated 2021 2020 $ $ 8,277,255 1,581,151 8,045,136 5,209,956 7,842,724 2,692,259 59,134,696 -	Consolidated 2021 2020 $ $ 8,277,255 1,581,151 8,045,136 5,209,956 7,842,724 2,692,259 59,134,696 -
	83,299,811	9,483,366

Note 8. Current liabilities - trade and other payables

Accrued expenses Trade payables Deferred Income Goods and service tax payable / (receivable) Distribution payable	Consolidated 2021 2020 $ $ 514,629 351,138 850,742 16,561 42,982 6,371 (36,906) 2,402 858,856 125,065	Consolidated 2021 2020 $ $ 514,629 351,138 850,742 16,561 42,982 6,371 (36,906) 2,402 858,856 125,065
	2,230,303	501,537

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 9. Non-current liabilities - payables

Tenant's deposits

Consolidated	Consolidated
2021	2020
$	$
118,458	118,458

Note 10. Non-current liabilities - interest bearing loans and borrowings

On the 15th of December 2020, the Group entered into a designation agreement with Commonwealth Bank of Australia, increasing the facility limit on the senior debt facility to $65,205,000.

On the 30th of June 2021, the Group entered into a further designation agreement with the Commonwealth Bank of Australia, increasing the facility limit on the senior debt facility to $88,187,847. The facility is due to expire on the 10th of February 2023.

Loan Facility Drawn Less: Attributable transaction costs	Consolidated 2021 2020 $ $ 62,476,730 11,580,000 (277,500) (89,220)	Consolidated 2021 2020 $ $ 62,476,730 11,580,000 (277,500) (89,220)
	62,199,230	11,490,780

Refer to note 14 for further information on financial instruments.

Note 11. Units on issue - issued units

Ordinary units - fully paid A Class units - fully paid B Class units - fully paid C Class units - fully paid	2021 Units 71,483,075 - - -	Consolidated 2020 2021 Units $ - 87,630,037 6,716,457 - 1,798,208 - 1 -	Consolidated 2020 2021 Units $ - 87,630,037 6,716,457 - 1,798,208 - 1 -	2020 $ - 6,670,348 1,766,414 1
	71,483,075	8,514,666	87,630,037	8,436,763

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 11. Units on issue - issued units (continued)

Movements in unit capital

Details Date Balance 1 July 2019 Class A - Tranche 5 18 July 2019 Class B - Tranche 6 23 August 2019 Class B - Tranche 7 27 September 2019 Class B - Tranche 8 1 October 2019 Class A - Tranche 9 13 December 2019 Class B - Tranche 10 1 January 2020 Class B - Tranche 11 15 February 2020 Class B - Tranche 12 1 April 2020 Cost of issued units Balance 30 June 2020 Class B Units - Tranche 12 1 July 2020 Class B Units - Tranche 13 1 October 2020 Class C Units - Redemption 10 November 2020 Conversion of Class A to Ordinary Units 12 November 2020 Conversion of Class B to Ordinary Units 12 November 2020 Ordinary Units - Tranche 15 7 December 2020 Ordinary Units - Tranche 16 8 December 2020 Ordinary Units - Tranche 17 16 December 2020 Ordinary Units - Tranche 18 23 December 2020 Ordinary Units - Tranche 19 1 January 2021 Ordinary Units - Tranche 20 1 April 2021 Ordinary Units - Tranche 21 24 May 2021 Ordinary Units - Tranche 22 28 May 2021 Ordinary Units - Tranche 23 1 June 2021 Ordinary Units - Tranche 24 7 June 2021 Ordinary Units - Tranche 25 24 June 2021 Ordinary Units - Tranche 26 29 June 2021 Cost of issued units Balance 30 June 2021	Units Issue price 6,061,001 90,981 $1.01 197,531 $1.01 98,610 $1.01 883 $1.02 1,564,476 $1.02 3,174 $1.01 493,730 $1.01 4,280 $1.16 - $0.00 8,514,666 7,410 $1.15 7,624 $1.15 (1) $1.00 - $0.00 - $0.00 391,942 $1.28 4,624,912 $1.28 38,727,252 $1.28 391,942 $1.28 45,123 $1.27 130,747 $1.28 5,900,259 $1.27 4,188,365 $1.27 3,064,833 $1.27 372,088 $1.27 4,251,473 $1.27 864,440 $1.27 - $0.00 71,483,075	$ 6,061,001 92,000 200,000 100,000 897 1,591,000 3,214 500,000 4,969 (116,318)
		8,436,763 8,573 8,759 (1) - - 500,000 5,900,000 49,404,356 500,000 57,188 166,977 7,506,898 5,328,856 3,900,000 473,482 5,410,000 1,100,000 (1,071,814)
		87,630,037

Note 12. Units on issue - undistributed profits

Undistributed profits at the beginning of the financial year Profit for the year Dividends paid (note 13) Undistributed profits at the end of the financial year	Consolidated 2021 2020 $ $ 1,315,220 68,303 3,882,551 1,640,871 (2,266,777) (393,954)	Consolidated 2021 2020 $ $ 1,315,220 68,303 3,882,551 1,640,871 (2,266,777) (393,954)
	2,930,994	1,315,220

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 13. Units on issue - distributions

Distributions Unit Class Distribution date per unit Ordinary 31/12/2020 $0.0054 31/03/2021 $0.0168 31/03/2021 $0.0130 Class A 30/09/2020 $0.0139 12/11/2020 $0.0062 Class B 30/09/2020 $0.0126 12/11/2020 $0.0056 Class C 12/11/2020 $446.2137	Total $ 286,366 882,977 928,668
	2,098,011
	93,492 41,665
	135,157
	22,906 10,257 446
	33,609
	2,266,777

Note 14. Financial instruments

Financial risk and capital management

The Fund's activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity risk. The Fund's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Fund.

Interest rate risk

The consolidated entity's main interest rate risk arises from long-term borrowings. Borrowings obtained at variable rates expose the consolidated entity to interest rate risk.

For the Fund's bank loans outstanding, totalling $62,476,730 (2020: $11,580,000), are principal and interest payment loans. An official increase / decrease in interest rates of 100 basis points would have an adverse / favourable effect on profit before tax of $624,767 (2020: $115,800) per annum.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity.

The consolidated entity has no significant concentrations of credit risk and has policies to review the aggregate exposure of tenancies across its portfolio. The consolidated entity also has policies to ensure that leases are made to customers with an appropriate credit history.

Liquidity risk

Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.

Financial liabilities due for payment Trade & Other Payables Distribution Payable Loan Facility	Within 1 Year $ 1,371,447 858,856 -	1-5 Years $ 118,458 - 62,476,730	Over 5 Years $ - - -	Total $ 1,489,905 858,856 62,476,730
	2,230,303	62,595,188	-	64,825,491

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 14. Financial instruments (continued)

Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

Note 15. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by PKF(NS) Audit & Assurance Limited Partnership, the auditor of the trust:

Audit services - PKF(NS) Audit & Assurance Limited Partnership Audit of the financial statements	Consolidated 2021 2020 $ $ 51,000 14,500

Note 16. Related parties

RAM Property Funds Management Limited ("RAM") is the responsible entity of the Fund.

RAM Property Funds Management Limited Investment Management Fees calculated at 0.65% p.a. of the gross assets of the Trust. Administration Fee being 0.5% of unitholder distribution Property Acquisition Fees RAM Australia Property Services Pty Ltd Asset Management Fees. The fee for this service is 0.35% pa of the gross assets of the Trust. Finance Facilitation Fees Property Acquisition Fees Performance Fees Trust Accounting Services Property Accounting Services Development Management Fees Leasing Fees Amounts Payable to Related Parties RAM Property Funds Management Limited RAM Australia Property Services Pty Limited RAM Australia Retail Property Fund	2021 Consolidated $ 531,624 140,829 848,446	2020 Consolidated $ 101,735 - 49,500
	1,520,899	151,235
	2021 Consolidated $ 283,579 134,063 565,630 1,328,953 26,326 27,926 81,848 219,542	2020 Consolidated $ 60,155 28,950 33,000 - 5,599 5,427 - 50,225
	2,667,867	183,356
	2021 Consolidated $ 67,620 3,317 408,410	2020 Consolidated $ 11,575 7,807 -
	479,347	19,382

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 17. Controlled entities

The following entities were controlled by the parent entity during the financial year:

		Ownership Interest	Ownership Interest
		2021	2020
		%	%
RAM Australia Medical Property No.	1 Trust	100%	100%
RAM Australia Medical Property Mid	Trust	100%	100%

The following entities were controlled by the RAM Australia Medical Property Mid Trust entity during the financial year:

		Ownership Interest	Owner Interest
		2021	2020
		%	%
RAM Australia Medical Property No.	2 Trust	100%	100%
RAM Australia Medical Property No.	3 Trust	100%	0%
RAM Australia Medical Property No.	4 Trust	100%	0%
RAM Australia Medical Property No.	5 Trust	100%	0%
RAM Australia Medical Property No.	6 Trust	100%	0%
RAM Australia Medical Property No.	7 Trust	100%	0%
RAM Australia Medical Property No.	8 Trust	100%	0%
RAM Australia Medical Property No.	9 Trust	100%	0%
RAM Australia Medical Property No.	10 Trust	100%	0%
RAM Australia Medical Property No.	12 Trust	100%	0%
RAM Australia Medical Property No.	14 Trust	100%	0%

Note 18. Events after the reporting period

The Fund completed the following acquisitions after 30 June 2021:

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 18. Events after the reporting period (continued)

The Fund entered into contracts for the following acquisitions after 30 June 2021. These acquisitions are expected to completed before the end of October 2021:

On the 3rd of August 2021, RAM Australia Medical Property No. 18 Trust was incorporated and is 100% owned by RAM Australia Property Mid Trust.

On the 3rd of September 2021, the Fund acquired 50% of the shares in RAM Essential Services FinCo Pty Ltd.

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 19. Reconciliation of profit to net cash from operating activities

Profit for the year Adjustments for: Depreciation and amortisation IFRS rental income Unrealised gains on revaluation of property Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Increase in other assets Increase in trade and other payables Net cash from operating activities	Consolidated 2021 2020 $ $ 3,882,551 1,640,871 185,197 58,674 (294,905) (103,358) (2,835,020) (1,274,829) 11,175 (125,009) (454,862) (34,558) 1,728,764 324,874	Consolidated 2021 2020 $ $ 3,882,551 1,640,871 185,197 58,674 (294,905) (103,358) (2,835,020) (1,274,829) 11,175 (125,009) (454,862) (34,558) 1,728,764 324,874
	2,222,900	486,665

RAM Australia Medical Property Fund Directors' declaration 30 June 2021

In the directors' opinion:

the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 2 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the owners of RAM Australia Medical Property Fund;
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards as described in note 2 to the financial statements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2021 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the trust will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

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PKF(NS) Audit & Assurance Limited Sydney Newcastle Partnership Level 8, 1 O’Connell Street 755 Hunter Street ABN 91 850 861 839 Sydney NSW 2000 Australia Newcastle West NSW 2302 Australia GPO Box 5446 Sydney NSW 2001 PO Box 2368 Dangar NSW 2309 Liability limited by a scheme approved under Professional p +61 2 8346 6000 p +61 2 4962 2688 f +61 2 8346 6099 f +61 2 4962 3245

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RAM ESSENTIAL SERVICES PROPERTY FUND — Annual Report 2021

65685_rns_2021-10-18_de42f3d0-bc3e-4eea-afad-8dc30ef5375f.pdf

RAM Australia Medical Property Fund ARSN 645 964 601

The Fund commenced on 28 August 2018.

Directors

Scott Wehl

RAM Australia Medical Property Fund Directors' report 30 June 2021

Scott Kelly

Suzanne Hutchinson

Steven Pritchard

Principal activities

Impact of COVID-19

RAM Australia Medical Property Fund Directors' report 30 June 2021

Property portfolio

Acquisitions

Disposals

Review of operations

Contributed Equity

Significant changes in the state of affairs

RAM Australia Medical Property Fund Directors' report 30 June 2021

Matters subsequent to the end of the financial year

RAM Australia Medical Property Fund Directors' report 30 June 2021

Likely developments and expected results of operations

Environmental regulation

Related parties

Trustee Entity's remuneration

Asset management fees

Directors' interests

Indemnity and insurance of officers

Indemnification

Indemnity and insurance of auditor

Proceedings on behalf of the trust

Auditor's independence declaration

RAM Australia Medical Property Fund Directors' report 30 June 2021

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RAM Australia Medical Property Fund Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

RAM Australia Medical Property Fund Statement of financial position As at 30 June 2021

RAM Australia Medical Property Fund Statement of changes in equity For the year ended 30 June 2021

RAM Australia Medical Property Fund Statement of cash flows For the year ended 30 June 2021

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 1. General information

Registered office and principal place of business:

Note 2. Summary of significant accounting policies

Basis of preparation

Historical cost convention

Critical accounting estimates

Principles of consolidation

Revenue recognition

Rent from investment properties

Interest income

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 2. Summary of significant accounting policies (continued)

Income tax

Cash and cash equivalents

Trade and other receivables

Investment properties

Trade and other payables

Borrowings

Fair value measurement

Issued capital

Goods and Services Tax ('GST') and other similar taxes

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 3. Critical accounting judgements, estimates and assumptions

Allowance for expected credit losses

Fair value measurement hierarchy

Note 4. Current assets - cash and cash equivalents

Note 5. Current assets - trade and other receivables

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 5. Current assets - trade and other receivables (continued)

Allowance for expected credit losses

Note 6. Current assets - other current assets

RAM Australia Medical Property Fund Notes to the financial statements 30 June 2021

Note 7. Non-current assets - investment properties

Reconciliation

Lessor commitments

Note 8. Current liabilities - trade and other payables

Note 9. Non-current liabilities - payables

Tenant's deposits

Note 10. Non-current liabilities - interest bearing loans and borrowings

RAM ESSENTIAL SERVICES PROPERTY FUND Annual Report 2021

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