Djerriwarrh Investments (DJW) H2 2025 earnings summary

Executive summary

• Net operating result increased 1% to $40.8 million, supporting a 2% rise in fully franked dividends to $0.155 per share.

• Management expense ratio rose to 0.47% from 0.42% due to lower gearing.

• Total portfolio return was 7.8% including franking, underperforming the S&P/ASX 200 Accumulation Index return of 15.1%.

• Defensive portfolio positioning led to underperformance in capital growth versus the market, but maintained strong income generation.

• Maintained a net cash position for much of the year, investing opportunistically during market sell-offs.

Financial highlights

• Dividend income declined 4% to $34.7 million, while option income grew 1% to $16.7 million.

• Net tangible assets per share at 30 June 2025 were $3.40; share price was $3.03, trading at a 7% discount to NTA.

• Operating earnings per share reached 15.50c, with net profit after tax at $39.2 million.

• Portfolio dividend yield at 6.5% (7.3% on share price basis), compared to market yield of 4.2%.

• Option income yield reached 2%, with a five-year positive trend.

Outlook and guidance

• Market viewed as expensive on valuation metrics, with S&P/ASX 200 near all-time highs; portfolio remains defensively positioned with high option coverage and net cash.

• Expect solid fully franked dividend income from major miners, with ability to maintain or grow dividends depending on finding quality investments at attractive prices.

• Flexibility in the option book to generate more income while maintaining capital growth exposure.

• Focus remains on a diversified portfolio of high-quality companies for long-term income and growth.