Perpetual Credit Income Trust (PCI) H2 2024 earnings summary

Executive summary

• Net assets attributable to unitholders rose 1.61% to $441.4m as of 30 June 2024, driven by strong portfolio performance and higher investment income year-over-year.

• Profit for the year increased 39.33% to $42.3m, reflecting a net portfolio return of 10.2% versus 7.1% in the prior year.

• Distributions totaled 8.87 cents per unit ($35.6m), up from 6.90 cents per unit ($27.7m) last year.

• The Trust celebrated its 5th anniversary on the ASX, delivering a total return of 28.4% since IPO.

Financial highlights

• Total investment income was $46.2m, up 34.6% from $34.3m in FY23.

• Net tangible assets per unit increased to $1.100 from $1.082, a 1.66% rise year-over-year.

• Basic and diluted earnings per unit were 10.55 cents, up from 7.58 cents in FY23.

• Cash and cash equivalents at year-end were $10.2m, up from $6.5m.

Outlook and guidance

• The Trust remains conservatively positioned, with 40.5% in investment grade and 59.5% in high yield credit.

• Floating rate credit is expected to continue offering attractive returns amid elevated interest rates.

• The portfolio is well diversified, with 122 holdings across 84 issuers.

• The near-term outlook is closely tied to inflation and central bank policy, with vigilance for credit stress.