Qualitas (QAL) Company Presentation summary

Financial performance and growth

• Funds under management (FUM) reached $9.2bn, with a 30% CAGR since IPO in 2021.

• Fee earning FUM grew at a 38% CAGR, and funds management EBITDA (excluding performance fees) at 48% CAGR.

• $218m raised for Qualitas Real Estate Income Fund, marking the largest secondary LIT raise since COVID-19.

• FYTD deployment pipeline increased 30% year-on-year to $5.1bn.

• FY25 NPBT guidance is $49m–$55m, with EPS estimated at 11.50–12.91cps and dividends in line with a 50–95% payout ratio.

Investment strategy and market positioning

• Focus on private credit (77% of FUM), with additional exposure to residential, industrial, office, and retail sectors.

• 95% of fee earning FUM has performance fee arrangements exceeding hurdle rates.

• Institutional investors comprise 83% of the base, with growing relationships in Europe and Asia.

• Predominantly senior debt exposure with significant equity buffer and limited international risk.

• Deployment is skewed to large projects and repeat borrowers, with 70% from repeat clients and 66% in deals over $80m.

Market trends and opportunities

• Private credit in Australia is increasingly attractive amid global volatility, outperforming ASX300 with a 97% cumulative return since 2018.

• APAC private credit market remains under-penetrated, presenting growth opportunities as Australia is the region's 4th largest economy.

• Residential sector tailwinds driven by rate cuts and housing policy, with a 1% rate cut linked to a 6.1% rise in dwelling values.

• Significant demand for construction financing, with $38–$44bn required imminently and 46k apartments yet to secure funding.

• Qualitas financed 10% of apartments commenced in FY24, increasing market share as traditional financiers retreat.