Qualitas (QAL) H2 2024 earnings summary

Executive summary

• Achieved record FY24 capital raising of AUD 2.8 billion net inflow and record deployment of AUD 4.2 billion, mainly in private credit and residential sectors, driving strong momentum into FY25.

• Funds under management (FUM) reached AUD 8.9 billion, up 46% from FY23, with fee-earning FUM rising 40% to AUD 6.8 billion.

• Recurring revenue nearly doubled over two years, with funds management revenue up 22% and principal income up 47% year-over-year.

• Private credit strategies delivered attractive returns with no interest arrears or impairments as of August 2024.

• Recognized as Firm of the Year Australia in the 2023 PERE Awards and for ESG initiatives, including carbon neutral certification and five-star PRI assessment.

Financial highlights

• Normalized NPAT increased 25% to AUD 27.3 million year-over-year; statutory NPAT up 17% to AUD 26.2 million.

• Funds management revenue grew 22% to AUD 53.7 million; principal income rose 47% to AUD 23.3 million.

• Funds management EBITDA margin reached 52%, with total funds management EBITDA up 35% to AUD 40 million.

• Cash and cash equivalents at June 30 were AUD 194 million, with investments of AUD 110 million.

• FY24 final dividend of 5.75cps, total FY24 dividend of 8.00cps, payout ratio of 91%.

Outlook and guidance

• FY25 NPBT guidance of AUD 49–55 million, representing 26–41% growth over FY24; EPS expected between 11.50cps and 12.91cps.

• Revenue growth underpinned by AUD 1.4–2.4 billion undrawn construction credit and AUD 1.5 billion dry powder.

• Recurring base management fees and principal income expected to drive earnings growth.

• Early FY25 pipeline at AUD 1.7 billion, with additional AUD 400–500 million in active transactions.

• Dividend per share expected in line with target payout ratio of 50%–95% of operating earnings.