WAM Alternative Assets (WMA) H1 2025 earnings summary

Executive summary

• The portfolio is trading at nearly a 20% discount to NTA, offering value for alternative asset exposure.

• Achieved operating profit before tax of $6.6m and after-tax profit of $4.6m for the half year ended 31 Dec 2024.

• Portfolio delivered an 8% return over 12 months and 3.6% growth over the last six months.

• Volatility remains low at 3.4% versus ASX's 14% over the past year.

• A Premium Target vote is scheduled for year-end, which may impact the company's future direction.

Financial highlights

• Portfolio return was approximately 8% for the last 12 months and 9.3% since management change.

• Total shareholder return was 6.9% for the half year, including franking credits.

• Dividend yield is over 5%, grossed up to nearly 8% pre-tax, with an increased fully franked interim dividend of 2.7c/share declared.

• Net realised and unrealised gains on investments were $3.97m for the half year.

• Water rights returned about 1% in the last year, after several years of outsized returns.

Outlook and guidance

• Focus for 2025 includes increasing private debt allocation, more infrastructure investments, and at least one more private equity allocation.

• Board remains committed to paying fully franked dividends, subject to profit reserves and franking credits.

• Expectation of increased transaction activity and portfolio exits, with three to four exits targeted this year.

• No change in principal activity or investment strategy anticipated.

• Management aims to narrow the discount to NTA post-vote.