Qualitas Real Estate Income Fund (QRI) H2 2024 earnings summary

Executive summary

• Achieved record capital raising of AUD 2.8 billion net inflow and record deployment of AUD 4.2 billion in FY 2024, driving significant momentum into FY 2025.

• Fee-earning FUM rose 40% to AUD 6.8 billion, with total FUM reaching AUD 8.9 billion, a 37% CAGR since 2008.

• Strong demand for global alternative investment strategies, especially commercial real estate private credit, with experienced managers gaining market share.

• Recognized as Firm of the Year Australia in the 2023 PERE Awards, highlighting industry leadership.

Financial highlights

• Normalized NPAT increased 25% to AUD 27.3 million year-over-year; net profit before tax was AUD 39 million, including a AUD 6.1 million reversal of net performance fee revenue.

• Funds management revenue grew 22%, principal income rose 47%, and funds management EBITDA margin reached 51.7%.

• Total funds management EBITDA grew 35% to AUD 40 million; transaction fees up 37%, principal investments up 47%.

• Cash and cash equivalents at year-end were AUD 194 million, with investments of AUD 110 million, up from AUD 38 million a year prior.

Outlook and guidance

• FY 2025 net profit before tax guidance: AUD 49–55 million; EPS guidance: AUD 0.115–0.1291 per share.

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

• Recurring base management fees and principal income expected to drive earnings growth; increased investment in people to support expansion.

• Key variables for guidance: deployment timing and quantum, drawdown profile of undrawn credit, and performance fee assumptions.