WAM Alternative Assets (WMA) H2 2024 earnings summary

Executive summary

• Increased fully franked full year dividend to 5.2 cps for FY2024, with a final dividend of 2.6 cps.

• Investment portfolio delivered a 9.8% annual return since October 2020 and 5.1% in FY2024.

• Achieved 12 investment exits at a weighted average premium to NTA of 34.5% since October 2020.

• Notable exit in Birch & Waite Foods at a 105% premium to December 2023 carrying value, generating over 3.5x return on invested capital and IRR above 25%.

• WAM Alternative Assets offers ASX-listed access to a diversified portfolio of alternative assets, targeting absolute returns via dividend yield, capital growth, and diversification benefits.

Financial highlights

• Fully franked full year dividend for FY2024 increased to 5.2 cps, with a 5.1%–5.3% fully franked dividend yield and a 7.3%–7.6% grossed-up yield based on share price.

• Pre-tax net tangible assets (NTA) at 30 June 2024 were $1.20 per share.

• Profits reserve at 30 June 2024 stands at 16.3 cps, up from 2.5 cps in October 2020.

• Dividends paid since October 2020 total 14.6 cps (19.5 cps including franking credits).

Outlook and guidance

• The company continues to focus on harvesting and reinvesting in alternative assets, aiming for consistent absolute returns and further portfolio revitalization.

• Positive monetary policy outlook expected to drive increased portfolio valuations and further exits.

• Continued focus on deploying capital into new private equity opportunities in the coming year.