Australia-based real estate investment manager Qualitas Limited reported a record fiscal 2026 profit on Tuesday, though its shares declined 5.4% as investors weighed the company's outlook for the coming year.
The group posted a normalized net profit after tax of AUD 44.3 million for the year ended June 30, 2026, a 20% increase from the prior year. Statutory net profit after tax rose 25% to AUD 41.7 million, while normalized earnings per share climbed 19% to AUD 0.147. Total fully franked dividends increased 12.5% to AUD 0.1125 per share, including a final dividend of AUD 0.0775.
Funds management revenue grew 41% year-over-year to AUD 38.6 million, driven by a 27% rise in base management fees to AUD 62.1 million and a 28% increase in transaction fees to AUD 23 million. Performance fee revenue surged 70% to AUD 13.7 million, while principal income declined 3% to AUD 30.3 million. Funds under management expanded 36% to AUD 11.9 billion, with capital deployed rising 42% to AUD 6.5 billion. The group's normalized EBITDA margin reached 52%, up from 51% in the prior year.
Despite the strong financial performance, Qualitas' shares fell 5.4% to AUD 3.16, extending declines from the prior close of AUD 3.34. The stock has traded between AUD 2.26 and AUD 4.10 over the past 52 weeks.
Management provided guidance for fiscal 2027, forecasting net profit before tax of AUD 74 million to AUD 80 million, representing growth of 17% to 26% from the prior year. Forecast earnings per share are expected to range between AUD 0.172 and AUD 0.186. The company also upgraded its medium-term target for Australian funds management EBITDA margins from above 50% to above 60%, citing progress toward its strategic goals.
Group Managing Director Andrew Schwartz described fiscal 2026 as "defined by record deployment" and highlighted a "step change in the quality and stability of our earnings base." He emphasized that growth remains focused on building an international platform consistent with Qualitas' core strategy. Global Head of Real Estate Mark Fischer noted the company's scale provides an advantage in a tighter market, enabling larger investments with reduced competition.
The group's funds management EBITDA reached a record AUD 70.3 million, while its gross operating margin for funds management improved to 54%. Fee-earning funds under management grew to AUD 11.9 billion, with AUD 1.1 billion in investments already approved or closed as of the presentation date, compared with AUD 170 million at the same time last year. The high-conviction investment pipeline is estimated at approximately AUD 3 billion.
