DomaCom Limited (ASX: DCL) owns and operates an Internet-based investment platform that enables the SMSF market and other long-term investors to buy fractional interests in specific properties in Australia. Besides, the company offers financial advisory on direct property and conduct of outright purchase of a property.
On April 17th, 2019, DomaCom announced that the DomaCom Fund has grown its funds under management (FUM) to more than $ 50 million, which is 20% higher than the FUM as of January 31st, 2019.
According to the CEO Arthur Naoumidis, the company witnessed a marked acceleration in deals on the platform and the trend is expected to continue as DomaCom would draw down on its $ 50 million debt facility from La Trobe Financial. Besides, the company is also conducting active discussions with several financial advisers that are looking to use their fractional investing platform for their SMSF clients.
On April 17th, 2019, the DCL stock price settled the day’s session at AUD 0.140 with a stellar YTD return of 133.33%.
At the backdrop of the potential changes in Federal Government, and the changes that the Labour Party has already flagged for investment property, DomaCom would possibly be one of the few remaining legal ways to access debt for property investment.
Currently, DomaCom has a strong pipeline of residential property acquisitions and commercial project developments in renewable energy, disability housing and rural farmland that is expected to maintain the strong growth trend in FUM over the coming months. Moreover, the Company’s senior equity release product that is planned to be launched this quarter, will provide an additional further avenue to supplement FUM growth as advisers expand their client reach to cater for this significant sector in the retirement market.
On April 1st, 2019, DomaCom announced to have partnered with La Trobe Financial that provided an initial AUD 50-million facility to allow investors to acquire approximately AUD 100-million of residential, commercial and industrial property via the DomaCom Fund. The facility will provide up to 60% leverage for investors and Self-Managed Super Funds (SMSFs) at a competitive 5.99% pa.
Speaking for La Trobe Financial, Chris Andrews Chief Investment Officer quoted “With more than one million Australians having turned to taking more control of their own super, the growth of the SMSF sector continues. SMSFs have a significant influence in the overall growth of the $ 2.3-Trillion Australian superannuation industry, with SMSF assets growing by $ 319.7 billion or 55% in the five years to December 2018 at $ 726.46 billion in assets under management (AUM).
La Trobe Financial is Australia’s premium non-bank specialising in credit and wealth management with around AUD 7 billion in AUM and wide range of ~ 140,000 customers.
According to DomaCom’s half-year results for the six months to December 31st, 2018, the revenue from ordinary activities increased by 89% to $ 123k with the net loss of $ 3.32 million, also up 11% on the prior corresponding period (PCP) ended December 31st, 2017. The company closed the period with cash and cash equivalents of $ 530,805. There were major cash inflows of $ 1,443,500 from financing activities that were more than offset by cash outflows from operating ($ 1,353,587) and investing ($ 362,534) activities.
To date, DomaCom has a market cap of AUD 20.25 million with ~ 144.65 million outstanding shares.
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