Solaris Australian Equity Income Plus Limited Announces Estimated Pre-Tax NTA of $1.993 per Share as of 17 July 2026

Overview of Solaris Australian Equity Income Plus Limited’s Business Model

Solaris Australian Equity Income Plus Limited, trading on the ASX under the ticker SET, is a Queensland-based listed investment company with its registered office at Level 20, 66 Eagle Street, Brisbane. SET operates as a managed investment vehicle focused on constructing and maintaining a diversified portfolio of Australian equities, emphasizing income generation for shareholders. This structure allows investors to access a broad range of Australian shares without managing individual stock selections themselves.

The company’s investment approach aims to deliver consistent income distributions sourced from dividends and other earnings generated by its portfolio holdings. By concentrating on Australian equities, SET provides investors with exposure to blue-chip and established Australian companies. The daily NTA reporting system employed by SET is standard practice among listed investment companies, offering investors transparent and frequent updates on the underlying value of their holdings.

Methodology Behind Pre-Tax NTA Per Share Calculation

The estimated pre-tax NTA per share of $1.993 as of 17 July 2026 is calculated by adjusting the company’s investment portfolio and cash balances for several factors. This calculation includes tax on realised gains and losses and other earnings but excludes provisions for tax on unrealised gains or losses. This methodology ensures the figure reflects the company’s actual tax position on completed transactions while avoiding speculative tax liabilities on unrealised holdings.

Adjustments for management fees and estimated operating costs are incorporated to reflect ongoing expenses associated with managing the investment vehicle. Notably, the reported NTA excludes any franking account balance, which could add value through franking credits available for distribution, and omits deferred tax assets related to income tax losses, rendering the NTA figure conservative and not indicative of potential future tax benefits.

Important Caveats and Limitations of the NTA Figure

The company clearly states that the estimated pre-tax NTA per share of $1.993 is unaudited and approximate. This means the figure has not undergone independent external audit and represents management’s best estimate based on available data at the time. Given the daily reporting frequency, the NTA can fluctuate due to changes in portfolio valuations, cash balances, and accrued costs on any business day.

Excluding franking credits from the NTA means the actual economic value to shareholders may be higher than reported. Similarly, omitting deferred tax assets means potential future tax benefits from carried-forward losses are not captured. Investors should consider these limitations and consult comprehensive reports such as annual or interim financial statements for a full understanding of the company’s financial position.

Portfolio Valuation and Cash Balance Adjustments in NTA

The pre-tax NTA of $1.993 per share reflects the daily valuation of SET’s investment portfolio, which is subject to market price fluctuations of underlying Australian equities. Cash balances are also included, providing a stable component unaffected by market volatility but influenced by distribution timings and investment transactions.

Adjustments for management fees and operating costs account for expenses like investment management, administration, accounting, compliance, and registry services. These ongoing costs are accrued and factored into the NTA to provide a realistic net value per share after operational expenses.

Tax Treatment: Realised Versus Unrealised Gains

The pre-tax NTA figure incorporates tax on realised gains and losses, reflecting actual tax liabilities from completed transactions. However, it excludes tax provisions on unrealised gains, which are paper gains from investments that have increased in value but remain unsold.

This means the NTA may not fully represent the total tax impact if the entire portfolio were liquidated at current valuations. Investors should be aware that actual tax liabilities could be higher or lower depending on unrealised gains or losses, which affects after-tax returns and the nature of distributions as income or capital returns.

Exclusion of Franking Credits and Deferred Tax Assets from NTA

SET’s NTA calculation explicitly excludes the company’s franking account balance. Franking credits arise from company tax paid on profits and reduce the tax payable by shareholders on dividends, enhancing after-tax returns. By omitting this balance, the reported NTA understates the economic value available to shareholders.

Similarly, deferred tax assets related to income tax losses are excluded. These assets represent potential future tax benefits from carried-forward losses that can offset taxable income, reducing future tax payments. The exclusion makes the pre-tax NTA figure conservative, as it does not reflect these potential advantages.

Daily NTA Reporting Enhances Investor Transparency

SET’s commitment to daily NTA updates demonstrates transparency and supports regular investor communication. Frequent reporting allows shareholders to monitor portfolio performance, assess value delivery, and make informed decisions about buying or selling shares based on the relationship between share price and underlying NTA.

The NTA serves as a benchmark to evaluate whether SET’s shares trade at a premium or discount on the ASX. A share price below NTA indicates a discount and potential value opportunity, while a price above NTA suggests strong demand. Daily updates empower investors to calculate these metrics and time market entry or exit effectively.

Investor Considerations for Future Monitoring

Current and prospective investors should track future NTA updates to observe changes in the company’s asset value driven by portfolio performance and income generation. Monitoring NTA trends over time helps assess the effectiveness of SET’s investment strategy relative to market indices and comparable vehicles.

Investors should also watch for changes in management fees, operating costs, dividend policies, and capital structure, as these factors influence NTA independently of portfolio returns. Reviewing SET’s full financial disclosures, including annual reports and regulatory filings, provides a comprehensive view beyond daily NTA figures.

Sector Positioning and Performance Context

Operating within Australia’s listed investment company sector, SET competes with various managed investment vehicles offering Australian equity exposure with diverse strategies. While some focus on growth, SET prioritizes income generation, appealing to investors seeking regular distributions, especially in low-interest environments.

SET’s $1.993 pre-tax NTA per share as of July 2026 reflects its position at that time. Investors should consider the NTA’s historical trajectory to evaluate long-term performance and income strategy success. The company’s focus on dividend-paying, mature Australian companies influences its risk-return profile, favoring capital stability and income over aggressive growth.

The ASX market context, including large-cap, mid-cap, and smaller companies across sectors like financial services, resources, real estate, and industrials, shapes SET’s portfolio and investment approach. This positioning is relevant for investors seeking consistent income and exposure to established Australian equities.