Qualitas (ASX: QAL) expects to benefit from reforms in international banking sector

Highlights

• Qualitas is an ASX-listed alternative real estate investment manager
• In 1HFY24, QAL’s committed funds under management stood at AUD 8.1 billion
• Schwartz (Andrew) has maximum stake in the company with a shareholding of ~23.84%

ASX-listed financial services firm, Qualitas Limited (ASX:QAL) is an alternative real estate investment manager. As of 31 December 2023, the company had around AUD 8.1 billion of committed funds under management.

In the first half of financial year 2024 (1HFY24), funds management revenue of the company increased by 25.14% over the previous year to AUD 25.86 million, driven by strong tailwinds for alternative financiers.

During the reported period, normalized EBITDA increased by 21.29% YoY to AUD 19.38 million and statutory NPAT grew by 17.44% YoY to AUD 12.56 million.

Top 10 shareholders of QAL

The top 10 shareholders of QAL have around 69.83% shareholding in the company, while the top four have around 55.74%. The top two shareholders of QAL are Schwartz (Andrew) and ACS Qualitas Management Pty. Ltd., with a shareholding of ~23.84% and 22.40%, respectively.

Recent business update

On 22 February 2024, through ASX-filing, the company announced AUD 0.0225 apiece of interim dividend. The ex-date of the interim dividend is 7 March 2024 and pay date is 28 March 2024.

Outlook

In FY24, the company anticipates delivering net profit before tax of AUD 37 – 41 million and expects earnings per share to fall in the range of 8.75 – 9.70 cents per share.

 The company shared the believe that commercial real estate private credit is at nascent stage in Australia and have substantial growth potential backed by permanent reforms in the international banking sector. Worth mentioning here is that, commercial real estate private credit is the main growth driver for QAL’s earnings.

Share performance of QAL

QAL shares closed 1.17% higher at AUD 2.6 apiece on 27 February 2024. Including today’s gain, QAL’s share price has dropped by almost 7.14% in the last one year and has recorded a rise of 19.82% in the last three months.

The 52-week high of QAL is AUD 2.87, recorded on 2 March 2023, while the 52-week low is AUD 1.92, recorded on 20 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 27 February 2024. The reference data in this report has been partly sourced from EODHD/Others.

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