Slide 1: Qualitas Limited – Interim Financial Results Presentation
ASX Announcement Qualitas Limited (ASX: QAL) 25 February 2025 Qualitas Limited – Interim Financial Results Presentation Qualitas Limited (ASX: QAL) (Company) provides the attached Results Presentation for the 6-month financial reporting period ended 31 December 2024. Authorised for release by the Bo
Slide 2: About Qualitas
About Qualitas Qualitas Limited ACN 655 057 588 (Qualitas) is an ASX-listed Australian alternative real estate investment manager with approximately $9.2 billion1 of committed funds under management. Qualitas matches global capital with access to attractive risk-adjusted investments in real estate p
Slide 3: Qualitas 1H25 Results
Qualitas (ASX:QAL) 1H25 Results 25 February 2025
Slide 4: Acknowledgement of Country
Acknowledgement of Country Qualitas acknowledges the Traditional Custodians of Country throughout Australia and their ongoing connection to land, sea, and community. We pay our respect to their Elders past and present. JOURNEY OF GROWTH BY ALYSHA MENZEL 2
Slide 5: Agenda and presenters
Agenda and presenters 1 Market Update and 1H25 Highlights 2 Growth Agenda and ESG ANDREW SCHWARTZ MARK FISCHER Group Managing Director Global Head of 3 Funds Management and Co-Founder Real Estate and Co-Founder 4 1H25 Financial Results 5 Outlook and Guidance KATHLEEN YEUNG PHILIP DOWMAN - Appendices
Slide 6: Focus on quality has paid off
Focus on quality has paid off SIGNIFICANT ORGANIC GROWTH SINCE IPO IN 2021 - UNDERPINNED BY QUALITY AND EFFICIENCY – not all private credit is created equal 2.2x 2.7x 2.4x FUM Fee Earning FUM Funds management revenue and • 16-year track record and reputation CAGR 30% CAGR 38% principal income CAGR 3
Slide 7: Record first half deployment underpins growth for FY25
Record first half deployment underpins growth for FY25 Accelerating growth momentum in base management Exceeding long-term target earnings margin with further fees enhance future earnings visibility economies of scale to be realised by FY25 59% of balance sheet capital drawn by longer duration Incre
Slide 8: Market Update and 1H25 Highlights
Market Update and 1H25 Highlights
Slide 9: Deep institutional relationships — FUM growth follows deployment growth
Deep institutional relationships — FUM growth follows deployment growth 1H25 RESULTS HIGHLIGHTS FEF IS A KEY INDICATOR FOR GROWTH MOMENTUM IN BASE MANAGEMENT FEE ($BN) $7.9bn $2.4bn $90m 7.9 CAGR Fee Earning FUM1 Deployment Pool of potential embedded 38% +41% vs. 1H24 +34% vs. 1H24 and unrecognised
Slide 10: Earnings quality elevated by accelerating growth in base management fees
Earnings quality elevated by accelerating growth in base management fees, the largest segment of recurring revenue $30.8m $13.3m $21.2m STRONG TOPLINE GROWTH AND MARGIN EXPANSION FM revenue Principal income FM EBITDA excl. 48% 49% +19% vs. 1H24 +37% vs. 1H24 performance fees1 46% 46% +30% vs. 1H24 4
Slide 11: Quality growth expected across key funds management earnings drivers
Quality growth expected across key funds management earnings drivers ACCELERATING GROWTH IN FEF ($BN) BALANCE SHEET YIELD NEARLY CREDIT SHARE OF UNRECOGNISED DOUBLED IN TWO YEARS PERFORMANCE FEES IS INCREASING FEF growth trajectory drives growth in base management ~$121m undrawn co-investment commit
Slide 12: Private credit in Australia has a long runway
Private credit in Australia has a long runway backed by secular tailwinds and attractive returns PRIVATE CREDIT ATTRACTS INTEREST AUSTRALIA AND APAC NON-BANK STRONG RETURNS THROUGH-THE-CYCLE DESPITE ANTICIPATED RATE CUTS FINANCING LAGS OTHER REGIONS2 Higher returns with lower fund leverage compared
Slide 13: Ability to originate at scale and access to institutional capital
Ability to originate at scale and access to institutional capital driving long term growth • Increased development activity in the QUALITAS IS WELL POSITIONED FOR PICK-UP IN RESIDENTIAL DEVELOPMENT residential sector No. of apartments commenced construction in capital cities1 80,000 4000 − Benefits
Slide 14: Growth Agenda
| Growth Agenda @) QUALITAS
Slide 15: Near-term growth agenda
Near-term growth agenda Focus on organic initiatives established at IPO has paid off ORGANIC GROWTH - INVEST IN TECHNOLOGY, PRODUCT INORGANIC GROWTH - DEVELOPMENT, CAPITAL AND INVESTMENT TEAMS DEDICATED TEAM ESTABLISHED Larger mandates QCDF II ~3x QCDF I • FUM growth - new strategic • Margin expansi
Slide 16: ESG
@) QUALITAS
Slide 17: Progressing our ESG vision
Progressing our ESG vision Leveraging our platform to support low carbon buildings, delivering impact for our communities and our people and striving for best-in-class corporate governance ENVIRONMENTAL SOCIAL GOVERNANCE Carbon neutral organisation Furthering our commitment to reconciliation UNPRI A
Slide 18: Funds Management
Funds Management @) QUALITAS
Slide 19: FUM growth follows deployment growth and reduced dry powder
FUM growth follows deployment growth and reduced dry powder • Increasing number of large investments 1H25 DEPLOYMENT FY25 DEPLOYMENT FUM NOT YET EARNING UPDATE FEES / DRY POWDER − $471m loan for a residential development project in Waterloo, Sydney $3.8bn • Bifurcation in investment size between con
Slide 20: Growth in Fee Earning FUM supports 2H25 growth
Growth in Fee Earning FUM supports 2H25 growth DEPLOYMENT GROWTH IS OUTPACING PORTFOLIO CHURN… …CONTRIBUTING TO FEF AND BMF GROWTH Origination from existing investments includes facility renewals, increases and projects financed for the next stage of development. These are becoming an Accelerating g
Slide 21: 1H25 Financial Results
leh? 5 Financial Results @) QUALITAS
Slide 22: Group earnings
Group earnings1 % • Normalised NPAT of $16.2m, increased by 28% P&L BREAKDOWN ($THOUSANDS) 1H25 1H24 on 1H24 reflecting: (YOY) Net funds management revenue2 12,890 10,754 20% – Funds management earnings growth predominantly driven by growth in Fee Earning Net performance fee revenue 2,870 2,088 37%
Slide 23: Funds management
Funds management % • Growth in base management fee driven by P&L BREAKDOWN ($THOUSANDS) 1H25 1H24 consistently strong deployment momentum from (YOY) prior reporting periods Base management fees 23,190 17,582 32% • Decline in transaction fees due to portion of Transaction fees 7,648 8,279 (8%) deploy
Slide 24: Principal income and Arch Finance
Principal income and Arch Finance % • Nine underwriting positions with gross total value PRINCIPAL INCOME ($THOUSANDS) 1H25 1H24 of $215m, decreased ~43% on 1H24 - driven by (YOY) increasing deployment of dry powder 1H25 Income from investments1,2 8,072 3,141 157% • $17m invested in six voluntary co
Slide 25: Operating performance
Operating performance • Margin expansion more skewed to second half of FUNDS MANAGEMENT EBITDA MARGIN FEE MARGIN VARIES WITH PRODUCT AND the financial year as the business grows half on EXCLUDES PERFORMANCE FEES INVESTOR MIX half and new hires are more concentrated at the start of the financial year
Slide 26: Balance sheet
Balance sheet • Arch Finance Warehouse Trust was QUALITAS GROUP BALANCE SHEET ($THOUSANDS) 1H251 FY241 deconsolidated due to amendment in Assets management terms in November 20242 Cash and cash equivalents 105,101 192,419 – Asset and liabilities of Arch Finance Warehouse Trust no longer recognised o
Slide 27: Outlook and Guidance
Outlook and Guidance QUALITAS
Slide 28: Affirming FY25 guidance
Affirming FY25 guidance • FY25 guidance considerations: FY25 GUIDANCE – Draw down profile of undrawn construction credit not earning full management fees, deployment timing and Estimated range quantum are key variables of the guidance range – Recurring base management fees and principal income $49m
Slide 29: Investor enquiries
MELBOURNE OFFICE SYDNEY OFFICE BRISBANE OFFICE Level 38, 120 Collins Street, Level 5, 1 Bligh Street, Level 14, 167 Eagle Street, Melbourne VIC 3000 Sydney NSW 2000 Brisbane QLD 4000 QAL INVESTOR ENQUIRES P: +61 3 9612 3939 E: investor.relations@qualitas.com.au
Slide 30: Disclaimer
Disclaimer This presentation has been prepared by and its sole responsibility of Qualitas Limited (ACN 655 057 588). To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever to Qualitas Limited, any of its related entities, or Q
Slide 31: Appendix 1: Reconciliation of financials and FUM
Appendix 1 Reconciliation of financials and FUM
Slide 32: Reconciliation of statutory financial to normalised financial
Reconciliation of statutory financial to normalised financial ($THOUSANDS) 1H25 1H24 Statutory EBITDA 24,788 19,264 (Gain) / loss on mark to market (MTM) value of QRI investment (313) (969) QRI capital raising costs 211 1,086 Normalised EBITDA 24,686 19,381 Statutory net profit before tax (NPBT) 23,
Slide 33: FEF is an indicator of future funds management revenue growth
FEF is an indicator of future funds management revenue growth RECONCILIATION OF INVESTED FUM, FEF AND COMMITTED FUM ($BN) Deployed FUM with investment screening work already done FEF not captured in committed FUM Construction draw-down (0.4) accelerates after the first 6-8 0.6 months post-deployment
Slide 34: Appendix 2: Supplementary funds management information
Appendix 2 Supplementary funds management information
Slide 35: Investor composition as at December 2024
Investor composition as at 31 December 2024 INVESTOR COMPOSITION OF FUM INSTITUTIONAL CAPITAL BY INVESTOR GEOGRAPHIC SPLIT OF FUM CURRENT NUMBER OF COMMITMENTS 8% 14% 9% 35% $9.2bn 24% 83% FUM OF FUM 61% 65% 83% Five Commitments or more Two to Four Commitments Institutional Retail HNW / Family Offic
Slide 36: Diversified product and investment profile as at December 2024
Diversified product and investment profile as at 31 December 2024 FUNDS UNDER MANAGEMENT1 FUNDS UNDER MANAGEMENT UNDERLYING GEOGRAPHIC UNDERLYING SECTOR (BY COMMITTED FUM) RISK ALLOCATION2 EXPOSURE2 EXPOSURE2 (BY INVESTED FUM) (BY INVESTED FUM) (BY INVESTED FUM) 1% 4% 3% 7% 4% 3% 18% 7% 12% 27% 39%
Slide 37: FUM overview as at December 2024
FUM overview as at 31 December 2024 FUND NAME STRATEGY INVESTMENT TYPE FUM EXPIRY1 QRI (ASX listed) Senior debt / mezzanine $755m Perpetual QSDF Senior debt – diverse $928m Perpetual QPICF 1A Income Senior debt – diverse $773m May-31 CREDIT FUNDS Senior Debt SMA Senior debt – diverse $131m Perpetual
Slide 38: Credit funds – FUM metrics as at December 2024
Credit funds – FUM metrics as at 31 December 2024 COMMITTED INVESTED FEE EARNING FUM NOT YET FUND NAME FUM FUM FUM EARNINGS FEES QRI (ASX listed) $755m $678m1 $755m - QSDF $928m $885m $885m $44m QPICF 1A2 $773m $472m $472m $301m Senior Debt SMA $131m $127m $127m $4m CREDIT FUNDS QBIF (QLCDF) $110m $
Slide 39: Equity funds – FUM metrics as at December 2024
Equity funds – FUM metrics as at 31 December 2024 COMMITTED INVESTED FEE EARNING FUM NOT YET FUND NAME FUM FUM FUM EARNINGS FEES Opportunity I $78m $55m $55m - Opportunity II $259m $242m $232m - BTR Equity (2 funds)1 $620m $136m -2 - EQUITY FUNDS QDREF $118m $118m $118m - QFIF $205m $205m $205m - Ot
Slide 40: Closing period FUM
Closing period FUM $M FY19 FY20 FY21 FY22 FY23 FY24 1H25 Committed FUM Funds management 1,810 2,290 2,503 3,794 5,674 8,565 8,898 Arch Finance 448 480 480 465 400 323 323 Total Committed FUM 2,258 2,770 2,983 4,259 6,074 8,888 9,221 Invested FUM Funds management 1,086 1,444 1,660 2,458 3,448 3,980 4
Slide 41: Fund key
Fund key LISTED ENTITY ASX: QAL Qualitas Limited LISTED FUNDS ASX: QRI Qualitas Real Estate Income Fund UNLISTED FUNDS QSDF Senior Debt Fund BTR Build-To-Rent equity QCDF Construction Debt Fund QCDF II Construction Debt Fund II QDCI Diversified Credit Investments QDREF Diversified Real Estate Fund Q
Slide 42: Glossary
Glossary APAC Asia-Pacific JV Joint venture AUM Assets under management Mandated investments Qualitas entered into exclusivity with borrowers with financial close subject Average Invested FUM Average monthly Invested FUM excluding BTR equity and Arch Finance to due diligence and fund Investment Comm