How Did HMC Capital Achieve 51% EPS Growth and $18.7bn AUM in FY25?

Robust Financial Performance

HMC Capital has delivered a standout FY25, reporting a 51% increase in operating earnings per share (EPS) before tax to 56.0 cents, alongside a 47% surge in assets under management (AUM) to $18.7 billion. The company’s net cash position and diversified portfolio underpin its strong financial footing as it continues to scale its alternative asset management business.

Diversified Growth Across Platforms

The growth was fueled by strategic expansion across five key funds management divisions, Real Estate, Private Equity, Private Credit, Digital Infrastructure, and Energy Transition. Notably, the acquisition of Neoen’s Victorian renewable energy portfolio for $950 million, which settled in August 2025, added significant scale and value, with an independent valuation suggesting a 35% uplift over the purchase price.

In Digital Infrastructure, the successful IPO of the DigiCo Infrastructure REIT (ASX, DGT) established a $4.6 billion platform, with ongoing development projects like the SYD1 expansion expected to boost capacity and leasing momentum. Private Equity’s HMCCP Fund I delivered an impressive 43.6% net return for FY25, outperforming the ASX300 by 18.3% annually since inception, while Private Credit saw 21% AUM growth driven by its commercial real estate lending business.

Strategic Initiatives and Capital Raising

HMC is actively raising third-party capital to accelerate growth, particularly targeting a $1 billion equity raise for its Energy Transition platform. This fund aims to support the acquisition and development of renewable energy assets, leveraging a robust pipeline of over 5.5GW across Eastern Australia. The company also continues to develop new retail and institutional funds in Real Estate, including the HARP, HUG, and HURF funds, with targeted future AUM reaching up to $2 billion and beyond.

Operationally, HMC has strengthened its leadership teams across divisions, appointed new executives, and enhanced risk management capabilities, particularly in Private Credit. The company’s balance sheet remains strong, with no drawn debt as of June 2025 and a net liquidity position of $2 billion, supporting ongoing asset underwriting and fund seeding activities.

Sustainability and ESG Focus

Reflecting its evolving business strategy, HMC is reviewing its sustainability framework, aiming to align its net zero emissions targets and enhance ESG integration across platforms. The Real Estate division is on track to reduce scope 1 and 2 emissions by approximately 32% compared to FY22, supported by solar rollouts exceeding targets. The company also achieved an MSCI ESG rating of 'A' in 2025, underscoring its commitment to responsible investment practices.

Outlook

Looking ahead to FY26, HMC Capital expects to maintain strong operating EPS growth, targeting at least 40 cents pre-tax EPS, supported by organic growth in recurring funds management earnings. The company plans 15-20% year-on-year EBITDA growth in Real Estate and Private Credit, with Digital Infrastructure and Energy Transition divisions poised for similar expansion once fully operational. Dividend guidance remains steady at 12 cents per share, balancing shareholder returns with reinvestment into growth opportunities.