Qualitas Raises FY26 Profit Guidance Amid Accelerating Commercial Real Estate Activity
Qualitas Limited has reported record full-year earnings for FY25, driven by strong growth in funds management revenue and expanding commercial real estate activity. The company has raised its FY26 profit guidance, signalling confidence in continued momentum.
- Funds management revenue up 25% to $67.1 million
- Record funds management EBITDA margin of 52%
- Fee earning funds under management increased 28% to $8.7 billion
- Normalised net profit before tax up 36% to $53 million
- FY26 NPBT guidance raised to $60–66 million, EPS 14.0–15.4 cents
Strong Growth Across Funds Management
Qualitas Limited (ASX – QAL), a leading Australian alternative real estate investment manager, has reported a standout financial performance for the year ended 30 June 2025. The company posted a 25% increase in funds management revenue to $67.1 million and a 39% rise in funds management EBITDA to $56 million, alongside a record EBITDA margin of 52%. These results underscore the strength and scalability of Qualitas’ business model amid a recovering commercial real estate market.
Underlying this growth is a 28% increase in fee earning funds under management (FUM) to $8.7 billion, reflecting strong investor demand and successful capital deployment. The company’s base management fees surged 31%, marking the highest annual growth since its IPO. Performance fee revenue also saw a significant uplift, reaching $8 million, driven by robust fund performance, particularly in credit strategies.
Strategic Deployment and Market Positioning
Qualitas’ deployment of $4.6 billion in FY25, up 9% year-on-year, was characterised by a notable shift towards follow-on investments, which accounted for 54% of total deployment compared to 19% in FY24. These investments, including upsizing and renewing existing positions, contribute to higher margins and sustainable earnings growth by generating new transaction and base management fees at lower origination costs.
Group Managing Director Andrew Schwartz highlighted the company’s strategic advantage in attracting institutional capital, particularly amid a global reallocation of private credit from the US to the Asia-Pacific region. Australia’s stable regulatory environment and structural housing undersupply position Qualitas well to capitalise on this trend. The company’s 17-year track record and institutional funds management platform provide a strong foundation to capture growth opportunities in commercial real estate and private credit.
Outlook and Guidance for FY26
Looking ahead, Qualitas expects continued growth in fee earning FUM and accelerated invested FUM as delayed construction facility drawdowns progress. The company anticipates performance fee revenue to remain strong, supported by positive fund performance. FY26 guidance projects normalised net profit before tax (NPBT) between $60 million and $66 million, representing a 13% to 25% increase on FY25, with earnings per share forecast between 14.0 and 15.4 cents.
Qualitas also plans to expand its teams, enhance its technology platform, and leverage artificial intelligence to drive operational efficiencies. These initiatives aim to sustain the company’s competitive edge and support scalable growth in a dynamic market environment.
Overall, Qualitas’ FY25 results and FY26 outlook reflect a company well-positioned to benefit from evolving market dynamics, with a strong balance sheet, deep industry expertise, and a growing pipeline of commercial real estate opportunities.
Bottom Line?
Qualitas’ record FY25 performance and confident FY26 guidance signal a compelling growth trajectory amid shifting private credit flows and a recovering real estate market.
Questions in the middle?
- How will rising interest rates or unexpected market shocks impact Qualitas’ deployment and fee growth?
- What is the timeline and likelihood of recognising the $92 million in embedded performance fees?
- How effectively will Qualitas leverage AI and technology enhancements to sustain margin expansion?
