Perpetual Credit Income Trust reported a robust half-year performance with a 50% jump in net assets to $802 million and an 8% rise in profit to $21 million, underpinned by a successful capital raising and steady distributions.
- Net assets increased 50% to $802 million
- Profit rose 8% to $21 million for the half-year
- Raised $268 million via entitlement and shortfall offers
- Distributions stable at around 3.8 cents per unit
- KPMG reviewed financials with no independence issues
Strong Growth in Net Assets and Profit
Perpetual Credit Income Trust (ASX, PCI) has delivered a strong half-year result for the six months ended 31 December 2025, reporting net assets attributable to unitholders of $802.3 million. This represents a significant 50.09% increase compared to the same period last year, reflecting both capital inflows and positive portfolio performance. Profit for the half-year rose 8.11% to $21.1 million, supported by a net portfolio return of 3.9%, slightly up from 3.7% in the prior corresponding period.
Capital Raising Bolsters Investment Capacity
The Trust successfully completed a pro-rata entitlement offer and a shortfall offer in November and December 2025, raising a combined $267.9 million through the issuance of over 243 million new units at $1.10 each. This capital injection is intended to enable the Investment Manager to pursue additional credit and fixed income investments aligned with the Trust’s objective of providing monthly income to investors. The substantial increase in units on issue contributed to the growth in net assets, while the net tangible asset (NTA) per unit remained stable at approximately $1.10.
Distributions and Earnings Per Unit
Distributions for the half-year were maintained at a consistent level, with a payout of approximately 3.8 cents per unit, closely mirroring the prior period’s 4.1 cents per unit. A subsequent distribution of 0.5970 cents per unit was declared in January 2026 and paid in February. Despite the increase in total profit, earnings per unit slightly decreased to 3.99 cents from 4.03 cents due to the dilution effect of the new units issued during the capital raising.
Governance and Auditor Review
The Trust saw some governance changes with the appointment of David Manoukian as Alternate Director for Phillip Blackmore and the resignation of Vicki Riggio from the same role. The financial statements for the half-year were reviewed by KPMG, who reported no independence issues and confirmed compliance with Australian accounting standards and the Corporations Act 2001. The Responsible Entity reaffirmed that the Trust remains well-positioned to meet its investment objectives and obligations.
Outlook
Looking ahead, the Trust will continue to actively manage its diversified credit and fixed income portfolio with a risk-aware approach. While past performance is not indicative of future results, the capital raising provides the Trust with enhanced capacity to capitalize on investment opportunities in the evolving credit markets. Investors will be watching closely how the Trust balances growth, income distributions, and market conditions in the coming periods.
Bottom Line?
Perpetual Credit Income Trust’s strong capital raising and portfolio performance set the stage for continued income generation amid evolving credit markets.
Questions in the middle?
- How will the recent capital raising impact future distribution sustainability?
- What strategies will the Investment Manager employ to navigate potential credit market volatility?
- Could further governance changes influence the Trust’s strategic direction?