Qualitas Limited reported a robust interim result for the six months to December 2025, with net profit rising 27% and funds under management expanding 18% to $10.9 billion. The company’s focus on real estate private credit and build-to-rent sectors underpinned strong capital deployment and fee growth.
- Net profit after tax up 27% to $20.7 million
- Revenue increased 24% to $62.4 million
- Fee-earning funds under management grew 38% to $10.9 billion
- Capital deployment surged 57% to $3.69 billion
- Interim fully franked dividend declared at 3.5 cents per share
Strong Financial Performance Amid Growing Market Demand
Qualitas Limited (ASX – QAL) has delivered a solid interim financial performance for the half-year ended 31 December 2025, reflecting the company’s successful execution of its funds management strategy. The group reported a 27% increase in net profit after tax to $20.7 million, supported by a 24% rise in revenue to $62.4 million. These results underscore Qualitas’ growing footprint in the alternative real estate investment space, particularly in private credit and build-to-rent residential sectors.
Capital Deployment and Funds Under Management Expansion
Capital deployment surged by 57% year-on-year to $3.69 billion, demonstrating Qualitas’ ability to source and execute attractive investment opportunities. This momentum contributed to a 38% increase in fee-earning funds under management (FUM), which reached $10.9 billion as at 31 December 2025. The growth in FUM was a key driver behind the 38% increase in funds management revenue to $42.7 million, bolstered by higher base management fees and performance fees.
Segment Performance and Strategic Focus
The funds management segment remains the core contributor to Qualitas’ earnings, with segment profit rising significantly. The company’s diversified investment platform spans real estate private credit, opportunistic real estate private equity, income-producing commercial real estate, and build-to-rent residential assets. Qualitas’ direct lending arm, Arch Finance, was deconsolidated in late 2024 following a change in control, and its contribution is now accounted for separately.
Dividend and Capital Management
Reflecting confidence in its ongoing earnings and cash flow generation, Qualitas declared an interim fully franked dividend of 3.5 cents per share, payable on 19 March 2026. This follows a fully franked dividend of 7.5 cents per share paid in September 2025. The company does not currently operate a dividend reinvestment plan, opting instead to return capital directly to shareholders.
Outlook and Market Positioning
Qualitas continues to prioritise scaling its funds management platform and deepening institutional investor relationships. The company is well positioned to capitalise on structural tailwinds in Australian commercial real estate private credit, including constrained traditional financing and rising demand for flexible capital solutions. The build-to-rent residential sector remains a core thematic focus, supported by ongoing housing supply challenges and shifting market dynamics.
Bottom Line?
With strong growth in funds under management and profitability, Qualitas is poised for continued momentum in a competitive real estate investment landscape.
Questions in the middle?
- How will the deconsolidation of Arch Finance impact Qualitas’ future earnings and capital allocation?
- What are the company’s plans to expand its build-to-rent platform beyond the current joint venture?
- How might rising interest rates and credit conditions affect Qualitas’ private credit investment returns?