Qualitas Real Estate Income Fund Posts $33.3M Profit and $1B Net Assets in H1 2025
Qualitas Real Estate Income Fund reported a robust 33.7% increase in net assets to over $1 billion and a 5% rise in operating profit for the half-year ended December 2025, driven by strategic capital raisings and strong portfolio management.
- Net assets rose 33.66% to $1.01 billion
- Operating profit increased 5.05% to $33.3 million
- Capital raised via wholesale placement and entitlement offer
- Monthly distributions continue with DRP in place
- Director changes with one resignation and one appointment
Strong Growth Amid Strategic Capital Raising
Qualitas Real Estate Income Fund (ASX, QRI) has delivered a solid half-year performance for the period ending 31 December 2025, reporting a 33.66% surge in net assets to $1.01 billion. This growth was underpinned by successful capital raising initiatives, including a wholesale placement in November 2025 and an entitlement offer in March 2025, which collectively injected over $34 million in fresh capital.
The fund’s operating profit rose 5.05% to $33.3 million, reflecting improved portfolio performance and disciplined cost management. Investment income climbed 8.59% to nearly $42 million, supported by the Trust’s exposure to real estate loans secured by first and second mortgages, primarily in Australia and occasionally New Zealand.
Distribution Policy and Investor Engagement
Despite the increase in operating profit, the distribution per unit decreased from 6.93 cents to 5.48 cents for the half-year. The Trust continues to pay distributions monthly and maintains a Distribution Reinvestment Plan (DRP), allowing unitholders to reinvest dividends at the net asset value. The latest declared distribution of 0.9510 cents per unit was paid in February 2026.
This approach reflects a balance between rewarding investors and preserving capital to support ongoing portfolio growth and diversification. The Trust’s net tangible assets per unit remained stable at around $1.60, indicating consistent underlying asset value despite distribution adjustments.
Governance and Operational Highlights
The Responsible Entity, The Trust Company (RE Services) Limited, saw a director change during the period with Vicki Riggio resigning and David Manoukian appointed in November 2025. The Trust operates without employees, relying on its appointed Manager, QRI Manager Pty Ltd, which manages investments in the Qualitas Wholesale Real Estate Income Fund and related entities.
Related party transactions, including management and performance fees, were conducted on normal commercial terms and disclosed transparently. The Trust also holds a loan asset to the Manager, which is interest bearing and structured to support the Manager’s working capital needs.
Auditor Review and Outlook
The interim financial statements were reviewed by KPMG with no issues noted, affirming compliance with accounting standards and regulatory requirements. Looking ahead, the Trust intends to continue managing its portfolio in line with its investment objectives, focusing on real estate loans secured by mortgages and leveraging capital raised to enhance portfolio diversification.
While past performance is encouraging, the Trust cautions that investment returns are not guaranteed and will be influenced by market conditions and portfolio performance.
Bottom Line?
Qualitas Real Estate Income Fund’s strong capital growth and disciplined management set the stage for continued portfolio expansion, though distribution trends warrant close investor attention.
Questions in the middle?
- Will the Trust maintain or adjust its distribution policy given the recent per-unit decrease?
- How will the new director appointment influence strategic decisions and governance?
- What impact will ongoing capital raisings have on portfolio diversification and risk profile?
