How MA Credit Income Trust Beat Targets with $19.7M Profit and $190.5M Raise
MA Credit Income Trust reported a strong half-year profit of $19.7 million, exceeding its return target, while successfully completing a $190.5 million capital raise and initiating a strategic buy-back to manage liquidity.
- Half-year profit of $19.7 million with 4.20% net return
- Fully subscribed $190.5 million capital raise via Entitlement and Shortfall Offers
- Distributions totaling 8.35 cents per unit declared for the period
- Off-market buy-back initiated, cancelling over 6.6 million units
- Net tangible assets increased to $572 million with 285.9 million units on issue
Strong Financial Performance
MA Credit Income Trust (ASX: MA1) has delivered a robust financial performance for the half-year ended 31 December 2025, posting a profit attributable to unitholders of $19.7 million. This translated into a net return of 4.20%, slightly exceeding its target benchmark of the Reserve Bank of Australia (RBA) Cash Rate plus 4.25% per annum. The Fund’s disciplined investment approach, focused on private credit assets across direct asset lending, asset-backed lending, and direct corporate lending, continues to underpin its consistent income generation.
Capital Raising Success
During the period, the Fund completed a fully subscribed capital raise totalling $190.5 million through a combination of an Entitlement Offer and a Shortfall Offer. This capital injection saw the issuance of over 95 million new units at $2.00 each, bolstering the Fund’s capacity to pursue its investment strategy. The proceeds have been deployed in line with the Fund’s mandate, managed by MA Investment Management Pty Ltd, to enhance portfolio diversification and income stability.
Distribution and Buy-Back Initiatives
Unit holders received distributions totalling 8.3517 cents per unit for the half-year, reflecting the Fund’s commitment to delivering steady monthly income. The distribution reinvestment plan remains active, providing investors with the option to compound their returns. Additionally, the Responsible Entity initiated an off-market buy-back program aimed at addressing liquidity concerns and mitigating any material discount to the net asset value (NAV) per unit. Over 6.6 million units were repurchased and cancelled, supporting capital management objectives and potentially enhancing unit price stability.
Balance Sheet and Governance
The Fund’s net tangible assets rose to $571.999 million as at 31 December 2025, supported by the capital raise and retained earnings. Units on issue increased to approximately 285.9 million, with the NAV per unit steady at $2.00. The half-year financial report was reviewed by KPMG, who issued an unmodified opinion, affirming the integrity of the Fund’s financial disclosures. Governance remains under the stewardship of Equity Trustees Limited as Responsible Entity, with a stable board overseeing operations.
Outlook
With a solid half-year performance, successful capital raising, and proactive liquidity management, MA Credit Income Trust appears well-positioned to continue delivering on its objective of consistent income with capital preservation. Investors will be watching closely how the Fund navigates evolving credit markets and maintains distribution momentum in the coming months.
Bottom Line?
MA Credit Income Trust’s strong half-year results and strategic capital moves set the stage for sustained income delivery amid evolving market conditions.
Questions in the middle?
- How will the Fund deploy the newly raised capital to maintain or enhance returns?
- What impact will the off-market buy-back have on unit liquidity and pricing going forward?
- How might upcoming accounting standard changes affect future financial reporting and disclosures?
