This article is from the Australian Property Journal archive
HMC Capital (ASX: HMC) posted an improved profit of $114.4 million for FY24, supported by strong management fee growth, gains from investments and performance fees.
HMC posted a statutory net profit after tax of $114.4 million, up from $83.3 million in FY23.
This gain was largely attributed to revenue from management fees, dividend income, share of associate profit from investments in HomeCo Daily Needs REIT and HealthCo Healthcare and Wellness REIT of $12.4 million and net fair value gains of $121.4 million.
Pre-tax operating earnings were at $129 million, up 57% on FY23, with pre-tax operating EPS at 37 cents, up 40% on FY23.
The group also posted a final dividend of 6.0 cents per security.
“HMC delivered a strong financial result in FY24 with operating EPS up 40%. This is consistent with the annualised growth in earnings achieved since the company listed almost five years ago,” said David Di Pilla, managing director at HMC Capital.
HMC saw a 30% gain on assets under management over the year to $12.7 billion, with net tangible assets and undrawn debt at $1.4 billion. And no debt drawn as at 30 June 2024.
HMC saw a 14% increase in management fees to $79.7 million, driven by Real Estate FUM growth including the new unlisted institutional Unlisted Healthcare Wholesale Fund.
HMC’s investment income increased to $94.9 million, driven by the $32.7 million increase in the value of HMC’s investment in HMC Capital Partners Fund I (HMCCP).
With HMC managing more than $9.6 billion of real estate across multiple vehicles in its platform, which generated $85 million of EBITDA including management fees and co-investment income.
Across the platform, HMC has a development pipeline of $1.6 billion.
In the group’s efforts to establish a $5 billion private credit platform, HMC acquired commercial real estate private debt fund manager Payton Capital in a $127.5 million deal.
“The past 12 months has seen HMC establish three major new platforms. HMC is now a truly diversified alternative asset manager with scalable platforms in real estate, private equity, private credit, energy transition and digital infrastructure,” added Di Pilla.
“We believe that each one of these platforms has the potential to grow beyond $10bn of AUM each over the next five years.”
HMC Capital has provided a FY25 dividend guidance of 12 cents per share.
