This article is from the Australian Property Journal archive
ALTERNATIVE asset manager MA Financial recorded an 11% drop in underlying revenue over 2023 and a drop in profit, but is expecting big things from its investment into and expansion of the business.
In its full-year results, underlying revenue fell to $269.9 million, although group recurring revenue lifted 23%. In FY23 recurring revenue represented 66% of underlying revenue, improving from 48% in FY22.
FY23 underlying net profit after tax of $41.6 million and underlying earnings per security of 26.0c were both down 32%.
“Importantly, this was delivered whilst making a material investment in future growth, a strategy that has served the group well over time,” it said.
“This strategic expense included investing in the growth of MA Money, expanding the group’s private credit business into the United States, opening new distribution channels in Singapore and Japan, plus investment in the growth of the MA brand.
“A stronger and more recognised brand will assist all areas of our business.”
Asset management delivered 80% of the group’s EBITDA before corporate costs, with an improved earnings mix as recurring revenue grew by 22% or $27.7 million offset by a $44 million decline in performance fees relative to an elevated contribution in FY22 and lower realised gains on investments.
Asset management received record gross fund inflows of $1.94 billion in FY23, up 27%.
Investor interest in the group’s private credit funds was “very strong” and the launch of the MA Marina Fund “represents scalable new alternative asset class for the business” it said. MA Financial established the MA Financial in April $225 million acquisition of the d’Albora marina portfolio and has been adding to it since. This month it acquired the East Coast Marina in Brisbane’s Manly Harbour for $33 million, taking it to 13 marinas – making it the largest marina group in the southern hemisphere.
Also this month, MA Financial snapped up a large-scale Docklands hotel in Melbourne for $96 million and has appointed TFE Hotels to operate the property from completion under its Vibe Hotels brand.
“Despite the challenging economic backdrop, we continue to see the benefits of our diversified business model, and our intentional strategy to build a business that can deliver for investors through the economic cycle,” joint CEOs Julian Biggins and Chris Wyke said.
“We continued to strategically invest during FY23 in building several highly scalable business platforms in Australia and offshore that will help us to deliver on our significant growth ambitions over the medium term.”
During 2023, it sold two pubs in the heart of Sydney’s LGBTQIA+ precinct for $61 million, less than what it paid three years earlier, as it lamented the slow revitalisation of Taylor Square.
The group’s development of its residential lending marketplace within the lending and technology division continued to build momentum. Finsure grew its managed loans by 21% to $110 billion, as it added almost 500 net new brokers to its platform during the year. Finsure now services 3,129 brokers. December was a record month with $4.5 billion of loan settlements.
Following the launch of its new product set early in the year, MA Money grew its loan book by 244% to $829 million with growth in loan settlements accelerating over the year.
