Company Interview / How Qualitas is responding to the housing crunch

Key Points:

Qualitas (ASX:QAL) reports 30% increase in net profit before tax to $30.2 million38% rise in funds management revenue; guidance for FY26 points to 13-25% growthStrong institutional backing, with two new mandates from global pension fundsHousing shortages and migration sustain demand for alternative capital and residential development

Andrew Schwartz, Qualitas CEO, reports a robust period of growth, with net profit before tax up 30% to $30.2 million in the first half. Funds management revenue has grown by 38%, reaching $42.5 million, driven by significant deployment activity. Schwartz highlights a 57% increase in capital deployment to $3.7 billion compared to the previous period, and net growth in fee-earning funds to $10.9 billion (ASX:QAL). Shareholders benefit with an interim fully franked dividend of 3.5 cents per share. Qualitas has issued guidance for FY26 net profit before tax of $60-$66 million, suggesting a 13-25% increase on the previous year.

Schwartz points to strong institutional support, with over 80% of total capital coming from the world’s largest investors. Key mandates from a global pension fund for the credit strategy, and a European pension fund for the build-to-rent strategy, underpin confidence in the Australian residential sector. A substantial $1.2 billion single investment exemplifies Qualitas’ capacity for large-scale deals due to this significant institutional backing.

He expresses the view that ongoing housing shortages, low vacancy rates, and high migration continue to sustain demand for private credit in multi-dwelling residential markets. Schwartz expects these drivers to ensure further momentum for Qualitas, regardless of interest rate fluctuations.