HMC Capital shares dive on FY26 growth target
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More news: HMC Capital shares slumped in morning trade after the investment manager said it was targeting pre-tax earnings of 40 cents per share in FY26, down from 56 cents per share achieved in FY25.
HMC shares were down 7.3% to $3.25 at 11:40am AEST, extending losses to 67% since the turn of the year.
HMC Capital posts 47% jump in FY25 assets under management
The news: Investment manager HMC Capital has reported a 47% increase in assets under management to $18.7 billion, as statutory profit after tax more than doubled to $265.2 million for the year.
The numbers: HMC's assets under management grew by 47% and pre tax operating earnings were $224.6 million, up 74% on last financial year.
Earnings per share jumped 51% to 56 cents and HMC announced a dividend of 12 cents per share.
HMC highlighted that its private equity fund HMCCP Fund I had recorded a net return of 43.6% and that its private credit assets had grown by 21%, with its deal pipeline expanding to $3 billion.
However, it also suggested growth could be slowing, aiming for "at least" 40 cents earnings per share in FY26, a target almost 30% lower than what it achieved in FY25.
The context: HMC Capital said it had now fully deployed its $1 billion last mile logistics fund targeting real estate assets and was well placed to keep growing the different parts of its business.
"This growth highlights the scalability of our business model and the strength of our diversified platform spanning real estate, private equity, private credit, digital infrastructure and energy transition," HMC managing director David Di Pilla said.
"Each of these verticals is now generating meaningful earnings while also providing strong optionality for future expansion.
"Private equity achieved outsized returns, underpinned by disciplined capital allocation, while our private credit platform expanded by over 20% as we built scale and broadened institutional relationships. In real estate, we progressed multiple unlisted fund initiatives and advanced our development pipeline, while continuing to enhance tenant and capital partner relationships across our portfolio."
The source: ASX
