HMC Capital (ASX:HMC) Reports Strong 1H FY25 Financial Results
Financial Performance
HMC Capital reported an Operating EPS of 51.9 cents per share for 1H FY25, marking a 204% increase compared to 1H FY24. The company’s Assets Under Management reached $18.5 billion, a 45% rise since June 2024. Revenue for the period was $272.3 million, up 203% year-on-year. Management fees surged by 209% to $126.5 million. The company declared an interim dividend of 6.0 cents per share, fully franked.
Operational Achievements
The establishment and IPO of the $4.3 billion DigiCo Infrastructure REIT (ASX:DGT) was a significant milestone for HMC Capital. Additionally, the acquisition of Neoen’s Victorian portfolio for $950 million on deferred settlement terms has strengthened the company’s position in the renewable energy sector. HMC Capital is on track with its inaugural $2 billion+ fundraising for the Energy Transition platform, expecting the first close in 1H CY25. The HMCCP Fund I delivered a 56.2% net return over CY2024, outperforming the S&P/ASX300 by 23.2% per annum since inception.
Future Outlook
HMC Capital aims to grow its Assets Under Management to over $50 billion within the next 3-5 years, supported by its diversified business model and multiple growth drivers. The company plans to launch new funds across Real Estate, Digital Infrastructure, Energy Transition, Private Equity, and Private Credit. These initiatives are expected to drive continued revenue growth and enhance the company’s market position.
Sustainability Achievements
HMC Capital is committed to achieving Net Zero Emissions in its Real Estate platform by FY28. The Energy Transition platform contributes to Australia’s decarbonisation targets, supported by the acquisition of Neoen’s Victorian portfolio. The company received an MSCI ESG Rating of A and maintains a 50% gender diversity for independent board director positions.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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