- HomeCo’s assests under management have grown by 144 per cent to $2.5 billion as the diversified property firm surveys the field after a busy year
- The company successfully listed HomeCo Daily Needs REIT (HDN) in November with its AUM growing by 82 per cent
- FY21 funds from operations (FFO) of 13.1cps was up 51 per cent versus FY20 pro forma FFO of 8.7cps
- The HealthCo IPO is fully underwritten and on track to list in early September, with strong levels of investor demand
- Shares in HMC closed down 0.50 per cent at $5.96 on August 25
Home Consortium (HMC) has had a busy year which has been reflected in its assets under management (AUM) surging 144 per cent to $2.5 billion.
The company successfully listed HomeCo Daily Needs REIT (HDN) in November and its AUM is growing by 82 per cent as the company currently does the rounds raising interest for its HealthCo (HCW) spinoff.
HomeCo has roughly $1 billion liquidity which it said provided the capacity to scale funds management platform to $10bn plus of AUM by CY24
FY21 funds from operations (FFO) of 13.1cps was up 51 per cent versus FY20 pro forma FFO of 8.7cps.
HMC managing director and CEO David Di Pilla said he was pleased with the results.
“We delivered FFO of 13.1cps or 15.2cps on an adjusted basis for the in-specie distribution, up 75% on FY20,” he said.
“FY21 was a transformational year for HMC on our journey to become Australia’s alternative asset manager of the future.
“We successfully transitioned from a pure asset owner with $0.9bn of AUM at IPO to a capital light fund manager with the ability to grow externally managed AUM to $10bn-plus with existing capital sources.”
Mr Di Pilla said HMC would manage two ASX-listed vehicles in sectors that are opportunity-rich and exposed to attractive global megatrends – last-mile logistics, and health and wellness.
“Post the establishment of HCW, HMC will have ~$1 billion of available liquidity providing significant capacity to rapidly scale our funds management platform and expand into new alternative asset classes which leverage our ability to execute large complex transactions and access to capital,” he said.
“Our goal is to grow externally managed AUM to $5bn by the end of 2022 and $10bn by the end of 2024.”
HMC will possess just $207.7 million in direct property investments after the formation of HCW, consisting of $188.1 million in LFR assets and $19.6 million in healthcare assets.
In comparison to zero in the previous equivalent quarter, HMC will manage $2.2 billion in external AUM across two ASX-listed vehicles.
The HCW IPO is fully underwritten and on track to list in early September, with strong levels of investor demand driving an upzise of the IPO from $500 million to $650 million.
“Looking ahead, our management team remains highly motivated and excited to take HMC into its next growth phase,” Mr Di Pilla said.
HomeCo gave a pre-tax FFO guidance of at least 18.5 cents per security for FY22, up 35 per cent, with a DPS guidance of 12 cents.
Shares in HMC closed down 0.50 per cent at $5.96 on August 25.