Why fund managers keep pointing to Harvey Norman's hidden property value
Longwave Capital picked Harvey Norman as its 2025 Christmas stock, citing a growing international store network and more than $4.5 billion of owned property.
30 Nov 2025 · 5 min read
In short
Harvey Norman's owned property portfolio is valued at more than $4.5 billion, up from $3.9 billion when Spheria Asset Management first invested in 2023.
International stores now serve a population of 90 million, 3.3 times the size of Australia, and contribute around 30% of group EBITDA.
Ten Cap took profits in November 2025, citing tougher comparable sales growth ahead and a paused interest rate cut cycle.
Retailer Harvey Norman Holdings was Longwave Capital's selection for its 2025 Christmas stock pick, a choice the manager described as a non-obvious selection for a 20-year portfolio built around a large family shareholding that aligns management with shareholders across all parts of the business.
Property, international stores and a strengthening consumer
Longwave's November 2025 Monthly Report set out the underappreciated part of the thesis: a decade-long build-out of an international store presence now serving a population of 90 million, 3.3 times the size of Australia's, contributing 30% of group EBITDA and growing faster than the domestic business, with international EBITDA up 11% a year over the past decade against 6% domestically. Contact Asset Management, a long-term holder, used its July and August 2025 Monthly Reports to argue the market fails to appreciate the value of both the underlying property assets and the opportunity for growth outside Australia, a view rewarded when the stock rose around 20% in August on a strong FY25 result and buoyant trading update.
If you buy Harvey Norman today, you're buying $3.20 of in-use retail property and a retail business trading at 10.7x FY27 EV/EBIT versus peers at 12.6x EV/EBIT.
— Longwave Capital, Monthly Report, November 2025
Spheria Asset Management's September 2025 Quarterly Report detailed the scale of the property backing directly, noting Harvey Norman's owned portfolio was valued at $3.9 billion at the time of its 2023 entry and has since grown to more than $4.5 billion, implying the retail business alone was trading at around three times enterprise value to EBIT when the fund first invested. BKI Investment Company's September 2025 Monthly Report attributed a further 10.5% share price gain that month to a meaningful pick-up in local sales, continued offshore growth and a strong property portfolio valuation update.
What managers are watching next
Not every manager expects the momentum to continue unchecked. Ten Cap took profits in November 2025 following a solid trading update, flagging that Harvey Norman was cycling much tougher comparable sales growth into year-end just as the interest rate cut cycle paused. With comparable sales growth of around 9% reported at the November 2025 AGM and much of the strength coming from offshore operations, the question for remaining holders is whether that international growth engine can keep offsetting a slowing domestic cycle.
Questions
How much property does Harvey Norman own?
According to Spheria Asset Management, Harvey Norman's owned retail property portfolio was valued at more than $4.5 billion as of 2025, up from $3.9 billion when the fund first invested in 2023.
How important is Harvey Norman's international business?
Longwave Capital notes Harvey Norman's international stores now serve a population of 90 million, 3.3 times the size of Australia, contribute around 30% of group EBITDA, and have grown EBITDA at roughly 11% a year over the past decade.
Are fund managers cautious on Harvey Norman's near-term outlook?
Ten Cap took profits in November 2025, noting Harvey Norman faces tougher comparable sales growth comparisons into year-end and that a paused interest rate cut cycle could make it difficult to sustain recent trading momentum.
6 managers, 11 comments, with each manager's latest recorded position.
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