ASX:QAL
Qualitas Ltd
Investment Summary
The fund managers believe that Qualitas Ltd presents significant potential for growth, particularly as a founder-led alternative real estate investment manager with a focus on private credit and equity across the Commercial Real Estate sector. In their opinion, recent share price increases, including a 12.0% rise in February 2025 following a strong 1H25 result and record capital deployment, indicate robust performance. The emergence of green shoots in both construction project sales and improved sentiment towards real estate equity strategies, bolstered by recent interest rate cuts, further supports this optimism. Additionally, the fund managers note the impact of government policy, such as the stamp duty exemption for off-the-plan purchases, as beneficial for project viability. They maintain a positive outlook, asserting there is plenty more upside as Qualitas continues to benefit from structural tailwinds related to private credit penetration and housing undersupply in Australia.
Commentary From The Managers
Blackwattle Investment Partners
28 Feb 2025
$2.90
- Qualitas is a founder-led alternative real estate investment manager focused on private credit and equity across the Commercial Real Estate sector.
- Shares rose 12.0% in February following a strong 1H25 result with a record 1H capital deployment.
- Industry green shoots are emerging with a surge of sales activity in Qualitas’ construction projects in December and January.
- The recent interest rate cut has further supported improving apartment development feasibility.
- Sentiment towards real estate equity strategies is improving among institutional investors.
- Despite the recent share price run, Blackwattle Investment Partners continues to hold because they see plenty more upside for Qualitas.
- Qualitas is well-positioned to capitalize on structural tailwinds like the ongoing penetration of private credit and the housing undersupply in Australia.
Blackwattle Investment Partners
31 Oct 2024
$2.74
- Qualitas is a founder-led alternative real estate investment manager focused on private credit and equity across the Commercial Real Estate sector.
- It is the only pureplay in the Australian market.
- Share price rose 17% in October due to improved outlook for residential lending.
- Victorian government announced a one-year stamp duty exemption for off-the-plan purchases.
- 50 higher density “activity centres” established around Melbourne’s high frequency train lines.
- Emerging signs of apartment pricing escalation supporting project feasibility.
- Despite recent share price increase, Blackwattle Investment Partners views strong upside potential.
- Qualitas is positioned to capitalize on structural tailwinds related to the penetration of private credit and the housing undersupply in Australia.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.