WAM Alternative Assets (WMA) H2 2025 earnings summary

Executive summary

• Portfolio delivered just over 5% return for FY2025, with since-inception performance at 8.9% per annum and lower volatility than equities.

• Fully franked final dividend increased by 15.4% for FY2025, with a full year dividend of 5.7 cps and a final dividend of 3.0 cps, exceeding market expectations.

• Portfolio revitalization phase is largely complete, shifting from legacy Blue Sky assets to a broader alternatives mandate and entering a growth phase.

• Share register now consists of 70% new investors since 2020, with strong alignment and support for the current strategy.

• Operating profit before tax reached $8.3 million and after tax $6.2 million for FY2025.

Financial highlights

• Pre-tax NTA per share at 30 June 2025 was $1.17.

• Portfolio return for FY2025 was just over 5%, with 5.3% growth.

• Since October 2020, 19.9 cps in fully franked dividends paid, or 27.1 cps including franking credits.

• Dividend coverage exceeds two and a half years, with a healthy profit reserve of 14.2 cps at 30 June 2025.

• Discount to NTA narrowed from over 30% to around 12-13%.

Outlook and guidance

• Most legacy assets (19% of portfolio) expected to be exited during FY2026.

• Portfolio positioned for sustainable growth with a maturing base of institutional-grade private market investments.

• Board confident in dividend sustainability, with 2.4 years of coverage based on current profits reserve.

• Optimism for continued solid dividends and asset growth, with increasing transaction activity in private equity and real estate.

• Water rights outlook is positive due to government buybacks and rising prices.