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Qualitas Real Estate Income Fund (QRI.AX)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$2.42 - $3.69$3.02
Multi-Stage$5.39 - $5.92$5.65
Blended Fair Value$4.33
Current Price$1.61
Upside169.20%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019
DPS0.00%0.00%0.140.110.070.060.000.000.000.000.000.00
YoY Growth--26.81%57.09%20.38%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--8.87%6.91%4.84%4.35%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)102.37
(-) Cash Dividends Paid (M)96.23
(=) Cash Retained (M)6.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.4712.807.68
Cash Retained (M)6.146.146.14
(-) Cash Required (M)-20.47-12.80-7.68
(=) Excess Retained (M)-14.33-6.65-1.54
(/) Shares Outstanding (M)376.83376.83376.83
(=) Excess Retained per Share-0.04-0.020.00
LTM Dividend per Share0.260.260.26
(+) Excess Retained per Share-0.04-0.020.00
(=) Adjusted Dividend0.220.240.25
WACC / Discount Rate6.80%6.80%6.80%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.42$3.02$3.69
Upside / Downside50.25%87.28%129.37%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)102.37101.35100.3399.3398.3497.35100.27
Payout Ratio94.00%93.20%92.40%91.60%90.80%90.00%92.50%
Projected Dividends (M)96.2394.4592.7190.9989.2987.6292.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.80%6.80%6.80%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)87.5488.4489.33
Year 2 PV (M)79.6481.2782.92
Year 3 PV (M)72.4474.6876.97
Year 4 PV (M)65.8968.6271.43
Year 5 PV (M)59.9263.0466.29
PV of Terminal Value (M)1,667.331,754.151,844.55
Equity Value (M)2,032.762,130.202,231.49
Shares Outstanding (M)376.83376.83376.83
Fair Value$5.39$5.65$5.92
Upside / Downside235.05%251.11%267.81%

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