Good morning, and thank you for joining today's call. With me on the call this morning are Group CFO Will McMicking and Group COO Victoria Hardie.

I'll start the presentation on slide 5. Financial year '26 was a year of disciplined execution against our key strategic priorities, leaving the business well-positioned for growth in financial year '27.

Firstly, we delivered financial results in line with our guidance. Second, we made substantial progress on the strategic initiatives we outlined to simplify, scale, and strengthen the business.

Over the last 12 months, we've sharpened our focus on the areas where we have the greatest competitive advantages and the strongest growth opportunities, improving both the quality of earnings and the scalability of the platform. Third, we've materially strengthened the balance sheet through capital recycling.

HMC today has considerable balance sheet liquidity to accelerate organic growth across all our verticals. Finally, we're entering financial year '27 with significant dry powder and fundraising momentum.

We see multiple pathways to grow our fee-generating AUM and recurring earnings across each of our verticals. I'd now like to turn to the result itself on slide 6.

Operating EPS finished at 40.4 cents for the year, in line with our guidance. Fee-generating assets under management increased to $16.9 billion, up 15% on financial year '25.

This was predominantly underpinned by growth in institutional capital partnerships during the period. Recurring funds management revenue increased to $165.5 million, up 22% on financial year '25, demonstrating strong growth in high-quality recurring income, which we expect to accelerate in financial year 2027.

We also finished the year with a strengthened balance sheet. We now have liquidity and investment capacity with tangible assets and undrawn debt capacity of approximately $1.9 billion.

Finally, the board has declared a final dividend of 6 cents per share for the period, bringing the full-year dividend to 12 cents per share. Turning now to slide 7, our strategy.

This is the strategy we outlined in May, and I'm not going to spend a lot of time walking through it today because it remains unchanged and continues to underpin the way we're building HMC Capital. At its core, our purpose is simple: to create value in quality real assets through operational expertise, particularly where we see opportunities that are overlooked, underutilized, or can benefit from active management.

The key message is that this strategy provides a repeatable framework for value creation by building scalable platforms which deliver high-quality, recurring funds management earnings. Moving now to slide 8 and progress on our strategic objectives.

Starting with simplify: during the period, we completed the windup of HMC Capital Partners and commenced the scale-back of our US digital operations, which is now reported as a discontinued operation. These actions have delivered run-rate cost savings and released approximately $150 million of capital to the balance sheet from HMCCP.

On scale: in private credit, we secured $1.35 billion of new institutional mandates, providing substantial dry powder to grow fee-generating AUM. In real estate, we continue to grow our unlisted institutional AUM, supported by strong demand for retail development opportunities.

In energy, we completed the $603 million institutional partnership with KKR. This validates the quality of the platform and provides capital to fund future developments.

In digital, we've taken important steps to recycle capital out of lower-returning US assets into higher-yielding opportunities within the Australian platform. Finally, on strengthen: the steps taken this year have strengthened the balance sheet as we end the year with increased liquidity and support future growth.

Importantly, we have over $5 billion of AUM growth opportunities across the platform and are ready to scale our verticals further. We're building a business driven by recurring management fees, supported by long-duration institutional capital and multiple growth platforms.

Turning now to slide 9, which highlights the significant progress we've made in building HMC Capital into a scaled alternative asset manager over the last 5 years. Since 2021, fee-generating AUM has grown from just over $2 billion to $17 billion, representing a compound growth rate of approximately 52% per annum.

Over the same period, funds management revenue has increased at around 60% per annum. Importantly, the majority of that growth has been generated organically.

What's often overlooked is that three of our four verticals—being digital, private credit, and energy—were only established over the last few years. A considerable portion of our effort during the past 18 months has been focused on institutionalizing and operationalizing these platforms, investing in people, systems, governance, and origination capability to create a scalable foundation.

Today, we are seeing the benefits of that investment. Each platform is now well-positioned to attract capital and grow its recurring earnings through '27 and beyond.

60% of our AUM is now held in perpetual vehicles, creating long-duration capital that underpins our earnings. Moving now to slide 10, our balance sheet.

Over the last 3 years, we've used our balance sheet to seed and scale new platforms. We've executed over $3 billion of strategic acquisitions to establish our digital, private credit, and energy verticals, and, in so doing, increased fee-generating AUM by $8.8 billion and added more than $100 million per annum of funds management revenue.

Minimal goodwill was paid to create these recurring earnings streams. Today, following the capital recycling achieved through the energy partnership and the windup of HMCCP, our balance sheet is back to $500 million of undrawn debt capacity and $1.4 billion of investments.

We're now focused on driving higher returns from these balance sheet investments across our co-investments, our listed positions, and our Aluma energy platform. We've identified a number of opportunities to recycle our capital into higher-returning investments over the medium term.

Now let's put this into context. The chart on this slide highlights this transition and demonstrates that by optimizing our balance sheet investments of approximately $1.4 billion, we believe we could generate an additional $25 to $50 million per annum of underlying earnings over time.

As we think about it today, there are multiple pathways to achieve this, and as part of that, we expect the weighting towards principal investments to increase from around 35% to 50% as we recycle our balance sheet capital positions. Now moving to slide 11, which highlights why we have so much momentum coming into '27 with over $5 billion of growth opportunities across our verticals.

In real estate, we have around $2 billion of dry powder through our unlisted funds HARP, HUG, LML, and our listed HDN. In digital, DigiCo is progressing 67 megawatts of new capacity across SYD1 and Adelaide 1, representing $1.2 billion of near-term capital growth.

HMC is also progressing a further 1 gigawatt of greenfield opportunities across digital infrastructure, leveraging our digital and energy expertise. In private credit, following the establishment of two institutional mandates in recent months, we now have over $1 billion of investment capacity across our mandates and pooled funds.

While the current dislocation in the residential real estate market is creating challenges for some managers, we believe it will create opportunities to deliver increased fund returns for our investors without materially increasing risk. We believe our platform is now market-leading in terms of risk and asset management, independent valuations, and governance.

In energy, we have committed equity for our first BESS project, with around 2 gigawatts of further developments moving towards FID over the next couple of years. As you can see, each vertical has a clear pathway to grow, and we are well-positioned to execute across all of them.

With that, I'll now hand over to Victoria to take us through the detail.

Thanks, David, and good morning. Starting with our real estate vertical on slide 13.

This remains our largest and most established platform, contributing almost $90 million in management and transaction fee revenue in FY '26. Our unlisted real estate AUM grew 15% in FY '26 to $2.9 billion, underpinned by strong deployment across our retail property strategies.

David already touched on our $2 billion of growth opportunities in this vertical, providing a clear path to further scale the platform. A key differentiator for HMC's real estate platform is that we are not simply allocators of capital.

We actively manage and develop assets to create value for our investors. This is evidenced by the performance track record of our existing unlisted funds, which have generated a 12% weighted average IRR since inception.

We also continue to assess selective asset sales and capital recycling opportunities across the listed platform to support a reduction in gearing, enhance balance sheet flexibility, and take advantage of value-accretive acquisitions. On HCW, the dividend guidance has been reinstated at 6 cents per share in FY '27, subject to the Healthscope situation being resolved, which we expect in the coming weeks.

Importantly, 100% of Healthscope rent has been paid up to and including August 2026. Turning to private credit on slide 14.

Our private credit business grew 17% in FY '26 to $2.3 billion, driven by strong inflows from wholesale investors into both our pooled and direct funds. That's before the $1.35 billion of institutional mandates we recently announced.

The financial result for FY '26 for private credit was impacted by reduced loan origination volumes in the second half, reflecting a more disciplined approach to deployment in response to evolving market conditions. We have, however, seen a strong start to loan origination volumes this year.

The business continues to focus on middle-market CRE loans of $20 to $250 million, primarily senior secured lending in the residential and industrial segments across the Sydney, Melbourne, Brisbane, and Gold Coast metro markets. We have a pipeline of over $4 billion of deals under evaluation to support deployment in FY '27 and are continuing to strengthen our origination capability, expanding into the New South Wales market, increasing our average loan sizes, and deepening our repeat borrower relationships.

The quality of the book underpins continued growth in our private credit business. Portfolio construction is deliberately diversified, with the largest single exposure approximately 3% of the book.

Institutional-grade risk management and governance and the significant investment we've made in the platform positions us to keep growing with discipline. Slide 15 demonstrates why this is now an institutional-grade platform.

You can see the transformation between 2024 and 2026. Committed AUM has grown from $1.5 billion to $3.3 billion, and the proportion held in pooled funds and mandates has increased from 49% to 85%.

We've also introduced institutional mandates, a majority-independent trustee board, quarterly independent valuations, and dynamic AASB 9 provisioning, none of which were in place 2 years ago. Supporting this is a market-leading team of more than 70 specialists, most drawn from senior banking backgrounds.

Our key leaders in credit, property risk, and lending bring an institutional approach developed over long careers at the major banks. Our property risk team is, in our view, best in market, with in-house valuers, construction managers, and quantity surveyors that most managers simply don't have.

We also provision for credit losses like a bank does, with EY conducting quarterly independent reviews of provisioning and carrying values. The track record of our flagship core fund speaks for itself, returning 8.7% over the last 12 months and with zero principal losses since inception.

This is now a scalable institutional-grade platform with the capability to attract and retain global capital. You can see the proof of that on slide 16, with $1.35 billion of new institutional mandates from global investors, as previously announced in June.

These mandates will take our AUM to $3.3 billion once deployed, representing growth of 120% over the past 2 years. These mandates include a strategic partnership with TPG Credit, one of the largest and most experienced credit investors globally.

The partnership was established following TPG's rigorous manager selection and due diligence process in Australia. The partnership is focused on larger opportunities, having been seeded with $375 million of loans.

Importantly, our origination pipeline is building to support these mandates and to seed new ones, and we expect institutional capital to represent a growing share of AUM over the medium term. Turning to digital infrastructure on slide 17.

DGT delivered a strong FY '26 result, with underlying EBITDA of $127 million, ahead of the $125 million guidance, and generating $35 million of management fee revenue for HMC. Simon Mitchell and Ralph Guirguis were last week appointed as co-heads of DGT, with both having played critical roles leading the development and execution of DGT's refreshed strategy.

Alongside this, Damien Sker has been appointed as HMC's Managing Director, Infrastructure, covering both our digital and energy verticals. The DGT strategy update announced in May is now largely progressed, with the sale of Chicago and LAX well-advanced.

In addition, we have recently reached agreement with our tenant at Dallas and Kansas to extend the lease terms to 2036. We are now focusing on Australia, where DGT has operational and development capabilities with a team of over 100 people.

The expansion of our marquee SYD1 asset is well underway. The first 20-megawatt deployment has been completed on time and budget.

DGT has executed LOIs for the remaining 52 megawatts of capacity with high-quality customers, and the expansion has been accelerated, with a targeted delivery over FY '27 and '28. The sale of US assets will increase DGT's liquidity to around $1.2 billion, which fully funds the highly accretive SYD1 expansion.

DGT is also progressing the Adelaide 1 15-megawatt brownfield expansion, underpinned by advanced customer discussions. Together, these developments support a pathway to a stabilized Australian platform EBITDA of $250 million for DGT once the SYD1 and Adelaide 1 expansions reach stabilized occupancy and billing.

The digital platform continues to benefit from powerful megatrends, with AI, cloud migration, and data growth driving sustained demand for high-quality, power-backed infrastructure and supporting future growth in digital AUM. In Australia, the ability to originate, develop, and operate power-enabled sites responsibly, with a clear focus on community engagement and social license, is becoming a key differentiator.

HMC is assessing a pipeline of over 1 gigawatt of greenfield opportunities where we can bring together development expertise, operational capability, and energy market insights from across the group. Turning now to energy on slide 18.

Through Aluma Energy, we've now established a scaled, integrated renewables and storage platform, a top 10 platform in the National Electricity Market, with $1.5 billion of AUM across wind, solar, and battery storage. Importantly, we've transitioned energy from balance sheet seeding to institutional capital, with a development pipeline and multiple pathways to realize value over time.

The platform has 652 megawatts of operating capacity, of which 85% is contracted, and a substantial development pipeline of around 5 gigawatts across 19 projects. Within that, we have roughly 2 gigawatts of near-term projects progressing towards final investment decisions, including the Moorabool, Molong, Boorowa, and Canbullen projects.

The introduction of institutional capital gives us a capital-light growth pathway while preserving HMC's exposure to platform value creation. Through our institutional partnership, Aluma has secured a $248 million capital commitment to fund up to 90% of the equity component of the platform's first BESS project, and HMC's invested capital has reduced to around $200 million while retaining the majority of future upside.

There are multiple pathways to realize value in the platform, including the introduction of additional third-party capital into the platform via syndication or to fund further growth, and a clear AUM pathway of $3 billion-plus from near-term projects. Slide 19 sets out Aluma's near-term development projects.

We are actively progressing these projects across batteries and wind, with each advancing well through land, approvals, grid connection, and offtake. Importantly, we expect these projects to deliver 20%-plus target returns on our invested capital.

Finally, on sustainability on slide 20, which remains core to how we operate. As the group has expanded, we're aligning our sustainability framework with our broader platform.

During the year, we reviewed our priorities to reflect the new Aluma Energy and digital verticals, and this is informing the evolution of our strategy and targets, with a further update expected later this year. We made solid progress across all three pillars.

From an environmental perspective, our Aluma Energy partnership is supporting the decarbonization of the NEM, and two of our real estate developments achieved 4-star Green Star certifications. We continue to focus on social and community impact, with the HMC Capital Foundation making grants to nine organizations, including six scholarships supporting First Nations and regional students.

Gender diversity improved to 67% female representation for our independent board director positions across the group, and we maintained our MSCI ESG rating of A. It's an ongoing priority, and we remain committed to pursuing growth that supports positive long-term impacts for all stakeholders.

I will now hand to Will McMicking to discuss our financial results.

Thanks, Victoria. Turning now to the earnings summary on slide 22.

For FY '26, HMC delivered operating earnings before tax of $166.8 million, or 40.4 cents per share, which was in line with guidance. Adjusted for the discontinued operations of StratCap USA, the group recorded funds management EBITDA of $88.5 million, and operating earnings increased to 43.7 cents per share.

Management fee revenue increased 23% to $159.3 million, driven by fee-earning AUM growth in real estate and a full-year contribution from digital. Transaction and performance revenue reduced to $41.2 million, reflecting the absence of larger transaction revenue that was recorded in FY '25.

Employee expenses were stable year on year, while corporate expenses increased modestly as we continued to invest in platform capability. Distribution income declined, reflecting no distributions received from HCW for the period, while investments comprised an unrealized fair value gain from the energy platform of $146 million, partly offset by a fair value loss in the Capital Partners Fund of $55 million.

Interest expenses increased to $22.8 million due to senior debt drawn to warehouse energy transition assets. A final dividend of 6 cents per share has been declared, bringing total FY '26 dividends to 12 cents.

Turning to the balance sheet on slide 23. Net tangible assets at 30 June were $1.2 billion, or $2.95 per share.

Following the completion of the energy sell-down, HMC's investment in the platform has moved to an equity-accounted investment, while the HMC Capital Partners in-specie return has transitioned to a direct investment held at fair value, following the windup of the fund. Gearing was 10.7% as at June '26, which decreased compared to December '25 with the completion of the energy transaction.

Moving to capital management on slide 24. Drawn debt of $219.5 million is substantially lower than December '25, leaving more than $500 million in cash and undrawn debt, which, when combined with $1.4 billion of tangible balance sheet assets, positions HMC well into FY '27.

I'll now hand it to David.

Thanks, Will. Now turning to the outlook for financial year '27.

We move into financial year '27 with real momentum: a strong balance sheet and a platform with dry powder for earnings growth. We're guiding to financial year '27 underlying earnings of at least 35 cents per share, and that's a 16% year-on-year growth.

However, if we exclude the energy transition fee capital charge of $35 million earned in financial year '26, this represents 60% growth year on year. That step-up is underpinned by three drivers: one, more than 30% in recurring funds management revenue driven by our digital and private credit platforms; two, a 35% increase in co-investment distributions from DGT, HCW, and HDN; and finally, fixed cost leverage, as we expect to grow our recurring revenues faster than the cost base.

Importantly, this guidance excludes any upside from capital recycling on our balance sheet, large transactions, and one-off gains and investment income on existing principal investments. We also expect 100% conversion of underlying earnings guidance to cash in financial year '27, as non-cash arrangements for management fees cease.

On the dividend, we're guiding to 15 cents per share, up 25% on financial year '26, supported by the growth in recurring earnings and consistent with our strategy of largely reinvesting retained earnings into accretive growth opportunities. I'd like to thank everyone for joining, and I'll now hand the call back to the operator for Q&A.

Morning, David and team. Thanks for your time.

Just interested in your feedback just on your private credit funds, particularly just on the pooled side. We're seeing redemption requests lift.

What have you sort of assumed in your '27 guidance around the trajectory of that component, noting that you've obviously got strong inflows coming through from the insto side and deployment of that mandate?

As I said earlier, our credit standards across the group are in really good shape. We have a really good team on the ground dealing with most of our pooled fund wholesale investors.

We stay close to them, we communicate regularly. We've seen a small amount of redemption activity in the last few months, but when we offset that against inflows, it's quite negligible.

Great. You're still seeing net inflows, I take it, from the pooled?

There were inflows this month, and so they largely offset the outflows.

Great. Maybe just a question for Will, just taking a look at page 30 on the earnings by division.

Just on the energy transition line, doesn't seem like there's any EBITDA coming through and debt costs from the platform. Just wanted to confirm, are those excluded from your measure of underlying earnings?

Yes, the gain of $146 million there, that was net of the platform operating cash flows and financing. We ended up booking a fair value gain on the assets of about $200 million after transaction costs, we effectively valued the platform EV at $1.2 billion.

Right. Just in terms of contribution into '27, just on the operating side, post-interest expense, could you just give us a little bit of steer there?

We're really trying to focus the attention on underlying earnings, which is the funds management EBITDA, cash distributions, and then any realized gains from principal investments. will probably just leave it at that.

As Vic sort of touched on, the platform is delivering well, but that's very much a long-term investment, it'll be realized in the future, and that's when it will go into earnings.

Thanks, Will.

Hey, good day, guys. Hey, David, you spent a bit of time talking about optimizing returns this morning from balance sheet investment.

I think you threw out the number out there, $25 to $50 million on a per annum basis from optimizing returns. Can you just give me some insights into what you mean there?

Is it simply putting stuff, putting your money into higher-yielding investments, yielding 9% rather than 6% and hence you get the $25 to $50 million a year, or is it more, hey, we're going to get the transaction machine going and we're going to do deals that will generate $25 to $50 million a year of transaction profits?

You've asked two questions in one, and I'll break that up into two questions, Simon. You're very insightful in terms of the comment.

It's the former, it's basically generating a better return on our capital. Yes, you're correct, recycling from lower-yielding investments into higher-yielding returns.

That's where the comment around the $25 to $50 million of increased earnings comes from. It's really just recycling into higher-yielding returns.

Then in terms of the guidance, I was very clear and explicit: the guidance does not include any transaction fees.

Right. That's very clear.

I just got a follow-up to the previous chap's question to Will about energy. Hey, Will, am I reading you right to conclude that energy is unlikely to generate any EBITDA contribution in FY '26 then?

Sorry, FY '27.

No, that's not correct. I guess what we're saying is all our equity investments, we include cash distributions in our underlying earnings.

That's a long-term investment. It's planning to invest, not declare dividends.

As and when those investments are realized in the future, that's when it will go into earnings. No, that's profitable.

Right. Is it possible that if the Moorabool battery a decision gets made over the next 12 months over the course of FY '27, for example, if you decide to sell the project, sell the land, that could contribute to HMC group profit?

Yes. The definition is if we're realizing net cash gains, then we'll book it into underlying profits.

Excellent. Just my final question.

Hey, I think in Victoria's comments, she talked about slow down in private credit in the second half. Can you just give me some insights into what happened there?

Is it just you guys hitting the brakes, or was it a slowdown in the general market conditions?

It was a disciplined decision and a deliberate one to slow down on the lending side in response to the evolving market conditions that we were seeing following the interest rate hikes and the budget. It was a risk management strategy.

As I said in my remarks, we have seen an uptick in origination volumes in the beginning of FY '27.

What's average LVR across the platform now?

I think we would say that we quote within the pooled fund, so that's probably the best way to look at it, where we've got the bulk of our exposures. The way the pooled fund works is it has an average target of 70%, but that's what we aspire to, or that's what we aim for, no more than 70%.

It's running today in the mid-60s on average. It's actually 58% actually on average, it's lower than that actual.

Today below 60%, but the average that the pooled fund targets is 70%.

All very good. Thanks very much, guys.

Cheers.

good morning, David and Will. Thanks for the presentation.

Could I just clarify, and I think I know the answer, but because you've discussed it, a couple of occasions, but does guidance include any allowance for unrealized fair value gains on investment assets?

You're correct, Ben. It doesn't.

We're

very clear, no. The guidance is based on cash recurring earnings.

Great. Could you just talk about the situation with StratCap, how do you see that, yes, evolving?

Is the objective there to undertake a sale of the business, or is it more a case of pursuing an orderly winddown?

Look, I think, based on the evaluation we've undertaken, we think the most cost-effective way for us as a group is just to go down the path of a more orderly winddown. You'll see that reflected in the numbers.

We think that probably there'll be a bit of cost associated with that winddown in '27, and it'll be largely gone in '28, and what we'll keep in the US is just a small representative office there going forward to keep some optionality.

Great. Thanks for your time, David.

thanks. Just trying to clarify just in your underlying earnings, I think you've cleared the unrealized gains and losses are stripped out.

Just in slide 30, the $13.6 million loss in corporate, is that StratCap predominantly?

No, that was balance sheet investments in ASX equities. Balance sheet investments,

yeah.

Lendlease,

okay.

Yeah.

Then What's the net interest on unrealized principal investments?

The majority of the interest, keep in mind we had net cash at June last year. The main investment that we undertook during the year was energy transition, yeah, assume all the interest was attributable to debt drawn to warehouse that asset and hold that $200 million investment today.

Thank you. Then just, can you just, in terms of the—

Richard, before you move on, that was obviously going through the numbers in '26. That won't be there in '27, so that's, again, another big factor in terms of why you're seeing such a big uplift in earnings.

Yep.

Yep. Just the basis for the energy transition valuation at 1.2, and the obviously associated fair value adjustment, how does that compare with the $1.5 billion AUM that you quote?

All our equity investments, we basically adopt double AASB total assets. The AASB accounting for energy has it at $1.5 billion, which basically uplifts derivatives contracts that has within the business.

I guess they're two slightly different numbers, but that's essentially it with

the balance sheet approach.

Okay. Then just can I ask about tax?

Everything seemed to be quite on a pre-tax basis. Is the intention to move to a post-tax underlying earnings in the future, and can you maybe touch on what Looks like a tax benefit in '26 was, and I guess clarify your tax status around future losses to offset underlying earnings?

We still have a material historical tax loss balance, which was sort of driven from the origins of the group as a developer. We're still using those losses, and I guess we'd guide to no cash tax in '27, which is why we still report our earnings on a pre-tax basis.

I guess we'll keep updating the market as we go, but, yeah, you can assume no cash tax in '27. That tax benefit in '26 was as a result of holding the energy assets for 12 months.

There was some, as a development business, there was some large tax depreciation that essentially topped up the losses.

Thanks, Will. Thanks, David.

Thanks, Richard.

Morning, David, Victoria, and Will. Thanks for taking my questions.

Just one follow-up on the expectation that the weighting to principal investments increases from 35 to 50% over time. Are you able to talk a bit more about some of the opportunities you're seeing near term to recycle your balance sheet capital positions?

David, if we wanted to talk about those, we would have highlighted them in the result. I think what we're suggesting is that, as has always been the case, HMC is the kind of group that likes choppy, difficult markets.

We've got a strong balance sheet going into a choppy, difficult market, and we think that's going to present some really interesting opportunities. There's a number of those under evaluation at the moment.

We feel emboldened by the outlook, and we feel emboldened by the strength of the balance sheet going into '27. It will not be necessarily something that we're going to telegraph out there, but we feel as though we've got really good opportunity to recycle the capital.

Just the second question on your distribution guidance of 15 cents per share, which is up on the 12 cents in FY '26. If you could, please just talk to the distribution policy beyond FY '27 and how you think about balancing capital for growth versus paying distributions?

Look, I think we've always been of the view that we want to size our distribution based on our underlying cash generation and our cash earnings. What you'll see today is a very clear statement in the earnings outlook that we believe that there'll be, with the earnings that we're guiding the market to today, there'll be a very high level of cash conversion in that.

Therefore, we've decided to lift the distribution going into '27 to reflect that strong cash conversion.

Just my last one on cost savings. I think you've previously noted about $15 million of cost savings from the digital platform.

If you could please just talk a bit more and if there are additional cost savings and cost-out expected in FY '27 versus what was delivered in the FY '26 result?

I'd say that what we articulated, interestingly enough, on the day of your conference earlier in May, we flagged a range of cost savings that primarily focused in the digital business. That was all completed and executed in financial year '26.

If you look at the guidance going into '27, there's a very clear point there on the guidance outlook slide on 26 where we've said we expect fixed cost leverage going into this year, with cost efficiencies, we believe that our revenue will grow faster than our costs quite materially, and that will give us some level of further outperformance. I think the way to potentially explain that is three new verticals coming onto the platform, two of which were infrastructure-like.

There was probably a level of cost that the group absorbed through the course of '26 to integrate those businesses. We feel as though going into '27, there'll be some natural efficiencies that we'll be able to take out of the group as we absorb those businesses and just get some run-rate efficiencies going forward.

We're assuming that we're going to be able to hold costs where they are or probably slightly reduce them going into '27. That's what's giving us fixed cost leverage.

Good morning, David, Victoria, and Will. Just be interested in, back to slide 10, how you're reducing your co-investment stakes and relative to principal investments.

Just be interested in your appetite to sell down your cornerstone stakes in DGT, HCW, and HDN over time. A second question is, if you sell down below NTA, does that get recorded as a negative contributor to underlying EPS?

What I would say to you is they are strategic stakes that we've taken. We're not going to call out what we're thinking or what we're planning to do around any of that.

We see still a lot of upside in DGT. As we flagged at the result, there's very significant LOIs in a very advanced state, let's let that play out over time.

HCW, again, we're close to resolution on the Healthscope situation. Again, just there's fundamentally plenty of value in both of those entities and plenty of upside over the near term.

Are we a holder at the levels that we are holding at the moment over 20% in both? Probably not.

We're not flagging or telegraphing anything in regard to those at this point in time. HDN, we're happy with our level of holding at the moment.

We're also holding nearly $150 million of listed investments on the balance sheet post the windup of Capital Partners. We've got a number of different options, and I flagged it pretty clearly, we've got a number of different ways that we're thinking about recycling that capital.

I'm not going to telegraph any sort of moves that the group's going to make at this point in regard to its co-investment positions. We wouldn't have put that slide forward if we didn't have a very clear path and a clear view.

We see good upside in those two stocks, and we'll just be sensible in the way we go about that transition. All right,

thanks. The second part of my question: if you did sell something below NTA, would that be included in underlying EPS as a negative?

That's right, Tom.

Thanks.

Hi. Good morning.

Just around sort of look-through leverage, how do we think about that? I think there's around $2 billion worth of sort of look-through liabilities.

I know a lot of it's non-recourse, but do you have a look-through gearing number that you try and manage, or how do you think about that?

All the debt in the funds is non-recourse, just to clarify. We do manage it, but, keep in mind this is a very diversified group, very diversified strategies.

I guess there's no one size fits all, but, of course, it's very closely managed across the group.

Look, to answer that question, just to basically give you a very direct answer, 67% of the funds we manage in this group are in open-ended permanent capital structures. Our underlying businesses are high-quality, real-asset-based businesses that have an appropriate level of gearing in each of them.

At the end of the day, the focus that we, as a manager and as a listed group, think about very carefully is an appropriate and prudent level of gearing at the HMC Capital level. If you look at it today, Will articulated the net debt number today.

If you take into account the liquid investments that we're holding on the balance sheet, our leverage and our gearing at the HMC Capital level is almost zero. We have plenty of financial flexibility and firepower going forward.

We think our balance sheet is in very robust shape. Look-through leverage is not something that we should be really focused on in this group.

I suppose what I'm trying to get at is that a lot of it sort of sits off-balance sheet, I appreciate the listed funds are pretty low likely geared, but the energy business is pretty highly geared, I suppose.

No, that's quite the opposite. It's not.

It's an appropriate level of gearing for an infrastructure business with high-quality underlying cash flows. It's now got a major capital partnership with KKR, who have committed to fund future growth opportunities.

Okay. Then just on FUM growth—

Where was the other look-through gearing that you're worried about?

No, no, I'm just trying to figure out how you guys think about that.

We think about it a lot, and we're very prudent. We think about it a lot, and we've got a strong balance sheet.

Okay. Then maybe just on FUM growth for this year.

Just thinking about the real estate and private credit, obviously the mandates are coming through, but just in terms of growth ex-mandates, how are we thinking about that? Just real estate, what sort of growth are you expecting from FUM in that business?

What we've called out in real estate is that if you go through HARP, HUG, and LML, we've got the vast majority of the $2 billion comes through those and deployment of those mandates. Then there's some development CapEx that comes through HDN, but the vast majority of it comes through our institutional mandates in private credit.

We talked about the TPG mandate that we've just secured, and we've also got another mandate that we're not referencing the party, but it's a major global investor as well. We've got over $1 billion of dry powder through mandates in private credit, and what we are seeing as the fact that we've invested heavily in that platform, we've been prudent, we've got a clean book, our underwriting standards are high, as a result of that, we are actively progressing a number of other institutional mandates as well in the private credit space.

We feel really quite optimistic about the outlook in the sense that we think market disruption and dislocation is potentially positive for our business.

Thank you.

Hi there, thank you for taking my question. Got a really short one here.

Just on the private credit mandate, I was just wondering firstly about the seed loans in terms of what asset classes they might belong to. Then, I'm hoping you can give us a little bit of color in terms of the billion dollars of dry powder, what sort of asset classes do you think you would attribute that to, or in terms of opportunities outside of real estate?

The business has historically been focused on CRE mid-market, as Victoria said in the presentation, loans up to $250 million. The new mandate we've secured is really consistent with the strategy, it's consistent with what we've always done.

It's really looking at larger opportunities, the seed loans that went in were existing loans within the ecosystem that we'd secured and were about to secure, and they were loans on average of over $100, $150 million sizes in terms of the seed loans. We've seeded it with a small number of larger loans and that's where we will continue to deploy through those mandates.

Are those seed loans mostly real estate, would that be correct?

The business has continued to stick to its strategy, which has been CRE. That's where we see dislocation, and that's what we'll continue to execute into at this point.

Great, thank you.

I just want to thank everyone for joining the call, and we look forward to catching up with you over the coming days. Thank you.