Good morning and welcome to the FY23 full-year results presentation for MA Financial Group. My name is Julian Biggins, and I'm here with my fellow joint CEO, Chris Wyke. We also have Giles Boddy, the group CFO, and Michael Lennart, our head of investor relations, in the room. We're very pleased to announce another strong operating result for the business, with our strategic initiatives progressing well and recurring revenue continuing to grow strongly. Let's start on slide 8 and the highlights for FY23. Momentum remains with the business. Gross fund inflows reached nearly AUD 2 billion in FY23, a record result that was up 27% on the prior year. Our assets under management finished the year at AUD 9.2 billion, up 18% on the prior year.
To put in context, when MA Financial listed in 2017, we had AUD 1.1 billion in assets under management and therefore have grown at 8-fold in just over six years. Our gross fees last year were nearly double the total AUM when we IPOed. This very strong growth has only been achieved due to our focus on investing strategically. We believe in investing today for tomorrow. In addition to record inflows, we've seen meaningful change in our distribution channels over this time. In 2023, inflows from domestic sources continued to grow rapidly, as did investment from foreign high-net-worth investors into non-migration funds. Recurring revenue, one of our most important metrics, was up 23% over the period, reflecting strong growth in asset management and the Finsure platform. This resulted in a materially stronger earnings composition, with recurring revenue growth partly offsetting the expected lower performance fee revenue.
Our residential mortgage marketplace is working, with Finsure's loans-on-platform reaching AUD 110 billion, up 20% over the year, and MA Money's loan book close to AUD 1 billion. We're also very pleased to see MA Money undertake its maiden securitization in the year, highlighting its ability to deliver capital-efficient growth. Our balance sheet remains strong, and we are focused on running a capital-efficient business. This has allowed us to hold our full-year dividend in line with FY22 at AUD 0.20 per share fully franked. Finally, we have always spoken about balancing short-term earnings with longer-term growth. Investment in growth strategies has an impact on short-term earnings.
In 2023, we invested in a number of initiatives, including expanding our distribution channels into Singapore, Japan, and the US, MA Money, Middle, Senior Hires in Corporate Advisory and Equities, and importantly, growing our brand awareness, which on a combined basis impacted our underlying earnings per share by approximately AUD 0.05. As significant owners alongside our fellow shareholders, we're confident that this investment will be rewarded in future years. This willingness to invest in growth is a major reason we've been able to grow our underlying revenue from AUD 107 million in 2017 to AUD 270 million last year. MA Financial is in great shape. It has a very diversified and robust foundation, and operating metrics are growing strongly, and we continue to invest to drive growth in the future. Turning to slide 9 and our 2026 targets.
We first published these targets last August with the objective of elevating the view to the medium and longer-term growth opportunities, which is how we think about the business. This is how we build the business and have demonstrated a track record of investing in strategies that deliver substantial growth over time. All of our targets remain unchanged, and the run rate over the last six months keeps us on track to deliver on those targets. Corporate advisory has been impacted by volatile equity market conditions, and the EBITDA margin is impacted by both cyclically low earnings in our transactional revenue streams and our strategic investments. We believe that these targets are achievable and are excited about what this holds for the future. Now, turning forward to slide 10.
Pleasingly, recurring revenue was up 23% on the prior year, underpinned by nearly AUD 2 billion of gross inflows and a 21% increase in Finsure's loans-on-platform. The residential and specialty loan book also grew strongly, nearing AUD 1 billion at year-end, and has continued to grow post. As we have previously explained, underlying earnings per share was expected to be softer due to both corporate advisory and performance fee revenue being impacted by rising interest rates and uncertain market conditions. Neither of these areas of softness were unique to MA Financial in FY23, and when you consider that we have added over AUD 25 million of recurring revenue in the year, replacing a fair bit of the outsized performance fee of the prior year, you start to sense the real strength of the result.
Now, turning to Slide 11. This slide demonstrates our ability to materially grow and diversify our business over time.
In FY17, we listed MA Financial and forecast to have AUD 73 million of underlying revenue, of which only AUD 17 million was attributed to recurring revenue streams. Only six years later, we're generating AUD 270 million of underlying revenue, with nearly AUD 180 million of that being recurring in nature. That is 10 times the amount of recurring revenue that we had at the time of the IPO. We have grown significantly over the last six years, and we continue to invest to deliver strong growth in the future. Today, we have operations in six countries and employ over 600 people directly, in addition to many thousands more employed within our various portfolio companies. Recurring revenues are the foundations of a strong and resilient business. We see our FY26 targets align strategically with the objective of continuing to build a recurring revenue base.
We have a history of delivering in areas that we invest in, such as the migration product, domestic distribution capability, our hospitality business, to lead and innovate into the next frontier. Now, turning to slide 12 and our financial result. The headline financial result is obviously down, although when you take into account the AUD 44 million lower contribution from performance fees in this year versus last, it's a strong result in a difficult market. Recurring revenue increased to 66% of total revenue. That's up from 48% in the prior period. Expenses are down 3% year on year, despite our significant strategic investment in future growth initiatives. These investments added approximately AUD 16 million to the expense line item. ROE and EBITDA margins were also impacted by our strategic investment spend and cyclically low revenue from our transactional revenue streams, reflecting the uncertainty and lack of market confidence.
We increased our working capital facility to AUD 80 million over the period, which provides us with more flexibility to run an efficient balance sheet, and we remain very focused on capital efficiency and having a capital-light model. Overall, we believe the result is a very strong result, reflective of a business growing its recurring earnings through difficult market conditions while continuing to invest in growth initiatives for the future. Turning forward to talk more about our strategic initiatives. On this slide, we want to emphasize just how much we focus on investing strategically in the business to build future earnings growth opportunities. The balancing act here is delivering short-term earnings while embracing substantial future growth opportunities. We believe that we find a good balance in this regard. Since our founding in 2009, we have demonstrated our ability to substantially grow and diversify the business over time.
Clearly, growth involves forward investment and a lot of hard work. While the timing and impact of growth initiatives can be fluid, our experience is that patience and vision are generally rewarded. While we're excited about all the initiatives, I'll focus on a couple today that we might not have talked about previously. In FY23, we invested strongly in the MA Financial brand. The initiative is focused on elevating MA Financial to become a trusted household name. We believe that this will benefit all of our divisions, driving growth and, in particular, in growing our number of consumer-facing businesses. We acquired New York-based Blue Elephant Capital Management earlier in the year. This established our US credit platform with a team that has been in business in the US for a decade. Our objective is to leverage their strong track record as investment professionals with our distribution and product development capabilities.
The US credit market is the largest in the world, and that's a massive opportunity for us as shareholders of MA Financial. We also invested into a digital distribution platform in Japan named MA Alternatives Japan. This platform is targeted at attracting Japanese investors into foreign asset management products. Our first products on this platform will be private credit products. MA Financial owns one-third of the business in conjunction with our local partners. We've been on the MA Money journey together and are really pleased about its progress, with the loan book of AUD 15 million-AUD 20 million of impact in FY26. After a number of years of focus and financial investment, the meaningful prize is now within reach. Our Middle technology business continues to gain momentum, as we look to improve efficiency and accuracy in the way home loans are processed and approved in Australia.
Middle makes the process of applying for a home loan easier and faster for mortgage brokers and their customers. While still in the investment phase, Middle is rapidly moving towards being a key component in the processing of over AUD 1 billion in home loan applications monthly. Growing user numbers and processing volumes is a key step in building the use of Middle to become widespread across the home loan industry. Increasingly, mortgage brokers on the Finsure platform are routinely using Middle as part of their interface with their individual borrowers. The efficiency achieved using Middle is proving to be a significant time-saving technology for brokers and thus improves the attraction for them to be on the Finsure platform. The combined impact of these investments on our FY23 underlying earnings per share is around AUD 0.05.
However, when you consider the potential upside, it's exciting to think about what additional growth can be achieved. We think this investment is critical to grow the business over the long term, and we have a track record of delivering considerable growth for our shareholders. This demonstrated an ability to build a substantial business capable of navigating difficult markets and delivering strong growth. Now, turning forward to slide 14. The charts on this table illustrate a year where we face a number of market headwinds. The trend in revenue growth demonstrates the longer-term momentum in the business and our ability to continue to grow revenue. Importantly, a lot of the growth is recurring in nature.
The weaker second-half result in FY23 is reflective of some of our strategic investments, MA Money and the U.S. credit platform particularly, impacting the second-half result by AUD 0.04 per share relative to a AUD 0.01 per share impact in the first half of the year. Now, turning forward to the business highlights on slide 15. Asset management now contributes roughly 80% of group EBITDA, with the other businesses providing diversification and a stronger ecosystem to create value. Asset management delivered record fund inflows, driving AUM to AUD 9.2 billion, with a strong recurring revenue margin of 173 basis points. Asset management EBITDA was always going to struggle to lap the prior period when we had AUD 44 million more performance fees. Strategic investments in U.S., Singapore, and Japanese distribution channels also impacted expenses by approximately AUD 5 million, with most falling in the second half.
Despite both the performance fee and strategic investments, EBITDA was only down AUD 20 million, with recurring revenue representing 87% of asset management revenue, and that compares to only 64% last year. Lending and technology grew its loan book by 150% to almost AUD 1 billion, driven by accelerating growth in MA Money. Finsure continued its impressive momentum, attracting almost 500 new brokers to its platform and growing managed loans to AUD 110 billion, almost double the amount of managed loans that were on Finsure's platform when we agreed to acquire the business in late 2021. It was a difficult year for corporate advisory and equities, as was the case for all market participants. The skew of activity remained towards M&A, with very little ECM activity through the year. Early signs in 2024 are more hopeful. However, we remain cautious. It remains an uncertain market.
Turning now to our FY23 strategic outcomes on slide 16. Our strategic priorities have remained consistent over time, and we continue to deliver on executing them. Recurring revenues across asset management and Finsure both increased materially over the year. Our distribution channels continue to expand and diversify, driving a 27% increase in gross inflows to nearly AUD 2 billion. One of the continued highlights was the growth in our domestic flows, which exceeded AUD 1 billion in FY23 and was up 81% on the prior period. We are and will continue to invest in future growth opportunities in our business across all three divisions. We focus on executing our strategy in a capital-efficient manner. We have demonstrated this through recycling assets from our balance sheet, including the maiden AUD 500 million MA Money RMBS, cyclically low earnings. It is critical that we protect and reward our people for the future.
We continue to invest in their future and development through the MA Academy. We also mentor executives to build new businesses within MA Financial. We have global growth opportunities and move people around our business where it makes sense. We are proud of our culture and look to reinforce it as it's so important to our success, and the rebranding exercise was part of this. Now, turning to our post-balance sheet performance and outlook. This is on slide 18. The positive momentum has continued across the group into 2024. Our asset management funds have continued to attract strong inflows, with AUD 262 million gross raised in the first six weeks of the year. We have started our journey to build out distribution in the US credit platform with the appointment of a head of US distribution.
We also launched and raised the equity for our MA Accommodation Hotel Fund with a seed asset fund, and we see a significant opportunity to grow in this sector at a time that many assets are selling at material discounts to replacement costs and on attractive yields. Our digital distribution venture in Japan has received its license to distribute product, with our first offering to be a private credit fund. MA Money's volumes over the first 6 weeks have exceeded AUD 150 million, and our run rate remains well on track to hit our FY26 loan book target. In lending and technology, Finsure continues its positive momentum into FY24, including building out a presence in New Zealand. The Middle technology is gaining traction with Finsure brokers and received in excess of AUD 500 million of loan applications on its platform in January alone.
We anticipate this to reach AUD 1 billion per month by the end of first half 2024. In corporate advisory and equities, we've started the year well with approximately AUD 10 million of fees largely de-risked or paid. Now, turning forward to our outlook. We are optimistic about the year ahead, although macro uncertainty remains. In asset management, we expect continued growth in both gross and net flows. In terms of recurring revenue margin, we expect there to be some headwinds due to the rising interest rate environment impacting our core real estate and hospitality strategies and the sale of approximately AUD 200 million of Redcape assets. The FY23 recurring gross margin of 173 basis points was also elevated due to strong performance from the private credit funds. We expect transaction and performance fees to be broadly in line with FY23.
In lending and technology, MA Money's expected to hit a break-even run rate in second half 2024 and remains on track to deliver AUD 15-20 million of impact in FY 2026. In corporate advisory, while we've had a good start to the year, we are cautious about overall market confidence and volatility. We have a strong M&A pipeline, and equity markets are improving, although it still remains uncertain, and therefore we are pointing to the lower end of the target range in FY 2024. The year has a long way to play out. And finally, we are continuing to invest in expanding our distribution channels and other growth investments such as brand and MA Money.
We believe these investments will represent around AUD 0.06 per share earnings impact in FY 2024, with upside due to the first half as MA Money continues to build momentum and we invest into the US credit platform. We plan to continue to focus on balancing shorter-term earnings performance with an appropriate investment in growth initiatives. As is our practice, we will invest in growth as we see the opportunity. Overall, the operating performance of the business is very pleasing, and our momentum of the last few years continues. We're navigating difficult markets that impact the more transactional side of our business, and we're well positioned to deliver strong growth as the cycle turns. Our AUM is expected to grow along with Finsure section before handing over to Chris to briefly pick out some of the key highlights for lending and technology as well as CANE.
Let's jump to slide 24 quickly before I touch on flows. Clearly, our assets under management have grown significantly over the journey, with AUM up 8-fold since we listed the business in 2017 and up 18% over the last year. Private credit has continued to attract investors to a defensive yield, and we've also witnessed strong interest in alternative real estate, both the accommodation hotels and marinas. I believe today our AUM would be closer to AUD 9.4 billion. Turning forward to flows on slide 25. When we look at this by investor channel, clearly domestic flows have had an exceptional year growing at 81% and surpassing AUD 1.1 billion of gross flows. Only three years ago, we were raising just over AUD 100 million domestically. That's a phenomenal outcome. International non-migration flows are up a strong 27% to nearly AUD 650 million.
Non-migration flows were subdued as the review of the program continues, and institutional flows were marginally up with a couple of LPs allocating the private credit products. We see the institutional market as a significant opportunity for the group and continue to have more meaningful discussions with global partners. Turning forward to slide 26. The chart on the left demonstrates the execution of the stated strategy to both diversify and increase gross flows over time. In only three years, we've taken our domestic and non-migration international flows from AUD 330 million per annum to AUD 1.7 billion today, nearly a five-fold increase over three years, and we see plenty of opportunity for future growth in Australia, Asia, and the United States. These numbers are very exciting and demonstrate the asset management business's strength in a market where many are finding it difficult to raise money.
It is a very diversified investor base with many products offering tenure certainty. We're continually looking at adapting products or innovating new products to cater for ever-changing market conditions while also having a bias for larger, more scalable funds. I'll now hand over to Chris to talk through the other divisions and close out.
Thanks, Julian. I'll briefly pull out some highlights from the lending and technology ecosystem that we've been building over the last three years. Turning to slide 34, a brief review of Finsure. We've continued to see excellent growth within the Finsure business and its market position. This stems from Finsure offering a differentiated proposition for brokers in the value-adding services that it delivers. Finsure broker market share has increased to 16.3%, up from 14.2% last year. Excitingly, in FY23, the platform cracked the AUD 100 billion loans under management mark to close the year at AUD 110 billion, with over 400,000 borrowers on the platform. More broadly, if we see a continuation of the increased activity in the residential lending market, we are optimistic about adding more new loans and continuing the rapid growth in the Finsure platform over the year ahead. Moving to slide 36.
You can see the growth that we've had in our lending activity. The graph on the left-hand side displays the really strong growth that we've achieved, notably taking the MA Money loan book to AUD 829 million. And as Julian mentioned, the current balance of the MA Money loan book sits at around the AUD 1 billion mark. The graph on the bottom right-hand side shows the amount of capital that we have invested in growing the lending business and our conviction investing into MA Money and remain on track to deliver our FY26 targets of between AUD 15 million and AUD 20 million of impact and a AUD 4 billion loan book. We are investing for growth.
Finally, turning to corporate advisory and equities. This has been a more challenging year for the business. As you can see on slide 40, revenue per executive for FY23 was AUD 0.8 million.
This is below the average for the advisory activity across the market. However, we are seeing improved momentum at the start of 2024, and I'm hopeful that the overall environment for transacting will assist in timely execution and deal closure. However, despite these challenging conditions and consistent with our philosophy of investing in the business for growth, in FY2023 we hired a senior natural resources team late in the second half of the year, and headcount now stands at around 47 executives. Consistent with our commentary on the CANE business, we would typically expect normal market conditions to see AUD 1.1 million-AUD 1.3 million of revenue per executive, and our outlook for the year sits at the lower end of that range.
Now, the remainder of the presentation and the appendices contain a lot more details on our financials, and as Julian mentioned, we're also joined by Giles Boddy, our CFO, who can take any questions on those sections. I will conclude on slide 46, which sets out the features that define our business and guide our decision-making. We are building our distribution. We have diversified capital sources and client investor base. We have a strong balance sheet to support our growth initiatives and specialized advisory capabilities aligned to a leading independent global platform. So on that note, I now conclude the presentation and hand back to the operator for any Q&A.
Thank you. If you would like to ask a question, please press star followed by the number 1 on your telephone keypad. Your first question comes from the line of Tim Piper from UBS. Please go ahead.
Good morning, Chris, Julian, and team. First question just on the investment that you've called out going into the business at the moment, AUD 0.05 per share in FY23, and I think you've called out AUD 0.06 per share in FY24 if I understood that correctly. Just how to think about that? Do we think about AUD 0.06 per share on what the underlying run rate of the business was in FY23, i.e., without the AUD 0.05 of investment, or do we think about FY23 and then an additional AUD 0.06 per share of investment based on that actual FY23 run rate, if that sort of makes sense?
I appreciate it's a bit convoluted. So what I'd say is the AUD 0.05 represents what we've invested this year, and we've obviously outlined what strategic investments we've made. We see that growing by what we're looking at next year. I think MA Money, there's a bit of a skew in the second half here in FY23 to that investment. I think I called out there was AUD 0.04 of the AUD 0.05 roughly in the second half. We'd see the AUD 0.06 being a bit loaded to the first half next year, and then as MA Money ramped into profitability, obviously that clears that out in terms of that headwind. So does that clear it up for you, Tim, or is that still?
I'll ask you about MA Money as well. Clearly, the origination growth has been very strong and looks to be obviously tracking towards your targets. The revenue for FY23 at AUD 3-something million, I understand NIM has come back, but I'm just struggling to understand that revenue number. Are there some commissions or other sort of line items that's a drag on that revenue number for MA Money? And then it still seems a bit of a way to that break-even run rate by the second half of this year on that basis.
So we can come back with the specifics around revenue, but it obviously has ramped into the back part of the year, and so there's the annualization impact of I think as I said before, we are hitting volume, but it was competitive market last year. That is easing a bit. And we've also been looking at our product mix and our pricing, and we're pushing into securing funding lines, which we've now done, for higher-yielding product in the self-managed super fund sector, for instance, or foreign owners. So we are going to have to work on sort of increasing our NIM, I guess, both the question of product mix and also the broader market, which we are seeing initial signs of the pricing competition that we'd seen earlier in the second half of last year easing.
And Chris, just also the additional warehouses there, and so the interest expense in relation to those warehouses also coming through that revenue item as well. And so that need to have additional warehouses that we sort of build the book has had an impact on that line as well. Yeah. The conundrum that we face with MA Money around the warehouse is you pay line fees on your warehouse, and what you don't want to do when you're ramping up your business is run out of funding capacity. And we had an optimistic target of going to the term market to do our inaugural securitization, which would clean down the warehouse and give us a lot more capacity.
If for any reason that market was closed or we didn't get the size of deal away that we wanted, we wanted to ensure that we had sufficient warehouse funding in order to continue writing the increasing volume of the business. As it turns out, the market was not simply only open for us. It was open large enough for us to do the largest inaugural RMBS issuance in Australian history, which we did at AUD 500 million. So we ended up having more warehouse capacity than we actually needed. And we took a judgment call on risk is that if the capital's there and the market's there for us, we'll take that capital because our growth profile and volume was ahead of schedule. But the flip side of that was we incurred more line fees than we had probably needed to.
But from a risk perspective, as the business was growing, we picked a path where we wanted capacity as we're in ramp-up.
Got it. Thanks. Maybe just one final one. Again, just on the investment, but a bit more specific to the U.S. Where does the U.S. investment piece on distribution, etc., fit into that sort of AUD 0.06 per share? And then what are your thoughts around the return in terms of either flow numbers or revenue growth that you think you can generate out of the U.S. maybe in FY 2024/2025?
Yeah. So what we've got to do in the U.S. is we've got to reposition the fund and the licensing a bit to get the right structure that we've got with the team there. So the market is huge. And the reality is this year, we are going through that process of hiring and ramping up the distribution effort coupled with hiring coupled with resculpting the fund and getting a new interval fund structure half of the year. So the fund flows that we would expect to see would be more skewed to the second half of the year. And that also contributes to the bias of that AUD 0.06 coupled with the MA Money ramp hitting.
Your next question comes from the line of Alastair Souter from MST Financial. Please go ahead.
Hi guys. Just a follow-up question in relation to some of the fund structures and the investment that's been made. So if you think about over the last year and into the and your overall net flows, the distribution's been beefed up, U.S., Singapore, Japan. You've already got a very strong track record on the net flows. But can you just elaborate more on the other side, the product side, over the next two, three years? Do you think with this expanding distribution, you have enough product, the appropriate product, to distribute into these markets? And can you just also comment on that pathway into all of those markets around the fund structures and the legal structures that are they in place or how?
I'll start with the states. That is exactly what we're doing in terms of beefing up the distribution and resculpting the fund product. It's an interval fund structure. To again clarify, growth in the U.S. market is not included in our FY26 targets. That will hopefully be in addition. That is going to take us another six months to put together. It will be one single product in the first instance in the U.S. In private credit in Australia, products that we have on the platform are resonating and growing well. We've gone through a really interesting inflection point as a business in the area of private credit where we have had three or four primary credit funds that we've had on the shelf. That's in real estate credit, private credit, and structured credit, and then opportunity credit.
What we've seen over the last five years of generating track record on those funds, with those funds being on the shelf for investors, is that there's an increasing acceptance of us just being able to manage credit. So the trend that we're seeing in Australia, we're actually now simplifying that where we have just in the last quarter put on the shelf a credit income strategy as that was actually feedback from some of the domestic investors that we've had where they don't want to look into the individual strategies so much but just simply give us their money for private credit. So it's actually shrinking the product set but with a way more versatile mandate. And that's a response that we had to the market last year.
I think when you think about it from the distribution side, these are incremental growth sort of, I guess, adjacencies to what we've already got, right? So whether Singapore is working very closely with the product for Australia, there may be hedging or different currency sort of angles to the product, but it's the same underlying. And really, when you think about it from whether it's real estate or it's private credit, the products actually have a lot of capacity to invest. And this is just increasing the sort of, I guess, the breadth of the network that we're marketing those products to.
Star 1 on your telephone keypad. Your next question comes from the line of Nick Burgess from Ord Minnett. Please go ahead.
Yeah. Morning, gentlemen. Just a couple of questions. Obviously, the last 12 months has been fantastic in terms of flows into credit products. Just in terms of your product development and your line of sight on the pipeline, what your broad outlook is for credit flows over the next 12 months?
We see the defensive yield in private credit as remaining attractive. We see investors attracted to it and have a need for that yield. When the yield sort of aches to, call it, 11%-12%, depends on where you are in the capital structure, there's a real market for it in a defensive investment class. Absent something changing macrally or something else, we see a continuation of what's been going on in our business for the last couple of years, probably last six years actually, as this product's been developed.
Okay. Thank you. That is helpful. And I was late to the call. Apologies. Just the mechanism on the lower revenue margin that you're talking about in relation to those flows. And I'm not sure if you broadly quantified it in basis points, but just the impact and the mechanism that I may have missed.
Yeah. We haven't talked about that, and we haven't quantified it. But what I would point you to is clearly a good example is where we've had, say, Redcape Hospitality or Redcape Hotel Group, where we've sold AUD 200 million of assets. That selling campaign is over. We've actually bought another asset recently. But clearly, that has an impact on what's sold. And that's both investment management fees and hotel operator fees. So there's some headwinds through there. Also in real estate, we've just seen some valuations come down and maybe distributions come down. The growth margin that we've earned on the credit funds this year has been strong. And we're going into the market cautiously, thinking about whether that can be achieved again in FY 2024. But it's early days again.
Around the hospitality fund, we made a small concession around fees for the hotel operator fee for this year. Really, that's about a partnership with those investors. Clearly, it's been a very successful investment for them and a successful venture for us. We're partnering with them as well. It's a combination of things. I think I'd say we're sort of going through a significantly low point in real estate or real estate-backed assets. The private credit funds have been exceptionally strong this year.
Yeah. Just to call out in the years ahead, the fee basis in the states is typically lower on a base fee as well. So you'll see that blending in over time. But obviously, it should be a brand new market for us to grow into.
I think one thing we do try to focus on is sort of that longer-term view. We don't see the fundamentals of our business changing over that sort of FY26 for target ranges that we've provided. That's clearly what we're focused on delivering.
Okay. Thank you. I'm just thinking, one last question, just that 6 basis points sorry, AUD 0.06 per share of investment. Have you got that in terms of a dollar amount or an EBITDA total impact?
Well, we're not a big issue of shares. So you sort of backsold, I think it's roughly about AUD 12 million, Josh. Is that about right?
That's right.
Yep. All right. No, that's helpful.
So it's very similar to this year. I think the only thing, Nick, that you want to keep in mind is probably a little bit of a skew to the first half as opposed to evenly spread over the two halves.
Yeah. All right. Thanks very much.
Thank you.
Your next question comes from the line of Richard Coles from Morgans. Please go ahead.
Yes, guys. Could you maybe give us any more detail on the MA Accommodation Hotel Fund, your initial acquisition there, comfort on pricing, any broad comments you can make on that deal and whether your view on it? Can you also maybe give us some views on the Middle technology, the AUD 1 billion by the end of 1H 2024? Just remind us of the fee structure for that sort of build-out and what you could earn there.
Yeah. I'll start with the hotel and maybe Chris on the Middle. But we've brought an accommodation hotel on exceptional terms. It's 96. It's a brand new seven-night hotel in Melbourne. It's interesting we're similar to the parks, and you can own the freehold or you can serve as part of the transaction, we've changed the banner or the operator. It's priced probably at about 45% discount to replacement costs and total return. So we're quite last year, we're seeing an enormous amount of context. So we think we can really carve out a specialization in that space. And it's the right point in the cycle to lean in. So that's Middle, just to recap, in what is what's really, really important.
And that's a market that is intermediated over 70% by brokers.
What is really, really important is the ease of information collection and verified information collection and then accuracy and speed of decision-making for the end customer in the lowest cost manner for the underwriters and the lenders. So this is a piece of technology that we have built to solve those problems. And the technology came online last year. And we have marketed that technology to the brokers. And we are charging brokers a fairly modest fee to utilize that technology in order to see meaningful flow put through this technology infrastructure so that it becomes very, very on the Finsure platform. And there is a nice synergy there where Finsure is growing its number of brokers quite rapidly. It's a great aid and help the Finsure proposition. So strategically, the key for us was to get this piece of technology actually processing in size.
Middle is also Open Banking certified. I think we're one of a handful of institutions outside of the banks that have achieved that accreditation. So the ability to have direct-to-source verified data, it's quite a powerful platform. We need to continue getting the volume up because if the volume is up, it becomes meaningful. And I think we're going to explore further on the year how we look at more enhanced ways to monetize that. But before you can do that, you've got to make sure that it's actually processing considerable volume such that it becomes attractive to folks to look at as a tool to solve problems because you don't have volume, people won't use it as a solution. And we're on that pathway generating that volume. And January was a very, very strong month.
I think the current, as we sit today, the current sort of annualized run rate's about AUD 750 million. We expect that to get to AUD 1 billion by the half year. It's a really interesting asset for us that is considerably helping the proposition to brokers through the Finsure platform. But as it becomes more meaningful and processes more volume, we can think about other ways to enhance the monetization of it, which we expect to bend our mind to during the year. But we need that volume.
Just one more question. I mean, you mentioned you've actually bought an asset in Redcape. So maybe just a summary of how you see things going there. Thanks.
I think Redcape, what was a challenging year for all real estate assets last year, I think the path that we've followed on Redcape's exceptional in terms of the balance sheets in very good repair, earnings have turned the corner. The pubs, they're trading stronger. We've got a clear visibility over the next sort of two to three years on strategy. I think to see liquidity in the pubs, to be able to sell AUD 180 million-AUD 200 million at close to book value in the real estate or operating real estate asset class at the minute was a great outcome. I think generally, investors are very optimistic about the growth that's coming through in the business now as we sort of turn the corner of what was a pretty choppy market last year.
So I think Chris Unger, who heads up that business, has done a great job. I think the investors are, as I said, optimistic about the future.
Thanks very much, guys.
We have no further questions in our queue at this time. I will now turn the call back over to Julian Biggins for closing remarks.
We look forward to seeing those folks one-on-one as we go around the marketing program. Thank you and have a good day.
This concludes today's conference call. Thank you for your participation. You may now disconnect.