CapitalRise has reported a “strong financial year” with growth across all areas of the business, having pivoted to bridging finance in the first half amid tough market conditions.
The prime property finance platform reported a £105,000 trading profit for the 12 months to 31 July 2024, which it defines as as core earnings adjusted for non-trading items and impairment against profit recognised in the previous year.
It did not disclose its non-adjusted core earnings for the period.
CapitalRise saw activity increase from the first quarter of 2024 – culminating in a record month in July 2024 when the firm originated a record £50m of new loans.
The property market has faced challenges in recent years amid high interest rates and inflation, combined with subdued economic growth.
CapitalRise chief executive Uma Rajah said that the platform adapted to challenging conditions for development loans by focusing on providing bridging finance. In the first half of the year more than 60 per cent of its lending was bridging loans.
Read more: CapitalRise inks £30m funding line for bridging loans
“The second half of the financial year saw an easing in market conditions and two thirds of our lending in this period were development loans, closer to our normal mix,” she added.
“We were pleased with our ability to adapt to conditions and with our new dedicated facility we see bridging becoming an important part of our portfolio.”
The firm paid a record £72m to investors in capital and returns over the course of the year.
Additionally, CapitalRise secured £290m of additional institutional funding during the period, including a new £250m facility from an undisclosed partner secured in January 2024.
“We now have £300m of institutional capital to deploy, on top of what we’ve got on the platform,” finance director Stuart Peel told Alternative Credit Investor. “So the real game at the moment is deploying that money.”
Looking forward, Rajah said that the firm is optimistic about the market outlook.
“As we enter an environment of falling interest rates, we expect to see this trend continue as the fall in both borrowing costs and inflation makes development schemes more viable,” she said.
