This article is from the Australian Property Journal archive
FRESH from a placement at the end of 2024, 360 Capital Mortgage REIT (TCF) has upgraded its full-year earnings and distribution guidance to 60c per unit, showing a 33.3% increase.
TCF undertook a placement and conditional placement in December, asking wholesale and institutional investors to contribute more than $16.3 million, which increased the market capitalisation of the trust by 36.1% to $33.4 million.
It was undertaken at $5.94, being the net asset value (NAV) per unit of the trust.
TCF’s upgraded outlook meant reflects a forecast distribution yield of 10.2%.
The trust – one of only two ASX-listed mortgage REITs – has seen a 118% increase in distributions since 360 Capital took over TCF in 2020.
It posted first-half a net operating earnings increase of $1.3 million, or 32.8%, on HY24, while earnings per unit was up 30.3% to 31.8c, and distributions per unit up 43.3% to 30.1c.
At the end of the half the trust had five loan investments totalling $33.5 million. During the period, TCF funded $23.1 million in loans and was repaid $14.2 million. The investment portfolio comprises four senior loans, representing 95.9% of the portfolio, secured by completed properties and land subdivision lots in NSW.
The Trust also has a $1.2 million junior loan facility secured by a high-end luxury apartment development located on the Sydney waterfront.
“The trust is well supported by strong investor interest and an established pipeline of real estate-backed lending opportunities,” TCF said.
“Subject to market conditions, during 2H25, the trust may undertake an entitlement and general offer at NAV in line with its strategy to increase the capital base, diversify its loan book and provide additional liquidity to investors.”
