This article is from the Australian Property Journal archive
INVESTMENT manager 360 Capital Group (ASX: TGP) returned to profit, posting a $0.3 million profit after a loss of $20.8 million in the year prior.
The FY24 statutory net profit was up 101.5% on FY23 loss, after a quiet transactional period for the group. With statutory profit at 0.1 cents per security, up from 9.3 cents per security in FY23.
TGP’s operating profit came in at $6.7 million, down 33.0% from $9.9 million in the previous year, with operating EPS at 3.1 cents per security, down 31.3% from 4.5 cents per security.
Distributions and dividends were down 17.6% to 3.5 cents per security from 4.25 cents per security in FY23.
While NAV per security came in at $0.79, or an increase of 1.3% from $0.78 in June 2023.
TGP reported to having one of its quietest periods in the group’s history over the six months to December 2023, reflecting the current state of the market. This carried through to the second half with transactional activity remaining limited and resulting in an ongoing “buy-sell” gap.
Though the group did sell its s investment in Hotel Property Investments (ASX:HPI) for $96.9 million in the second half, increasing its cash balance.
TGP carried out a simplification strategy across funds management and now managed two ASX listed funds, 360 Capital REIT (ASX: TOT) and 360 Capital Mortgage REIT (ASX: TCF) as well as the unlisted 360 Capital Private Credit Fund (PCF).
“With the simplification strategy and cost out now completed, the Group is in a unique position as the only Australian real estate manager with both an ASX listed equity REIT and mortgage REIT,” the group said.
“The group is now a sustainable business that is not reliant on one-off fees and with its track record of investing through the cycles and strong balance sheet, it is ready to take advantage of opportunities expected to present in the near term.”
TGP has no borrowings and its only debt exposure is in its managed fund being 360 Capital REIT was reduced due to a capital raising in 2H24, resulting in the no look through net debt as at 30 June 2024.
360 Capital Group is forecasting markets to continue to deteriorate throughout the remainder of 2024 as result of the RBA’s interest rate hike cycle and the slowing economy.
TGP has provided a forecast for dividends/distributions of approximately 3.0cps for FY25 in line with its dividend and distribution policy of distributing a minimum of 80% of operating earnings.
