This article is from the Australian Property Journal archive
TONY Pitt’s 360 Capital REIT (ASX: TOT) has once again delivered a loss result, after devaluations of $23.6 million.
Over FY24 TOT posted a statutory net loss of $21.9 million, an improved result compared to a $47.9 million loss in FY23.
With a statutory loss per security of 13.3 cps compared to a loss of 33.4 cps in FY23.
Attributed to higher interest costs, operating profit was at $4.1 million down 41.9% on FY23.
Operating eps was at 2.5 cps, down 50% from FY23, attributed to higher interest costs and dilution from capital raising.
Fully franked distributions were delivered in line with the previous guidance, at 5.25 cps.
TOT’s property portfolio includes three modern assets located in Melbourne, Canberra and Brisbane with a WALE of 6.7 years, an average age of 3.7 years, and occupancy at 93.0%.
100% of TOT’s properties were externally valued as at 30 June 2024, resulting in portfolio valuations reducing by $23.6 million over FY24, with WACR softening from 5.33% to 6.16%.
The portfolio is diversified with 52.1% office/healthcare, 33.0% office and 14.9% high-tech industrial assets.
TOT’s gearing increased to 41.6%, above its targeted gearing range of 30% to 40%.
TOT reduced its facility limit to $84.0 million and as at 30 June 2024 was well within its debt covenants, drawn to $73.6 million, providing significant headroom on the Fund’s LVR covenant of 50% and had an ICR of 2.5 times for FY24 against a covenant of 1.5 times.
TOT’s FY25 forecast distribution remains unchanged at 3.0 cps.
