This article is from the Australian Property Journal archive
AFTER undertaking a simplification strategy over the FY23 period, Tony Pitt’s 360 Capital Group (ASX:TGP) posted a statutory net loss of $20.8 million, down 165.6% from a profit of $31.7 million in FY22.
Operating profit was at $9.9 million down, 67.8% from $30.9 million in FY22, with an operating EPS of 4.5 cps down 68.1% from 14.1 cps in FY22.
With a statutory loss of 9.3 cps down 164.1% from a profit of 14.5 cps in FY22.
Distributions per security were at 4.25 cps down 29.5% from dividends of 6.0 cps in FY22, after a special 8.0 cps fully franked dividend was paid in October 2022.
This after 360 Capital Group confirmed a final distribution of 2.0 cents per security will be paid for the six months to the end of June, taking total distributions to 4.25 cents per security, above previous distribution guidance of 4.0 cents.
This follows external valuations resulting in a $32.2 million decrease in 360 Capital REIT’s (ASX:TOT) portfolio in June.
Over the FY23 period, 360 Capital undertook a simplification strategy in order to take advantage of potential opportunities which may occur from the period of interest hikes.
The group’s strategy remains unchanged after completing this strategy, focusing on real estate funds management and investment across four strategies: core, credit, opportunistic real estate and hospitality.
360 Capital maintained a strong balance sheet with $38.8 million in cash and no debt.
NAV per security was at $0.78 down 21.2% from $0.99 in FY22, with NTA per security at $0.75 down from $0.98 in FY22. With net assets at $174.2 million down 20.0% from $217.7 million.
Over the period, the group settled its disposal of its Irongate Group stake for $92.0 million.
Irongate rejected multiple takeover offers from 360 Capital in 2021 before the partnership between Charter Hall and the Dutch pension made its offer early in 2022.
360 Capital is forecasting a 2.0 cps distribution for the 6 months to 31 December 2023 and will continue to make 6 monthly distributions in line with its distribution policy.
