TCF Offers New Units at $5.94 with 10.4% Yield Forecast
360 Capital Mortgage REIT (TCF) has announced a Unit Purchase Plan offering eligible unitholders the chance to buy new units at net asset value, aiming to raise up to $11.1 million to fund commercial real estate loans with a forecast 10.4% yield.
- Unit Purchase Plan open from 27 May to 24 June 2025
- Offer price set at $5.94 per unit, equal to NAV and slightly discounted to recent trading prices
- Non-underwritten offer targeting up to $11.1 million in new capital
- Proceeds to fund conservative, capital-preserving commercial real estate loans
- Forecast FY25 distribution yield of 10.4%
Unit Purchase Plan Details and Pricing
360 Capital Mortgage REIT (ASX: TCF) has opened a Unit Purchase Plan (UPP) that allows eligible unitholders in Australia and New Zealand to acquire up to $30,000 worth of new units without brokerage fees. The offer price is set at $5.94 per unit, matching the Trust’s net asset value as of 30 April 2025 and representing a modest discount to recent market prices. This pricing aligns with the Trust’s recent entitlement offer, signaling consistency in capital raising strategy.
Capital Raising Purpose and Investment Strategy
The capital raised through this non-underwritten offer, which could total approximately $11.1 million, is earmarked for investment in new and existing commercial real estate loans. These loans are secured by registered mortgages, with a strong emphasis on capital preservation and income generation. The Trust’s portfolio currently holds over 96% of loans as registered first mortgages, underscoring its conservative credit approach.
Investor Benefits and Track Record
Investors in TCF can expect stable monthly distributions supported by a forecast FY25 distribution yield of 10.4%. The Trust emphasizes transparency, providing detailed disclosures on loan exposures and terms. With an 18-year track record and over $400 million in private credit transactions without any capital loss or impairment, 360 Capital FM Limited’s management team brings seasoned expertise to the Trust’s operations.
Offer Timeline and Participation
The offer opens on 27 May 2025 and closes on 24 June 2025, with new units expected to commence trading on the ASX by 4 July 2025. Eligible unitholders can apply via BPAY or EFT, with no application form required for BPAY payments. Participation is voluntary and non-renounceable, meaning unitholders who choose not to participate will simply maintain their existing holdings.
Market Context and Forward Outlook
This Unit Purchase Plan follows a recent entitlement offer, reinforcing the Trust’s ongoing capital management efforts amid a competitive mortgage REIT landscape. While the offer is not underwritten, the Trust’s conservative investment focus and experienced management team provide a degree of confidence in capital deployment and income sustainability. Investors will be watching closely to see how the new capital is allocated and the impact on future distributions.
Bottom Line?
As 360 Capital Mortgage REIT raises fresh capital at NAV, investors await the next moves in its steady income strategy.
Questions in the middle?
- Will the Unit Purchase Plan fully subscribe given it is not underwritten?
- How quickly will the Trust deploy the new capital into income-generating loans?
- What impact will the new capital have on future distribution stability and growth?
