360 Capital Mortgage REIT (TCF) reported a robust FY25 with a 21.5% total unitholder return and significant capital raising activity that doubled its market capitalization.
- Total unitholder return of 21.5% in FY25
- Distributions increased 38.4% to 62.3 cents per unit
- Loan portfolio secured with 96.4% senior first mortgages
- Capital raising of approximately $21.7 million completed
- Trust now trades at a premium to NAV following management agreement
Strong Financial Performance
360 Capital Mortgage REIT (ASX, TCF) has delivered an impressive set of financial results for the year ended 30 June 2025. The Trust posted a total unitholder return of 21.5%, driven by a 38.4% increase in distributions to 62.3 cents per unit and a 74.6% rise in net operating earnings to $3.2 million. Earnings per unit also rose significantly by 44% to 64.8 cents, underscoring the Trust’s ability to generate strong income for investors.
Robust Loan Portfolio
The Trust’s loan portfolio remains a cornerstone of its performance, with $45.8 million lent during FY25 secured entirely by registered mortgages. As of 30 June 2025, the portfolio comprised eight loans covering 53 individual mortgages, with a weighted average loan-to-value ratio (LVR) of 69.2% and a weighted average interest rate of 11.8%. Notably, 96.4% of these loans are senior first mortgages, reflecting a conservative and secure lending approach that has historically protected capital.
Capital Raising and Market Position
During FY25, TCF undertook multiple capital raising initiatives, including placements and a non-renounceable entitlement offer, collectively raising approximately $21.7 million. This capital injection increased the Trust’s market capitalization by over 100% to $45.6 million. Importantly, all capital raisings were conducted at the Trust’s net asset value (NAV) of $5.94 per unit, with the Manager covering associated costs to prevent dilution. Following unitholder approval of a 10-year management agreement and an off-market liquidity mechanism, the Trust successfully closed its trading discount to NAV and now trades at a premium, signaling renewed investor confidence.
Strategic Outlook
As one of only two mortgage REITs listed on the ASX, TCF occupies a unique niche offering investors an alternative to traditional fixed-income products with attractive yield and capital preservation. The Trust’s established pipeline of real estate-backed lending opportunities and strong investor support position it well for continued growth and diversification in FY26. Management has committed to maintaining distributions in line with operating earnings, reinforcing its focus on delivering consistent income.
Conclusion
360 Capital Mortgage REIT’s FY25 results highlight a well-managed, secure lending platform that is successfully expanding its capital base while delivering strong returns. The combination of disciplined asset selection, strategic capital management, and enhanced liquidity mechanisms sets the stage for sustained investor appeal in a competitive market.
Bottom Line?
With a strengthened balance sheet and premium trading status, TCF is poised for continued growth and income stability in FY26.
Questions in the middle?
- How will market conditions impact the Trust’s loan portfolio performance in the coming year?
- What opportunities exist for further diversification of the loan book beyond current partnerships?
- How might the new 10-year management agreement influence operational strategy and costs?