Investor Alert: 360 Capital Maintains Dividends Amid Market Discount and Cash Return

Strong Financial Performance

360 Capital Group (ASX, TGP) delivered a robust financial year ending 30 June 2025, with statutory profit attributable to securityholders soaring to $4.8 million, a staggering 1394% increase from the prior year’s $0.3 million. Operating profit also climbed 15.2% to $7.7 million, reflecting the Group’s core earnings strength amid a challenging real estate market.

The Group’s earnings per security (EPS) rose sharply to 2.3 cents, up from 0.1 cents in FY24, while operating EPS improved 19.4% to 3.7 cents. Despite this, dividends and distributions were maintained at 3.5 cents per security, consistent with the previous year, underscoring the Group’s commitment to steady returns for investors.

Operational Highlights and Strategic Growth

Operationally, 360 Capital Group made significant strides in expanding its real estate credit platform, originating $109.6 million in real estate loans through its 360 Capital Private Credit Fund. The Group also raised $13.6 million in capital for its listed 360 Capital Mortgage REIT (ASX, TCF), with additional funds raised post-balance date, signaling investor confidence in its credit strategy.

Both 360 Capital Mortgage REIT and 360 Capital REIT (ASX, TOT) secured new 10-year investment management agreements, positioning these funds for long-term growth under dedicated wholly owned subsidiaries. The Group increased its ownership in TOT from 39.1% to 43.1%, with the REIT now delivering a 7.6% fully franked distribution return based on its trading price.

Capital Management and Special Distribution

Continuing its active capital management, 360 Capital Group bought back approximately 13.9 million securities during the year at an average price of $0.65 per security. In a notable move, the Board resolved in August 2025 to return approximately $78.8 million to securityholders via a special distribution of $0.40 per security, comprising a grossed-up discounted capital gain and a capital return. This decision reflects the Group’s substantial cash holdings and the expectation of easing interest rates, which could otherwise dampen earnings.

Executive Remuneration Aligned with Strategy

Executive remuneration was adjusted to align with the Group’s strategic focus on funds management growth. Fixed remuneration for the Executive Chairman and Chief Financial Officer increased, while short-term incentives were recalibrated to emphasize growth in third-party capital and funds management fee revenue. The Group also streamlined its long-term incentive plans, with equity rights granted to key management personnel to foster alignment with securityholder interests.

Outlook and Market Position

360 Capital Group is uniquely positioned as the only Australian real estate manager with both a listed equity REIT and mortgage REIT, free from legacy issues and primed for scaling its funds management platform. With a stable net asset value per security of $0.80 and a closing market price of $0.64, the Group trades at a 20% discount to NAV, presenting potential value for investors. The Group remains focused on growing its real estate credit and equity funds management businesses, maintaining strong compliance and risk management frameworks, and optimizing its capital structure to support future growth.