360 Capital Mortgage REIT Prices 1-for-1 Entitlement Offer at $5.94 per Unit

Entitlement Offer Details

360 Capital Mortgage REIT (ASX – TCF) has initiated a significant capital raising through a 1-for-1 non-renounceable entitlement offer, priced at $5.94 per new unit. This offer, set at the Trust’s net asset value (NAV), is designed to raise up to approximately $45.2 million. Eligible unitholders as of 7 – 00pm Sydney time on 16 September 2025 are invited to participate, with the offer opening on 18 September and closing on 30 September 2025.

The offer includes an oversubscription facility, allowing investors to apply for additional units beyond their entitlement, and a shortfall offer aimed at wholesale investors to absorb any unsubscribed units. This structure aims to maximize capital raising while providing flexibility to existing and new investors.

Strategic Use of Funds

The proceeds from this entitlement offer will primarily be deployed into new loan investments currently undergoing due diligence. This move aligns with the Trust’s strategy to diversify its loan portfolio, which is critical for managing risk and sustaining income streams. Since 360 Capital FM Limited took over management in March 2021, the Trust has consistently outperformed its target distribution return, averaging 4.85% per annum over the Reserve Bank of Australia’s cash rate.

Pricing and Distribution Implications

The offer price of $5.94 per unit represents a modest discount of approximately 0.7% to the closing price on 10 September 2025, and around 1.3% to 1.4% discounts to the 10- and 30-day volume-weighted average prices, respectively. New units issued will rank equally with existing units and will be entitled to monthly distributions starting from the October 2025 distribution period, ensuring new investors benefit promptly from income generated by the Trust’s assets.

Investor Considerations and Timetable

Eligible unitholders must carefully consider the offer, as it is non-renounceable; meaning entitlements cannot be traded or transferred. Unitholders who do not participate risk dilution of their equity interest. The Trust has provided detailed offer documentation and an information line to assist investors in making informed decisions. The timetable is clearly outlined, with unit trading on an ex-entitlement basis commencing 15 September 2025 and the results of the offer expected to be announced on 2 October 2025.

Joint lead managers Ord Minnett, Shaw and Partners, MST Financial Services, and Morgans Financial Limited are overseeing the offer, underscoring the importance and scale of this capital raising within the mortgage REIT sector.