360 Capital Mortgage REIT has reported a near doubling of its half-year profit to $2.6 million, driven by a 70% surge in investment income, alongside a successful $16.6 million capital raising. The Trust maintains a strong balance sheet with stable net asset value and a diversified loan portfolio.
- Profit attributable to unitholders up 94.2% to $2.6 million
- Total investment income increased 69.7% to $2.9 million
- Loan portfolio steady at $38.8 million with 49.1% loan-to-value ratio
- Capital initiatives raised $16.6 million including entitlement offers and unit purchase plan
- Distribution reinvestment plan activated and unit buy-back program executed
Robust Financial Performance
360 Capital Mortgage REIT (ASX, TCF) has delivered a strong financial result for the half-year ended 31 December 2025, nearly doubling its profit attributable to unitholders to $2.6 million compared to $1.3 million in the prior corresponding period. This uplift was underpinned by a 69.7% increase in total investment income, which rose to $2.9 million, reflecting the Trust's effective deployment of capital into its mortgage-backed loan portfolio.
Stable Net Asset Value and Loan Portfolio
The Trust’s net tangible assets per unit remained steady at $5.94, signalling consistent underlying value despite the increased earnings. The loan portfolio held steady at $38.8 million, with a conservative loan-to-value ratio of 49.1%, and a weighted average interest rate of 12.7% per annum. The portfolio is predominantly composed of senior loans secured by first mortgages, which accounted for 79.2% of the portfolio, reflecting a cautious and disciplined investment approach.
Capital Management Initiatives
Capital management was a key focus during the period, with the Trust successfully raising approximately $16.6 million through a combination of a unit purchase plan, entitlement offers, and a shortfall placement. These initiatives expanded the units on issue from 6.24 million to nearly 9 million, enhancing the Trust’s capacity to invest further. Additionally, a distribution reinvestment plan was activated for three months, allowing unitholders to reinvest distributions at net asset value, while a unit buy-back program provided liquidity and returned capital to investors, with 46,641 units cancelled at a premium price of $6.08 per unit.
Strategic Outlook and Investment Approach
The Trust maintains a cautious stance with 27.9% of its assets held in cash as at 31 December 2025, positioning itself to selectively deploy capital into new loan opportunities over the coming six months. The focus remains on senior commercial real estate loans, with potential consideration for junior loans where risks are appropriately mitigated. The Trust’s strategy to invest alongside the 360 Capital Private Credit Fund continues to support portfolio diversification and liquidity management through selldowns to third parties.
Governance and Compliance
Governance remains robust with the Responsible Entity, 360 Capital FM Limited, overseeing operations and investment management under a long-term agreement. The Trust’s auditor, Ernst & Young, has provided an unqualified review report, confirming compliance with accounting standards and regulatory requirements. No significant environmental regulations impact the Trust, and there have been no material events since the reporting period that would affect future operations.
Bottom Line?
With a solid financial footing and fresh capital in hand, 360 Capital Mortgage REIT is poised to selectively expand its loan portfolio while maintaining disciplined risk management.
Questions in the middle?
- How will the Trust deploy its substantial cash reserves in the coming months?
- What impact will the recent board resignation have on governance and strategy?
- Can the Trust sustain its strong earnings momentum amid evolving real estate market conditions?