How Gryphon Capital Income Trust Raised $90.9M and Boosted Profit in H1 2025
Gryphon Capital Income Trust reported a robust half-year profit increase alongside successful capital raises, positioning the fund for expanded investment in Australian RMBS and ABS markets.
- Operating profit rose to $44.1 million for H1 2025
- Capital raised via $75M private placement and $57.4M Unit Purchase Plan
- Units on issue increased to over 590 million
- Distributions declared at 7.58 cents per unit totaling $42.3 million
- New $90.9 million capital raise secured with firm commitments
Strong Financial Performance
Gryphon Capital Income Trust (ASX: GCI) has delivered a solid financial performance for the half-year ended 31 December 2025, with operating profit climbing to $44.1 million, up from $31.9 million in the previous corresponding period. This growth reflects the Trust’s effective investment strategy focused on Australian residential mortgage backed securities (RMBS) and asset backed securities (ABS).
The Trust’s total comprehensive income matched operating profit at $44.1 million, underscoring a stable earnings profile. Earnings per unit, however, saw a slight dip to 7.92 cents from 8.85 cents, influenced by the increase in units on issue following recent capital raises.
Capital Raising Success and Portfolio Expansion
During the half-year, Gryphon Capital Income Trust successfully completed two significant capital raising initiatives: a $75 million private placement in September 2025 and a $57.4 million Unit Purchase Plan in November 2025. These efforts expanded the Trust’s units on issue to over 590 million, enhancing liquidity and enabling greater scale in the Trust’s investment portfolio.
Following strong investor demand and a robust pipeline of investment opportunities, the Responsible Entity announced a further private placement in February 2026 to raise approximately $90.9 million. Firm commitments for 45.5 million new units at $2.00 each were secured swiftly, with the new units expected to be issued in early March 2026.
Distributions and Investor Returns
The Trust declared distributions totaling 7.58 cents per unit for the half-year, amounting to $42.3 million. A distribution of 1.22 cents per unit was approved and paid in early February 2026, with an estimated distribution of 1.14 cents per unit announced for February 2026, pending confirmation. These distributions reflect the Trust’s commitment to delivering consistent income to unitholders.
Investment Strategy and Market Position
Gryphon Capital Income Trust continues to focus on a diversified portfolio of Australian RMBS and ABS, leveraging its scale to access attractive opportunities in these markets. The recent capital injections are expected to reduce operating costs on a per-unit basis and enhance the Trust’s ability to participate in a broader range of investments, supporting long-term growth and income stability.
The Trust remains compliant with all relevant accounting standards and regulatory requirements, with no significant changes in its state of affairs beyond those disclosed. The independent auditor, PricewaterhouseCoopers, has completed its review without raising any concerns.
Bottom Line?
With fresh capital secured and a strong profit trajectory, Gryphon Capital Income Trust is poised to deepen its footprint in the RMBS and ABS markets, but investors will watch closely how new funds translate into future returns.
Questions in the middle?
- How will the recent $90.9 million capital raise impact the Trust’s portfolio composition and risk profile?
- What factors contributed to the slight decrease in earnings per unit despite higher overall profit?
- How sustainable are the current distribution levels amid ongoing market volatility in RMBS and ABS sectors?
