360 Capital REIT Faces Vacancy Challenge Despite New Lease Agreements
360 Capital REIT (ASX:TOT) has secured five-year leases with Siemens Energy and Stack Infrastructure at its Cremorne property, raising occupancy to 96.7% and extending lease expiry profiles.
- Leases signed with Siemens Energy and Stack Infrastructure at 510 Church Street, Cremorne
- Fund occupancy increased to 96.7% by income with weighted average lease expiry of 6 years
- Stack Infrastructure lease avoids vacancy downtime and capital expenditure
- Only one vacancy remains, actively marketed, with no expiries until FY29 once leased
- Leases include fixed annual rent reviews of 3.75% and 4.0%
New Leases Finalised at Cremorne Property
360 Capital FM Limited, as responsible entity for 360 Capital REIT (ASX:TOT), has announced the finalisation of leases for two tenancies at 510 Church Street, Cremorne, Victoria. These leases follow heads of agreements disclosed in the Fund's HY26 results and cover approximately 5.2% of the Fund’s lettable area.
Siemens Energy has committed to a five-year lease commencing 1 October 2026, occupying 1,269 square metres on Level 2. The lease includes fixed annual rent reviews of 3.75%. Meanwhile, Stack Infrastructure has entered a five-year lease over 1,039 square metres on Level 6, starting 1 July 2026, with fixed 4.0% annual rent reviews. This tenancy was previously occupied by Dentsu, which partially surrendered its lease effective August 2026.
Occupancy and Lease Profile Strengthened
With these leases executed, the Fund’s occupancy by income has increased to 96.7% as of 31 March 2026. The weighted average lease expiry (WALE) by income stands at six years. The only remaining vacancy is 1,332 square metres on Level 2 at the same Cremorne address, which the Fund is actively marketing.
The new lease with Stack Infrastructure is particularly notable as it eliminates any vacancy downtime or capital expenditure associated with the previous tenant’s surrender. Additionally, the Fund will receive a lease surrender payment from Dentsu in FY27, providing some financial benefit during the transition.
Implications for Fund Stability and Income
Once the remaining vacancy is leased, 360 Capital REIT will have no lease expiries until FY29, potentially enhancing income stability and reducing near-term leasing risk. This leasing update follows the Fund’s recent operational improvements, including a 96.7% occupancy rate reported in its HY26 results and a 63% profit increase earlier this year, partly driven by strategic investments in Sydney apartments.
Investors may recall the Fund’s activation of a fee-free Distribution Reinvestment Plan (DRP) in March 2026, which offers securityholders a cost-effective way to reinvest distributions, supporting capital management flexibility.
Authorised for release by Glenn Butterworth, Company Secretary, the update underscores 360 Capital REIT’s ongoing leasing momentum and portfolio management focus.
Bottom Line?
The Fund’s leasing progress at Cremorne strengthens income visibility, though attention remains on leasing the last vacancy to maintain this momentum.
Questions in the middle?
- How quickly will the Fund secure a tenant for the remaining vacancy at 510 Church Street?
- What impact will the lease surrender payment from Dentsu have on FY27 financials?
- Could the extended lease expiry profile influence the Fund’s valuation or capital strategy?
