Gryphon Capital Income Trust (ASX: GCI) posted a 31% increase in revenue and a 30.6% jump in profit for the year ended 30 June 2026, underpinned by significant capital raises and expanded investment in Australian RMBS and ABS portfolios.
- Revenue up 31.3% to $99.8 million
- Profit rises 30.6% to $89.9 million
- Monthly distributions total 15.24 cents per unit
- Capital raised $218.3 million via placements and unit purchase plan
- Net tangible assets grow to $1.275 billion
Robust Financial Performance Driven by Capital Raises
Gryphon Capital Income Trust (ASX:GCI) delivered a solid financial year ending 30 June 2026, reporting a 31.27% surge in revenue to $99.8 million and a 30.63% increase in operating profit to $89.9 million. This growth was fuelled by a series of successful capital raises totaling $218.3 million, including two wholesale placements and a unit purchase plan, which expanded the Trust’s capacity to invest in Australian residential mortgage-backed securities (RMBS) and asset-backed securities (ABS).
Distributions and Unit Growth Reflect Expansion Strategy
The Trust maintained consistent monthly distributions, paying out a total of 15.24 cents per unit, amounting to approximately $90 million to unitholders. Despite a slight decrease from the prior year's 16.44 cents per unit, the overall distribution value increased in line with the growth in units on issue, which rose from 524.3 million to 635.95 million. The net tangible assets attributable to unitholders also climbed to $1.275 billion, reflecting the Trust’s expanded asset base.
Portfolio and Risk Management Remain Steady
The Trust's investment strategy continues to focus on a diversified portfolio of Australian RMBS and ABS, managed by Gryphon Capital Investments Pty Ltd. The portfolio is predominantly floating rate, with interest income closely linked to the Reserve Bank of Australia's cash rate. The Trust’s assets at fair value increased to $1.24 billion, with 69% rated investment grade. The Investment Manager maintains rigorous credit risk assessments and stress testing to safeguard against market volatility, ensuring the portfolio’s robustness.
Operational Updates and Governance
During the year, the Trust transitioned its fund administration from Apex Fund Services to Unity Fund Services Pty Ltd, effective 19 March 2026. Management indicated this change has no material impact on operations or financial position. The Responsible Entity, One Managed Investment Funds Limited, confirmed no changes in control or associates. The Trust received an unqualified audit opinion from PricewaterhouseCoopers, which highlighted the significant audit focus on valuation of financial assets at fair value.
Capital Raises Support Future Growth Potential
The capital injections through private placements and unit purchase plans have provided Gryphon Capital Income Trust with additional scale to expand its participation in the RMBS and ABS markets. This strategy aims to diversify the portfolio further, enhance liquidity for unitholders, and reduce operating costs per unit. The Trust’s closing unit price of $2.01 per unit remained stable year-on-year, underscoring steady investor confidence.
Bottom Line?
Gryphon Capital Income Trust’s strong FY2026 performance and substantial capital raises position it well for portfolio expansion, but future returns will hinge on RMBS/ABS market conditions and interest rate movements.
Questions in the middle?
- How will rising interest rates impact the Trust’s floating rate RMBS and ABS portfolio in the coming year?
- What pipeline of investment opportunities justifies the recent capital raises, and how quickly will these be deployed?
- Will the new fund administration arrangement with Unity Fund Services enhance operational efficiencies or cost savings?