360 Capital Mortgage REIT (ASX:TCF) Announces Half Year 2025 Results
Financial Performance
360 Capital Mortgage REIT reported net operating earnings of $1.3 million, a 32.8% increase on HY24. Earnings per unit rose to 31.8cpu, up 30.3%, and distributions per unit reached 30.1cpu, a 43.3% increase. The Trust upgraded its forecast FY25 earnings and distribution guidance to 60.0cpu, reflecting a distribution yield of 10.2% p.a.
Operational Highlights
In HY25, the Trust lent a total of $23.1 million, secured by registered first mortgages. The loan portfolio comprised five loans with 55 individual mortgages, maintaining a weighted average Loan to Value Ratio of 68.9% and an average interest rate of 11.6%. Additionally, the Trust undertook a Placement and Conditional Placement in December 2024, increasing market capitalisation by 36.1% to $33.4 million and ensuring the NAV per unit remained at $5.94.
Capital Raising
The Trust appointed Ord Minnett Limited and Shaw and Partners Limited as Joint Lead Managers for the Capital Raising. It successfully raised $8.9 million at an issue price of $5.94 per unit, with the Manager covering certain costs to prevent NAV dilution. Unitholders approved a Conditional Placement to raise up to $16.3 million and an off-market buyback mechanism, allowing semi-annual buybacks starting 30 June 2025.
Outlook and Guidance
Positioned as one of only two ASX-listed mortgage REITs, 360 Capital Mortgage REIT maintains its FY25 earnings and distribution guidance of 60.0cpu, a 33.3% increase on FY24, equating to a 10.2% annualised yield. The Trust is supported by strong investor interest and a pipeline of real estate-backed lending opportunities.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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