Operating profit rose 24.8% to A$5.2 million
SYDNEY: 360 Capital REIT (ASX:TOT) reported a statutory profit of A$1.3 million for the fiscal year ended June 30, reversing a A$21.9 million loss in FY24, as stabilising asset values, active leasing and falling finance costs buoyed performance.
Operating profit rose 24.8% to A$5.2 million, while operating earnings per security (EPS) reached 2.4 cents, exceeding forecasts by 14.3%. The fund declared fully franked distributions of 3.0 cents per security, in line with guidance.
The REIT completed a three-year extension of its debt facility to FY28 at a reduced interest margin and disposed of its remaining non-core stake in Home HQ for A$3.3 million. Gearing fell to 35.5%, well below covenant thresholds.
Leasing momentum was strong at 38 Sydney Avenue in Canberra, where CropLife Australia and the Commonwealth of Australia signed long-term leases, lifting the property’s WALE to 9.0 years. The only remaining vacancy in the portfolio is Level 2 at 510 Church Street, Cremorne, Melbourne, which remains a leasing priority for FY26.
The portfolio, comprising assets in Melbourne, Canberra and Brisbane, was independently valued at A$201.0 million, down marginally from A$201.4 million. Capitalisation rates softened, but rising market rents and limited replacement supply supported valuations.
TOT forecasts FY26 operating earnings of 3.0 cents per security, up 25%, with distributions expected to remain steady and shift to 100% tax-deferred status due to depreciation allowances.
The REIT closed at A$0.395 per security on June 30, reflecting a 31.9% discount to net tangible assets. Management said it continues to explore options to improve trading performance and portfolio relevance.