360 Capital REIT (ASX:TOT) has released its financial results for the half-year ended 31 December 2024, reporting a statutory net profit of $1.9 million, down 18.9% from $2.3 million in the prior corresponding period. Operating profit increased by 41.7% to $2.6 million, reflecting higher net operating property income and lower finance costs.
The fund distributed 1.5 cents per security (cps) fully franked during the period, in line with its forecast for FY25 distributions of 3.0 cps per annum.
Key Financial Highlights
- Revenue and other income: $7.45 million (down 3.0% from $7.68 million in HY24).
- Operating profit: $2.6 million (up 41.7% from $1.8 million).
- Statutory net profit: $1.9 million (down 18.9% from $2.3 million).
- Basic earnings per security: 0.9 cps (down 43.8% from 1.6 cps).
- Net tangible assets (NTA): $0.60 per security (down from $0.90 a year earlier).
- Gearing: 33.6%, improved due to debt reduction initiatives.
The fund reduced borrowings by $3.6 million, bringing total borrowings to $69.8 million, following the sale of its stake in Home HQ for $3.3 million and proceeds from its Distribution Reinvestment Plan (DRP). The debt facility was also extended to FY28 at a lower interest cost, supporting the fund’s long-term capital management strategy.
Property Portfolio and Leasing Update
360 Capital REIT owns a diversified property portfolio across Melbourne, Canberra, and Brisbane, valued at $201.8 million. The portfolio is 93.3% occupied, with a weighted average lease expiry (WALE) of 6.9 years.
- 38 Sydney Avenue, Forrest ACT: Fully leased after securing two major tenants—CropLife Australia (754sqm, 7-year lease) and the Australian Centre for International Agricultural Research (1,404sqm, 12-year lease). This increased the property’s WALE to 9.4 years.
- 510 Church Street, Cremorne VIC: The only remaining vacancy in the portfolio, with 2,582sqm still unleased. Management has completed a speculative fit-out to attract tenants but faces strong competition from the Melbourne CBD.
- 34 Southgate Avenue, Cannon Hill QLD: Fully leased to Michael Hill International (ASX:MHJ) with a 7.7-year WALE.
Capital Management and Strategic Outlook
During the half-year, 360 Capital REIT simplified its fee structure by entering into a new Investment Management Agreement with 360 Capital REIT IM Pty Limited, resulting in an annual cost reduction of approximately $100,000 and the removal of performance fees.
Looking ahead, the fund aims to complete the leasing of 510 Church Street, maintain strong financial discipline, and explore growth opportunities to position itself for potential inclusion in the S&P/ASX300 A-REIT Index.
