360 Capital REIT (ASX:TOT), managed by 360 Capital FM Limited, has released its financial results for the year ending June 30, 2025. 360 Capital REIT invests in real estate opportunities and has a history of consistent quarterly distributions. The announcement highlights stabilising asset values, income growth from active leasing, and reduced finance costs. Key achievements include the completion of a three-year extension to the existing debt facility until FY28 at a reduced interest rate, the leasing of all remaining vacant space at 38 Sydney Avenue, Forrest ACT, and the disposal of remaining non-core assets, specifically the Home HQ stake, for $3.3 million. The company also reported a simplified fee structure with a new Investment Management Agreement.
Financially, 360 Capital REIT reported a statutory profit of $1.3 million, a significant improvement from the $21.9 million loss in FY24. Operating profit also saw an increase of 24.8%, reaching $5.2 million. Statutory earnings per security (eps) rose to 0.6cps, up from a 13.3cps loss in the previous year. The REIT declared fully franked distributions per security of 3.0cps, aligning with its guidance. The property portfolio, comprising assets in Melbourne, Canberra, and Brisbane, boasts a 93.4% occupancy rate and a weighted average lease expiry (WALE) of 6.4 years.
Looking ahead, 360 Capital REIT is forecasting FY26 operating earnings to be 3.0 cps, a 25.0% increase compared to FY25. This anticipated growth is attributed to leasing activity in FY25 and projected interest rate cuts by the RBA. The FY26 distribution is also forecast at 3.0cps, paid quarterly, and is expected to be 100% tax-deferred. Management is focused on leasing the remaining vacancy at 510 Church Street, Cremorne, and working with prospective tenants to lease space becoming available at the same location in FY27.
