360 Capital Mortgage REIT (ASX:TCF) has announced its financial results for the year ended June 30, 2025. The company provides investors access to credit opportunities secured by Australian real estate assets, aiming to deliver regular monthly income through disciplined asset selection and risk analysis. Key operational highlights for FY25 include total lending of $45.8 million, secured by registered mortgages, and a Total Unitholder Return of 21.5%. The loan portfolio comprised 8 loans with 53 individual mortgages, with 96.4% being senior first mortgage loan investments, a weighted average Loan to Value Ratio (LVR) of 69.2%, and a weighted average interest rate of 11.8%.
The REIT undertook several capital raisings throughout the year, including a Placement and Conditional Placement in December 2024 and an Entitlement Offer in April 2025. These initiatives increased the market capitalisation of the Trust by 66.3% to $37.4 million. All capital raisings were executed at $5.94 per unit, aligning with the Net Asset Value (NAV) of the Trust, and certain capital raising costs were covered by the Manager to prevent NAV dilution. Unitholders approved a 10-year management agreement and an off-market liquidity mechanism in December 2024.
Financially, FY25 distributions rose to 62.3 cents per unit (cpu), a 38.4% increase from FY24, reflecting a distribution yield of 10.4% per annum. This represents a 126.5% increase in distributions since 360 Capital assumed management in 2020. Net operating earnings reached $3.2 million, up 74.6% from the previous year, with earnings per unit at 64.8cpu, a 44.0% increase. The NAV remained unchanged at $5.94 per unit as of June 30, 2024.
Looking ahead, TCF aims to continue growing and diversifying its capital and asset base in FY26, subject to market conditions. The Trust is supported by strong investor interest and a pipeline of real estate-backed lending opportunities and intends to maintain distributions in line with operating earnings.
