• Increased loan transactions and TCF capital raising
• TOT portfolio improvements and positioned for growth
• Sold 56% interest in Hotel Capital Partners
• Intention to undertake off-market buyback at $0.65 per security

360 Capital Group, an ASX-listed investment and funds management group, reported its HY25 results, showcasing a strong performance across its real estate equity and credit platforms. Key highlights include a 112% increase in loan transactions generating $0.7 million in upfront fees, a 35.9% growth in the 360 Capital Mortgage REIT's (TCF) gross assets, and the approval of new 10-year investment management agreements for both TCF and the 360 Capital REIT (TOT). The TOT portfolio continued to improve, with increased occupancy, reduced gearing, and the sale of remaining non-core assets. The company also sold its 56% interest in Hotel Capital Partners, finalizing its simplification strategy. Additionally, 360 Capital Group implemented a new short-term incentive scheme based on funds management growth and canceled 18 million ESP securities. The company witnessed increased deal flow and opportunities due to its strong capital position and is now focused on opportunistic growth, both organically and through M&A. Notably, the company intends to undertake an off-market buyback of up to 44.6 million securities at $0.65 per security, representing a 10.2% premium to the last closing price.

360 Capital Group is forecasting FY25 dividends/distributions to be higher than previously guided, now targeting 3.0-3.5 cents per security (2.0 cents per security paid in HY25). The company notes that any transactional activity in the second half of FY25 will provide upside to the bottom end of the range.

The company expects the Australian commercial real estate market to start bottoming in the second half of 2025, with value opportunities emerging as listed capital markets open up for selective asset classes and debt capital markets become more competitive for high-quality assets. Interest rates are expected to start falling in 2025, and replacement costs are likely to continue increasing, underpinning long-term value for modern assets.