• Completed 3-year extension to FY28 of existing debt facility at reduced interest cost
• Leased all remaining vacant space at 38 Sydney Avenue, Forrest ACT
• Disposed of remaining non-core assets being Home HQ stake for $3.3 million

360 Capital REIT has announced its financial results and operational update for the year ending 30 June 2025. Key highlights include completing a 3-year extension to FY28 of its existing debt facility at a reduced interest cost, leasing all remaining vacant space at 38 Sydney Avenue, Forrest ACT, and disposing of its remaining non-core assets, including a stake in Home HQ, for $3.3 million. The REIT's property portfolio comprises three modern assets located in Melbourne, Canberra, and Brisbane, with a weighted average lease expiry (WALE) of 6.4 years and an average age of 4.7 years. The portfolio is 93.4% occupied, with the only remaining vacancy being Level 2 at 510 Church Street, Cremorne VIC. The REIT's statutory profit increased by 106.0% to $1.3 million, while operating profit rose by 24.8% to $5.2 million. Statutory earnings per security (EPS) increased by 104.5% to 0.6 cents per security, and operating EPS was 2.4 cents per security, 14.3% above forecast but down 4.0% on FY24. The REIT's property valuations decreased slightly by 0.2% to $201.0 million, with the weighted average capitalization rate softening from 6.16% to 6.43%. The REIT has reduced its borrowings, with gearing (net of cash) at 35.5% as of 30 June 2025. The REIT has also reduced its fee structure and entered into a new Investment Management Agreement. Looking ahead, the REIT's focus for FY26 is on leasing the remaining vacancy at 510 Church Street, Cremorne, and assessing options to improve the REIT's relevance, diversification, and trading performance.

The Fund is forecasting FY26 operating earnings to be 3.0 cents per security, an increase of 25.0% above FY25 earnings. The FY26 distribution is forecast to be 3.0 cents per security, in line with FY25, with distributions to be 100% tax deferred.

With expected stabilization of valuations, falling interest rates, and increased confidence in the commercial real estate market, the REIT expects the trading gap between its security price and net tangible assets to decrease in the near term. The REIT continues to assess various options to improve its relevance, diversification, and trading performance.