• Forecast FY25 distribution yield of 10.2%, the highest among ASX-listed credit funds
• Consistent income with 118% increase in distributions since 360 Capital took over management in 2020
• Conservatively structured with 95.9% senior loans and no leverage

360 Capital Mortgage REIT (ASX:TCF) has reported strong HY25 results, highlighting its attractive yield, consistent income, and conservative portfolio structure. The trust offers a forecast FY25 distribution yield of 10.2%, the highest among ASX-listed credit funds. Distributions have increased by 118% since 360 Capital took over management in 2020, providing consistent monthly income to investors. The portfolio is conservatively structured, with 95.9% senior loans and no leverage, ensuring capital preservation. The trust recently completed a $8.9 million capital raising, increasing its total assets by 35.9% and improving scale, liquidity, and diversification potential. TCF is one of only two ASX-listed Mortgage REITs, offering investors exposure to a unique asset class. The trust is trading at a marginal discount to its net asset value, presenting a potential value opportunity relative to peers.

Forecast FY25 distributions of 60.0 cpu, equivalent to a 10.2% distribution yield based on the closing price on 31 December 2024. The trust has introduced a distribution policy to target the RBA Cash Rate +4.0% (net of fees).

The trust is targeting a market capitalization of $100 million within the next 12 months, which will further improve its ASX trading liquidity, loan diversification, and overall relevance. The trust plans to continue marketing and other initiatives to maintain its trading price, including the introduction of a 6-monthly liquidity mechanism at net asset value. Potential capital raisings, such as an Entitlement and General Offer, are also being considered to increase the capital base and fund further growth.