360 Capital held its Annual General Meeting this week. The focus for the year was the tussle with NextDC for control of APDC and the defence of its position which took the focus of considerable resources in the business.
The outcome of the APDC has come at a reasonable price following the acceptance of NextDC of a $2.02 per security price, providing a net return of $19.24 million and a return on investment of 14.4%. Whilst the dollar outcome is likely to have been at or near 360's original planned exit price, the time taken to achieve the outcome weighed down the ultimate return on capital.
Like many other investment managers, 360 Capital turned their attention to building a real estate debt platform with a digital entry point for borrowers to submit funding proposals. So far, the group have completed 7 debt investments worth $111M an an average interest rate of 11.6%.
The highlights for 2018 were;
Statutory profit of $16.2M
Operating earnings 5.0 cents per share
Distribution of 5.5 cents per share
Total shareholder return of 10.9%
In 2019, 360 Capital will focus on;
expanding the real estate lending activities
diversify capital sources to accommodate real estate lending growth;
Increase the size of TOT’s capital base to improve liquidity and earnings growth;
Repayment of the Group’s $20 million debt to become debt free;
Progress the Mortgage REIT and/or other real estate credit strategies;
Continue to monitor opportunities with patience