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360 Capital Positioning for Growth


360 Capital Group announced its financial results and provided an update on its investment strategy for the financial year ending 30 June 2019.

During the year the Group disposed of its interest in Asia Pacific Data Centre Group for $154.8 million, repaying all debts, strongly positioning the Group to develop and execute a broader investment strategy, focused around the diversification of investment strategies.

The Group also;

  • Expanded its investment strategy into alternative asset classes to diversify allowing faster growth of the Group’s investment activities

  • Entered into an equities joint venture management business with Dennison Hambling, commencing today

  • Maintains a strong cash position of $177.2 million at 30 June 2019 from proceeds of business sale to Centuria

  • Entered into management joint venture with David Yuile who will head key Digital Infrastructure strategy

  • 360 Capital Return Fund (ASX: TOT) reports $56.6 million in loans repaid at an average IRR of 15.9% during the year and wrote $46.1 million in loans.

Following 30 June 2019, the Group has remained busy

  • Announced launch and completed $50 million in pre-IPO capital raising for 360 Capital Digital Infrastructure Fund

  • 360 Capital Digital Infrastructure Fund acquired two data centre interests

  • Launching the IPO and further $65 million raising of 360 Capital Digital Infrastructure Fund

  • Chris Chase appointed Head of Private Credit to further develop the Group’s existing corporate credit strategy.

Group key financial results highlights for the year ended 30 June 2019

  • Statutory net profit of $1.6m down on pcp reflecting significant unrealised gains in the prior period from AJD assets

  • Operating profit of $4.8m down on pcp due to reduced investments and high cash balances

  • Statutory earnings per security (EPS) of 0.7cps

  • Operating EPS of 2.3cps

  • Distributions per security (DPS) of 5.0cps (including fully franked 3.0cps special dividend)

  • NTA per security of $0.93 (including $0.77cps cash, $0.09cps into TOT)

  • Strong balance sheet with $177.2 million in cash and no borrowings across the group and its managed funds

  • Increase in ASX trading price from $1.015 to $1.03, representing a total shareholder return of 5.5% for FY19

Key Focus for balance of FY20

  • Complete $115 million IPO of 360 Capital Digital Infrastructure Fund and deploy c$55 million of free cash into digital assets

  • Continue to grow TOT’s capital base to keep pace with the Group’s real estate lending pipeline and fund other real estate opportunities

  • Launch listed investment trust for credit strategy in 3rd Quarter

  • Launch listed investment company for equities strategy in 4th Quarter

  • Build out distribution capability and continue to work with capital partners on transactions Forecast distribution of 4.0cps for FY20 (paid quarterly)

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