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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