360 Capital Group (TGP) H2 2024 earnings summary

Executive summary

• Statutory profit of $0.3m for FY24, a 101.5% turnaround from FY23's $20.8m loss, driven by a $6.1m gain on HPI and offset by losses in 360 Capital REIT and an intangible write-off.

• Operating profit after tax was $6.7m, down 33.0% year-over-year due to lower funds management fees and the sale of HPI investment.

• NAV per security increased to $0.79 from $0.78, with 64.6% of balance sheet assets in cash and no borrowings.

• Directors and KMPs own 50.6% of securities, aligning management with shareholders.

Financial highlights

• Operating profit after tax fell to $6.7m from $9.9m in FY23, reflecting a 33.0% decrease.

• Statutory profit of $0.3m, reversing a $20.8m loss in FY23.

• Dividend/distribution per security was 3.5cps (2.0cps fully franked, 1.5cps distribution), down from 4.25cps in FY23.

• Cash balance at $111.4m, equivalent to $0.53 per security, with no debt.

• Co-investments in managed funds totaled $55.4m, or $0.26 per security.

Outlook and guidance

• FY25 dividends/distributions forecast to be lower at 3.0cps, with policy to distribute at least 80% of operating earnings unchanged.

• Market outlook remains cautious: capital markets challenging, capitalisation rates expected to soften, and interest rates likely at peak.

• Focus areas include leasing remaining vacancies, growing the loan portfolio, and seeking opportunistic investments.