360 Capital Industrial Fund
The 360 Capital Industrial Fund's result is based off a significantly expanded asset base, and was in line with expectations. The portfolio metrics are sound - average lease expiry is 4.7 years with 99.4% occupancy. Net tangible assets (NTA) per security declined marginally as revaluation gains were offset by acquisition costs ($2.32 at 30-Jun-16 vs $2.34 at 30-Jun-15).
Operationally, the fund acquired ANI, adding 16 properties to the portfolio (portfolio totally 37 at 30-Jun-16). A capital raising was conducted to support the purchase. The fund also undertook significant leasing activity, and sold a non-core asset (with additional sales likely shortly - proceeds of which will be used to further reduce gearing).
The fund is forecasting FY-17 operating earnings of >21.6 cps, and a distribution of 21.6 cps. The fund delivers a strong, low risk income return for the equity portfolio.
