360 Capital Industrial Fund
The 360 Capital Industrial Fund's (TIX) 37 properties retain strong metrics - occupancy is 99.4%, and the average lease expiry is 4.9 years. That said, a major focus will be on a leasing 'hump' in FY-17, which has arisen because of the ANI acquisition. Financial upside exists for the FY-17 forecast if these assets re-lease or don't have significant vacant time.
There was a considerable step-up in profit, with the inclusion of the ANI assets. On a like-for-like basis property income grew 4.9%. On a per security basis, profit grew 17%.
NTA currently stands at $2.20 per security, with this expected to increase for the current period ending 30-Jun-16 - based on assets revaluations. TIX's gearing is reasonable at 43.4%, with sub 40% being gearing targeted. This will be assisted by the asset revaluations, and by the expected sale of ~$50m non-core assets in FY-17.
TIX upgraded FY-16 full year guidance from 22.3 cents per security (cps) to 22.7cps. The anticipated inclusion in the ASX200 index will not have any impact on TIX operationally or financially, but it is expected to draw wider interest from the market (potentially not a bad thing for the security price).
360 Capital Industrial Fund offers a consistent, sustainable income return for the equity portfolio.