360 Capital Group (ASX: $TGP) Half Year Results 31 December 2023

360 Capital Group (ASX: $TGP) has reported its half-year financial results for the period ending 31 December 2023. The Group experienced a statutory net loss of $5.4 million, marking an 832.9% increase from the previous year, and an operating profit of $4.7 million, down 19.1% from the prior year. The Group's operating EPS decreased to 2.1cps from 2.7cps in the previous year, and the fully franked dividend per security (DPS) decreased to 2.0cps from 2.25cps in the prior period. The Group maintained a strong balance sheet with $34.9 million in cash and no debt.

Executive Commentary on Financial Performance and Strategy

The six months to December 2023 have been challenging for the Group due to the subdued commercial real estate market in Australia. The Group faced falling values of its investments, resulting in a statutory loss of $5.4 million. However, the operating profit of $4.7 million was in line with expectations, supported by strong underlying leases with a weighted average lease term of 8.7 years. The decision to buy back 8.8 million securities at an average price of $0.537 per security was made considering the trading discount of the Group's securities on the ASX, the quality of the Group's assets, and its high cash balance. Our strategy remains focused on real estate funds management and investment across the four strategies: Core, Credit, Opportunistic Real Estate, and Hospitality.

Summary of Half Year Results and Future Outlook

360 Capital Group's half-year results for the period ending 31 December 2023 reflect the challenges faced in the subdued commercial real estate market in Australia. The Group reported a statutory net loss of $5.4 million and an operating profit of $4.7 million. Despite the difficult market conditions, the Group maintained a strong balance sheet with $34.9 million in cash and no debt. Looking ahead, the Group anticipates further deterioration in the real estate markets and the general economy in 2024 due to recent interest rate rises. However, the Board and management are actively monitoring the market for opportunities to improve the Group's performance and create long-term value for Securityholders. The Group's dividend and distribution policy of distributing a minimum of 80% of operating earnings remains unchanged, with a forecasted earnings of between 1.6 cps and 1.8 cps for 2H24. The Group's commitment to real estate funds management and investment across various strategies underpins its long-term approach to creating value for its stakeholders.