360 Capital Total Return Fund share price rises on update, buyback

The share price of 360 Capital Total Return Fund (ASX: TOT) rose today after it announced an update, guidance and a share buy-back. 

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The share price of 360 Capital Total Return Fund (ASX: TOT) rose today after it announced an update, guidance and a share buy-back. 

360 Capital Total Return Fund said that it had completed its acquisition of URB Investments and it has commenced a sale of the shares that URB owned. It has already sold $17.8 million and still holds $3.1 million of shares. 

Another part of the update said that the fund's $8 million Coogee and $7.7 million Perth hotel loan investments have now been repaid, delivering a 15.1% and 16.8% rate of return per annum respectively. The fund's $100 million real estate loan portfolio now comprises only senior secured first and only mortgages with an average all-in interest rate of 9.8% and portfolio loan to value ratio of around 67% on a fully drawn basis. 

360 Capital Total Return Fund also also announced that it has commenced the sales campaign for the Gladesville apartment asset. Recent sales within the area support sales prices approximately 26% above the fund's November purchase price. 

Next, investors were reminded that it had jointly invested in a 19.9% stake of Velocity Property Group (ASX: VP7) for an investment of 2 cents per share, reflecting a 60% discount to the June 2019 NTA of 5.6 cents per security. 

360 Capital Total Return Fund has now providded a $23.7 million residual stock loan over a completed project that is currently being sold down and a $10 million secured convertible note with a term of two years and an interest rate of 7% with a conversion price of 4 cents per security, a 28% discount to the NTA – conversion rights are subject to Velocity shareholder approval.

Management have decided to commence a buy-back because it's trading at an 11% discount to the unaudited core NTA of $1.16 per share. It will buy up to 6.7 million securities, or 10% of the units on issue. 

360 Capital Total Return Fund re-iterated its forecast distribution guidance of 9 cents per unit, reflecting a forecast distribution yield of 8.5%. 

It also expects to report for the December 2019 half-year: an operating profit of 4.5 cents per unit, NTA of $1.16 per unit and cash of $33.1 million with current receivables of $18.1 million. 

Should you invest $1,000 in 360 Capital Total Return Fund right now?

Before you buy 360 Capital Total Return Fund shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and 360 Capital Total Return Fund wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 finally had a green session this hump day.

Read more »

gaming asx share price rise represented by slot machine paying jackpot
Broker Notes

What does Macquarie expect from Aristocrat Leisure shares when it reports on 14 May?

Here's what the broker is expecting from this gaming technology company next week.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 17%!

Investors are sending the ASX 300 stock soaring higher on Wednesday. But why?

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Firefly, Kelsian, NAB, and Zip shares are roaring higher today

These shares are having a good time on hump day. Let's find out why.

Read more »

A man and woman sit at a desk staring intently at a laptop screen with papers next to them.
Opinions

Where I'd invest $5,000 in ASX 300 shares right now

These stocks look like excellent investments today.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Goldman Sachs says these ASX 200 stocks are strong buys

The broker is feeling very bullish about these stocks. But why?

Read more »