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360 Capital REIT (ASX: TOT)

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Question asked 22/08/2026

360 Capital REIT (ASX: TOT)

Hi guys, Have you ever looked into TOT? From my perspective as a SMSF retiree looking for income first, capital preservation second and share price growth not particularly relevant if first two objectives are met for the medium to long term. TOT has around a 9% forward yield. They also have about 2c per share in undistributed franking credits 'up their sleeve'. Gearing under 40%, 3 buildings with 100% occupancy and 6 year WALE. They have recently 'pimped' their forward distribution by adding a bit of private credit lending with short loan term duration. Low liquidity and market cap suggests appeal is probably only retail investors as larger positions for instos not really available. Your views on whether you identify real risks that I have not so far seen or understood. Cheers DavidO

Answer

Hi David,

This $92mn micro-cap definitely comes with some risks, apart from the obvious poor share price performance outside of its yield.

The TOT is a small, very concentrated REIT with a ~$200m portfolio spanning office/healthcare, high-tech industrial and residential assets. The key balance-sheet concern is gearing, which increased from 35.5% to 38.9% in FY26, while just A$6m of undrawn facilities provides a relatively thin liquidity buffer. With the entire property portfolio carried at fair value, any meaningful decline in commercial property valuations could also reduce NTA and push gearing higher.

TOT is sensitive to interest rates and asset-level concentration. Its weighted-average borrowing cost was 5.2% in FY26, meaning further increases in funding costs could pressure distributable earnings and the current ~7.2% yield, although a WALE of 6.0 years provides reasonable income visibility.

The relatively small number of properties and tenants means a major vacancy, lease expiry or asset devaluation can have an outsized impact.

Its small market capitalisation, limited trading liquidity and access to equity capital further amplify these risks. But there are some important offsets:

FY26 statutory profit improved to A$6.3m from A$1.3m, occupancy has strengthened following new leases with Siemens Energy and Stack Infrastructure, and distributions have been maintained.

Overall, however, TOT’s attractive headline yield comes with elevated balance-sheet, liquidity and concentration risk, making gearing, property valuations and refinancing costs the key metrics to watch.

It’s not for us but looks “ok” around 40c.

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360 Capital REIT (TOT)

LAST UPDATED 21/08/2026 12:43

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