Funds & Trusts

strategy

360 Capital's core focus for the Fund is to implement initiatives designed to protect and enhance portfolio income and capital growth in order to maximise Unitholder value. The initiatives being implemented are:

1. Income growth via contractual rental growth and active asset management – investment strategies are focused on generating income growth from contracted rental increases as well as active asset management initiatives including selective asset sales, portfolio recycling and asset repositioning.
2. Captail growth by leveraging the cycle - the current level of supply of new industrial space should allow the Fund to leverage to the improving valuation and rent cycle and capitalise on increased activity in investment markets.
3. Enhance Portfolio quality – over the longer term, a key focus will be to enhance the quality of the Portfolio and extend the Portfolio's weighted average lease term to expiry (WALE) from 3.1 years to a target of 5.0 years. It is anticipated that underperforming properties will be progressively replaced with higher quality assets over time. Our focus in the short to medium term will be on maintaining the current asset base with a view to capitalising on the forecast upswing in the property investment market.
4. New debt facility and orderly disposal program – In late March 2012, the Fund entered into a new, three-year finance facility with NAB for the Fund's entire borrowings of $162.5 million. The Fund’s proximity to the loan to value (LVR) covenant requires adoption of a strategy to dispose a finite value of assets in order to reduce debt, increase portfolio quality and increase covenant headroom as the Fund goes forward. This strategy will utilise a limited, orderly disposal process that will not unduly impact NTA per Unit and therefore Unitholder value.