I've had a good read over the results tonight and wanted to...

I've had a good read over the results tonight and wanted to share my updated thoughts.

This fund has truly destroyed an incredible amount of shareholder value in the past 18 months and for me the most frustrating part is that TGP received a 2.5 million dollar acquisition fee for doing so (I went back and double checked the amount before writing this post).

When you go back and look at the NTA under the previous fund of funds/property financing structure (pre transformation into a direct REIT) in March 2022 the NTA was sitting at $1.26 not even 2 years ago.

Presuming a 60% take up of the offer (which I reckon will be about right) we're going to end up with a NTA of 0.73 cents 2 years later....... An astounding 42% decrease and that's not even taking into account the 73 cents not being a solid NTA (by my calculations a further 10 percent fall in valuations would leave us with investment properties totalling just under 205 million which equates to an NTA of 62 cents and gearing of 35% using the pro forma balance sheet provided as part of the announcement).

Even with the slashed dividend we still aren't going to be able to cover the yearly pay out through net property income alone unless the properties become fully leased and we get a drop off in interest rates. If 360 purely pays out it's net income we'd be at 2.1 cents a share which is a 5.25% yield.

I feel that the underlying properties are actually the only good part of the investment proposition here they've just been bought at a crazy price and the 5.3% the cap rates are still too tight. I'm unpleasantly surprised at the difficulty getting the vacant floors leased out though and the previously bullish language around the funds prospects of getting this done soon remind me of how the Home HQ Artamon trust has been promoted every 6 months as being non core and ready to sell for a couple of years only for them to reveal in the latest results that the second sales campaign in 2 years has been unsuccessful and they've once again rolled the unit trust over for another year.

I also never factored in the borrowing of additional money to pay for the capital gain on the Irongate transaction and hadn't factored it into my model at all (I presumed it had already been paid). Would anyone be able to give me an indication of where this was sitting on the balance sheet and how I can spot the possibility for another situation like this in the future?

In terms of where I go from here with my personal investment I'm still in two minds although leaning towards participating in the capital raising. In an ideal world I would rather not increase my exposure to TOT particularly considering the lack of takeover potential being a catalyst for change due to the fund manager having an ever increasing stake.

I plan on writing to management again and also the AFR rear window column to highlight the acquisition fee and destruction of value at the company as I believe there hasn't been enough accountability for what's occurred here. I take great care to be as respectful as possible in my posts and occasional letters to management across the companies I invest in and recently hoped to attend the 360 results presentation virtually and ask a couple of questions (this was pre value destroying cap raise) only to get a brief email back saying there was no legal obligation for them to hold an AGM so there wouldn't be one...... Rather than giving small shareholders a forum to ask questions publicly.

I took that as another bad sign but the huge NTA discount and high dividends have kept me hanging in there unfortunately.

I've also been a holder in DXC for a little over a year and my experience with management couldn't have been much more different considering it's two small REITS that have been seriously out of favour and trading at big valuation discounts. They've been very engaging and humble in taking on feedback whereas it seems to me the more TOT has struggled the more they've retreated from the public view.

Overall I feel that it's a good lesson as my research should have been much better and I think I developed a false sense of security due to SOL having an involvement (I couldn't believe they'd sold out at such a low price and NTA discount last year and now they comparatively look like geniuses compared to me!).