Gryphon Capital Income Trust (ASX:GCI), an S&P/ASX 300 listed Investment trust investing in Australian fixed income Credit securities, delivered strong FY26 results with Revenue of $99.8 million (up 31.3%) and profit of $89.9 million (up 30.6%) for the year ended 30 June 2026. The trust paid monthly distributions totalling 15.24 cents per unit during FY26, delivering a consistent income stream to investors. NTA per unit remained at $2.01 at both 30 June 2025 and 30 June 2026, reflecting the credit nature of the portfolio and its focus on capital preservation alongside income generation.

About the Company

Gryphon Capital Income Trust (ASX:GCI) is a registered managed investment scheme listed on the Australian Securities Exchange that invests in Australian credit and fixed income securities. The trust commenced operations in May 2018 and focuses on providing investors with monthly income distributions from a portfolio of corporate bonds, asset-backed securities and other credit instruments. The Responsible Entity is One Managed Investment Funds Limited, and Gryphon Capital Investments serves as the investment manager.

Recent Development

On 26 August 2026, Gryphon Capital Income Trust released its Appendix 4E for the year ended 30 June 2026. Revenue for the year from ordinary activities was $99,769 thousand ($99.8 million), up 31.27% from the prior corresponding period. Profit for the year was $89,859 thousand ($89.9 million), up 30.63%. During FY26, monthly distributions totalling 15.24 cents per ordinary unit were paid or declared, amounting to $89,955,062. On 27 July 2026, a distribution of 1.35 cents per ordinary unit (totalling $8,610,770.83) was approved for payment on 10 August 2026. Total Net Tangible Assets attributable to unitholders were $1,275,146 thousand at 30 June 2026, with 635,950,578 units on issue, giving NTA per unit of $2.01 — the same as at 30 June 2025. Units on issue grew from 524,315,503 to 635,950,578, reflecting new unit issuance during the year.

Sector Context

Fixed income credit trusts like GCI occupy an important niche in the Australian income investor market, providing access to corporate and asset-backed credit that is otherwise difficult for retail investors to access directly. The trust's 31% revenue growth reflects both the expansion of its unit base (from new issuance) and the elevated credit return environment, where higher interest rates have increased the income generated by the credit securities in the portfolio. The preservation of NTA at $2.01 across both years confirms the portfolio's capital stability, a key attribute for income-focused investors who prioritise return of capital alongside return on capital.

Risks and Uncertainty

Credit trusts are exposed to credit risk: if corporate borrowers in the portfolio default, capital can be lost. In a deteriorating economic environment, credit spreads can widen and portfolio valuations can decline, potentially reducing NTA below the $2.01 level. Interest Rate risk affects the value of fixed-rate credit securities if rates rise further. The trust's income distributions will reduce as interest rates fall, since the floating-rate component of the portfolio will generate lower income in a declining rate environment. Liquidity can be a concern in credit markets during periods of stress.

Catalysts Investors Can Watch

The monthly distribution rate — currently running at approximately 1.27 cents per unit per month (based on the 15.24 cents annual figure) — will be the primary income metric to monitor as interest rates adjust. Any NTA movement above or below $2.01 will signal whether the portfolio is generating capital gains (from spread compression) or facing mark-to-market losses (from spread widening). The growth in units on issue from 524 million to 636 million reflects strong investor Demand for the product; continuing this inflow trend would grow the trust's scale and Earnings base.