Key Highlights

• Three real estate-backed loans to the Bathla group are being recovered via receivers.

• Property sales will shape how much cash the trust returns.

• The trust is a listed Mortgage vehicle, classed by the ASX as units.

• Outcomes depend on valuations and the timing of sales.

360 Capital Mortgage REIT (ASX:TCF) is in the news because three of its real estate-backed loans to the Bathla group are now being recovered through receivers, and the outcome will shape how much cash the trust can return to unitholders. Its 29 September 2026 trust update set out the sale progress, falling valuations and a distribution forecast that depends on how quickly Assets sell.

How the trust is structured

The security is a listed trust: ASX data classes it as units rather than ordinary shares, and places it in the Financials sector. It invests directly in Australian corporate loans backed by real estate and targets a return of the RBA cash rate plus 4 per cent.

Because it lends rather than owns property, unit value depends on borrowers repaying and on the security behind each Loan holding its value. That makes problem loans far more consequential than they would be for a diversified bank.

The Bathla loans

According to the update, receivers were appointed over the Bathla loans on 10 September 2026. On loans 1 and 2, two house dwellings, three lifestyle blocks and one land lot were under contract for A$6.2 million, which is the trust's share after GST and costs. Another 19 properties are being marketed.

Loan 3 is an A$8.9 million subordinated loan over a 72-apartment project. The senior lender has placed it in receivership, and 36 presales still have to settle. The trust said occupancy certification might require a new builder.

Construction at the Bathla projects has stopped, and the administrator has cut staffing to a skeleton crew.

Valuations and cash

Valuations fell by A$2.5 million across the three loans. The average loan-to-value ratio is 78 per cent, but the trust said valuations remain above the Debt outstanding on all Bathla loans.

That statement offers some comfort about principal, yet a valuation is an opinion rather than a sale price, and forced sales in a stalled development can fall short. Accrued interest also needs recovering.

Cash held was A$5.9 million on 29 September 2026. Adding the A$6.2 million of contracts to that cash gives A$12.1 million, although those contracts must still settle and the figures are not directly comparable. The update did not give the size of the total loan book or its number of loans, so the Bathla exposure cannot be placed in context from that document alone.

Net tangible assets, buy-back and distributions

Net tangible assets were A$5.95 per unit at 31 August 2026.

A buy-back notice dated 30 September 2026 shows 125,244 units bought in total at a cost of A$620,603.79, out of a maximum of 544,337 units. The programme runs from 30 March 2026 to 25 March 2027.

The update put the average price paid up to then at A$4.99 per unit. Buying below NTA can lift the value per remaining unit, but it also spends cash that could otherwise absorb losses or fund distributions.

The trust forecast a September 2026 distribution of 5.0 cents per unit, matching July and August. It cautioned that later payments depend on the pace of Bathla sales and the recovery of accrued interest, and that they carry no assurance.

Risks and what to watch

The main risks are delays and shortfalls in selling the Bathla properties, further valuation falls, the cost and time needed to complete or rescue the apartment project, and the concentration of the problem in a single borrower group.

Investors should watch the next trust update, the monthly NTA figure, the settlement of contracts already exchanged, progress on loan 3, accrued interest recovery and the remaining capacity of the buy-back.