Unfranked Dividend and AMIT Election Pose Tax Implications for 360 Capital Mortgage REIT Investors
360 Capital Mortgage REIT has announced an estimated ordinary dividend of AUD 0.055 per security for the September quarter, alongside the adoption of the Attribution Managed Investment Trust regime and a Dividend Reinvestment Plan offering.
- Estimated ordinary dividend of AUD 0.055 per security for period ending 30 September 2025
- Dividend is unfranked and payable in cash or via a Dividend Reinvestment Plan (DRP)
- DRP issues new units at net asset value with no discount applied
- Responsible entity elects to apply the Attribution Managed Investment Trust (AMIT) regime
- Dividend payment scheduled for 7 October 2025 with ex-date 29 September 2025
Dividend Announcement and Payment Details
360 Capital Mortgage REIT (ASX – TCF) has declared an estimated ordinary dividend of AUD 0.055 per fully paid ordinary unit for the financial period ending 30 September 2025. The dividend will be paid on 7 October 2025, with an ex-dividend date of 29 September and a record date of 30 September. This distribution reflects the trust’s ongoing commitment to delivering steady income to its investors amid a dynamic real estate finance environment.
Unfranked Dividend and Tax Regime Shift
The dividend is entirely unfranked, meaning it does not carry any Australian franking credits. This is consistent with the trust’s structure and income sources. Notably, the responsible entity has elected to apply the Attribution Managed Investment Trust (AMIT) regime for tax purposes. This election is significant as it offers enhanced transparency and flexibility in the tax treatment of distributions, potentially benefiting investors through more precise attribution of income components.
Dividend Reinvestment Plan (DRP) Details
Investors have the option to participate in a Dividend Reinvestment Plan, which allows them to reinvest their dividends into new units of the trust rather than receiving cash. The DRP will issue new units at the trust’s net asset value (NAV) as determined at the end of the distribution period, with no discount applied. This approach aligns the reinvestment price closely with the underlying value of the trust’s assets, offering a fair mechanism for unit holders who wish to compound their investment.
Implications for Investors
The combination of an unfranked dividend and the AMIT regime election may influence the tax outcomes for different categories of investors, particularly those sensitive to franking credits. The availability of a DRP with no discount also provides a straightforward avenue for investors to increase their holdings without incurring brokerage costs. However, the dividend amount remains estimated until confirmed on the payment date, which introduces a degree of uncertainty.
Looking Ahead
As 360 Capital Mortgage REIT continues to navigate the mortgage-backed real estate market, the adoption of the AMIT regime and the maintenance of a consistent distribution policy underscore its focus on investor returns and regulatory compliance. Market participants will be watching closely for the final dividend confirmation and any further updates on the trust’s financial performance and capital management strategies.
Bottom Line?
Investors should monitor the final dividend confirmation and assess how the AMIT regime election reshapes their tax position.
Questions in the middle?
- Will the final dividend amount differ from the current estimate of AUD 0.055 per security?
- How will the AMIT regime election impact the tax treatment of distributions for different investor types?
- What level of participation is expected in the DRP, and how might new unit issuance affect the trust’s capital structure?
