This article is from the Australian Property Journal archive
THE Elanor Commercial Property Fund (ASX: ECF) delivered solid results for FY24, with its portfolio boasting a strong occupancy rate of 98.4%, well above the CBD market average.
ECF posted a statutory net loss of $25.2 million, improved from FY23’s loss of $32.1 million.
FFO for the year was at $33.14 million down from $34.85 million in FY23, while FFO per security was at 10.47 cents down from 11.01 cents.
Distributions were at $26.9 million down from $29.75 million in FY23, with distributions per security at 8.50 cents down from 9.40 cents in FY23.
“ECF has delivered a solid full-year result for investors by maintaining a strong 98.4% occupancy rate which is well above the national CBD market average of 84.0%. Approximately 69% of the portfolio (by value) is located in the Perth and south-east Queensland markets which continue to perform well,” said David Burgess, fund manager at ECF.
“The fund has delivered on its FY24 distribution guidance as we continue to execute leasing strategies to drive rental income growth across the portfolio.”
Net assets were at $265.68 million down from $317.79 million, with NTA per security at $0.84 down from $1.00 in FY23.
ECF’s balance sheet gearing was at 39.9%, with $195.2 million in drawn debt, 76.7% hedged, a weighted average cost of debt at 4.54% and average maturity of 2.2-years.
“Rising interest rates during the year has resulted in a softening of the weighted average portfolio capitalisation rate by 69 basis points, thereby impacting the Fund’s portfolio valuation and NTA. This valuation impact was partially offset by solid rental growth of 5.8%,” added Burgess.
ECF’s portfolio was valued at $514.1 million across 88,440sqm of NLA, for a 7.64% cap rate, occupancy of 98.4% and a WALE of 4.0-years.
ECF successfully saw a material reduction in lease expiries for both FY25–15% to 8%– and FY26 expiries–55% to 31%.
Over the year, ECF’s planned $38.5 million sale of the Nexus Centre in Brisbane fell through after purchaser, local property investment fund Quantuna, could not satisfy a capital raising condition.
ECF didn’t provide a FY25 guidance.
