This article is from the Australian Property Journal archive
ELANOR Investors Group boosted its funds under management over the first half by 32.9% to $1.149 billion, while it has acquired a Stirling Street property in Perth for $24.7 million to add to its WorkZone West office building purchase in the WA capital.
Revenue from ordinary activities was up 122.3% to $76.434 million, helped by the $36 million sale of the former John Cootes furniture store in Merrylands, while it turned around net losses to a $9.482 million profit.
Distributions for the period were down from 7.16 cents per security to 6.32 cps, and represented 90% of core earnings of $6.3 million.
EBITDA in funds under management grew by 44%, and earnings by 33.7%. The funds management division delivered an EBITDA contribution to core earnings of $6.2 million. up from $4.3 million. Recurring asset management fees were up from $4.22 million to $4.76 million.
Over the half it established a joint venture with global property investment management firm Heitman to acquire the Waverley Gardens shopping centre for $178 million, as well as a strategic partnership with NRMA, which made investments in Elanor Metro and Prime Regional Hotel Fund.
The WorkZone West Syndicate was established in August for the $125.25 million acquisition of the 202 Pier Street, Perth building from a Charter Hall fund, while the group is due to settle on its recent purchase of a Stirling Street asset by the end of this month. It established the Stirling Street Syndicate on December 21.
Also during the half, Elanor Commercial Property Fund acquired the Limestone Syndicate, and Elanor Metro and Prime Regional Hotel Fund acquired the Elanor Hospitality and Accommodation Hotel Fund portfolio.
The group’s hotels, tourism and leisure division’s $3.2 million contribution to core earnings was down from $4.3 million, and the real estate portfolio’s contribution increased from $0.8 million to $1.1 million.
Glenn Willis, managing director and chief executive officer said the group’s core strategy would remain focused on growing funds under management.
“The group has a strong pipeline of funds management opportunities across all sectors of focus. Furthermore, the Group is actively pursuing opportunities in new real estate sectors and continuing to explore strategic opportunities to deliver its growth objectives.”
Gearing increased to 26.1%. Meanwhile, Elanor Retail Property Fund will undergo a strategic review following an 84.3% fall in interim profit to $1.965 million, and a 23.5% drop in revenue to $16.077 million.
The review will “examine options to enable the further reweighting of the fund’s portfolio towards value-add retail asset, taking advantage of prevailing market opportunities and Elanor’s active retail management capabilities”.
The fund has a $313 investment portfolio and owns seven shopping centres focused on non-discretionary tenants, with an average capitalisation rate of 6.8%. Works are currently being undertaken on Tweed Mall ahead of the introduction of an Aldi supermarket in August, and ERF has renewed Target for five-years at Manning Mall.
It also just settled on its $2.5 million acquisition of a vacant site next to Auburn Central shopping centre, while it has sold off non-core podium strata lots at the centre for $21.8 million.
Distributions for the period were $6.0 million, or 4.65 cps, a payout ratio of 95%.
Australian Property Journal
