This article is from the Australian Property Journal archive
THE Elanor Commercial Property Fund (ECF) has exceeded funds from operations guidance after a year that included the “transformative” acquisitions of 50 Cavill Avenue on the Gold Coast and 19 Harris Street in Pyrmont.
The trust posted full-year FOO of $30.1 million, or 10.94c per security. Last year it posted FFO or $25.6 million, an 12.55c on a per security basis.
It offered FY23 FFO guidance of 11.0 cps and distributions of 9.4 cps, in line with FY22.
ECF’s portfolio of office buildings increased in value to $609 million following the $113.5 million purchase of 50 Cavill Avenue, while it also bought a 49.9% stake in the Harris Street Fund that owns the $185 million 19 Harris Street building on Sydney’s city fringe, to go with value increases of $21.6 million.
Net tangible assets grew to $1.20 per security.
“We made two transformative acquisitions in 50 Cavill Avenue and 19 Harris Street, in line with our strategy of acquiring assets with differentiated positions in their markets and creating value accretive opportunities for our securityholders,” David Burgess, co-head of real estate and ECF fund manager said.
“These assets are already performing ahead of expectation, with positive leasing outcomes demonstrating our capability in capturing demand for high-quality, well positioned commercial office assets.”
It has executed 12 leases at 50 Cavill avenue totalling 4,898 sqm, with an average lease term of about five years, and has secured ITV Studios over 2,000 sqm at 19 Harris Street for five years.
The fund’s occupancy was 95.6% with a weighted average lease expiry of 3.4 years by income.
Leases totalling 4,450 were secured with multinational medical, pathology and laboratory equipment manufacturer Abacus dx and Alliance Pharmaceuticals at 34 Corporate Druve, while a 10-year lease to Hub Australia over 1,300 sqm at 200 Adelaide was secured, and a four year lease over 1,000 sqm to Coles at the Nexus Centre.
