This article is from the Australian Property Journal archive
ELANOR Retail Fund has reinstated distributions for the first six months of the 2021 financial year, as it begins an on-market buy-back program of up to 10% of shares.
The funds yesterday forecast a distribution range for the six months ending 31st December of 4.50 to 4.60 cents per stapled security, with a point estimate of 4.55 cps, reflecting forecast core earnings of about $6.2 million.
Its securities buy-back program kicks off today.
During the period it offloaded Auburn Central in Sydney’s west for $129.5 million, at a 4.9% premium to book value, following its transformation into a triple-supermarket anchored neighbourhood shopping centre with the introduction of ALDI and Tong Li supermarkets to complement the existing Woolworths supermarket. It had acquired the asset just four years earlier for $68 million.
Its portfolio now comprises six retail shopping centres with a focus on non-discretionary retailers. As coronavirus restrictions eased across most of the county, more than 92% of its portfolio income for the five months to 30th November is to be collected, and the portfolio is trading at 99.4% occupancy by lettable area.
Meanwhile, Elanor’s Commercial Property Fund has forecast a distribution for the December quarter of 2.55 cps.
Funds from operations is expected to come in at $6.5 million, or 3.18 cps. The payout ratio of 80% is at the fund’s low end of target payout ratio.
Its portfolio comprises seven office properties in Brisbane, Perth, Canberra and Adelaide with a combined value of $374 million. More than 87% of the portfolio is occupied by government, ASX-listed or multinational tenants.
Current occupancy is 92%. Weighted average lease expiry is 3.9 years.
