This article is from the Australian Property Journal archive
A JUMP in funds under management boosted fees and propelled Elanor Investors Group’s full-year revenue from $68 million to $113 million, but it posted a net loss of $9.911 million due to its closure of the John Cootes Furniture business.
Core earnings grew from $12.67 million to $16.27 million, at 17.52 cents per security.
Funds under management increase by 58.8% to more than $1.082 billion.
The group established the Elanor Metro and Prime Regional Hotel Fund, seeded by the Ibis Styles Eaglehawk, Byron Bay Hotel and Apartments and Ibis Styles Canberra that it acquired in November last year.
Also adding to the funds management division were the acquisition of the Bluewater Square shopping centre in Redcliffe, with a gross asset value of $53.7 million at the end of the FY18, while Campus DXC was acquired by the Elanor Commercial Property Fund in May, valued at $36 million.
The group completed its acquisition of the Belconnen Markets site the ACT into the Belconnen Markets Syndicate, with value of $48.1 million, and the WorkZone West Syndicate was established in June and bought the WorkZone West Commercial property in Perth, valued at $130.3 million.
Adjusted net profit after tax from continuing operations was $14.4 million, on the basis of equity accounting the group’s co-investments in funds managed by Elanor, including EHAF, EMPR and Bluewater.
Elanor chief executive officer, Glenn Willis said the group is actively pursuing opportunities in new real estate sectors and continuing to explore strategic opportunities to deliver its growth objectives.
“The group’s core strategy will remain focused on growing funds management earnings and actively managing its investment portfolio. The group has a number of funds management opportunities under consideration across all sectors of focus.”
It completed two asset divestments on behalf of capital partners, with the $30 million sale of 193 Clarence Street hotel for, and the Bell City property for $157 million, which settled on August 3, as well as selling its Merrylands property for $36 million in, generating a net profit after tax of $10.5 million.
No further impact is expected following the $18.3 million hit from closing down John Cootes Furniture.
Net tangible assets per security was $1.63. Gearing was at 22.1%.
Australian Property Journal
