This article is from the Australian Property Journal archive
Elanor Commercial Property Fund (ECF) posted a modest uplift in first half funds from operations (FFO) to $17.1 million, as its portfolio of office assets outperformed the broader market’s metrics.
FFO came in at 4.92c per security. Distributions for the half totalled 3.75c, and it reaffirmed guidance of 7.5c.
“ECF has delivered a solid half-year result for investors by maintaining a strong 97.7% occupancy rate, which is well above the national CBD market average of 84.3%,” said David Burgess, Elanor’s head of investments.
“This high occupancy, combined with a sector-leading distribution yield of 12.3%, demonstrates the fund’s ability to deliver strong performance and provides an attractive income proposition for investors.”
ECF’s said its properties are well positioned in their respective markets, and the portfolio is set to capitalise on rising market rents, up 10.8% in two years. Active renewal discussions are in progress for around half of FY25 and FY26 expiries.
The portfolio achieved 5.5% in annual rental growth. Twelve new leases and renewals were executed over 6,000 sqm. Some 9,552 sqm, or 61% of net lettable area has been leased at WorkZone West, prior to the near whole building expiry in August 2025. Current passing rents will revert to market at the lease expiry.
During the half it completed an entitlement offer raising $52.5 million and reducing gearing to 36.1%. Net tangible assets declined to $0.74 per security, largely due to the capital raise.
Gearing was 36.1%, within the target range of 30% to 40%.
