LDR Capital Property Fund · ASX:LED
LDR Capital Property Fund — Elanor Investors Group — FY2017 Earnings Presentation
32 slides from LDR Capital Property Fund's earnings presentation, Aug 21, 2017
Slide 1: FY17 Results Presentation
ELANOR INVESTORS GROUP FY17 Results Presentation 21 August 2017
Slide 2: Contents
Contents Section Page no. 1 FY17 Results Overview 3 2 Business Overview 9 3 Financial Results 12 4 Segment Performance 16 5 Strategy and Outlook 24 6 Appendices 26 [2]
Slide 3: FY17 Results Overview
Nanot® FY17 Results Overview
Slide 4: FY17 Results Highlights
FY17 Results Highlights • 43% increase in Funds Management earnings to $11.3m Core Earnings $12.67m • Funds Management earnings 53% of segment EBITDA, up from 45% in FY16 9.6% increase on FY16 • Distributions from co-investments of $4.4m, up from $2.3m • Successful capital raising in July / August 2
Slide 5: Total Security Holder Return
Total Security Holder Return • Since its listing in July 2014, ENN has achieved materially greater returns for security holders than the S&P/ASX300 A-REIT Accumulation Index and the S&P/ASX300 Accumulation Index. ENN has generated an internal rate of return for security holders of approximately 28%
Slide 6: Growth In Funds Management
Growth In Funds Management • ENN’s key strategic objective is to grow its funds management business by identifying and originating investments that deliver strong performance for both ENN and its capital partners • Since 30 June 2016, ENN has increased funds under management by $197m to $682m • Tota
Slide 7: Growth in Funds Management
Growth in Funds Management • ENN has grown Funds Management revenue to $14.2m in FY17 from $9.3m in FY16 • The Group has significantly increased its origination and capital raising capability in the six months to 30 June 2017 (people, investor demand and balance sheet capacity), and is strongly posi
Slide 8: Security Price Components
Security Price Components • The security price as at 30 June 2017 of $2.14 implies a value of $35.0m for the combined value of the funds management business plus the potential uplift in value of Merrylands • Funds management segment EBITDA for FY17 was $11.3m, or $5.3m net of all Group unallocated c
Slide 9: Business Overview
Nanot® Business Overview
Slide 10: Business Overview
Business Overview Elanor Investors Group Funds Management ($682m FUM) Investments ($159m) Managed Funds Investment Portfolio and Co-investments • 193 Clarence Hotel Syndicate • Hunter’s Plaza Syndicate • Featherdale Wildlife Park • Co-investments in 193 • Bell City Fund (4) • Limestone Street Centre
Slide 11: Investments and Funds Under Management
Investments and Funds Under Management MANAGED FUNDS INVESTMENTS Elanor Commercial Property Fund Elanor Hospitality ($1m) Hunters Plaza 193 Clarence Hotel and Accommodation Syndicate Syndicate Elanor Commercial Fund Limestone Street Property Fund Centre Syndicate 19 Featherdale Wildlife 48 25 Park 5
Slide 12: Financial Results
Nanot® Financial Results
Slide 13: Adjusted Profit and Loss
Adjusted Profit and Loss1 FY17 FY17 • Net profit after tax of $11.4m on the basis that the co- Segment Revenue and EBITDA Revenue EBITDA investment in Elanor Hospitality and Accommodation Fund is $000 $000 equity accounted, not consolidated Funds Management 14,176 11,338 Hotels, Tourism and Leisure
Slide 14: Adjusted Balance Sheet
Adjusted Balance Sheet1 Balance Sheet as at 30 June 2017 $’000 • Net asset value per security of $1.75 at 30 June 2017, up from $1.37 at 30 June 2016. This primarily reflects the revaluation Assets increment of $25.7m in relation to Hotels, Tourism and Leisure properties and the capital raising in J
Slide 15: Property Valuations
Property Valuations • In accordance with the Group’s valuation policy, ENN’s Board of Directors determined to obtain independent valuations of the Featherdale Wildlife Park and Ibis Styles Canberra Eaglehawk hotel as at 30 June 2017. This has resulted in a valuation uplift of $25.7m • ENN’s only oth
Slide 16: Segment Performance
Nanot® Segment Performance
Slide 17: Segment Performance
Segment Performance • The Group measures the performance of its co-investments based on distributions received / receivable from these co-investments, consistent with the treatment within Core Earnings. Adjusted EBITDA, to show distributions received / receivable from co-investments rather than the
Slide 18: Funds Management
Funds Management FY17 FY16 Variance Gross asset Performance Managed Funds ($m) ($m) (%) value ($m) 193 Clarence Hotel Syndicate 24.6 Revenue 14.2 9.3 51.7 Bell City Fund (4) 154.5 Elanor Commercial Property Fund 51.5 Expenses 2.9 1.4 98.9 Elanor Hospitality and Accommodation Fund 98.1 Elanor Retail
Slide 19: Hotels, Tourism and Leisure
Hotels, Tourism and Leisure FY17 FY16 Variance Carrying Value Performance Assets ($m) ($m) (%) ($m) Revenue 23.6 32.2 (26.7) Featherdale Wildlife Park 39.0 Expenses 16.5 25.4 (35.0) Hotel Ibis Styles Canberra Eaglehawk 20.0 EBITDA 7.1 6.8 4.7 Margin (%) 29.9% 21.0% 42.4 Hotel Ibis Styles Albany 5.3
Slide 20: Hotels, Tourism and Leisure Co-Investments
Hotels, Tourism and Leisure Co-Investments FY17 FY16 Variance Carrying Value Performance Assets ($m) ($m) (%) ($m) Equity accounted 193 Clarence Hotel Syndicate 1.1 1.8 (1.7) n/a result Bell City Fund (4) 11.8 Distributions 2.6 2.0 35.0 received / receivable Elanor Hospitality and Accommodation Fund
Slide 21: Real Estate
Real Estate FY17 FY16 Variance Carrying Value Performance Assets ($m) ($m) (%) ($m) Revenue ($m) 2.4 0.0 n/a Elanor Commercial Property Fund 0.5 Expenses ($m) 0.9 0.0 n/a Elanor Retail Property Fund 31.0 EBITDA ($m) 1.5 0.3 371.0 Limestone Street Centre Syndicate 1.4 EBITDA contribution to 0.8 0.3 1
Slide 22: Special Situations Investments
Special Situations Investments FY17 FY16 Variance Carrying Value Performance Assets ($m) ($m) (%) ($m) Revenue 31.0 28.3 9.6 John Cootes Furniture 12.9 Expenses 29.7 25.9 14.6 Merrylands Property 17.1 EBITDA 1.3 2.4 (44.6) Margin (%) 4.3% 8.5% (49.4) Total 30.0 EBITDA contribution to 1.3 1.7 (21.6)
Slide 23: Merrylands Property - update
Merrylands Property - update • In June 2016 the NSW Department of Planning and Environment issued its Gateway Determination on ENN’s planning proposal in respect of its 26,135 square metre property on Woodville Road, Merrylands. The Gateway Determination confirmed: rezoning the site to B4 mixed us
Slide 24: Strategy and Outlook
Nanot® Strategy and Outlook
Slide 25: Strategy and Outlook
Strategy and Outlook STRATEGIC OBJECTIVES Growing funds management business • Increase income from funds management • Seed new managed funds with ENN owned investments • Co-invest with external capital partners Actively managing investment portfolio • Realise earnings and capital growth potential fr
Slide 26: Appendices
Appendices
Slide 27: Hotels, Tourism and Leisure – Balance Sheet Investments
Hotels, Tourism and Leisure – Balance Sheet Investments Featherdale Wildlife Park, Ibis Styles Eaglehawk Ibis Styles Albany Doonside, Sydney NSW Sutton, Canberra, ACT Orana, WA 3.1 hectare site, parking facilities for 60 vehicles, 151 rooms, restaurant and 310 square metres of 50 rooms, bar and rest
Slide 28: Managed Funds Summary
Managed Funds Summary 193 Clarence Street Hotel Syndicate Elanor Hospitality & Accommodation Fund Bell City Fund (4) Peppers Cradle Mountain featured Auburn Central featured 193-195 Clarence Street, Sydney NSW (4), TAS (1) and ACT (1) 215 Bell Street, Preston Victoria Asset Type: Hotel Asset Type: H
Slide 29: Managed Funds Summary
Managed Funds Summary Elanor Retail Property Fund Hunters Plaza Syndicate Tweed Mall featured NSW (3), TAS (1) and QLD (1) 217 Great South Road Papatoetoe Auckland, NZ Asset Type: Sub-regional shopping centres Asset Type: Sub regional shopping centre Description: 5 retail shopping centres being De
Slide 30: Managed Funds Summary
Managed Funds Summary Limestone Street Centre Syndicate Elanor Commercial Property Fund 34 Corporate Drive, Cannon Hill featured 38 Limestone Street, Ipswich, QLD 34 Corporate Drive, Cannon Hill Asset Type: Commercial Building Asset Type: Commercial office buildings Description: Multi-storey comme
Slide 31: Special Situations and Managed Fund Co-Investments
Special Situations and Managed Fund Co-Investments Special Situations Investments Asset Location Type of business Carrying Value ($m) Operates from 12 sites; Merrylands, Penrith, Tuggerah, Campbelltown, Bathurst, John Cootes Furniture Taree, Fyshwick, Warners Bay, Wagga Furniture retailer 12.9 Wagga
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by Elanor Investors Limited (ACN 169 308 187) and Elanor Funds Management Limited (ACN 125 903 031, AFSL 398196), as responsible entity of Elanor Investment Fund, and their controlled entities (collectively, ‘Elanor Investors Group’, ‘the Group’ or ‘ENN
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