Elanor Investors Group · ASX:ENN
Elanor Investors — HY24 Earnings Presentation
52 slides from Elanor Investors's earnings presentation, Feb 22, 2024
Slide 1: Authority and Contact Details
22 February 2024 Company Announcements Office ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Attached is the Elanor Investors Group (ASX: ENN) HY24 Results Presentation. Yours sincerely, Symon Simmons Company Secretary Elanor Funds Management Limited Authority a
Slide 2: HY24 Results Presentation
HY24 Results Presentation Elanor Investors Group ASX: ENN 22 February 2024 55 Elizabeth Street, QLD
Slide 3: Contents
Contents Contents 1 Business Update 3 2 HY24 Results Overview 8 3 Funds Management 14 4 Co-investment Portfolio 20 5 Environmental, Social And Governance 23 6 Financial Results Acknowledgement of Country 25 7 Outlook 30 Elanor is proud to work with the communities in which 8 Appendices 32 we operate
Slide 4: Business Update
1 Business Update Cradle Mountain Lodge, TAS
Slide 5: Business Update: Elanor Investors Group
Business Update Elanor Investors Group Healthcare Industrial $0.3bn By Sector $0.2bn ASX-listed real estate fund manager delivering investment Hotels, Tourism & Leisure $0.7bn outperformance Retail AUM $2.6bn $6.3bn $6.3bn Differentiated, scalable, multi-sector real estate Office funds management pl
Slide 6: Successful integration of the Challenger acquisition
Business Update Successful integration of the Challenger acquisition $6.3bn Assets Under Management Transaction Objectives Successful Execution in HY24 Size and scale P Increased AUM to $6.3bn at 31 December 2023 Integration of Challenger’s real estate Incremental Funds Management EBITDA of $6m+ in
Slide 7: Elanor Investors Group: AUM Growth Targets
Business Update Elanor Investors Group: AUM Growth Targets ~$9bn of AUM growth over the next 5 years 5-year Target December 2023 June 2022 June 2019 $1.4bn 25% CAGR $2.7bn 75% CAGR $6.3bn 19% CAGR ~$15bn Growing recurring EBITDA margin to >35% • Retail, Office, Hotels, Tourism • Retail, Office, Hote
Slide 8: Funds management achievements in HY24
Business Update Funds management achievements in HY24 $122m of equity raised relating to $202m of AUM; well positioned for further growth Achievement Strategic Positioning Fully leased, prime grade, carbon neutral Brisbane CBD commercial office with 97% of the property’s income generated from an Aus
Slide 9: HY24 Results Overview
2 HY24 Results Overview Riverton Forum, WA
Slide 10: Growing the value of the funds management platform
HY24 Results Overview Growing the value of the funds management platform Strong growth in recurring funds management income and recurring funds management EBITDA1 HY24 Actual $23.7m $8.3m $6.3bn $0.86 Recurring Funds Management Core Earnings Group AUM Net tangible assets per security Income (excl. a
Slide 11: HY24 results: strong growth in recurring funds management income
HY24 Results Overview HY24 results: strong growth in recurring funds management income Recurring funds management EBITDA margin of 23% (up from 3% in HY23) HY24 HY23 Funds Management EBITDA $m $m Management Fees 20.3 11.9 Development and Leasing Fees 2.4 2.8 Hotel Operator Fees 1.0 2.6 Recurring Fun
Slide 12: Continued strong growth in recurring funds management income
HY24 Results Overview Continued strong growth in recurring funds management income Enhancing the value of the funds management platform with 37% growth HY24 recurring funds in recurring funds management income management income Recurring Funds Management Income ($m) $23.7m $23.7m 1.0 1.9 0.5 ↑ 37% o
Slide 13: Significant earnings contribution from Challenger transaction
HY24 Results Overview Significant earnings contribution from Challenger transaction Significantly enhancing the value of the funds management platform Elanor successfully integrated the Challenger real estate funds management business in July 2023 resulting in an additional $6m+ in funds management
Slide 14: Elanor Hotel Accommodation Fund experienced challenging market conditions in HY24
HY24 Results Overview Elanor Hotel Accommodation Fund experienced challenging market conditions in HY24 Contribution to Core Earnings HY24 HY23 $m $m Hotel operator fees 1.0 2.6 Elanor co-investment distribution 0.5 2.0 1.5 4.6 Outlook for 2H24 • Occupancy across the Fund’s portfolio improved in the
Slide 15: Funds Management
3 Funds Management WorkZone West, WA
Slide 16: Diversified Funds Management Platform
Funds Management Diversified Funds Management Platform $6.3bn of AUM (98% not subject to redemptions) Retail Office Hotels, Tourism & Leisure Healthcare Industrial $2.6bn $2.5bn $0.7bn $0.3bn $0.2bn $1.3bn CLC and ADIC mandates $1.6bn CLC mandate $0.1bn ADIC mandate $0.1bn Elanor Property Income $0.
Slide 17: New institutional capital partners
Funds Management New institutional capital partners Driving value of the funds management platform ENN AUM by capital source Investment Mandate Appointed as CLC’s exclusive real estate Challenger Life Company investment manager and real estate funds (CLC) management partner in Australia and New Aust
Slide 18: Strong growth in recurring funds management income
Funds Management Strong growth in recurring funds management income Funds Management Income $35m $29.9m $30m $28.7m $25m $21.1m $23.7m $20.2m $19.6m $20m Recurring funds management $14.9m income grew to $23.7 million in $14.8m $15m HY24, an increase of 37% on HY23 $10m $5m - HY21 2H21 HY22 2H22 HY23
Slide 19: Managed fund like-for-like valuations decreased by 2.9% in HY24
Funds Management Managed fund like-for-like valuations decreased by 2.9% in HY241,2 Healthcare, Hotel and Leisure Park asset valuations have proved resilient with some cap rate expansion in Retail and Commercial FY23 HY24 31 Dec 23 30 June 23 Like-for- Investment HY24 CAPEX HY24 Investment Weighted
Slide 20: Managed fund interest rate risk management
Funds Management Managed fund interest rate risk management Strong interest rate hedging position All Funds Retail Office Healthcare Hotels, Tourism & Leisure Lenders 11 8 2 2 6 Total debt facilities $1.9bn $1.0bn $0.5bn $0.2bn $0.3bn Weighted average 1.8yrs 1.8yrs 2.2yrs 2yrs 1.2yrs debt duration W
Slide 21: Co-investment Portfolio
4 Co-investment Portfolio The Mayfair Hotel, SA
Slide 22: Managed fund co-investments
Co-investment Portfolio Managed fund co-investments 31 December 2023 Movements in HY24 Belconnen Riverton Waverley ($0.5m) Forum Fund 1834 Gardens Hospitality Fund Bluewater Square Elanor Hotel Syndicate ($2.5m) 4.2 Accommodation 11.3 Fund Elanor Property 3.8 Income Fund 14.6 64.0 Harris Street Fund
Slide 23: Distributions from managed fund co-investments
Co-investment Portfolio Distributions from managed fund co-investments ENN Co-Investment ENN Co-Investment ENN Distribution ENN Distribution 31 December 2023 31 December 2023 HY24 HY23 Comments % $m $m $m Office and Healthcare Elanor Commercial Property Fund 12.6% 38.3 1.7 1.9 Expect similar distrib
Slide 24: Environmental, Social and Governance
Environmental, Social and 5 Governance WorkZone West, WA
Slide 25: Environmental, Social and Governance (ESG)
Environmental, Social and Governance Environmental, Social and Governance Key ESG Partners (ESG) We continue to make positive and impactful social and environmental contributions to the communities in which we operate, and more broadly ESG Strategy Elanor’s ESG Committee, reporting to the Board, is
Slide 26: Financial Results
6 Financial Results Belconnen Markets, ACT
Slide 27: Core Earnings
Financial Results Core Earnings HY24 HY23 Core Earnings $m $m Funds management income 28.7 29.9 Summary Corporate overheads (18.2) (16.7) Funds Management EBITDA 10.5 13.3 EPS. Distribution of 4.90 Co-investment earnings 2.9 4.8 5.45c cents per Security reflecting a 90% payout Profit on sale of asse
Slide 28: Adjusted Balance Sheet
Financial Results 31 December 2023 30 June 2023 Balance Sheet1 Adjusted Balance Assets $m $m Sheet Cash Receivables 11.3 34.0 18.8 23.3 Management rights 41.1 3.6 Financial assets 25.6 18.3 Other current assets 1.0 0.7 Capital Management Property, plant and equipment 3.9 11.0 Equity accounted invest
Slide 29: Elanor is targeting $54m of capital release in CY24
Financial Results Elanor is targeting $54m1 of capital release in CY24 from managed fund initiatives and planned realisations Potential CY24 Co-investments Receivables Financial Assets Total Capital Release1 $m $m $m $m $m Elanor Hotel Accommodation Fund 64.0 6.9 - 70.9 7 Elanor Wildlife Park Fund 1
Slide 30: Capital management
Financial Results Capital management December 2023 Unsecured Unsecured Senior Secured Fixed Rate Floating Rate Fully Revolving Key Debt Metrics Notes Notes Debt Facility $105 million of debt facilities with a maturity of 1.6 to 2.5 years Facility Limit ($m) 25.0 15.0 65.0 Drawn amount ($m) 25.0 15.0
Slide 31: Outlook
7 Outlook Waverley Gardens, VIC
Slide 32: Outlook
Outlook Outlook Grow institutional capital partnerships Grow recurring across our existing investment sectors funds Pipeline of funds management opportunities management across all existing investment sectors EBITDA Capitalise on opportunities presented by prevailing market conditions Capital Acute
Slide 33: Appendices
8 Appendices Mogo Wildlife Park, NSW
Slide 34: Managed Fund Portfolio Metrics
HY24 Results Presentation 8.1 Managed Fund Portfolio Metrics
Slide 35: Managed Fund Property Investment Portfolio Metrics
Appendix Managed Fund Property Investment Portfolio Metrics (excluding Challenger and ADIC portfolios) Gross Asset WALE Office and Healthcare Vehicle Type No. of Assets Occupancy Gearing1 Value ($m) (yrs) Elanor Commercial Property Fund2 Listed 8 477 97% 3.3 36.9% Stirling Street Syndicate Unlisted
Slide 36: Portfolio Overview – ECF
HY24 Results Presentation 8.2 Portfolio Overview – ECF
Slide 37: Elanor Commercial Property Fund: Portfolio Metrics
Appendix Elanor Commercial Property Fund (ASX: ECF): Portfolio Metrics Valuation WALE4 NABERS Emissions Type Ownership Valuation1 NLA2 Valuation Cap Rate Occupancy3 (years) Energy Intensity Asset (%) ($m) (m2) ($ per m2) (%) (%) INCOME (Stars) (kg-CO2e/m2) WorkZone West External 100% 115.5 15,602 7,
Slide 38: Portfolio Overview – EPIF
HY24 Results Presentation 8.3 Portfolio Overview – EPIF
Slide 39: Elanor Property Income Fund: Portfolio Metrics
Appendix Elanor Property Income Fund: Portfolio Metrics Value1 Cap Lettable WALE Property Name Centre Type State ($m) Rate Area (sqm) Occupancy2 (by Area) Manning Mall Sub-Regional NSW 38.0 7.25% 10,723 95.6% 1.8 Gladstone Square Neighbourhood QLD 29.0 7.25% 6,914 83.1% 6.9 Glenorchy Plaza Sub-Regio
Slide 40: Portfolio Overview – EHREF
HY24 Results Presentation 8.4 Portfolio Overview – EHREF
Slide 41: Elanor Healthcare Real Estate Fund: Portfolio Metrics
Appendix Elanor Healthcare Real Estate Fund: Portfolio Metrics Valuation Valuation NLA1 Valuation Cap Rate Occupancy2 WALE3 Asset Type ($m) (m2) ($ per m2) (%) (%) (years) Car Parks 55 Little Edward St External 101.8 8,129 12,517 5.50% 78% 4.5 459 Spring Hill, QLD Pacific Private 55.0 External 7,907
Slide 42: Portfolio Overview – EHAF
HY24 Results Presentation 8.5 Portfolio Overview – EHAF
Slide 43: Elanor Hotel Accommodation Fund: Portfolio Metrics
Appendix Elanor Hotel Accommodation Fund: Portfolio Metrics Hotels State Rooms Book Value ($m) Stabilised Yield (%) Operator Acquired Adabco Boutique Hotel Adelaide SA 69 15.5 6.50% Elanor 2019 Barossa Weintal Resort SA 50 13.5 8.00% Elanor 2020 Byron Bay Hotel & Apartments NSW 43 36.0 7.00% Elanor
Slide 44: Portfolio Overview – EWPF
HY24 Results Presentation 8.6 Portfolio Overview – EWPF
Slide 45: Elanor Wildlife Park Fund
Appendix Elanor Wildlife Park Fund Featherdale Sydney Hunter Valley Mogo Wildlife Park Wildlife Park Wildlife Park 9.3 Portfolio Overview – EPIF Doonside, Western Sydney, NSW Land Size Value Hunter Valley, NSW Land Size Value South Coast of NSW Land Size Value 3.3 ha $34.9m 20.2 ha $15.2m 29 ha $11.
Slide 46: Portfolio Overview – Single Commercial Office Asset Funds
HY24 Results Presentation Portfolio Overview – Single 8.7 Commercial Office Asset Funds
Slide 47: Elanor Single Commercial Office Asset Funds: Portfolio metrics
Appendix Elanor Single Commercial Office Asset Funds: Portfolio metrics Weighted Average Rent Net Lettable NABERS Typical Floor Valuation Valuation Cap Rate Occupancy WALE Review Area Car Parks Energy Plates INCOME Asset ($m) $ per m2 (%) (%) (years) (%) (NLA) (m2) (Stars) (m2) Burke Street Fund, QL
Slide 48: Portfolio Overview – Single Retail Asset Funds
HY24 Results Presentation Portfolio Overview – Single Retail 8.8 Asset Funds
Slide 49: Elanor Single Retail Asset Funds: Portfolio metrics
Appendix Elanor Single Retail Asset Funds: Portfolio metrics Weighted Average Rent Net Lettable NABERS Typical Floor Valuation Valuation Cap Rate Occupancy WALE Review Area Car Parks Energy Plates INCOME Asset ($m) $ per m2 (%) (%) (years) (%) (NLA) (m2) (Stars) (m2) Belconnen Markets Syndicate, 71.
Slide 50: Portfolio Overview – Challenger
HY24 Results Presentation 8.9 Portfolio Overview – Challenger
Slide 51: Challenger Portfolio: Portfolio metrics
Appendix Challenger Portfolio: Portfolio metrics Property Sector Valuation ($m) Cap Rate (%) Last external valuation date Channel Court, TAS Retail 87 7.3% 30-Jun-23 Gateway, NT Retail 109 6.9% 30-Jun-23 Golden Grove, SA Retail 153 6.5% 31-Dec-23 Helicon Drive, SA Retail 10 6.0% 30-Jun-23 Karratha,
Slide 52: Disclaimer
Elanor Investors Group Disclaimer This presentation has been authorised for release by the Elanor Investors Group Board of securities in the Group or any other investment product. Directors. The information in this presentation has been obtained from and based on sources This presentation has been p