Elanor Investors Group · ASX:ENN
Elanor Investors — FY2023 Earnings Presentation
67 slides from Elanor Investors's earnings presentation, Aug 22, 2023
Slide 1: Company Announcements Office ASX Limited
22 August 2023 Company Announcements Office ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Please find attached the Elanor Investors Group (ASX: ENN) FY23 Results Presentation. Yours sincerely, Symon Simmons Company Secretary Elanor Funds Management Limited Auth
Slide 2: Elanor Investors Group FY23 Results Presentation
Elanor Investors Group FY23 Results Presentation ASX: ENN 22 August 2023
Slide 3: Contents
CONTENTS 1 Overview and FY23 Results 2 Acquisition of Challenger’s Real Estate Funds Management Business 3 Differentiated Funds Management Capability 4 Environmental, Social and Governance 5 Funds Management 6 Investment Portfolio 7 Financial Results 8 Outlook 9 Appendices ACKNOWLEDGEMENT OF COUNTRY
Slide 4: Overview and FY23 Results
1 Overview and FY23 Results
Slide 5: Growing the value of the funds management platform
Overview and FY23 Results Growing the value of the funds management platform Strong growth in funds management EBITDA with material earnings accretion in FY24 from the Challenger transaction 1 Proforma FY23 (Post Actual FY23 Challenger Transaction) $34.1m $17.1m $12.5m Recurring Funds Management Fun
Slide 6: FY23 results: strong growth in funds management income
Overview and FY23 Results FY23 results: strong growth in funds management income Driving value of the funds management platform: 20% growth in Funds Management Income (pre acquisition of Challenger’s real estate funds management business) FY23 FY22 Funds Management EBITDA $m $m Management Fees 28.3
Slide 7: Strong growth in recurring funds management income
Overview and FY23 Results Strong growth in recurring funds management income Driving value of the funds management platform: 19% growth in recurring Funds Management Income (78% on a proforma basis 1) Recurring funds management income ($m) FY23 recurring funds Proforma FY23 recurring management inco
Slide 8: Material earnings accretion from the Challenger transaction
Overview and FY23 Results Material earnings accretion from the Challenger transaction Driving value of the funds management platform Actual Proforma1 Increase FY23 FY23 $m $m The Challenger real estate funds management business Funds Management Income 49.5 66.4 +34.1% has been successfully integrate
Slide 9: New institutional capital partners
Overview and FY23 Results New Institutional capital partners Driving value of the funds management platform ENN investor base by capital source Investment Mandate Post Challenger transaction1 Challenger Life Appointed as CLC’s exclusive real estate investment Company (CLC) manager and real estate fu
Slide 10: Acquisition of Challenger's Real Estate Funds Management Business
2 Acquisition of Challenger’s Real Estate Funds Management Business
Slide 11: Delivers significant Securityholder value
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value The acquisition of Challenger’s real estate funds management business was completed and successfully integrated into Elanor’s funds management platform in July 2023 Financially compelling tran
Slide 12: Delivers significant Securityholder value
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value Driving value of the funds management platform by growing run-rate recurring Funds Management EBITDA to $16.2 million Actual Run-rate1 FY23 FY24 Run-rate recurring Funds $m $m Management EBITD
Slide 13: Growing run-rate recurring funds management income
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value Growing run-rate recurring funds management income to $54.6 million1,2 Recurring Funds Management Income $60m Run-rate Re-rating the certainty $50m and quality of recurring $40m funds manageme
Slide 14: Step change in FUM to $6.2 billion
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value Step change in FUM to $6.2 billion1,2 $7.0bn Proforma FUM $6.2bn $6.0bn Step change growth in FUM from the $5.0bn acquisition of Challenger’s real estate $4.0bn funds management business $3.0b
Slide 15: Secure, sustainable FUM
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value Driving value of the Funds Management Platform: Secure, sustainable FUM (98% not subject to redemptions) Elanor post the Challenger Transaction – Step change in FUM to $6.2 bn $6.2bn Retail Of
Slide 16: Well positioned for further strong growth
Acquisition of Challenger’s Real Estate Funds Management Business Delivers significant Securityholder value Driving value of the Funds Management Platform: Well positioned for further strong growth Strategic Positioning Earnings and growth impact Strategic Partnership • Acquisition consideration of
Slide 17: Differentiated Funds Management Capability
3 Differentiated Funds Management Capability
Slide 18: Elanor Investors Group: delivering investment outperformance
Differentiated Funds Management Capability Elanor Investors Group: delivering investment outperformance Our Mission Key Real Estate Sectors To deliver exceptional investment returns and make Retail Elanor positive and impactful social and environmental Investors Group contributions to the communitie
Slide 19: Differentiated multi-sector real estate funds management capability
Differentiated Funds Management Capability Differentiated multi-sector real estate funds management capability Retail Office Hotels, Tourism Healthcare Industrial & Leisure Invest in retail assets with Invest in office assets Invest in Invest in healthcare real Invest in small to medium Originating
Slide 20: Strong development pipeline to deliver growth in FUM
Differentiated Funds Management Capability Strong development pipeline to deliver growth in FUM and generate significant development and leasing fees Retail Hotels, Tourism & Leisure Commercial and Healthcare Pipeline - $250m+ Pipeline - $100m+ Pipeline - $150m+ Current development pipeline at three
Slide 21: Environmental, Social and Governance
4 Environmental, Social and Governance
Slide 22: Environmental, Social and Governance (ESG)
Environmental, Social and Governance Environmental, Social and Governance (ESG) We continue to make positive and impactful social and environmental contributions to the communities in which we operate, and more broadly ESG Strategy Key ESG Partners Elanor’s ESG Committee, reporting to the Board, is
Slide 23: Funds Management
5 Funds Management
Slide 24: Continued strong growth in funds under management
Funds Management Continued strong growth in funds under management1 $7.0bn Proforma FUM $6.2bn $6.0bn $5.0bn $6.2bn $4.0bn $6.20 Proforma Funds Under $3.0bn Management +128% since 30 June 2022 $2.0bn $2.97 $2.72 $2.07 $1.0bn $1.69 $1.39 - $0.16 $0.20 $0.22 $0.22 $0.21 $0.21 30-Jun-19 30-Jun-20 30-Ju
Slide 25: Continued strong growth in funds management income
Funds Management Continued strong growth in funds management income Funds Management Income $60m $49.5m Run-rate Funds management income grew $50m to $49.5 million in FY23, an increase of +20% on FY22 $40m $30m $28.3m Management fees grew to $20m $28.3 million in FY23, an increase of +20% on FY22 $1
Slide 26: Significant funds management achievements in FY23
Funds Management Significant funds management achievements in FY23 $329 million of equity raised relating to FUM of $591 million – well positioned for FUM growth Strategic Positioning Investment Outperformance Elanor Healthcare Real Estate Fund Fund strongly positioned to grow portfolio of core heal
Slide 27: Delivering leading investment performance and growth in funds under management
Funds Management Delivering leading investment performance and growth in funds under management FY23 funds management achievements Retail Office Hotels, Tourism Healthcare Industrial & Leisure Initiatives Achieved Initiatives Achieved Initiatives Achieved Initiatives Achieved Initiatives Achieved Ac
Slide 28: Like-for-like valuations decreased by less than 0.7% in FY23
Funds Management Like-for-like valuations decreased by less than 0.7% in FY23 Retail, Healthcare and Hotel valuations have proved resilient reflecting improved market rents and the underlying performance of the assets. Higher cap rates in the Office sector partially offset by improved market rents 3
Slide 29: Managed fund interest rate risk management
Funds Management Managed fund interest rate risk management Strong interest rate hedging position: significant protection against rising interest rates All Funds Retail Office Healthcare Hotels, Tourism & Leisure Lenders 10 7 2 2 3 Total debt facilities $1.5bn $0.7bn $0.4bn $0.1bn $0.2bn Weighted av
Slide 30: Investment Portfolio
6 Investment Portfolio
Slide 31: Managed fund co-investments
Investment Portfolio Managed fund co-investments Belconnen Riverton Waverley Forum Markets Gardens Fund Syndicate Fund 1834 ($0.4m) Hospitality Elanor Hotel Bluewater 9.0 Accommodation Square 13.2 Fund Syndicate 3.8 7.0 Elanor Property Income 77.7 Fund 16.5 $204m Harris Street 5.9 Co-investments Cap
Slide 32: Distributions from managed fund co-investments
Investment Portfolio Distributions from managed fund co-investments ENN Co-Investment ENN Co-Investment ENN Distribution ENN Distribution 30 June 23 30 June 23 FY23 FY22 % $m $m $m Office and Healthcare Elanor Commercial Property Fund 12.6% 40.8 3.7 3.7 Elanor Healthcare Real Estate Fund 5.0% 6.7 0.
Slide 33: Financial Results
7 Financial Results
Slide 34: Core earnings
Financial Results Core earnings FY23 FY22 Contribution to Core Earnings $m $m Summary Funds management income 49.5 41.3 Corporate overheads (32.4) (26.6) Funds Management EBITDA 17.1 14.7 Strong growth in funds Co-investment earnings 9.1 7.9 +20% management income to $49.5 million Profit on sale of
Slide 35: Adjusted balance sheet
Financial Results Adjusted balance sheet 30 June 2023 30 June 2022 Balance Sheet1 $m $m Assets Capital Management Cash Receivables 18.8 23.3 12.7 18.9 Manager contribution 3.6 4.5 Executing strategic initiatives to Financial assets 18.3 19.8 drive ROE and grow EPS from a Other current assets 0.7 0.4
Slide 36: Capital management
Financial Results Capital management – gearing less than 28% post Challenger transaction June 2023 Unsecured Unsecured Senior Secured Fixed Rate Floating Rate Fully Revolving Key Debt Metrics Notes Notes Debt Facility $107 million of debt facilities with 25.0 15.0 67.0 Facility Limit ($m) a maturity
Slide 37: Outlook
8 Outlook
Slide 38: Outlook
Outlook Outlook Build scale with institutional capital partners Grow recurring Capitalise on opportunities presented by prevailing market funds conditions management Pipeline of funds management opportunities across all EBITDA sectors of focus Execute ‘capital- Well positioned to execute its Executi
Slide 39: Appendices
9 Appendices
Slide 40: Managed Fund Portfolio Metrics
A1 Appendix 9.1 Managed Fund Portfolio Metrics
Slide 41: Managed Fund Property Investment Portfolio Metrics
Appendix Managed Fund Property Investment Portfolio Metrics Gross Asset Vehicle Type No. of Assets Value ($m) Occupancy WALE Gearing1 Office and Healthcare Elanor Commercial Property Fund2 Listed 8 493 98% 3.1yrs 35.1% Stirling Street Syndicate Unlisted 1 35 100% 2.5yrs 55.1% Elanor Healthcare Real
Slide 42: Portfolio Overview – ECF
A2 Appendix 9.2 Portfolio Overview – ECF
Slide 43: Elanor Commercial Property Fund portfolio metrics
Appendix Elanor Commercial Property Fund (ASX: ECF): portfolio metrics Asset Type Ownership Valuation1 NLA2 Valuation Cap Rate Occupancy3 WALE4 NABERS Emissions (%) ($m) (m2) ($ per m2) (%) (%) (years) Energy Intensity INCOME (Stars) (kg CO2-e per m2) WorkZone West External 100% 118.0 15,602 7,563 7
Slide 44: Portfolio Overview – EPIF
A3 Appendix 9.3 Portfolio Overview - EPIF
Slide 45: Elanor Property Income Fund portfolio metrics
Appendix Elanor Property Income Fund (EPIF): portfolio metrics Centre Value1 Cap Lettable WALE Property Name Type State ($m) Rate Area (sqm) Occupancy2 (by Area) Manning Mall Sub-Regional NSW 38.0 7.00% 10,725 95.9% 1.4 Gladstone Square Neighbourhood QLD 31.0 7.00% 6,842 83.4% 7.4 Glenorchy Plaza Su
Slide 46: Portfolio Overview – EHREF
A4 Appendix 9.4 Portfolio Overview – EHREF
Slide 47: Elanor Healthcare Real Estate Fund portfolio metrics
Appendix Elanor Healthcare Real Estate Fund: portfolio metrics Asset Type Valuation NLA1 Valuation Cap Rate Occupancy2 WALE3 Car Parks ($m) (m2) ($ per m2) (%) (%) (years) 55 Little Edward St External 101.8m 8,129 12,517 5.50% 78% 5.0 459 Spring Hill, QLD Pacific Private External 54.5m 7,907 6,893 5
Slide 48: Portfolio Overview – EHAF
A5 Appendix 9.5 Portfolio Overview – EHAF
Slide 49: Elanor Hotel Accommodation Fund portfolio metrics
Appendix Elanor Hotel Accommodation Fund: portfolio metrics 30 June 2023 30 June 2023 Hotels State Rooms Book Value ($m) Stabilised Yield (%) Operator Acquired Byron Bay Hotel & Apartments NSW 43 34.50 7.00% Elanor 2016 ibis Styles Eaglehawk NSW 151 22.5 7.50% Elanor 2014 Estate Tuscany Hunter Valle
Slide 50: Portfolio Overview – EWPF
A6 Appendix 9.6 Portfolio Overview – EWPF
Slide 51: Elanor Wildlife Park Fund Portfolio Metrics
Appendix Portfolio Metrics Elanor Wildlife Park Fund Total Land Size Total Value 52.5 ha $60.9m Featherdale Sydney Hunter Valley Mogo Wildlife Park Wildlife Park Wildlife Park Doonside, Western Sydney, NSW Hunter Valley, NSW South Coast of NSW Land Size Value Land Size Value Land Size Value 3.3 ha $
Slide 52: Portfolio Overview – Single Asset Funds
A7 Appendix 9.7 Portfolio Overview – Single Asset Funds
Slide 53: Burke Street Fund
Appendix Burke Street Fund 2 Burke St, Woolloongabba, QLD Overview The Property comprises two One building is a purpose built The other building is a fully buildings located opposite three level medical office refurbished two level office Princess Alexandria Hospital complex fully leased to the buil
Slide 54: Harris St, Pyrmont, NSW
Appendix 19 Harris St, Pyrmont, NSW Overview Seven level, Prime Grade NABERS Climate Active Large, rectangular, 2,000m2 office building located in the Carbon Neutral certification floor plates suitable for multi- highly desirable and high- and WiredScore Silver rating floor or small suite tenancies
Slide 55: Stirling Street Syndicate
Appendix Stirling Street Syndicate 34-50 Stirling Street, Perth, WA Overview High-quality, campus style Positioned on the northern Located in a high-growth office accommodation fully fridge of the Perth CBD, within precinct with significant refurbished in 2009 short walking distance to Perth infrast
Slide 56: Belconnen Markets Syndicate
Appendix Belconnen Markets Syndicate Capital Food Markets, Belconnen, ACT Overview ‘Capital Food Markets’ development is under The Markets strategy has unlocked surplus construction to commence trading as a land value for a new mixed-use precinct in premium fresh food market and casual dining one of
Slide 57: Belconnen Markets Syndicate
Appendix Belconnen Markets Syndicate 2 Ibbott Lane, Belconnen, ACT Overview Elanor delivered the strip retail precinct in The strip mall precinct is fully leased to a December 2020, located in the Capital Food diverse tenancy mix including Chemist Markets precinct Warehouse, Petbarn, Barbeques Galor
Slide 58: Bluewater Square Syndicate
Appendix Bluewater Square Syndicate Bluewater Square, Redcliffe, Queensland Overview Bluewater Square is a modern and Anchored by a strong performing convenient shopping centre, located Woolworths Supermarket and supported 30km north of the Brisbane CBD. The by national retailers including Club Lime
Slide 59: Clifford Gardens Fund
Appendix Clifford Gardens Fund Clifford Gardens, Toowoomba, Queensland Overview Clifford Gardens is a single-level sub-regional Anchored by Woolworths, Coles and Big W; shopping centre located approximately 3km and over 80 specialty tenancies, a 400 seat south-west of Toowoomba’s CBD and 120km food
Slide 60: Fairfield Centre Syndicate
Appendix Fairfield Centre Syndicate Fairfield City Central, Fairfield, New South Wales Overview Fairfield City Central is a multi-storey Anchored by Woolworths, Anytime Fitness, shopping centre located in bustling Fairfield, Oz Education Childcare and Best and Less; approximately 45km West of the Sy
Slide 61: Hunters Plaza Syndicate
Appendix Hunters Plaza Syndicate Hunters Plaza, Auckland, New Zealand Overview Hunters Plaza is a convenience-based Anchored by Countdown (Woolworths) and shopping centre located in a growing Kmart; with Chemist Warehouse, City Fitness, catchment in metropolitan Auckland, New Postie Plus and 45 spec
Slide 62: Riverside Plaza Syndicate
Appendix Riverside Plaza Syndicate Riverside Plaza, Queanbeyan, New South Wales Overview Riverside Plaza is a neighbourhood shopping Anchored by Coles supermarket; with 56 centre located in Queanbeyan, NSW a growing specialty tenancies and a two level south-eastern Canberra corridor. The Centre is c
Slide 63: Tweed Mall Mixed-Use Real Estate Fund
Appendix Tweed Mall Mixed-Use Real Estate Fund Tweed Mall, Tweed Heads, New South Wales Overview Tweed Mall is a convenience based triple The Fund strategy is provide investors supermarket based Centre located in Tweed income from Tweed Mall while securing a Heads, 4km from the Gold Coast Airport. T
Slide 64: Warrawong Plaza Fund
Appendix Warrawong Plaza Fund Warrawong Plaza, Wollongong, New South Wales Overview Warrawong Plaza is a two-level sub-regional Anchored by Coles, ALDI, Big W, Hoyts; with shopping centre located approximately 9km Rebel, Country Grocer, TK Maxx and over 90 south of the Wollongong CBD specialty store
Slide 65: Waverley Gardens Fund
Appendix Waverley Gardens Fund Waverley Gardens, Mulgrave, Victoria Overview Waverley Gardens is a sub-regional shopping Triple supermarket anchored Centre plus a JACKSONS ROAD centre located in a strong population growth Big W discount department store; with a corridor of the Melbourne Metropolitan
Slide 66: Riverton Forum Fund
Appendix Riverton Forum Fund Riverton Forum, Riverton, Western Australia Overview Riverton Forum is a sub-regional Anchored by Woolworths and Big W; with shopping centre located approximately four pad sites and over 60 specialty 11km south-east of the Perth CBD stores Financial Valuation $107.6 mill
Slide 67: Disclaimer
Elanor Investors Group Disclaimer This presentation has been authorised for release by the Elanor Investors Group Board of Directors. 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 e
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