Elanor Investors Group · ASX:ENN
Elanor Investors — FY2022 Earnings Presentation
58 slides from Elanor Investors's earnings presentation, Aug 24, 2022
Slide 1: Company Announcements Office cover letter
24 August 2022 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) FY22 Results Presentation. Yours sincerely, Symon Simmons Company Secretary Elanor Funds Management Limited Auth
Slide 2: Elanor Investors Group FY22 Results Presentation
Elanor Investors Group FY22 Results Presentation ASX: ENN 24 August 2022
Slide 3: Contents
CONTENTS 1 Overview and FY22 Results 2 Differentiated Funds Management Capability 3 Environmental, Social and Governance 4 Funds Management 5 Investment Portfolio 6 Financial Results 7 Outlook 8 Appendices ACKNOWLEDGEMENT OF COUNTRY Elanor is proud to work with the communities in which we operate, t
Slide 4: Overview and FY22 Results
1 Overview and FY22 Results
Slide 5: Overview and FY22 Results
Overview and FY22 Results Australian real estate funds management group delivering investment outperformance $2.72bn Funds Under Management $829m $304m $1,122m $466m Office Healthcare Retail Hotels, Tourism & Leisure $525m $304m $304m $204m $918m $395m $72m Elanor Unlisted Unlisted Multi-asset Elano
Slide 6: Strong growth in funds under management and core earnings
Overview and FY22 Results Strong growth in funds under management and core earnings Growing the value of the funds management platform $2.72bn $14.7m $18.3m Group FUM Funds Management EBITDA Core Earnings +31% increase on FY21 +38% increase on FY21 +21% increase on FY21 The Group has significant gro
Slide 7: FY22 results: strong growth in funds management income
Overview and FY22 Results FY22 results: strong growth in funds management income Core earnings EBITDA adversely impacted by COVID Funds Management EBITDA FY22 $m FY21 $m Management Fees 27.1 18.7 Acquisition/Transaction Fees 9.1 6.1 Development and Leasing Fees 5.1 3.1 Key drivers of Core Earnings:
Slide 8: Strong growth in recurring funds management income
Overview and FY22 Results Strong growth in recurring funds management income Driving growth in the value of the funds management platform Recurring Funds Management Income ($m) FY22 recurring funds Management fee income of management income $24m to grow in FY23 from: $32.2m $2.7 $2.4 $32.2m $677m in
Slide 9: Strong Q422 recovery in COVID impacted earnings
Overview and FY22 Results Strong Q422 recovery in COVID impacted earnings $10.4m core earnings improvement expected based on annualised Q422 run-rate (compared to FY22 actuals) Core Earnings FY22 Contribution Annualised Q422 Expected FY23 Run-Rate Core Earnings Improvement $3.1m of hotel operator fe
Slide 10: Well positioned to grow FUM in current market conditions
Overview and FY22 Results Well positioned to grow FUM in current market conditions Market conditions presenting opportunities for value investors Retail • Market leading track record of delivering strong investment returns from repositioning retail real estate assets • Strong pipeline of value-add a
Slide 11: Differentiated Funds Management Capability
2 Differentiated Funds Management Capability
Slide 12: 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 positive Elanor and impactful social and environmental contributions to the Retail Investors Group communitie
Slide 13: Differentiated multi-sector real estate funds management capability
Differentiated Funds Management Capability Differentiated multi-sector real estate funds management capability Hotels, Tourism & Retail Office Healthcare Leisure Invest in accommodation Invest in core and value-add assets with a focus on the Originating high retail assets with a focus on Invest in o
Slide 14: Strong development pipeline delivering growth in FUM and fees
Differentiated Funds Management Capability Strong development pipeline delivering growth in FUM and significant development and leasing fees Retail Hotels, Tourism & Leisure Commercial and Healthcare Development pipeline - $200m+ Development pipeline - $100m+ Development pipeline - $50m+ Current dev
Slide 15: Retail development pipeline
Differentiated Funds Management Capability Retail development pipeline Current and planned projects delivering strong value accretion for the funds and significant development and leasing fees for Elanor Belconnen Warrawong Plaza Riverside Plaza Clifford Gardens Tweed Mall Capital Food Market Redeve
Slide 16: Hotel development pipeline
Differentiated Funds Management Capability Hotel development pipeline Current projects delivering strong value accretion for the fund and significant development fees for Elanor Parklands Resort Mudgee Clare Country Club Barossa Weintal Resort Cradle Mountain Lodge Mayfair Hotel 15 glamping tents (i
Slide 17: Environmental, Social and Governance
3 Environmental, Social and Governance
Slide 18: Environmental, Social and Governance (ESG)
Environmental, Social and Governance Environmental, Social and Governance (ESG) At Elanor we strive 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 is responsible for, and oversees, the
Slide 19: Funds Management
4 Funds Management
Slide 20: Continued growth in funds under management
Funds Management Continued growth in funds under management $677m gross increase in FY22 $3,000 $2.72bn $2,500 Funds Under Management $2,000 grew by 31% to $2.72bn as at 30 June 2022 millions $2,722 $1,500 $2,073 $1,000 $1,692 $649m $1,083 $1,387 $500 New net FUM of $649m in FY22 ($677m gross) $145
Slide 21: Continued strong growth in funds management income
Funds Management Continued strong growth in funds management income Funds Management Income $45 $41.31m $40 Funds management income grew to $41.3m in FY22, an increase of $35 39% on FY21 $30 millions $25 $27.14m $20 Management fees grew to $15 $27.14m in FY22, an increase $10 of 45% on FY21 $5 - $5.
Slide 22: Delivering investment outperformance and growth in funds under management
Funds Management Delivering investment outperformance and growth in funds under management FY22 funds management achievements Hotels, Tourism Retail Office Healthcare & Leisure Initiatives Achieved Initiatives Achieved Initiatives Achieved Initiatives Achieved • Launched privatisation of ERF in June
Slide 23: Interest rate risk management of the Group's managed funds
Funds Management Interest rate risk management of the Group’s managed funds Strong interest rate hedging position; significant protection against rising interest rates Hotels, Tourism All Funds Retail Office Healthcare & Leisure Lenders 10 8 2 2 3 Total debt facilities $1.2bn $0.5bn $0.4bn $0.1bn $0
Slide 24: Investment Portfolio
5 Investment Portfolio
Slide 25: Co-investments in managed funds
Investment Portfolio Co-investments in managed funds Belconnen Markets Elanor Wildlife Park Syndicate Fund 31 December 1834 Hospitality 30 June 2022 2021 $18m $0m Elanor Commercial $3m Property Fund Portfolio value $219m $203m $51m Elanor Hotel $219m Stirling Street Growth capital from recycling of
Slide 26: Distributions from co-investments in managed funds
Investment Portfolio Distributions from co-investments in managed funds FY22 distributions from co-investments adversely impacted by COVID ENN Co-Investment ENN Co-Investment ENN Distribution ENN Distribution 30 Jun 22 30 Jun 22 30 Jun 22 30 Jun 21 % $m $m $m Office and Healthcare Elanor Commercial
Slide 27: Financial Results
6 Financial Results
Slide 28: Core earnings
Financial Results Core earnings FY22 FY21 Contribution to Core Earnings Summary $m $m Funds management income 41.3 29.7 +39% Corporate overheads (26.6) (19.0) Strong growth in funds management income to $41.3m FM EBITDA 14.7 10.7 Co-investment earnings 7.9 11.1 Balance sheet investment earnings 0.1
Slide 29: Adjusted balance sheet
Financial Results Adjusted balance sheet FY22 1H22 Balance Sheet as at 30 June 20221 Summary $m $m Assets Cash 12.7 9.4 Receivables 18.9 11.9 Growth Capital Manager contribution 4.5 - Financial assets 19.8 23.9 The Group has significant growth capital from recycling Other current assets 0.4 0.8 of c
Slide 30: Capital management
Financial Results Capital management Successful refinancing of the Group’s debt in June 2022 Refinanced $105m of debt in June 2022 Previous Facilities June 2022 Refinance Senior Secured Gearing1 of 30% Unsecured Fully Unsecured Unsecured Senior Secured Key Debt Metrics Fixed Rate Revolving Fixed Rat
Slide 31: Outlook
7 Outlook
Slide 32: Outlook
Outlook Outlook Well positioned to grow FUM in current market conditions Grow Funds Under Target $1bn of gross FUM growth p.a. across the cycle in existing Management and new real estate sectors Well positioned to grow Core Earnings in FY23 Grow Core Adverse COVID impact of $10.4m in FY22 compared t
Slide 33: Managed Fund Portfolio Metrics
A1 Appendix 8.1 Managed Fund Portfolio Metrics
Slide 34: Managed fund property portfolio metrics
Appendix 8.1 Managed fund property portfolio metrics Gross Asset Vehicle Type No. of Assets Value ($m) Occupancy WALE Gearing1 Office and Healthcare Elanor Commercial Property Fund Listed 9 580 95.6% 3.4yrs 36.2% Stirling Street Syndicate Unlisted 1 35 100.0% 2.0yrs 55.7% Elanor Healthcare Real Esta
Slide 35: Portfolio Overview – ECF
A2 Appendix 8.2 Portfolio Overview – ECF
Slide 36: Elanor Commercial Property Fund (ASX: ECF) portfolio metrics
Appendix 8.2 Elanor Commercial Property Fund (ASX: ECF) portfolio metrics Asset Type Ownership Valuation1 NLA2 Valuation Cap Rate Occupancy2 WALE3 NABERS Emissions (%) ($m) (m2) ($ per m2) (%) (%) (years) Energy Intensity INCOME (Stars) (kg CO2-e per m2) WorkZone West External 100% 125.0 15,602 8,01
Slide 37: Portfolio Overview - ERF
A3 Appendix 8.3 Portfolio Overview - ERF
Slide 38: Elanor Retail Property Fund (ASX: ERF) portfolio metrics
Appendix 8.3 Elanor Retail Property Fund (ASX: ERF) portfolio metrics1 Centre Value Cap Lettable Gross Rent WALE WALE No. of Property Name Type State ($m) Rate Area (sqm) ($m) Occupancy2 (by Area) (by Gross Rent) Tenants3 Manning Mall Sub-Regional NSW 36.7 7.00% 10,742 4.1 95.8% 2.0yrs 2.6yrs 32 Gla
Slide 39: Portfolio Overview – EHREF
A4 Appendix 8.4 Portfolio Overview – EHREF
Slide 40: Elanor Healthcare Real Estate Fund portfolio metrics
Appendix 8.4 Elanor Healthcare Real Estate Fund portfolio metrics 1. Net Lettable Area 2. By area, excluding any rental guarantees and including Heads of Agreements over currently vacant space 3. By income, excluding any rental guarantees and including Heads of Agreements over currently vacant space
Slide 41: Portfolio Overview – EHAF
A5 Appendix 8.5 Portfolio Overview – EHAF
Slide 42: Elanor Hotel Accommodation Fund portfolio metrics
Appendix 8.5 Elanor Hotel Accommodation Fund portfolio metrics 30 June 2022 30 June 2022 Hotels State Rooms Book Value ($m)1 Stabilised Yield (%)2 Operator Acquired Byron Bay Hotel & Apartments NSW 43 34.5 6.75% Elanor 2016 ibis Styles Eaglehawk NSW 151 21.00 7.25% Elanor 2014 Estate Tuscany Hunter
Slide 43: Portfolio Overview – EWPF
A6 Appendix 8.6 Portfolio Overview – EWPF
Slide 44: Elanor Wildlife Park Fund Portfolio Metrics
Appendix 8.6 Elanor Wildlife Park Fund Portfolio Metrics Total Land Size Total Value 48.9 ha $66.2m Mogo Featherdale Sydney Hunter Valley Wildlife Park Wildlife Park Wildlife Park South Coast of NSW Doonside, Western Sydney, NSW Hunter Valley, NSW Land Size Value Land Size Value Land Size Value 25.4
Slide 45: Portfolio Overview – Single Asset Funds
A7 Appendix 8.7 Portfolio Overview – Single Asset Funds
Slide 46: Burke Street Fund
Appendix 8.7 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
Slide 47: Harris Street Fund
Appendix 8.7 Harris Street Fund 19 Harris St, Pyrmont, NSW Overview Seven level, Prime Grade office NABERS Climate Active Carbon Large, rectangular, 2,000m2 floor building located in the highly Neutral certification and plates suitable for multi-floor or desirable and high-growth CBD WiredScore Silv
Slide 48: Stirling Street Syndicate
Appendix 8.7 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 in
Slide 49: Belconnen Markets Syndicate
Appendix 8.7 Belconnen Markets Syndicate Capital Food Markets, Belconnen, ACT Overview Capital Food Markets under construction to The new market development will showcase commence trading as a premium fresh food the best food providers of the region plus market in mid-2023. Sale of surplus land for
Slide 50: Belconnen Markets Syndicate (cont.)
Appendix 8.7 Belconnen Markets Syndicate (cont.) 2 Ibbott Lane, Belconnen, ACT Overview Elanor delivered the Large Format Retail Fully leased to Chemist Warehouse, Petbarn, (LFR) precinct in December 2021, located BBQs Galore, Toyworld, Elements for across from the Capital Food Markets Life Gym, And
Slide 51: Bluewater Square Syndicate
Appendix 8.7 Bluewater Square Syndicate Bluewater Square, Redcliffe, QLD 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 Centre by national retailers including Club
Slide 52: Clifford Gardens Fund
Appendix 8.7 Clifford Gardens Fund Clifford Gardens, Toowoomba, QLD Overview Clifford Gardens is a single-level sub-regional Anchored by Woolworths, Coles and Big W; shopping centre located approximately 3km with 80 specialty tenancies, a 400 seat food south-west of Toowoomba’s CBD and 120km court a
Slide 53: Fairfield Centre Syndicate
Appendix 8.7 Fairfield Centre Syndicate Fairfield City Central, Fairfield, NSW 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 Sydney wit
Slide 54: Hunters Plaza Syndicate
Appendix 8.7 Hunters Plaza Syndicate Hunters Plaza, Papatoetoe, New Zealand Overview Hunters Plaza is a convenience based Anchored by Countdown and Kmart; with shopping centre located in Papatoetoe, Chemist Warehouse, Number 1 Shoes, Postie approximately 18km from Auckland CBD Plus and 48 specialty
Slide 55: Riverside Plaza Syndicate
Appendix 8.7 Riverside Plaza Syndicate Riverside Plaza, Queanbeyan, NSW Overview Riverside Plaza is located a growing south- Anchored by Coles, Best & Less eastern Canberra corridor. The vacant DDS will and Reject shop; with 45 specialty be repositioned to an essential goods and tenancies, and a sec
Slide 56: Warrawong Plaza Fund
Appendix 8.7 Warrawong Plaza Fund Warrawong Plaza, Wollongong, NSW Overview Warrawong Plaza is a two-level sub-regional Anchored by Coles, ALDI, Big W, Target, shopping centre located approximately 9km Hoyts; with Rebel, Country Grocer, south of the Wollongong CBD and 93km TK Maxx and over 90 specia
Slide 57: Waverley Gardens Syndicate
Appendix 8.7 Waverley Gardens Syndicate Waverley Gardens, Mulgrave, VIC 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 Metropol
Slide 58: 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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