Elanor Investors Group · ASX:ENN
Elanor Investors — HY23 Earnings Presentation
65 slides from Elanor Investors's earnings presentation, Feb 27, 2023
Slide 1: Authority and Contact Details
27 February 2023 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) HY23 Results Presentation. Yours sincerely, Symon Simmons Company Secretary Elanor Funds Management Limited Authority a
Slide 2: Elanor Investors Group HY23 Results Presentation
ASX: ENN 27 February 2023 Elanor Investors Group HY23 Results Presentation 1
Slide 3: Contents
CONTENTS 1 Overview and HY23 Results 2 Differentiated Funds Management Capability 3 Environmental, Social and Governance 4 Funds Management 5 Balance Sheet Investment Portfolio 6 Financial Results 7 Outlook 8 Appendices ACKNOWLEDGEMENT OF COUNTRY Elanor is proud to work with the communities in which
Slide 4: Overview and HY23 Results
1 Overview and HY23 Results 3
Slide 5: Overview and HY23 Results
Overview and HY23 Results Australian real estate funds management group delivering investment outperformance $2.87bn Funds Under Management $826m $323m $1,221m $504m Office Healthcare Retail Hotels, Tourism & Leisure $516m $310m $323m $121m $1,101m $433m $71m Elanor Unlisted Multi-asset Elanor Unlis
Slide 6: Growing the value of the funds management platform
Overview and HY23 Results Growing the value of the funds management platform Strong growth in funds management EBITDA $2.87bn $13.3m $10.3m Group FUM Funds Management EBITDA Core Earnings +18% increase since 31 Dec 2021 +74% increase on HY22 -16% decrease on HY221 The Group has significant growth ca
Slide 7: Significant funds management achievements in HY23
Overview and HY23 Results Significant funds management achievements in HY23 $254 million of equity raised relating to FUM of $457 million – well positioned for FUM growth Strategic Positioning Investment Outperformance Elanor Healthcare Real Estate Fund Fund strongly positioned to grow portfolio of
Slide 8: HY23 results: strong growth in funds management income
Overview and HY23 Results HY23 results: strong growth in funds management income Growth in Core Earnings EBITDA Funds Management EBITDA HY23 $m HY22 $m Management Fees 16.7 12.4 Acquisition/Transaction Fees 4.0 5.6 Development and Leasing Fees 2.8 2.2 Performance Fees 6.4 - Key drivers of Core Earni
Slide 9: Strong growth in recurring funds management income
Overview and HY23 Results Strong growth in recurring funds management income Driving growth in the value of the funds management platform Recurring funds management income ($m) HY23 recurring funds Management fee income to grow in 2H23 management income from: $19.5m $14.6m $0.9 $1.9 $19.5m $152m inc
Slide 10: Well positioned to grow FUM in current market conditions
Overview and HY23 Results Well positioned to grow FUM in current market conditions Funds management platform well positioned to deliver growth Retail • Market leading track record of delivering strong investment returns from repositioning retail real estate assets • Continued investment outperforman
Slide 11: Differentiated Funds Management Capability
2 Differentiated Funds Management Capability 10
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 assets with a focus on the Originating high Invest in retail assets with a Invest in office assets that have Inves
Slide 14: 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 - $200m+ Pipeline - $100m+ Pipeline - $150m+ Current development pipeline at four
Slide 15: Retail development pipeline
Differentiated Funds Management Capability Retail development pipeline Current and planned projects to deliver strong value accretion and underpin significant growth in development and leasing fees Indicative Masterplan Belconnen Clifford Gardens Tweed Mall Warrawong Plaza Riverside Plaza Capital Fo
Slide 16: Hotel development pipeline
Differentiated Funds Management Capability Hotel development pipeline Current projects to deliver strong value accretion and underpin significant growth in development fees Parklands Resort Mudgee Clare Country Club Barossa Weintal Resort Cradle Mountain Lodge Mayfair Hotel 15 glamping tents Refurbi
Slide 17: Environmental, Social and Governance
3 Environmental, Social and Governance 16
Slide 18: 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 is responsible for, and over
Slide 19: Funds Management
4 Funds Management 18
Slide 20: Continued growth in funds under management
Funds Management Continued growth in funds under management $3,500 $2.87bn $3,000 Funds Under $2,500 Management grew by 6% since 30 June 2022 millions $2,000 $2,874 $2,722 $1,500 $152m $2,073 $1,000 $1,692 $1,387 New net FUM of $152m $1,083 in HY23 $500 $145 $163 $203 $216 $221 $208 - 30-Jun-18 30-J
Slide 21: Continued strong growth in funds management income
Funds Management Continued strong growth in funds management income Funds Management Income ($m) $35 $29.9m $30 Funds management income grew to $29.9m in HY23, an increase of $25 48% on HY22 $20 millions $16.65m $15 Management fees grew to $10 $16.64m in HY23, an increase of 34% on HY22 $5 - $2.81m
Slide 22: Delivering leading investment performance and growth in funds under management
Funds Management Delivering leading investment performance and growth in funds under management HY23 funds management achievements Hotels, Tourism Retail Office Healthcare & Leisure Initiatives Achieved Initiatives Achieved Initiatives Achieved Initiatives Achieved Acquisition of Tweed Mall Shopping
Slide 23: Managed fund portfolio valuation summary
Funds Management Managed fund portfolio valuation summary Valuations have proved resilient Investment HY23 Weighted Average Property Valuation movement Capitalisation Rate Significant valuation uplift on Riverside and Warrawong as a result of Retail $1,167.5m +8.0% 6.6% strategic repositioning and l
Slide 24: 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 Hotels, Tourism All Funds Retail Office Healthcare & Leisure Lenders 9 6 2 2 3 Total debt facilities $1.3bn $0.6bn $0.4bn $0.1bn $0.2bn Weighted ave
Slide 25: Balance Sheet Investment Portfolio
5 Balance Sheet Investment Portfolio 24
Slide 26: Co-investments in managed funds
Investment Portfolio Co-investments in managed funds Co-investments1 Belconnen $230m Elanor Markets -1.0m -0.9m Wildlife Park Syndicate $225m ($0.5m) +8.6m -6.1m 1834 Fund Hospitality $220m Elanor -8.3m $215m Healthcare Real Elanor Commercial Estate Fund 17 1 Property Fund $210m 219m 3 -5.9m 9 46 $2
Slide 27: Distributions from co-investments in managed funds
Investment Portfolio Distributions from co-investments in managed funds ENN Co-Investment ENN Co-Investment ENN Distribution ENN Distribution 31 Dec 22 31 Dec 22 HY23 HY22 % $m $m $m Office and Healthcare Elanor Commercial Property Fund 12.6% 45.7 1.9 1.8 Elanor Healthcare Real Estate Fund 5.0% 8.6
Slide 28: Financial Results
6 Financial Results 27
Slide 29: Core earnings
Financial Results Core earnings HY23 HY22 Contribution to Core Earnings Summary $m $m Funds management income 29.9 20.2 Corporate overheads (16.7) (12.6) +48% Strong growth in funds management income to $29.9m FM EBITDA 13.3 7.6 Co-investment earnings 4.8 3.0 Profit on sale of assets and co-investme
Slide 30: Adjusted balance sheet
Financial Results Adjusted balance sheet Summary 31 Dec 2022 30 Jun 2022 Balance Sheet as at 31 December 20221 $m $m Assets Cash 21.5 12.7 Receivables 21.9 18.9 Capital Capital management in HY23 provides significant growth Manager contribution 4.1 4.5 Financial assets Management capital to support
Slide 31: Capital management
Financial Results Capital management December 2022 Unsecured Unsecured Senior Secured Fixed Rate Floating Rate Fully Revolving Key Debt Metrics Notes Notes Debt Facility $105m of debt facilities with a maturity of 2.6 Facility Limit ($m) 15.0 25.0 65.0 to 3.5 years Drawn amount ($m) 15.0 25.0 55.0 $
Slide 32: Outlook
7 Outlook 31
Slide 33: Outlook
Outlook Outlook Grow Funds Under Pipeline of funds management opportunities across all sectors: Management • Target $1bn of gross FUM growth p.a. across the cycle • Grow FUM in existing sectors of focus • Establish new real estate investment sectors Drive Securityholder Growth capital from planned r
Slide 34: Case Studies
A1 Appendix 8.1 Case Studies 33
Slide 35: Case study: Riverside Plaza Syndicate special distribution
Appendix Case study: Riverside Plaza Syndicate special distribution Special distribution of $0.52 distributed; total return (IRR) more than double the original forecast return Acquisition Special Capital Ground Floor at Acquisition Asset Key Metrics Oct-20 Distribution Dec-22 Investment Strategy Pro
Slide 36: Case study: Elanor Healthcare Real Estate Fund recapitalisation
Appendix Case study: Elanor Healthcare Real Estate Fund recapitalisation and partnership with Asian-based core real estate investor $247.4m 12% p.a. 7% p.a. NT Total Acquisition Price $287.3m QLD Internal Rate of Return Average Distribution Yield WA SA Total Exit Price Establishment (2019) NSW ACT •
Slide 37: Case study: REIT privatisation provided securityholder liquidity
Appendix Case study: REIT privatisation provided securityholder liquidity 15% premium to trading price while providing reinvestment option to realise full NTA ERF Privatisation and Delisting April to November 2022 70% of ERF securityholders support EPIF • The privatisation and delisting of ERF provi
Slide 38: Managed Fund Investment Portfolio Metrics
A1 Appendix 8.2 Managed Fund Investment Portfolio Metrics 37
Slide 39: Managed Fund Property Investment Portfolio Metrics
Appendix Managed Fund Property Investment Portfolio Metrics Gross Asset Vehicle Type No. of Assets Value ($m) Occupancy WALE Gearing1 Office and Healthcare Elanor Commercial Property Fund2 Listed 9 589 96% 3.0yrs 32.3% Stirling Street Syndicate Unlisted 1 35 100% 3.0yrs 55.7% Elanor Healthcare Real
Slide 40: Portfolio overview – ECF
A2 Appendix 8.3 Portfolio overview – ECF
Slide 41: Elanor Commercial Property Fund (ASX: ECF): 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% 115.0 15,602 7,371 6
Slide 42: Portfolio overview - EPIF
A3 Appendix 8.4 Portfolio overview - EPIF 41
Slide 43: Elanor Property Income Fund (EPIF): portfolio metrics
Appendix Elanor Property Income Fund (EPIF): portfolio metrics Centre Value1 Cap Lettable WALE Property Name Type State ($m) Rate Area (sqm) Occupancy2 (by Area) Manning Mall Sub-Regional NSW 37.5 7.25% 10,742 94.8% 1.8yrs Gladstone Square Neighbourhood QLD 30.8 7.00% 6,842 83.4% 7.7yrs Glenorchy Pl
Slide 44: Portfolio overview – EHREF
A4 Appendix 8.5 Portfolio overview – EHREF 43
Slide 45: Elanor Healthcare Real Estate Fund: portfolio metrics
Appendix Elanor Healthcare Real Estate Fund: portfolio metrics Asset Type Valuation NLA1 Valuation Cap Rate Occupancy2 WALE3 Car Parks ($m) (m2) ($ per m2) (%) (%) (years) 55 Little Edward St Internal 101.0 8,302 12,166 5.50% 100% 3.2 459 Spring Hill, QLD Pacific Private Internal 51.0 7,907 6,450 5.
Slide 46: Portfolio overview – EHAF
A5 Appendix 8.6 Portfolio overview – EHAF 45
Slide 47: Elanor Hotel Accommodation Fund: portfolio metrics
Appendix Elanor Hotel Accommodation Fund: portfolio metrics 31 December 2022 31 December 2022 Hotels State Rooms Book Value ($m) Stabilised Yield (%) Operator Acquired Byron Bay Hotel & Apartments NSW 43 34.50 6.75% Elanor 2016 ibis Styles Eaglehawk NSW 151 21.00 7.25% Elanor 2014 Estate Tuscany Hun
Slide 48: Portfolio overview – EWPF
A6 Appendix 8.7 Portfolio overview – EWPF 47
Slide 49: Elanor Wildlife Park Fund Portfolio Metrics
Appendix Elanor Wildlife Park Fund Portfolio Metrics Total Land Size Total Value 48.9 ha $65.3m 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 ha
Slide 50: Portfolio overview – single asset funds
A7 Appendix 8.8 Portfolio overview – single asset funds 49
Slide 51: 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 52: 19 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 53: 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 54: 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 55: 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 2021, located in the Capital Food diverse tenancy mix including Chemist Markets precinct Warehouse, Petbarn, Barbeques Galor
Slide 56: 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 57: 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 58: 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 59: Hunters Plaza Syndicate
Appendix Hunters Plaza Syndicate Hunters Plaza Syndicate, 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 a
Slide 60: 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 61: 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 62: 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 63: 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 64: Riverton Forum – Settlement February 2022
Appendix Riverton Forum – Settlement February 2022 Riverton Shopping Centre, 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
Slide 65: 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