Elanor Commercial Property (ECF) H2 2024 earnings summary

Executive summary

• Maintained high occupancy at 98.4% and increased portfolio WALE to four years, above national averages.

• Delivered FY24 distribution guidance of 8.50 cpu and FFO of 10.47 cpu, with an 81% payout ratio.

• Secured leases or commitments for almost 26,000 m², reducing future lease expiry risk and supporting strong rent growth.

• Portfolio value declined 7.8% due to cap rate expansion, partially offset by market rental growth.

• Proactive capital management included extending interest rate hedges and progressing asset sales to reduce gearing.

Financial highlights

• FFO per security was AUD 0.1047, with total FFO of AUD 33.1 million.

• Distribution per security was AUD 0.085, totaling AUD 26.9 million, with an 81% payout ratio.

• Like-for-like income growth reached 4.7% year-over-year.

• NTA per security decreased to AUD 0.84 from AUD 1.00; total portfolio value at AUD 514 million.

• Statutory net loss of AUD 25.2 million, improved from a AUD 32.2 million loss in FY23.

Outlook and guidance

• FY25 FFO per security guidance is AUD 0.093–0.098, with distributions of at least AUD 0.075 per security (11.6% yield at current price).

• Focus on asset sales to reduce gearing to the low end of the 30–40% target range.

• Continued emphasis on lease renewals, rent growth, and positioning for FFO and NTA growth.