Elanor Commercial Property (ECF) H2 2025 earnings summary

Executive summary

• FY 2025 featured disciplined execution, strong leasing, and resilient income, with high occupancy of 96.3% and 3.1% positive rental reversion despite a 3.7% portfolio value decline.

• Balance sheet strengthened through a $52–$52.5 million equity raise, reduced gearing to 38.1%, and debt facility extended to November 2027.

• Focused on differentiated office assets in major Australian metropolitan markets, targeting $50–$100 million assets.

• Delivered a 12.1% annualised dividend yield and maintained a strong track record of consistent returns.

• Takeover offer from Lederer Group at $0.70 per security received and recommended for rejection by the Board.

Financial highlights

• FY25 FFO reached $35.4 million, up 6.8% year-over-year, or $0.094 per security, above guidance.

• Distributions per security were $0.075, with a 12.1% annualised yield and 80% payout ratio.

• Gross property income rose 5% to $64.4 million; net property income up 2.5% to just over $50 million.

• Net tangible assets per unit at $0.69, down from $0.83 last year, mainly due to equity raise dilution.

• Statutory net loss of $5.4 million, improved from $27 million loss last year, impacted by fair value adjustments.

Outlook and guidance

• FY26 FFO per security guidance is $0.075–$0.08, with distributions at $0.065 per security (84% payout ratio), implying a 10.5% yield.

• Focus on leasing at key assets, maintaining disciplined capital management, and positioning for value recovery.

• 77% of debt hedged, with no maturities until November 2027.

• Targeting look-through gearing below 40% and preparing for market recovery.