Elanor's portfolio expands after buying spree
Elanor acquired the Riverside Plaza mall in Queanbeyan.

Elanor's portfolio expands after buying spree

Property fund manager Elanor Investors Group has had a busy 2021 first half, boosting its funds under management by 11 per cent as it closed a series of deals.

As the ASX-listed Elanor’s net funds under management grew to $1.87 billion over the interim period, income from managing those assets rose 79 per cent to $14.9 million for the period.

More importantly, its annualised recurring funds management income increased 12 per cent to $15.5 million.

“During the half, we successfully completed a number of significant funds management initiatives including the establishment of two new managed funds,” chief executive Glenn Willis said.

Among the highlights, Elanor set up a syndicate that acquired the Riverside Plaza neighbourhood shopping centre in Queanbeyan for $60 million.

As well, the unlisted Elanor Healthcare Real Estate Fund added to its run of acquisitions, taking the fund to about $188 million.

Elanor also established a fund to hold two commercial office and healthcare properties at Woolloongabba in Queensland for $80.2 million.

Another highlight was the sale of the Auburn Central property for nearly $130 million for a listed retail property fund run by Elanor. The deal generated a 24.5 per cent internal rate of return.

“We have a strong pipeline of funds management opportunities across our sectors of focus and are actively pursuing opportunities in new real estate sectors. Furthermore, we continue to pursue strategic growth initiatives,” Mr Willis said.

Net profit for the period was $3.3 million, turning around from a $12.4 loss in the previous year’s interim period when the result absorbed a substantial write-down in portfolio book values.

Distribution for the first half fell to 4.13¢, compared with 9.51¢ in the previous year’s first half.

However, Mr Willis noted Elanor’s core earnings had not taken in any distribution from its hotel funds and the Waverley Gardens fund, which were withheld during the COVID-19 disruption, Those distributions are expected to resume in the second half.

Elanor’s stock rose 1.3 per cent, or 2¢, to $1.52 on Monday.

“The group is actively progressing initiatives in new real estate sectors and continues to explore strategic opportunities to deliver its growth objectives,” Mr Willis said.

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