Elanor Commercial Property (ECF) H1 2025 earnings summary

Executive summary

• Delivered strong operational performance in H1 FY25, with high occupancy at 97.7% and robust rental growth, significantly above the national average.

• Statutory profit after tax was $2.8 million, reversing a prior year loss of $5.8 million.

• Completed a $52.5 million equity raise, reducing gearing to 36.1% and supporting the acquisition of Harris Street Capital Notes.

• Investment property values have largely stabilised, with eight of nine assets holding value and signs the market is near the bottom of the cycle.

• The Fund's balance sheet remains strong, with $14.4–$20.7 million in cash and $20 million undrawn CapEx facility.

Financial highlights

• Funds from operations (FFO) at $17.1 million, or 4.92 cents per security, up 2.5% year-over-year.

• Distribution per security at 3.75 cents, payout ratio of 79%, in line with guidance.

• Net property income increased to $24.9 million.

• Portfolio value at $506.6 million, down 1.2% from June 2024.

• NTA per security at $0.74, down from $0.83 in June 2024.

Outlook and guidance

• FY25 FFO guidance reaffirmed at 9.3 cents per security and distribution guidance at 7.5 cents per security.

• Forecast payout ratio around 80%–82%, with a distribution yield of over 12%.

• Expect continued positive rental growth and high occupancy.

• Focus on asset management, capital works, and proactive capital management to maintain gearing and extend debt duration.

• The Fund will continue targeting value-add opportunities to grow earnings.