Elanor Commercial Property Fund meets FY25 guidance despite portfolio dip

Elanor Commercial Property Fund (ECF) reported Funds from Operations (FFO) of A$35.4 million (9.40 cents per security) for FY25, meeting its guidance. Distributions totaled A$28.8 million (7.50 cents per security), representing an 80% payout ratio. Net tangible asset (NTA) backing per security was A$0.69, with gearing at 38.1%, within the target range. The company also executed 34 leasing transactions covering nearly 12,000 sqm, reducing FY26 lease expiries from 28% to 25% and maintaining a 96.3% occupancy rate.

The Fund’s investment property portfolio decreased by A$18.8 million (3.66%) to A$426.4 million, primarily due to rising capitalization and discount rates. This was partially offset by a 3.5% positive market rental growth. ECF also received an unsolicited off-market takeover offer from the Lederer Group at 70 cents per stapled security, which the Independent Board Committee has recommended security holders reject.

Despite a net statutory loss of A$5.4 million, the directors believe the Fund can meet its covenant obligations and refinance facilities. The annual financial report affirms the consolidated financial position and performance for the year ended June 30, 2025.