Elanor Investors Group Annual Report 2022

FY2022 Annual Report · Elanor Investors Group

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Investors Group
Annual Report

For the year ended 30 June 2022

Peppers Cradle Mountain Lodge, (TAS)

Meeting of Securityholders

The meeting of Securityholders will be held
on Thursday 27 October 2022 at 2:00pm
(Sydney time) at Computershare, Level 3,
60 Carrington Street, Sydney NSW 2000.

Acknowledgement of country

Elanor is proud to work with the communities in
which we operate, to manage and improve properties
on land across Australia and New Zealand.

We pay our respects to the traditional owners,
their elders past, present and emerging and value
their care and custodianship of these lands.

Contents

04 — Highlights

06 —

Environmental, Social and Governance –
making a positive impact

08 — Message from the Chair

10 — CEO’s Message

13 — Financial Report

14 — Directors’ Report

44 — Auditor’s Independence Declaration

45 — Consolidated Financial Statements

52 — Notes to the Consolidated Financial Statements

124 — Directors’ Declaration

125 — Independent Auditor’s Report

130 — Corporate Governance

131 — Securityholder Analysis

133 — Corporate Directory

Financial Calendar

OCT

27 October 2022
Meeting of Securityholders

DEC

FEB

JUN

AUG

December 2022
Estimated interim distribution announcement
and securities trade ex-distribution

February 2023
Interim results announcement and
interim distribution payment

June 2023
Estimated final distribution announcement and
securities trade ex-distribution

August 2023
Full-year results announcement and
final distribution payment

SEP

September 2023
Annual tax statements

Responsible Entity
Elanor Funds Management Limited (ABN 39 125 903 031). AFSL 398196.
Elanor Investors Group comprises Elanor Investors Limited (ABN 33 169 308 187)
and Elanor Investment Fund (ARSN 169 450 926).

Highlights

Group FUM

$2.72bn
31% on FY21

Funds Management
EBITDA
$14.7m
38% on FY21

Core Earnings

$18.3m
21% on FY21

Gross increase in
FUM in FY22

$677m

Gross increase in FUM in
FY21 of $381m

Recurring Funds
Management Income
(excl. acq fees)

$32.2m
48% on FY21

FY22 Distributions
per security

13.48cps
20% on FY21

50 Cavill Ave, Surfers Paradise (QLD)

Elanor Investors GroupAnnual Report 2022
The Group’s investments are
located across Australia and
New Zealand

Darwin

Assets:

Hotels, Tourism & Leisure

Commercial

Retail

Healthcare

QLD

Brisbane

Perth

NSW

Auckland

Sydney

Canberra

Wellington

Adelaide

VIC

Melbourne

TAS

Hobart

Australian real estate funds management group delivering investment outperformance

$2.72bn

Funds Under Management

$829m
Office

$304m
Healthcare

$1,122m
Retail

$466m
Hotels, Tourism & Leisure

$525m
Elanor
Commercial
Property Fund
ASX:ECF

$304m
Unlisted
Real Estate
Funds

$304m
Multi-asset
Elanor
Healthcare
Real Estate
Fund

$204m
Elanor Retail
Property Fund
ASX:ERF

$918m
Unlisted
Real Estate
Funds

$395m
Unlisted multi-
asset Luxury
and Regional
Hotel Fund

$72m
Unlisted multi-
asset Wildlife
and Leisure
Park Fund

Note: Consistent with the basis on which ENN’s base management fees are calculated; figures reflect the Gross Asset Value of the various managed funds

Environmental, Social
and Governance –
making a positive
impact

The Smith Family
Elanor’s collaboration with The Smith
Family supports over 100 Senior Secondary
School students (in the ‘Learning for Life’
program) and other disadvantaged youth
through a variety of impactful activities

At Elanor we strive to make
positive and impaction social and
environmental contributions to the
communities in which we operate,
and more broadly

ESG Strategy
Elanor’s ESG Committee is responsible for,
and oversees, the Group’s ESG strategy
Following a detailed stakeholder analysis, the
Group has identified nine material areas of
focus, with strategic priorities and initiatives
underway. Elanor published its inaugural
ESG Report in September 2022

Elanor Commercial Property Fund
(ASX:ECF) is executing its roadmap to
a Carbon Neutral Portfolio:

WorkZone West
202 Pier Street,
Perth, WA

Garema Court
140-180 City Walk,
Canberra ACT

19 Harris Street
19 Harris Street, Pyrmont,
Sydney NSW

6
6

Elanor Investors GroupAnnual Report 2022Recently completed solar panel installation
at Clifford Gardens

Elanor’s collaboration with Solar Bay
and Momentum Energy is delivering a
combination of on-site and off-site
renewables that meet 100% of the
Waverley Gardens (Melbourne) and
Clifford Gardens (Toowoomba)
Shopping Centres’ energy requirements

This model will be implemented
at other properties in the Group’s
Retail portfolio

Office of Environment and Heritage
Elanor partners with the Office of
Environment and Heritage in the
‘Saving our Species’ program for the
‘Plains Wanderer’, a critically
endangered Australian bird

7
7

FSHD Global Research Foundation Elanor’s partnership with FSHD Global Research Foundation supports the Foundation’s key objectives of finding a cure for FSHD. Elanor provides a wide level of support to the Foundation, including financial and Board participationMessage from
the Chair

On behalf of the Board, I am pleased to present
Elanor Investors Group’s Annual Report,
including its Financial Statements for the
year ended 30 June 2022.

Despite the on-going challenging
times, the year ended 30 June
2022 has been another successful
year for the Group, both financially
and strategically. Financially, the
Group achieved Core Earnings
of $18.3 million and funds under
management grew to $2.72 billion
(up 31% since 30 June 2021).

Strategically, the 31% growth in
funds under management and the
48% increase in our recurring funds
management income are very much
in line with our ongoing strategy of
growing Elanor into a leading real
estate funds management group
delivering exceptional investment
returns to investors in our funds.

Results
The results for the 2022 Financial
Year reflect the continuing strong
growth of the Group’s funds
management platform. Core
Earnings for the period increased
21% to $18.3 million, or 14.98
cents per stapled security. The
strong performance of the funds
management business underpinned
this result, with recurring funds
management revenues of $32.2
million, an increase of 48% on the
prior period. Growing recurring
management fees is a major focus
of the business.

Elanor’s conservative gearing of
30.2%, combined with it’s available
capital to support further growth,
provides the Group with significant
capacity for further growth in funds
under management.

Achievements
The primary achievement in the
2022 Financial Year was Elanor’s
ongoing ability to continue to grow
funds under management in less
than ideal times. Over the period
funds under management grew by
$649 million, reaching $2.72 billion,
a growth rate of 31% over the
year. This growth was supported
by the performance of the Group’s
Managed Funds over the period
(despite challenging conditions),
where the value of Managed Fund
real estate investments increased
by 7.9% ($165 million) from
30 June 2021. This was achieved
across all sectors of focus. The
establishment of new managed
funds across the Group’s retail,
commercial, healthcare and hotels,
tourism and leisure sectors was
the prime driver of the Group’s
FUM growth.

Further detail and commentary of
the 2022 Financial Year results and
specific achievements can be found
in the CEO’s Message that follows.

Market conditions
The COVID-19 pandemic continued
to present challenging operating
and market conditions in the 2022
Financial Year, particularly for
the Group’s hotels, tourism and
leisure focused Managed Funds.
Nonetheless, these Managed
Funds have recovered strongly
in the second half of the financial
year, following the relaxation of
COVID-19 related state border

closures and government mandated
operating restrictions during
November and December 2021.

Governance
The Board continues to strengthen
the Group’s corporate governance
structure and processes consistent
with Elanor’s growth, strategic
intent and operating activities. The
Group’s Environmental, Social and
Governance (ESG) Management
Committee, chaired by the CEO, is
responsible for, and oversees, the
Group’s ESG strategy. Following
a detailed stakeholder analysis,
the Group has identified nine
material areas of focus. Strategic
priorities, initiatives and targets
are being assessed. Elanor has
published its inaugural ESG Report
in conjunction with the FY22 Annual
Report. In addition, the further
development of the Group’s Risk
Management Framework and Work,
Health and Safety regimes combine
to enable Elanor to execute on
its sustainability and governance
objectives.

Acknowledgements
The 2022 financial year had its
challenges, yet, again Elanor’s
CEO and the senior executives,
as well as all staff, continued to
grow the business and increase
core earnings, bolstered by greater
recurring funds management
income.

Elanor Investors GroupAnnual Report 202250 Cavill Ave, Surfers Paradise (QLD)

Funds under
Management

As at 30 June 2022

$2.72bn
> 31%

The loyalty and support of
Securityholders and investors in
our funds is much appreciated.
We see Elanor’s long-term
success depend on providing
great investment returns to our
Securityholders and investors.

To my colleagues on the
Elanor Board, thank you for
your continuing support and
insights during the year.

I look forward to discussing the
business further at our Annual
General Meeting in Sydney on
27 October 2022.

Yours sincerely,

Paul Bedbrook
Chair

CEO’s
Message

I am pleased to present Elanor Investors
Group’s Annual Report for the year ended
30 June 2022.

Over the year we made significant
progress toward our mission for the
Group: to grow Elanor into a leading
real estate funds management
group known for delivering
exceptional investment returns and
making positive and impactful social
and environmental contributions
to the communities in which we
operate, and more broadly.

The management team delivered
strong growth in funds under
management over the year despite
market conditions impacting some
of our investment sectors.

We are pleased with the growth
in both funds under management
and recurring funds management
income over the period. Funds
under management grew by 31%
from $2.07 billion to $2.72 billion
over the year and recurring funds
management income increased
48% to $32.2 million. This strong
increase in funds management
earnings reflects not only our
ongoing growth in funds under
management but also the significant
growth in hotel operator fees,
development management fees
and leasing fees over the period.
These growing funds management
revenue streams are a direct result
of the ongoing investments we have
made in our funds management
platform and the exceptional
investment returns that are being
generated for our capital partners.

This year we are pleased to publish
our inaugural ESG (Environmental,
Social and Governance) Report
which is available on our website.
This marks a major milestone for
the Group as we report on our

sustainability achievements and our
approach to ESG matters. During
the year, Elanor’s ESG Committee
refined the Group’s ESG strategy
following a comprehensive review
of ESG priorities that are the
most important and impactful to
our stakeholders. This strategy is
now guiding our ESG ambitions
and helping us to prioritise, and
report on, significant sustainability
initiatives going forward. Throughout
the year we continued to deepen
our collaboration with communities
in which our assets are located,
improve energy efficiency across
our managed funds, implement
sustainable procurement initiatives
at our hotels, contribute to
significant species preservation
initiatives via the Group’s Wildlife
Parks and support disadvantaged
youth via our collaboration with
The Smith Family.

Core Earnings grew by 21%
to $18.3 million over the year,
notwithstanding the COVID-19
related impact on earnings
(primarily) in the first half of the
financial year. Significantly
improved trading conditions in the
three months ended 30 June 2022,
particularly in the hotels, tourism
and leisure sector, are expected to
result in improved
funds management fees and
co-investment earnings in the year
ending 30 June 2023.

The Group’s managed funds
performed well over the period
notwithstanding challenging market
conditions in some of our sectors
of focus. Valuations in aggregate
across all comparable assets at

30 June 2022 have increased by
7.9% or $165 million. A significant
number of funds management
initiatives were successfully
completed during the year,
including the establishment of
the Elanor Hotel Accommodation
Fund in September 2021. The
Elanor Commercial Property Fund
grew strongly over the period
following the completion of two high
investment quality acquisitions:
50 Cavill Avenue, Gold Coast,
QLD and a 49.9% interest in
19, Harris Street, Pyrmont,
NSW. The announcement and
implementation of the privatisation
and delisting of Elanor Retail
Property Fund (ERF) was a
significant achievement over the
period, delivering strong value
to ERF Securityholders. We
remain confident that our funds
management platform will continue
to deliver strong investment returns
to both Elanor’s Securityholders and
the Group’s capital partners.

Elanor’s strong investment track
record continues to drive demand
from wholesale and institutional
investors for the Group’s managed
funds. Elanor has a high calibre
and scalable funds management
platform with substantial capacity
to grow funds under management.
Further investments have been
made in the platform during the
year, and coupled with the Group’s
available balance sheet capital,
Elanor is well positioned to grow its
funds management business.

Elanor Investors GroupAnnual Report 2022Funds Management
Income

$41.3m

39% on FY21

Recurring Funds
Management Income
(excl. acq fees)

$32.2m

48% on FY21

In addition to our core sectors
of focus – retail real estate,
commercial real estate, healthcare
real estate and hotels, tourism and
leisure real estate – the Group
anticipates launching its agriculture
real estate fund strategy in the
short term. We continue to evaluate
strategic opportunities to achieve
our growth objectives.

Investment Approach
Our differentiated real estate funds
management capability positions us
well for further growth. We believe
that the prevailing environment will
present an increasing number of
high value investment opportunities.
With a strong pipeline and a
growing investor base, we are well
positioned for further strong growth
in both funds under management
and Securityholder value.

Key Results
• Core Earnings for the year of
$18.3 million (14.98 cents per
security), a 21% increase on
FY21

• Distribution for the year of 13.48
per security (90% payout ratio)

• Growth in funds under

management of $649 million to
$2.72 billion (31% increase on
FY21)

• Funds management income of
$41.3 million for the year (39%
increase on FY21); recurring
funds management income
increased 48% to $32.2 million

• The valuations of the Group’s
comparable managed funds
asset portfolio at 30 June 2022
reflected an increase of 7.9%

($165 million) from
30 June 2021

• Net Tangible Assets (NTA)
per security of $1.40 at
30 June 2022

• Gearing of 30.2% at

30 June 2022

Funds Management
The Group completed the following
funds management initiatives
during the year:

• The acquisition of the

commercial office property
located at 50 Cavill Avenue,
Gold Coast, QLD for
$113.5 million by the Elanor
Commercial Property Fund
(ASX: ECF) in August 2021

• The divestment of the

Moranbah Fair property, at book
value ($28.0 million), for the
Elanor Retail Property Fund
(ASX: ERF)

• The establishment of the Elanor
Hotel Accommodation Fund
(EHAF) in September 2021,
creating a $346.2 million hotel
fund (as at the establishment
date) The acquisition of
Highpoint Health Hub in
Ashgrove, QLD, for $51.9 million
in October 2021 for the Elanor
Healthcare Real Estate Fund.
The Fund’s property portfolio is
valued at $289.3 million as at
30 June 2022

• The establishment of the

Warrawong Plaza Fund in
October 2021 to acquire the
Warrawong Plaza shopping
centre in Wollongong, NSW,
for $136.4 million

• The acquisition of the Estate

Tuscany accommodation hotel,
Pokolbin, NSW for $12.8 million
in June 2022 for the Elanor
Hotel Accommodation Fund
(EHAF), growing the value of
the Fund’s portfolio to $364.6
million (as at 30 June 2022)

Subsequent to 30 June 2022,
ENN has completed the following
significant funds management
initiatives:

• The acquisition of Sanctuary Inn
Tamworth, NSW, for EHAF in
August 2022 for $16.5 million

• Securityholder approval of the
privatisation and delisting of
the Elanor Retail Property Fund
(ASX: ERF) in August 2022.
The privatisation and delisting
comprises the syndication of
the Fund’s Tweed Mall property
to Elanor’s wholesale private
capital partners, a security
buy-back offer and the delisting
of ERF to become the Elanor
Property Income Fund (EPIF).
EPIF will be an open-ended,
multi-sector, property fund
generating reliable income from
a portfolio of high investment
quality real estate assets

progressing funds management
opportunities in new real estate
sectors, in addition to pursuing
strategic opportunities to deliver its
growth objectives.

I wish to sincerely thank my fellow
executives across the Group, our
Seniors Advisors, and my fellow
Executive Management Committee
and Board members. The progress
we have achieved over the year is
a testimony to your commitment
to growing Elanor into a leading
Australian funds management
group.

Yours sincerely,

Glenn Willis
Managing Director and
Chief Executive Officer

CEO’s Message

Investment Portfolio
The Group generated funds
management income of $41.3
million (FY21: $29.7 million), a
39% increase on the prior
comparative period.

During the year, Elanor increased
its funds under management
from $2,073 million to $2,722
million. The growth in funds under
management has been supported
by strong growth in Elanor’s
institutional and private wholesale
investors base, reflecting the
Group’s strong investment track
record and investments in capital
origination.

Capital Management
Elanor remains conservatively
geared at 30.2% having
successfully completed the
refinancing of the Group’s debt
in June 2022. The Group’s debt
facilities have been refinanced
on similar terms, with improved
flexibility, for tenors of 3 and 4
years.

The planned sell-down of the
Group’s co-investments in FY23
is expected to release more than
$50 million to support the growth of
Elanor’s funds under management.

Our intention remains for the
Group’s balance sheet to be
conservatively geared, while
maintaining capital capacity to take
advantage of opportunities arising
from asset valuation cycles.

Impact of COVID-19
The Group’s Managed Funds
have performed strongly over the
period, notwithstanding COVID-19
related border closures impacting
some of the Group’s investments
(particularly) in the first half of
the financial year. The hotels,
tourism and leisure sector was
impacted heavily during the first
half of the financial year. However,
significantly improved trading

conditions during the three months
ended 30 June 2022 are expected
to continue in FY23, resulting in
materially higher hotel operator
fees and increased co-investment
earnings for the period.

Our Approach to Corporate
Sustainability
Our mission is to grow Elanor
Investors Group into a leading
real estate funds management
business known for delivering
exceptional investment returns
and striving to make positive and
impactful social and environmental
contributions to the communities
in which we operate, and more
broadly. Reporting to the Board
as a Management Committee,
Elanor’s ESG Committee plays a
significant role in assessing and
overseeing the implementation
of environmental, social and
governance initiatives across
the business. The Committee is
governed by Charter and covers
a range of material ESG topics
while working to focus on risks
and opportunities under each key
theme.

Outlook
The Group’s key strategic objective
remains unchanged: to grow
funds under management and
Securityholder value by delivering
strong investment returns for
Elanor’s capital partners. The
Group is acutely focused on
growing funds management
earnings and recycling co-
investment capital to facilitate
growth in a ‘capital-lite’ manner.

Elanor Investors GroupAnnual Report 2022
Financial
Report
for the year ended
30 June 2022

14 — Directors’ Report

44 — Auditor’s Independence Declaration

45 — Consolidated Statements of Profit or Loss

46 — Consolidated Statements of Comprehensive Income

47 — Consolidated Statements of Financial Position

49 — Consolidated Statements of Changes in Equity

51 — Consolidated Statements of Cash Flows

52 — Notes to the Consolidated Financial Statements

124 — Directors’ Declaration to Stapled Securityholders

125 — Independent Auditor’s Report

Directors’
Report

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
The Directors of Elanor Investors Limited (Company), and the Directors of Elanor Funds Management Limited
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
(Responsible Entity or Manager), as responsible entity of the Elanor Investment Fund, present their report
June 2022 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
June 2022 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
June 2022 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
June 2022 (year).
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
June 2022 (year).
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
June 2022 (year).
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
Group comprises Elanor Investment Fund and its controlled entities.
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
including Elanor Investment Fund (Trust) and its controlled entities. The annual financial report of the EIF
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
Group comprises Elanor Investment Fund and its controlled entities.
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
Group comprises Elanor Investment Fund and its controlled entities.
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
2014.
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
2014.
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
2014.
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
2014.
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
2014.
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
2014.
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of the
the parent entity of the Group under Australian Accounting Standards.
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
the parent entity of the Group under Australian Accounting Standards.
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
the parent entity of the Group under Australian Accounting Standards.
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
the parent entity of the Group under Australian Accounting Standards.
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
the parent entity of the Group under Australian Accounting Standards.
information for the Group is taken from the consolidated financial reports and notes.
the parent entity of the Group under Australian Accounting Standards.
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
information for the Group is taken from the consolidated financial reports and notes.
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
information for the Group is taken from the consolidated financial reports and notes.
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
information for the Group is taken from the consolidated financial reports and notes.
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
1.
information for the Group is taken from the consolidated financial reports and notes.
1.
information for the Group is taken from the consolidated financial reports and notes.
1.
1.
The following persons have held office as Directors of the Responsible Entity and Company during the year
1.
The following persons have held office as Directors of the Responsible Entity and Company during the year
1.
and up to the date of this report:
The following persons have held office as Directors of the Responsible Entity and Company during the year
and up to the date of this report:
The following persons have held office as Directors of the Responsible Entity and Company during the year
and up to the date of this report:
The following persons have held office as Directors of the Responsible Entity and Company during the year
and up to the date of this report:
The following persons have held office as Directors of the Responsible Entity and Company during the year
and up to the date of this report:
and up to the date of this report:

Directors
Directors
Directors
Directors
Directors
Directors



 Glenn Willis (Managing Director and Chief Executive Officer)

 Glenn Willis (Managing Director and Chief Executive Officer)
 Nigel Ampherlaw

 Glenn Willis (Managing Director and Chief Executive Officer)
 Nigel Ampherlaw

 Glenn Willis (Managing Director and Chief Executive Officer)


 Nigel Ampherlaw

 Glenn Willis (Managing Director and Chief Executive Officer)
 Nigel Ampherlaw

 Glenn Willis (Managing Director and Chief Executive Officer)



 Nigel Ampherlaw

 Nigel Ampherlaw












Paul Bedbrook (Chairman)
Paul Bedbrook (Chairman)
Paul Bedbrook (Chairman)
Paul Bedbrook (Chairman)
Paul Bedbrook (Chairman)
Anthony Fehon
Paul Bedbrook (Chairman)
Anthony Fehon
Su Kiat Lim (appointed 1 October 2021)
Anthony Fehon
Su Kiat Lim (appointed 1 October 2021)
Anthony Fehon
Karyn Baylis (appointed 1 November 2021)
Su Kiat Lim (appointed 1 October 2021)
Karyn Baylis (appointed 1 November 2021)
Anthony Fehon
Su Kiat Lim (appointed 1 October 2021)
Anthony Fehon
Karyn Baylis (appointed 1 November 2021)
Su Kiat Lim (appointed 1 October 2021)
Karyn Baylis (appointed 1 November 2021)
Principal activities
Su Kiat Lim (appointed 1 October 2021)
Karyn Baylis (appointed 1 November 2021)
Principal activities
Karyn Baylis (appointed 1 November 2021)
Principal activities
Principal activities
Principal activities
Principal activities

2.
2.
2.
2.
The principal activities of the Group are the management of investment funds and syndicates and the
2.
The principal activities of the Group are the management of investment funds and syndicates and the
2.
investment in, and operation of, a portfolio of real estate assets and businesses.
The principal activities of the Group are the management of investment funds and syndicates and the
investment in, and operation of, a portfolio of real estate assets and businesses.
The principal activities of the Group are the management of investment funds and syndicates and the
investment in, and operation of, a portfolio of real estate assets and businesses.
The principal activities of the Group are the management of investment funds and syndicates and the
investment in, and operation of, a portfolio of real estate assets and businesses.
The principal activities of the Group are the management of investment funds and syndicates and the
3.
investment in, and operation of, a portfolio of real estate assets and businesses.
3.
investment in, and operation of, a portfolio of real estate assets and businesses.
3.
3.
Distributions relating to the year ended 30 June 2022 comprise:
3.
Distributions relating to the year ended 30 June 2022 comprise:
3.
Distributions relating to the year ended 30 June 2022 comprise:
Distributions relating to the year ended 30 June 2022 comprise:
Distributions relating to the year ended 30 June 2022 comprise:
Distributions relating to the year ended 30 June 2022 comprise:

Distributions
Distributions
Distributions
Distributions
Distributions
Distributions

The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
June 2022 to 13.48 cents per stapled security.
The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
June 2022 to 13.48 cents per stapled security.
The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
14
June 2022 to 13.48 cents per stapled security.
The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
June 2022 to 13.48 cents per stapled security.
3
The Final Distribution of 4.43 cents per stapled security brings distributions in respect of the year ended 30
June 2022 to 13.48 cents per stapled security.
3
June 2022 to 13.48 cents per stapled security.
3
3
3
3

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT

Operating and financial review
Operating and financial review

4.
4.
OVERVIEW AND STRATEGY
OVERVIEW AND STRATEGY
Elanor is a real estate funds management group with an investment focus on acquiring and unlocking value in
Elanor is a real estate funds management group with an investment focus on acquiring and unlocking value in
assets that provide high quality income and capital growth. Elanor's active approach to asset management is
assets that provide high quality income and capital growth. Elanor's active approach to asset management is
fundamental to delivering investment outperformance.
fundamental to delivering investment outperformance.
Elanor’s key investment sectors include the commercial office, healthcare real estate, retail real estate and the
Elanor’s key investment sectors include the commercial office, healthcare real estate, retail real estate and the
accommodation hotels, tourism and leisure sectors.
accommodation hotels, tourism and leisure sectors.
During the year, Elanor increased its funds under management from $2,073.2 million to $2,721.9 million and
During the year, Elanor increased its funds under management from $2,073.2 million to $2,721.9 million and
increased its co-investments and balance sheet investments from $216.4 million to $221.3 million. The growth
increased its co-investments and balance sheet investments from $216.4 million to $221.3 million. The growth
in funds under management has been supported by strong growth in the Group’s institutional and private
in funds under management has been supported by strong growth in the Group’s institutional and private
wholesale investors base (refer to page 16 for a table detailing the Group’s funds under management and co-
wholesale investors base (refer to page 16 for a table detailing the Group’s funds under management and co-
investments and balance sheet investments as at 30 June 2022).
investments and balance sheet investments as at 30 June 2022).
The significant funds management initiatives completed during the year included:
The significant funds management initiatives completed during the year included:

• The acquisition of the commercial office property located at 50 Cavill Avenue, Gold Coast, QLD for
• The acquisition of the commercial office property located at 50 Cavill Avenue, Gold Coast, QLD for

$113.5 million by the Elanor Commercial Property Fund (ASX: ECF) in August 2021;
$113.5 million by the Elanor Commercial Property Fund (ASX: ECF) in August 2021;

• The divestment by the Elanor Retail Property Fund (ASX: ERF) of the Moranbah Fair property, at book
• The divestment by the Elanor Retail Property Fund (ASX: ERF) of the Moranbah Fair property, at book

value, for $28.0 million;
value, for $28.0 million;

• The establishment of the Elanor Hotels Accommodation Fund (EHAF) in September 2021, creating a
• The establishment of the Elanor Hotels Accommodation Fund (EHAF) in September 2021, creating a

$346.2 million hotel fund (as at the establishment date);
$346.2 million hotel fund (as at the establishment date);

• The acquisition of Highpoint Health Hub in Ashgrove, QLD, for $51.9 million in October 2021 by the
Elanor Healthcare Real Estate Fund. The fund’s property portfolio is valued at $304.3 million (as at 30
• The acquisition of Highpoint Health Hub in Ashgrove, QLD, for $51.9 million in October 2021 by the
June 2022);
Elanor Healthcare Real Estate Fund. The fund’s property portfolio is valued at $304.3 million (as at 30
June 2022);

• The establishment of the Warrawong Plaza Fund in October 2021 to acquire the Warrawong Plaza
• The establishment of the Warrawong Plaza Fund in October 2021 to acquire the Warrawong Plaza

shopping centre in Wollongong, NSW, for $136.4 million;
shopping centre in Wollongong, NSW, for $136.4 million;

• The acquisition of the 19 Harris Street property in Pyrmont for $185.0 million by the Harris Street Fund
in May 2022, with the Elanor Commercial Property Fund (ASX: ECF) acquiring a 49.9% interest in the
• The acquisition of the 19 Harris Street property in Pyrmont for $185.0 million by the Harris Street Fund
fund alongside Elanor’s wholesale private capital partners; and
in May 2022, with the Elanor Commercial Property Fund (ASX: ECF) acquiring a 49.9% interest in the
fund alongside Elanor’s wholesale private capital partners; and

• The acquisition of the Estate Tuscany accommodation hotel, Pokolbin, NSW for $12.8 million in June
2022 by the Elanor Hotel Accommodation Fund (EHAF), growing the value of the fund’s portfolio to
• The acquisition of the Estate Tuscany accommodation hotel, Pokolbin, NSW for $12.8 million in June
$364.6 million (as at 30 June 2022).
2022 by the Elanor Hotel Accommodation Fund (EHAF), growing the value of the fund’s portfolio to
$364.6 million (as at 30 June 2022).

Furthermore, subsequent to 30 June 2022, Elanor has completed the following significant funds management
Furthermore, subsequent to 30 June 2022, Elanor has completed the following significant funds management
initiatives:
initiatives:

• The acquisition of Sanctuary Inn Tamworth, NSW, by EHAF in August 2022 for $16.5 million; and
• The acquisition of Sanctuary Inn Tamworth, NSW, by EHAF in August 2022 for $16.5 million; and
• Securityholder approval for the proposed liquidity event and privatisation of the Elanor Retail Property
Fund (ASX: ERF) in August 2022. The privatisation and delisting incorporates the syndication of the
• Securityholder approval for the proposed liquidity event and privatisation of the Elanor Retail Property
fund’s Tweed Mall property to Elanor’s wholesale private capital partners, a security buy-back offer
Fund (ASX: ERF) in August 2022. The privatisation and delisting incorporates the syndication of the
and the delisting of ERF to become the Elanor Property Income Fund (EPIF). EPIF will be an open-
fund’s Tweed Mall property to Elanor’s wholesale private capital partners, a security buy-back offer
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality
and the delisting of ERF to become the Elanor Property Income Fund (EPIF). EPIF will be an open-
real estate assets.
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality
real estate assets.
15

4
4

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT

Directors' Report

DIRECTORS’ REPORT

Operating and financial review (continued)

Operating and financial review (continued)
Operating and financial review (continued)

4.
4.
ENN’s strong investment track record (average realised IRR of 19%) continues to drive demand from
4.
ENN’s strong investment track record (average realised IRR of 19%) continues to drive demand from
wholesale and institutional investors for the Group’s funds. Elanor has a high calibre and scalable funds
wholesale and institutional investors for the Group’s funds. Elanor has a high calibre and scalable funds
management platform with substantial capacity for growth. Further investments have been made in the
ENN’s strong investment track record (average realised IRR of 19%) continues to drive demand from
management platform with substantial capacity for growth. Further investments have been made in the
platform during the year. Elanor is well positioned to grow its funds management business.
wholesale and institutional investors for the Group’s funds. Elanor has a high calibre and scalable funds
platform during the year. Elanor is well positioned to grow its funds management business.
management platform with substantial capacity for growth. Further investments have been made in the
platform during the year. Elanor is well positioned to grow its funds management business.
MANAGED FUNDS AND INVESTMENT PORTFOLIO
MANAGED FUNDS AND INVESTMENT PORTFOLIO
The following tables show the Group's Managed Funds and investment portfolio:
MANAGED FUNDS AND INVESTMENT PORTFOLIO
The following tables show the Group's Managed Funds and investment portfolio:

The following tables show the Group's Managed Funds and investment portfolio:

Managed Funds
Managed Funds
Note 1: The funds under management balance of $2,721.9 million represents the gross asset value of the Group’s Managed Funds at 30
June 2022, including those funds that have been consolidated in the Group’s financial statements.
Managed Funds
Note 1: The funds under management balance of $2,721.9 million represents the gross asset value of the Group’s Managed Funds at 30
June 2022, including those funds that have been consolidated in the Group’s financial statements.
Note 2: The numbers included in brackets under the ‘Location’ column represents the number of assets within each State for the Group’s
Note 1: The funds under management balance of $2,721.9 million represents the gross asset value of the Group’s Managed Funds at 30
multi-asset funds.
Note 2: The numbers included in brackets under the ‘Location’ column represents the number of assets within each State for the Group’s
June 2022, including those funds that have been consolidated in the Group’s financial statements.
multi-asset funds.
16
5
Note 2: The numbers included in brackets under the ‘Location’ column represents the number of assets within each State for the Group’s
5
multi-asset funds.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Operating and financial review (continued)

MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)

Investment Portfolio

Note 1: All owner-occupied properties in the Hotel, Tourism and Leisure business are held for use by the Group for the supply of services
and are classified as property, plant and equipment and stated at fair value in the financial statements.

Note 2: Managed Fund co-investments are associates and accounted for using the equity method.

Note 3: The co-investments in Elanor Hotel and Accommodation Fund (EHAF), Elanor Wildlife Park Fund (EWPF), Stirling Street
Syndicate (Stirling) and the Bluewater Square Syndicate (Bluewater) have been consolidated in the financial statements. The amount
shown assumes that the investments were accounted for using the equity method.

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT

Directors' Report

Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
4.
Operating and financial review (continued)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)
Update on the Group’s Managed Funds
Update on the Group’s Managed Funds
Update on the Group’s Managed Funds
Update on the Group’s Managed Funds
The Group’s Managed Funds have performed strongly over the period, notwithstanding the COVID-19 related
The Group’s Managed Funds have performed strongly over the period, notwithstanding the COVID-19 related
impacts on the Australian economy particularly in the first half of the financial year. The hotels, tourism and
The Group’s Managed Funds have performed strongly over the period, notwithstanding the COVID-19 related
The Group’s Managed Funds have performed strongly over the period, notwithstanding the COVID-19 related
impacts on the Australian economy particularly in the first half of the financial year. The hotels, tourism and
leisure sector was impacted heavily during the first half of the financial year, however the sector has
impacts on the Australian economy particularly in the first half of the financial year. The hotels, tourism and
impacts on the Australian economy particularly in the first half of the financial year. The hotels, tourism and
leisure sector was impacted heavily during the first half of the financial year, however the sector has
experienced significantly improved trading conditions during Q4 FY22 as the demand for domestic tourism and
leisure sector was impacted heavily during the first half of the financial year, however the sector has
leisure sector was impacted heavily during the first half of the financial year, however the sector has
experienced significantly improved trading conditions during Q4 FY22 as the demand for domestic tourism and
leisure strengthens. This improvement in trading conditions is expected to benefit the Group through materially
experienced significantly improved trading conditions during Q4 FY22 as the demand for domestic tourism and
experienced significantly improved trading conditions during Q4 FY22 as the demand for domestic tourism and
leisure strengthens. This improvement in trading conditions is expected to benefit the Group through materially
higher hotel operator fees and increased co-investment earnings in FY23.
leisure strengthens. This improvement in trading conditions is expected to benefit the Group through materially
leisure strengthens. This improvement in trading conditions is expected to benefit the Group through materially
higher hotel operator fees and increased co-investment earnings in FY23.
higher hotel operator fees and increased co-investment earnings in FY23.
higher hotel operator fees and increased co-investment earnings in FY23.
Commercial Office
Commercial Office
Commercial Office
Commercial Office
The performance of the Group’s commercial office funds continues to be strong. The listed Elanor Commercial
The performance of the Group’s commercial office funds continues to be strong. The listed Elanor Commercial
Property Fund (ASX: ECF) exceeded its market guidance during the period, reflecting the strength of the
The performance of the Group’s commercial office funds continues to be strong. The listed Elanor Commercial
The performance of the Group’s commercial office funds continues to be strong. The listed Elanor Commercial
Property Fund (ASX: ECF) exceeded its market guidance during the period, reflecting the strength of the
Fund’s high investment quality commercial office properties and successful completion of strategic leasing
Property Fund (ASX: ECF) exceeded its market guidance during the period, reflecting the strength of the
Property Fund (ASX: ECF) exceeded its market guidance during the period, reflecting the strength of the
Fund’s high investment quality commercial office properties and successful completion of strategic leasing
initiatives. ECF completed two acquisitions during the period, materially increasing the scale and diversity of
Fund’s high investment quality commercial office properties and successful completion of strategic leasing
Fund’s high investment quality commercial office properties and successful completion of strategic leasing
initiatives. ECF completed two acquisitions during the period, materially increasing the scale and diversity of
the Fund’s portfolio.
initiatives. ECF completed two acquisitions during the period, materially increasing the scale and diversity of
initiatives. ECF completed two acquisitions during the period, materially increasing the scale and diversity of
the Fund’s portfolio.
the Fund’s portfolio.
the Fund’s portfolio.
The valuation of ECF’s portfolio, including the Harris Street Fund as an equity accounted investment, increased
The valuation of ECF’s portfolio, including the Harris Street Fund as an equity accounted investment, increased
to $561.1 million as at 30 June 2022 (an increase of 45.9% from 30 June 2021). This has been driven by the
The valuation of ECF’s portfolio, including the Harris Street Fund as an equity accounted investment, increased
The valuation of ECF’s portfolio, including the Harris Street Fund as an equity accounted investment, increased
to $561.1 million as at 30 June 2022 (an increase of 45.9% from 30 June 2021). This has been driven by the
acquisitions of 50 Cavill Avenue and 19 Harris Street (49.9% interest), as well as a range of strong leasing
to $561.1 million as at 30 June 2022 (an increase of 45.9% from 30 June 2021). This has been driven by the
to $561.1 million as at 30 June 2022 (an increase of 45.9% from 30 June 2021). This has been driven by the
acquisitions of 50 Cavill Avenue and 19 Harris Street (49.9% interest), as well as a range of strong leasing
outcomes at the Fund’s properties which have contributed to increased property valuations.
acquisitions of 50 Cavill Avenue and 19 Harris Street (49.9% interest), as well as a range of strong leasing
acquisitions of 50 Cavill Avenue and 19 Harris Street (49.9% interest), as well as a range of strong leasing
outcomes at the Fund’s properties which have contributed to increased property valuations.
outcomes at the Fund’s properties which have contributed to increased property valuations.
outcomes at the Fund’s properties which have contributed to increased property valuations.
As noted earlier, the Group established the Harris Street Fund during the period, with investors continuing to
As noted earlier, the Group established the Harris Street Fund during the period, with investors continuing to
demand high investment quality commercial office real estate.
As noted earlier, the Group established the Harris Street Fund during the period, with investors continuing to
As noted earlier, the Group established the Harris Street Fund during the period, with investors continuing to
demand high investment quality commercial office real estate.
demand high investment quality commercial office real estate.
demand high investment quality commercial office real estate.
The Group’s other managed commercial office funds – Stirling Street and Burke Street – continued to perform
The Group’s other managed commercial office funds – Stirling Street and Burke Street – continued to perform
strongly during the period.
The Group’s other managed commercial office funds – Stirling Street and Burke Street – continued to perform
The Group’s other managed commercial office funds – Stirling Street and Burke Street – continued to perform
strongly during the period.
strongly during the period.
strongly during the period.
The total funds under management for commercial office increased from $511.8 million as at 30 June 2021 to
The total funds under management for commercial office increased from $511.8 million as at 30 June 2021 to
$829.2 million as at 30 June 2022.
The total funds under management for commercial office increased from $511.8 million as at 30 June 2021 to
The total funds under management for commercial office increased from $511.8 million as at 30 June 2021 to
$829.2 million as at 30 June 2022.
$829.2 million as at 30 June 2022.
$829.2 million as at 30 June 2022.
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
The Elanor Healthcare Real Estate Fund (EHREF) continued to perform strongly over the period. Increased
The Elanor Healthcare Real Estate Fund (EHREF) continued to perform strongly over the period. Increased
investor demand for high investment quality healthcare real estate assets has resulted in capitalisation rate
The Elanor Healthcare Real Estate Fund (EHREF) continued to perform strongly over the period. Increased
The Elanor Healthcare Real Estate Fund (EHREF) continued to perform strongly over the period. Increased
investor demand for high investment quality healthcare real estate assets has resulted in capitalisation rate
compression across the sector. The successful execution of strategic leasing initiatives at the Fund’s assets,
investor demand for high investment quality healthcare real estate assets has resulted in capitalisation rate
investor demand for high investment quality healthcare real estate assets has resulted in capitalisation rate
compression across the sector. The successful execution of strategic leasing initiatives at the Fund’s assets,
in addition to the increased investor demand for healthcare real estate properties, has resulted in an increase
compression across the sector. The successful execution of strategic leasing initiatives at the Fund’s assets,
compression across the sector. The successful execution of strategic leasing initiatives at the Fund’s assets,
in addition to the increased investor demand for healthcare real estate properties, has resulted in an increase
in the value of the EHREF portfolio. As noted earlier in this report, the fund acquired the Highpoint Health Hub
in addition to the increased investor demand for healthcare real estate properties, has resulted in an increase
in addition to the increased investor demand for healthcare real estate properties, has resulted in an increase
in the value of the EHREF portfolio. As noted earlier in this report, the fund acquired the Highpoint Health Hub
during the year.
in the value of the EHREF portfolio. As noted earlier in this report, the fund acquired the Highpoint Health Hub
in the value of the EHREF portfolio. As noted earlier in this report, the fund acquired the Highpoint Health Hub
during the year.
during the year.
during the year.
The total funds under management for healthcare real estate increased from $209.1 million as at 30 June 2021
The total funds under management for healthcare real estate increased from $209.1 million as at 30 June 2021
to $304.3 million as at 30 June 2022 which includes the acquisition of Highpoint Health Hub, Ashgrove.
The total funds under management for healthcare real estate increased from $209.1 million as at 30 June 2021
The total funds under management for healthcare real estate increased from $209.1 million as at 30 June 2021
to $304.3 million as at 30 June 2022 which includes the acquisition of Highpoint Health Hub, Ashgrove.
to $304.3 million as at 30 June 2022 which includes the acquisition of Highpoint Health Hub, Ashgrove.
to $304.3 million as at 30 June 2022 which includes the acquisition of Highpoint Health Hub, Ashgrove.
Retail Real Estate
Retail Real Estate
Retail Real Estate
Retail Real Estate
The Group’s retail real estate managed funds continue to experience improved trading and customer visitation
The Group’s retail real estate managed funds continue to experience improved trading and customer visitation
following the easing of social distancing measures across the country.
The Group’s retail real estate managed funds continue to experience improved trading and customer visitation
The Group’s retail real estate managed funds continue to experience improved trading and customer visitation
following the easing of social distancing measures across the country.
following the easing of social distancing measures across the country.
18
following the easing of social distancing measures across the country.

7
7
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7

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT

4.
4.

Operating and financial review (continued)
Operating and financial review (continued)

MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED)

Update on the Group’s Managed Funds (continued)
Update on the Group’s Managed Funds (continued)

Retail Real Estate (continued)
Retail Real Estate (continued)

There are no Code of Conduct rent relief obligations beyond 30 June 2022 across the retail portfolio. Debtor
There are no Code of Conduct rent relief obligations beyond 30 June 2022 across the retail portfolio. Debtor
collections have been strong and continue to improve across the Group’s non-discretionary focussed retail
collections have been strong and continue to improve across the Group’s non-discretionary focussed retail
portfolio.
portfolio.

The Group established the Warrawong Plaza Fund and announced the ERF privatisation proposal during the
The Group established the Warrawong Plaza Fund and announced the ERF privatisation proposal during the
period. Investor demand for unlisted retail real estate investments has improved during recent market volatility,
period. Investor demand for unlisted retail real estate investments has improved during recent market volatility,
particularly for defensive neighbourhood retail real estate assets anchored by strongly performing
particularly for defensive neighbourhood retail real estate assets anchored by strongly performing
supermarkets.
supermarkets.

Total retail real estate funds under management increased from $927.7 million at 30 June 2021 to $1,122.1
Total retail real estate funds under management increased from $927.7 million at 30 June 2021 to $1,122.1
million as at 30 June 2022 (including the divestment of Moranbah and the acquisition of Warrawong Plaza
million as at 30 June 2022 (including the divestment of Moranbah and the acquisition of Warrawong Plaza
shopping centre).
shopping centre).

Hotels, Tourism and Leisure
Hotels, Tourism and Leisure
Since the establishment of EHAF in September 2021, the Fund’s hotels have been impacted by COVID-19
Since the establishment of EHAF in September 2021, the Fund’s hotels have been impacted by COVID-19
related state border closures and government mandated operating restrictions. Following the relaxation of
related state border closures and government mandated operating restrictions. Following the relaxation of
these restrictions and the reopening of state borders during November and December 2021, the Fund’s hotels
these restrictions and the reopening of state borders during November and December 2021, the Fund’s hotels
have recovered strongly. Traveller confidence continues to improve, and resultingly, the Fund’s hotels have
have recovered strongly. Traveller confidence continues to improve, and resultingly, the Fund’s hotels have
seen the return of corporate, conference, group and some international business.
seen the return of corporate, conference, group and some international business.

Domestic travel demand continues to revert towards pre-COVID levels, driving forward bookings and
Domestic travel demand continues to revert towards pre-COVID levels, driving forward bookings and
occupancy.
occupancy.

The Group’s hotel portfolio experienced a valuation uplift of 1.4% or $5.1 million from its value at 30 June 2021,
The Group’s hotel portfolio experienced a valuation uplift of 1.4% or $5.1 million from its value at 30 June 2021,
increasing from $346.2 million to $351.3 million (excluding the newly acquired Estate Tuscany hotel). This
increasing from $346.2 million to $351.3 million (excluding the newly acquired Estate Tuscany hotel). This
increased portfolio valuation reflects the strength of the Group’s hotel portfolio and the recovery of the markets
increased portfolio valuation reflects the strength of the Group’s hotel portfolio and the recovery of the markets
where the Group’s properties operate.
where the Group’s properties operate.

As noted earlier, EHAF acquired the Estate Tuscany hotel, Hunter Valley, NSW for $ 12.75 million on 30 June
As noted earlier, EHAF acquired the Estate Tuscany hotel, Hunter Valley, NSW for $ 12.75 million on 30 June
2022 and the Sanctuary Inn Tamworth, NSW, for $16.45 million, in early August 2022. These acquisitions grow
2022 and the Sanctuary Inn Tamworth, NSW, for $16.45 million, in early August 2022. These acquisitions grow
EHAF’s portfolio to 16 regional and luxury accommodation hotels with a combined valuation of $381.0 million.
EHAF’s portfolio to 16 regional and luxury accommodation hotels with a combined valuation of $381.0 million.

Elanor Wildlife Park Fund
Elanor Wildlife Park Fund
In July 2021, the Elanor Wildlife Park Fund acquired the Hunter Valley Wildlife Park. The Fund’s wildlife parks
In July 2021, the Elanor Wildlife Park Fund acquired the Hunter Valley Wildlife Park. The Fund’s wildlife parks
have remained open since the removal of Government enforced COVID-19 related closures in October 2021.
have remained open since the removal of Government enforced COVID-19 related closures in October 2021.
Hunter Valley Wildlife Park and Mogo Wildlife Park have traded strongly due to their favourable regional
Hunter Valley Wildlife Park and Mogo Wildlife Park have traded strongly due to their favourable regional
locations and domestic tourism appeal. Featherdale Wildlife Park continues to be impacted by the slow
locations and domestic tourism appeal. Featherdale Wildlife Park continues to be impacted by the slow
recovery of international tourists to Sydney.
recovery of international tourists to Sydney.

As a result of its strong trading performance, Hunter Valley Wildlife Park has been independently valued at
As a result of its strong trading performance, Hunter Valley Wildlife Park has been independently valued at
$17.5 million (a 94% increase on the acquisition price of $9 million). The Fund’s portfolio is now valued at
$17.5 million (a 94% increase on the acquisition price of $9 million). The Fund’s portfolio is now valued at
19
$66.2 million.
$66.2 million.

8
8

ELANOR INVESTORS GROUP DIRECTORS’ REPORT 8 4.Operating and financial review (continued)MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED) Update on the Group’s Managed Funds (continued) Retail Real Estate (continued) There are no Code of Conduct rent relief obligations beyond 30 June 2022 across the retail portfolio. Debtor collections have been strong and continue to improve across the Group’s non-discretionary focussed retail portfolio. The Group established the Warrawong Plaza Fund and announced the ERF privatisation proposal during the period. Investor demand for unlisted retail real estate investments has improved during recent market volatility, particularly for defensive neighbourhood retail real estate assets anchored by strongly performing supermarkets. Total retail real estate funds under management increased from $927.7 million at 30 June 2021 to $1,122.1 million as at 30 June 2022 (including the divestment of Moranbah and the acquisition of Warrawong Plaza shopping centre). Hotels, Tourism and Leisure Since the establishment of EHAF in September 2021, the Fund’s hotels have been impacted by COVID-19 related state border closures and government mandated operating restrictions. Following the relaxation of these restrictions and the reopening of state borders during November and December 2021, the Fund’s hotels have recovered strongly. Traveller confidence continues to improve, and resultingly, the Fund’s hotels have seen the return of corporate, conference, group and some international business. Domestic travel demand continues to revert towards pre-COVID levels, driving forward bookings and occupancy. The Group’s hotel portfolio experienced a valuation uplift of 1.4% or $5.1 million from its value at 30 June 2021, increasing from $346.2 million to $351.3 million (excluding the newly acquired Estate Tuscany hotel). This increased portfolio valuation reflects the strength of the Group’s hotel portfolio and the recovery of the markets where the Group’s properties operate. As noted earlier, EHAF acquired the Estate Tuscany hotel, Hunter Valley, NSW for $ 12.75 million on 30 June 2022 and the Sanctuary Inn Tamworth, NSW, for $16.45 million, in early August 2022. These acquisitions grow EHAF’s portfolio to 16 regional and luxury accommodation hotels with a combined valuation of $381.0 million. Elanor Wildlife Park Fund In July 2021, the Elanor Wildlife Park Fund acquired the Hunter Valley Wildlife Park. The Fund’s wildlife parks have remained open since the removal of Government enforced COVID-19 related closures in October 2021. Hunter Valley Wildlife Park and Mogo Wildlife Park have traded strongly due to their favourable regional locations and domestic tourism appeal. Featherdale Wildlife Park continues to be impacted by the slow recovery of international tourists to Sydney. As a result of its strong trading performance, Hunter Valley Wildlife Park has been independently valued at $17.5 million (a 94% increase on the acquisition price of $9 million). The Fund’s portfolio is now valued at $66.2 million. ELANOR INVESTORS GROUP DIRECTORS’ REPORT 8 4.Operating and financial review (continued)MANAGED FUNDS AND INVESTMENT PORTFOLIO (CONTINUED) Update on the Group’s Managed Funds (continued) Retail Real Estate (continued) There are no Code of Conduct rent relief obligations beyond 30 June 2022 across the retail portfolio. Debtor collections have been strong and continue to improve across the Group’s non-discretionary focussed retail portfolio. The Group established the Warrawong Plaza Fund and announced the ERF privatisation proposal during the period. Investor demand for unlisted retail real estate investments has improved during recent market volatility, particularly for defensive neighbourhood retail real estate assets anchored by strongly performing supermarkets. Total retail real estate funds under management increased from $927.7 million at 30 June 2021 to $1,122.1 million as at 30 June 2022 (including the divestment of Moranbah and the acquisition of Warrawong Plaza shopping centre). Hotels, Tourism and Leisure Since the establishment of EHAF in September 2021, the Fund’s hotels have been impacted by COVID-19 related state border closures and government mandated operating restrictions. Following the relaxation of these restrictions and the reopening of state borders during November and December 2021, the Fund’s hotels have recovered strongly. Traveller confidence continues to improve, and resultingly, the Fund’s hotels have seen the return of corporate, conference, group and some international business. Domestic travel demand continues to revert towards pre-COVID levels, driving forward bookings and occupancy. The Group’s hotel portfolio experienced a valuation uplift of 1.4% or $5.1 million from its value at 30 June 2021, increasing from $346.2 million to $351.3 million (excluding the newly acquired Estate Tuscany hotel). This increased portfolio valuation reflects the strength of the Group’s hotel portfolio and the recovery of the markets where the Group’s properties operate. As noted earlier, EHAF acquired the Estate Tuscany hotel, Hunter Valley, NSW for $ 12.75 million on 30 June 2022 and the Sanctuary Inn Tamworth, NSW, for $16.45 million, in early August 2022. These acquisitions grow EHAF’s portfolio to 16 regional and luxury accommodation hotels with a combined valuation of $381.0 million. Elanor Wildlife Park Fund In July 2021, the Elanor Wildlife Park Fund acquired the Hunter Valley Wildlife Park. The Fund’s wildlife parks have remained open since the removal of Government enforced COVID-19 related closures in October 2021. Hunter Valley Wildlife Park and Mogo Wildlife Park have traded strongly due to their favourable regional locations and domestic tourism appeal. Featherdale Wildlife Park continues to be impacted by the slow recovery of international tourists to Sydney. As a result of its strong trading performance, Hunter Valley Wildlife Park has been independently valued at $17.5 million (a 94% increase on the acquisition price of $9 million). The Fund’s portfolio is now valued at $66.2 million. ELANOR INVESTORS GROUP

Directors' Report

DIRECTORS’ REPORT

Operating and financial review (continued)

Summary

Notwithstanding the prevailing economic uncertainty, the Group’s Managed Funds are well positioned to grow
earnings as market conditions continue to improve. The Group is well positioned to deliver strong investment
returns for Elanor’s capital partners and grow funds under management.

REVIEW OF FINANCIAL AND OPERATING RESULTS

The Consolidated Group recorded a net statutory loss after tax of $4.2 million for the year ended 30 June 2022.

At the balance date, Elanor held a 35.07% (30 June 2021: 42.94%) interest in the Elanor Hotel Accommodation
Fund (EHAF). During the year, the Group sold down part of its equity interest in EHAF totalling $35.8 million
(or 7.87%). The impact of this sell down on the Group’s consolidated balance sheet is to increase its non-
controlling interest in relation to EHAF.

Further, Elanor held a 42.82% (30 June 2021: 26.61%) interest in Elanor Wildlife Park Fund (EWPF), a 42.27%
(30 June 2021: 42.27%) interest in the Bluewater Square Syndicate (Bluewater) and 42.98% (30 June 2021:
2.03%) in Stirling Street Syndicate (Stirling). For accounting purposes, Elanor is deemed to have a controlling
interest in EHAF, EWPF, Bluewater and Stirling given its level of ownership and role as manager of the funds.
This requires that the financial results and financial position of EHAF, EWPF, Bluewater and Stirling are
consolidated into the financial statements of the Group for the year ended 30 June 2022. EWPF and Stirling
are consolidated into the financial statements of the Group for the first year. Prior to this, EWPF and Stirling
were equity accounted.

All other managed fund co-investments are accounted for using the equity method in the Group’s consolidated
financial statements.

Statutory results

Revenue from operating activities for the Consolidated Group for the year ended 30 June 2022 was $92.2
million, including strong growth in the Group’s funds management income as a result of the growth in the
Group’s Funds Under Management.

The Group’s balance sheet as at 30 June 2022 reflects net assets of $341.3 million and cash on hand of $27.8
million.

The Group recorded a statutory net loss after tax for the year ended 30 June 2022 of $4.2 million compared
to statutory net profit after tax of $7.8 million in prior year. As noted above, the Consolidated Group’s results
for the year ended 30 June 2022 include the consolidation of EWPF and Stirling for the first time. Revenue
increased significantly from prior year, with revenue from operating activities, rental income and share of profits
from associates all increasing against the prior year. Total expenses have increased with rises in borrowing
costs as well as salary and employee benefit costs.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (CONTINUED)

A summary of the Group and EIF Group's statutory results for the year is set out below:

Adjusted Statement of Profit and Loss (Equity Accounted)

The table below provides a reconciliation from the Group’s statutory net profit / (loss) after tax to the adjusted
net profit / (loss) after tax, presented on the basis that EHAF, EWPF, Bluewater and Stirling are equity
accounted. Elanor considers that presenting the operating performance of the Group on this adjusted basis
gives the most appropriate representation of the Group which is consistent with the management and reporting
of the Group, and to provide a comparable basis for the presentation of prior year results. The results provided
on this basis are presented as the ‘ENN Group’.

In the prior year, EWPF and Stirling were classified as equity accounted investments and therefore were not
consolidated within the Group’s financial statements

ELANOR INVESTORS GROUP

Directors' Report

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF FINANCIAL RESULTS (CONTINUED)

Set out below is a build up by component of the adjusted net profit / (loss) after tax, presented on the basis
that EHAF, EWPF, Bluewater and Stirling are equity accounted.

Note 1: During the year, the Group made an $8.4 million Manager Contribution to ECF to support ECF’s acquisition of a 49.9% interest in
the 19 Harris Street property. Under the Australian Accounting Standards, this contribution is required to be recognised as a contract
asset upon initial recognition. $3.9 million has been subsequently released through the Statement of Profit or Loss as a non-cash expense
in the period in respect of transaction related funds management fees received from ECF. The remaining balance of the contract asset
will be amortised as a non-cash expense through the Profit or Loss over a 5-year period.

A summary of the Group and EIF Group Core Earnings' results for the period is set out below:

Core Earnings

Core or Distributable Earnings for the year was $18.3 million or 14.98 cents per stapled security, an increase
of 20.6% from prior year. Core Earnings represents an estimate of the underlying recurring cash earnings of
the Group. Core Earnings is used by the Board to make strategic decisions and as a guide to assessing
appropriate distribution declarations.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF FINANCIAL RESULTS (CONTINUED)

The Group generated funds management income of $41.3 million during the year (an increase of 39.2%) and
had funds under management of $2,721.9 million at 30 June 2022 (an increase of 31.3% from 30 June 2021).
The table below provides a reconciliation from adjusted net profit / (loss) after tax to distributable Core
Earnings:

Note 1: Core Earnings represents the Directors view of underlying earnings from ongoing operating activities for the period, being net
profit / (loss) after tax, adjusting for one-off realised items (being formation or other transaction costs that occur infrequently or are outside
the course of ongoing business activities), non-cash items (being fair value movements, depreciation charges on the buildings held by the
Trust, amortisation of intangibles, straight lining of rental expense, and amortisation of equity settled STI and LTI amounts), and restating
share of profit from equity accounted investments to reflect distributions received / receivable in respect of those investments.

Note 2: Share of profit from equity accounted investments (including equity accounting of EHAF, EWPF, Stirling and Bluewater) of the
Group’s consolidated funds on an equity accounted basis includes depreciation and amortisation and fair value adjustments on investment
property that were added back in the determination of distributable earnings for those managed funds. The Group’s share of those
adjustments to distributable earnings in the relevant managed funds have been added back for the purposes of calculating Core Earnings
so that the Group’s Core Earnings reflects the distribution received / receivable by the Group from the investments in Elanor managed
funds.

Note 3: Net (gain) / loss on disposals of equity accounted investments includes adjustments for realised non-cash accounting (gains) /
losses on the sale of equity accounted investments during the year, so as to only include net cash profit for the purposes of calculating
Core Earnings.

Note 4: On 30 September 2021, the Group sold its holding in Elanor Luxury Hotel Fund (ELHF) and Albany Hotel Syndicate (Albany) to
Elanor Metro and Prime Regional Hotel Fund (EMPR) to establish the Elanor Hotel Accommodation Fund. The hotel assets held by ELHF
and Albany were accounted for by the Group on a fair value basis whereby revaluation increases arising from changes in the fair value of
land and buildings are recognised in other comprehensive income and accumulated within equity as opposed to being reflected in the
consolidated profit and loss of the Group. Consequently, and consistent with the Group’s policy, the profit on divestment of ELHF and
Albany ($11.0 million) has been included in Core Earnings for the year. Furthermore, an amount of $2.7 million of this profit has been
retained to assist in achieving the future growth plans of the Group.

Note 5: During the year, the Group (on the basis that EHAF, EWPF, Stirling and Bluewater are equity accounted) incurred total depreciation
charges of $1.1 million, however only the depreciation expense on buildings of $0.1 million has been added back for the purposes of
calculating Core Earnings.

Note 6: During the year, the Group incurred non-cash profit and loss charges in respect of the amortisation of certain amounts including
the equity component of the Group’s Short Term Incentive (STI) and Long Term Incentive (LTI) amounts, intangibles and borrowing costs.
These amounts have been added back for the purposes of calculating Core Earnings.

Note 7: Tax and other non-cash adjustments include non-cash interest and depreciation in respect of the Group’s leases, other non-cash
profit and loss charges impacting the Group’s result for the year, and the tax effect of non-cash items during the year.

ELANOR INVESTORS GROUP

Directors' Report

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF FINANCIAL RESULTS (CONTINUED)

Funds Management Income

The table below provides a breakdown of ENN Group’s funds management income.

Note: Total funds management income includes $12.6 million relating to the Group’s consolidated funds (EHAF, EWPF, Bluewater and
Stirling), which is eliminated upon consolidation into the Group’s consolidated financial results.

The Group’s funds management income has grown strongly during the period as a result of the growth in the
Group’s funds under management. Management fees generated from the Group’s hotel operating platform are
expected to grow as the demand for domestic tourism and leisure strengthens.

Leasing and development management fees continue to be a sustainable and growing income stream as a
result of the breadth of development and repositioning projects across the Group’s Managed Funds in the
Retail, Hotels and Commercial sectors.

Acquisition fees for the year of $9.1 million (2021: $6.1 million) were generated from new funds management
initiatives during the year.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF FINANCIAL RESULTS (CONTINUED)

Distributions from Co-Investments

The Group measures the performance of its co-investments based on distributions received / receivable from
these co-investments, rather than the share of equity accounted profit / (loss) from these co-investments. This
is consistent with the treatment within Core Earnings.

The table below provides a breakdown of the Group’s distributions received and/or receivable from its
Managed Funds for the year ended 30 June 2022.

Note: As the Group consolidates EHAF, EWPF, Stirling and Bluewater into its consolidated financial results, the distribution receivable
from these funds are eliminated on consolidation. The distributions receivable relating to the other funds that are equity accounted are
contained within the equity accounted investments balance, and will reduce the equity accounted investments balance when the
distribution is received.

Total co-investment distributions received or receivable during the year amounted to $7.9 million, compared
to $11.1 million received or receivable during FY21. Notably, co-investment distributions from the Elanor Retail
Property Fund in FY21 included the $0.12 special distribution following the sale of the Auburn Central property.
Co-investment distributions from the Elanor Hotel Accommodation Fund in FY22 were impacted by COVID-19
disruptions to hotel trading conditions, including government mandated hotel closures and border restrictions
during the period.

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT

Directors' Report

Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)

4.
4.
4.
REVIEW OF OPERATIONAL RESULTS (CONTINUED)
REVIEW OF OPERATIONAL RESULTS (CONTINUED)
REVIEW OF OPERATIONAL RESULTS (CONTINUED)
Refinancing
Refinancing
Refinancing
On 30 June 2022, the Group raised $40 million in unsecured medium-term notes in two tranches: $25 million
On 30 June 2022, the Group raised $40 million in unsecured medium-term notes in two tranches: $25 million
of 3.25-year fixed rate medium-term notes (7.75% p.a.), maturing in September 2025, and $15 million of 4-
On 30 June 2022, the Group raised $40 million in unsecured medium-term notes in two tranches: $25 million
of 3.25-year fixed rate medium-term notes (7.75% p.a.), maturing in September 2025, and $15 million of 4-
year floating rate medium-term notes (4.5% p.a. margin above BBSW), maturing in June 2026. The new
of 3.25-year fixed rate medium-term notes (7.75% p.a.), maturing in September 2025, and $15 million of 4-
year floating rate medium-term notes (4.5% p.a. margin above BBSW), maturing in June 2026. The new
unsecured note issue replaced the Group’s $60 million fixed rate medium-term notes (7.1% p.a.), maturing in
year floating rate medium-term notes (4.5% p.a. margin above BBSW), maturing in June 2026. The new
unsecured note issue replaced the Group’s $60 million fixed rate medium-term notes (7.1% p.a.), maturing in
October 2022. These notes have been issued on similar terms with improved issuer flexibility (including early
unsecured note issue replaced the Group’s $60 million fixed rate medium-term notes (7.1% p.a.), maturing in
October 2022. These notes have been issued on similar terms with improved issuer flexibility (including early
redemption rights).
October 2022. These notes have been issued on similar terms with improved issuer flexibility (including early
redemption rights).
redemption rights).
The Group has refinanced its $45 million senior secured debt facility (maturing in October 2022) with a new 3-
The Group has refinanced its $45 million senior secured debt facility (maturing in October 2022) with a new 3-
year $65 million secured revolving facility, maturing in June 2025. This refinanced facility was secured on
The Group has refinanced its $45 million senior secured debt facility (maturing in October 2022) with a new 3-
year $65 million secured revolving facility, maturing in June 2025. This refinanced facility was secured on
similar terms to the previous facility. The new revolving secured debt facility provides the Group with improved
year $65 million secured revolving facility, maturing in June 2025. This refinanced facility was secured on
similar terms to the previous facility. The new revolving secured debt facility provides the Group with improved
flexibility to facilitate the Group’s pipeline of funds management opportunities.
similar terms to the previous facility. The new revolving secured debt facility provides the Group with improved
flexibility to facilitate the Group’s pipeline of funds management opportunities.
flexibility to facilitate the Group’s pipeline of funds management opportunities.
The corporate notes provide efficient, medium-term, non-dilutive capital that will be used in conjunction with
The corporate notes provide efficient, medium-term, non-dilutive capital that will be used in conjunction with
the Group’s revolving secured debt to facilitate Elanor’s pipeline of funds management opportunities. These
The corporate notes provide efficient, medium-term, non-dilutive capital that will be used in conjunction with
the Group’s revolving secured debt to facilitate Elanor’s pipeline of funds management opportunities. These
new funding arrangements improve the capital efficiency of the Group while maintaining a conservatively
the Group’s revolving secured debt to facilitate Elanor’s pipeline of funds management opportunities. These
new funding arrangements improve the capital efficiency of the Group while maintaining a conservatively
geared balance sheet.
new funding arrangements improve the capital efficiency of the Group while maintaining a conservatively
geared balance sheet.
geared balance sheet.
Risk Management
Risk Management
Risk Management
Elanor’s growth and success depends on its ability to assess and manage risk. Good risk management
Elanor’s growth and success depends on its ability to assess and manage risk. Good risk management
practices will not only protect established value, they will assist in identifying and capitalising on opportunities
Elanor’s growth and success depends on its ability to assess and manage risk. Good risk management
practices will not only protect established value, they will assist in identifying and capitalising on opportunities
to create value. By assessing and managing risk, the Group provides greater certainty and confidence for all
practices will not only protect established value, they will assist in identifying and capitalising on opportunities
to create value. By assessing and managing risk, the Group provides greater certainty and confidence for all
Elanor securityholders.
to create value. By assessing and managing risk, the Group provides greater certainty and confidence for all
Elanor securityholders.
Elanor securityholders.
Elanor regularly assesses the key business risks and opportunities that could impact performance and the
Elanor regularly assesses the key business risks and opportunities that could impact performance and the
ability to deliver on the Group’s strategy. Risks to the Group in the coming year primarily comprise the potential
Elanor regularly assesses the key business risks and opportunities that could impact performance and the
ability to deliver on the Group’s strategy. Risks to the Group in the coming year primarily comprise the potential
earnings variability associated with general economic and market conditions including the impact of recent
ability to deliver on the Group’s strategy. Risks to the Group in the coming year primarily comprise the potential
earnings variability associated with general economic and market conditions including the impact of recent
global viruses on inbound tourism, domestic retail spending, the availability of capital for funds management
earnings variability associated with general economic and market conditions including the impact of recent
global viruses on inbound tourism, domestic retail spending, the availability of capital for funds management
opportunities, movement in property valuations, debt capital market conditions, the general increase in cyber
global viruses on inbound tourism, domestic retail spending, the availability of capital for funds management
opportunities, movement in property valuations, debt capital market conditions, the general increase in cyber
security risks, climate related risks and possible weather related events.
opportunities, movement in property valuations, debt capital market conditions, the general increase in cyber
security risks, climate related risks and possible weather related events.
security risks, climate related risks and possible weather related events.
The Group manages these risks in accordance with its Risk Management Framework and Risk Management
The Group manages these risks in accordance with its Risk Management Framework and Risk Management
Policy as well as through its highly active asset management approach across its investment portfolio, its
The Group manages these risks in accordance with its Risk Management Framework and Risk Management
Policy as well as through its highly active asset management approach across its investment portfolio, its
continued focus on broadening the Group's capital partner base, insurance arrangements and through the
Policy as well as through its highly active asset management approach across its investment portfolio, its
continued focus on broadening the Group's capital partner base, insurance arrangements and through the
active management of its capital structure.
continued focus on broadening the Group's capital partner base, insurance arrangements and through the
active management of its capital structure.
active management of its capital structure.
With regards to climate related risks, the Group is progressing its alignment with the recommendations of the
With regards to climate related risks, the Group is progressing its alignment with the recommendations of the
Taskforce for Climate-related Financial Disclosures (TCFD). This initiative is a key focus of the Group’s ESG
With regards to climate related risks, the Group is progressing its alignment with the recommendations of the
Taskforce for Climate-related Financial Disclosures (TCFD). This initiative is a key focus of the Group’s ESG
Committee.
Taskforce for Climate-related Financial Disclosures (TCFD). This initiative is a key focus of the Group’s ESG
Committee.
Committee.
Environmental, Social, Governance (ESG)
Environmental, Social, Governance (ESG)
Environmental, Social, Governance (ESG)
The Group recognises and appreciates the importance of managing environmental, social and governance
The Group recognises and appreciates the importance of managing environmental, social and governance
factors in how it delivers value for securityholders, its managed fund capital partners and other stakeholders.
The Group recognises and appreciates the importance of managing environmental, social and governance
factors in how it delivers value for securityholders, its managed fund capital partners and other stakeholders.
Elanor is acutely aware of its responsibility to the communities in which it operates and to society more
factors in how it delivers value for securityholders, its managed fund capital partners and other stakeholders.
Elanor is acutely aware of its responsibility to the communities in which it operates and to society more
generally. Making a positive impact for the communities the business relies on is implicit in how the Group
Elanor is acutely aware of its responsibility to the communities in which it operates and to society more
generally. Making a positive impact for the communities the business relies on is implicit in how the Group
undertakes its funds management business.
generally. Making a positive impact for the communities the business relies on is implicit in how the Group
undertakes its funds management business.
undertakes its funds management business.
Elanor, through the execution of its ESG Strategy, has achieved a number of significant sustainability
Elanor, through the execution of its ESG Strategy, has achieved a number of significant sustainability
outcomes over the year, including through the Group’s partnership with The Smith Family to support
Elanor, through the execution of its ESG Strategy, has achieved a number of significant sustainability
outcomes over the year, including through the Group’s partnership with The Smith Family to support
disadvantaged youth, the Solar Bay partnership initiatives, the improvements in energy efficiency across the
outcomes over the year, including through the Group’s partnership with The Smith Family to support
disadvantaged youth, the Solar Bay partnership initiatives, the improvements in energy efficiency across the
26
disadvantaged youth, the Solar Bay partnership initiatives, the improvements in energy efficiency across the
15
15
15

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Operating and financial review (continued)

REVIEW OF OPERATIONAL RESULTS (continued)

Environmental, Social, Governance (ESG) (continued)

Group’s commercial office portfolio, the sustainable procurement initiatives for the hotel portfolio and the
significant species preservation initiatives at the Group’s wildlife parks.

Elanor’s inaugural ESG Report, which will be available on the Elanor website later this year, provides further
details on the Group’s ESG achievements and plans for the future.

Summary and Outlook

The Group's key strategic objective remains unchanged: to grow funds under management and Securityholder
value by delivering strong investment returns for Elanor’s capital partners. Furthermore, the Group is acutely
focused on growing funds management earnings and recycling co-investment capital to facilitate growth in a
‘capital-lite’ manner.

The Group will continue to achieve strong growth in funds under management through the acquisition of high
investment quality assets based on Elanor’s investment philosophy and criteria. The Group has a strong
pipeline of funds management opportunities. Furthermore, the Group is actively pursuing funds management
opportunities in new real estate sectors, in addition to pursuing strategic opportunities, to deliver its growth
objectives.

Interests in the Group

The movement in stapled securities of the Group during the year is set out below:

ELANOR INVESTORS GROUP

ELANOR INVESTORS GROUP
DIRECTORS’ REPORT

DIRECTORS’ REPORT

Directors' Report

6.
Directors

Directors

Name

Particulars

Name

Particulars

Paul
Bedbrook

Independent Non-Executive Chairman
Member, Audit and Risk Committee
Member, Remuneration and Nomination Committee

Paul was appointed as a Director of both the Company and the Responsible Entity
(also the Responsible Entity of ERF and ECF) in June 2014. Paul has had a career
of over 30 years in financial services, originally as an analyst, fund manager and
then the GM & Chief Investment Officer for Mercantile Mutual Investment
Management Ltd (ING owned) from 1987 to 1995.

Paul was an executive for 26 years with the Dutch global banking, insurance and
investment group, ING, retiring in 2010. Paul’s career included the roles of:
President and CEO of ING Direct Bank, Canada (2000 – 2003), CEO of the ING
Australia/ANZ Bank Wealth JV (2003 - 2008) and Regional CEO, ING Asia Pacific,
Hong Kong (2008 – 2010). Paul is currently the Chairman of Zurich Financial
Services Australia and its Life, General and Investment Companies, and a non-
executive director of Great Southern Bank and the National Blood Authority.

Former listed directorships in the last three years: None

Interest in stapled securities: 306,137

Qualifications: B.Sc, F FIN, FAICD

Glenn
Willis

Managing Director and Chief Executive Officer

Glenn has over 30 years' experience in the Australian and international capital
markets. Glenn was the co-founder and Chief Executive Officer of Moss Capital,
prior to its ASX listing as Elanor Investors Group in July 2014. Prior to Elanor,
Glenn co-founded Grange Securities and led the team in his role as Managing
Director and CEO.

After 12 years of growth, Grange Securities was acquired by Lehman Brothers
International in 2007 as the platform for Lehman's Australian investment banking
and funds management operations. Glenn was appointed Managing Director and
Country Head in March 2007. In 2008, Glenn was appointed executive Vice
Chairman of Lehman Brothers Australia.

Glenn is a Director of FSHD Global Research Foundation.

Former listed directorships in the last three years: None

Interest in stapled securities: 5,527,613

Qualifications: B.Bus (Econ & Fin)

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Directors (continued)

Name

Particulars

Nigel
Ampherlaw

Independent Non-Executive Director
Chairman, Audit and Risk Committee

Nigel was appointed as a Director of both the Company and the Responsible Entity
(also the Responsible Entity of ERF and ECF) in June 2014. Nigel was a Partner of
PricewaterhouseCoopers for 22 years where he held a number of leadership
positions, including heading the financial services audit, business advisory services
and consulting businesses.
He also held a number of senior client Lead Partner roles. Nigel has extensive
experience in risk management, technology, consulting and auditing in Australia
and the Asia-Pacific region.

Nigel is the chairman and independent Non-Executive Director of Great Southern
Bank.

Former listed directorships in the last three years: None

Interest in stapled securities: 200,000

Qualifications: B.Com, FCA, MAICD

Anthony
(Tony)
Fehon

Independent Non-Executive Director
Chairman, Remuneration and Nominations Committee
Member, Audit and Risk Committee

Tony was appointed as a Director of both the Company and the Responsible Entity
(also the Responsible Entity of ERF and ECF) in August 2019. Tony has more than
30 years’ experience working in senior roles with some of Australia’s leading
financial services and funds management businesses. He has broad experience in
operational and leadership roles across many industries.

Tony is a director of Elanor Hotel Accommodation Limited and Elanor Hotel
Tony is a director of Elanor Hotel Accommodation Limited and Elanor Hotel
Accommodation II Limited, enlighten Australia Pty Limited, Global Bioprotect Pty
Accommodation II Limited, enlighten Australia Pty Limited, Global Bioprotect Pty
Limited, Maker Films and Team Mates Pty Limited. He is an Executive Director of
Limited, Maker Films and Team Mates Pty Limited. He is an Executive Director of
Volt Bank Limited and was previously an Executive Director of Macquarie Bank
Volt Bank Limited and was previously an Executive Director of Macquarie Bank
Limited where he was involved in the formation and listing of several of Macquarie’s
Limited where he was involved in the formation and listing of several of Macquarie’s
listed property trusts including being a director of the listed leisure trust.
listed property trusts including being a director of the listed leisure trust.

Tony continues to be involved in developing and completing investment structures
for real estate investment and development, financial assets and leisure assets.

Former listed directorships in the last three years: None

Interest in stapled securities: 21,666

Qualifications: B. Com, FCA

ELANOR INVESTORS GROUP

Directors' Report

DIRECTORS’ REPORT

6.
Directors (continued)

Directors (continued)

Name

Name
Su Kiat
Nigel
Lim
Ampherlaw

Anthony
(Tony)
Fehon

Karyn
Baylis

Particulars

Particulars
Non-Executive Director

Independent Non-Executive Director
Chairman, Audit and Risk Committee

Su Kiat was appointed as a Director of both Elanor Investors Limited and the
Responsible Entity in October 2021. Su Kiat is currently CEO of Firmus Capital Pte
Ltd, a Singapore based private equity real estate investment management firm
founded in 2017.

Su Kiat has been in the property industry for over 20 years with extensive direct real
investment experience, executing strategies across direct real estate portfolios in
Asia Pacific including Australia. In 2011 Su Kiat co-founded Rockworth Capital
Partners, with direct real estate AUM of circa $1bn by 2017. Prior to that, Su Kiat held
key roles in investments management and investment origination at Frasers
Commercial Trust and ALLCO REIT. Su Kiat started his career in real estate as a
Consultant in Retail Economics at Urbis.

Nigel is the chairman and independent Non-Executive Director of Great Southern
Bank.

Su Kiat is a current non-executive Director of Aspen Group Holdings Ltd a diversified
group listed on the SGX.

Former listed directorships in the last three years: None

Interest in stapled securities: 200,000

Interest in stapled securities: Nil
Qualifications: B.Com, FCA, MAICD

Independent Non-Executive Director
Chairman, Remuneration and Nominations Committee
Member, Audit and Risk Committee

Qualifications: B.Bus, PhD (Econ)
Independent Non-Executive Director
Member, Remuneration and Nominations Committee
Member, Environmental, Social & Governance Management Committee
Member, Work, Health & Safety Committee

Karyn was appointed a Director of both the Company and the Responsible Entity
(also the Responsible Entity of ERF and ECF) in November 2021. Karyn was most
recently CEO of Jawun, a position she has held since 2009, and joined the Jawun
Board in 2017. She retired from Jawun in January 2022.
In 2015, Karyn was awarded The Australian Financial Review and Westpac 100
Women of Influence Award in Diversity. In the 2018 Queen's Birthday Honours, Karyn
was awarded a Member in the General Division of the Order of Australia (AM) for
significant service to the Indigenous community. Karyn is a current member of Chief
Executive Woman (CEW) and the Australian Institute of Company Directors (AICD).

Tony is a director of Elanor Hotel Accommodation Limited and Elanor Hotel
Accommodation II Limited, enlighten Australia Pty Limited, Global Bioprotect Pty
Limited, Maker Films and Team Mates Pty Limited. He is an Executive Director of
Volt Bank Limited and was previously an Executive Director of Macquarie Bank
Limited where he was involved in the formation and listing of several of Macquarie’s
listed property trusts including being a director of the listed leisure trust.

Tony continues to be involved in developing and completing investment structures
for real estate investment and development, financial assets and leisure assets.

Previous Board positions include CARE Australia, Cure Cancer, Grocon Holdings Pty
Ltd and NRMA Financial Management and Life Nominees. Karyn has also held senior
roles for multinational businesses such as Group Executive Sales and Marketing
(CEO Retail) at Insurance Australia Group (IAG), Director of Organisational Renewal
at Optus, and Senior Vice President and Regional General Manager, The Americas
at Qantas Airways.

Former listed directorships in the last three years: None

Interest in stapled securities: 21,666

Former listed directorships in the last three years: None

Qualifications: B. Com, FCA

Interest in stapled securities: 25,000

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Directors’ relevant interests

Note 1: Glenn Willis has an entitlement to an additional 5,000,000 securities under equity based executive incentive plans. Post 30 June
2022 an additional 90,537 staple securities have been granted.

Meetings of Directors

The attendance at meetings of Directors of the Responsible Entity and the Company during the year is set out
in the following table:

Note 1: On 12 November 2021 Anthony (Tony) Fehon was appointed to the ARC to replace Glenn Willis.
Note 2: On 26 November 2021 Karyn Baylis was appointed to the Remuneration and Nominations Committee.
Note 3: On 24 March 2022 Nigel Ampherlaw resigned as a member of the Remuneration and Nominations Committee.

During the year, the Board met 22 times including special purpose meetings in relation to various funds
management related initiatives.

9. Remuneration Report

The remuneration report for the year ended 30 June 2022 outlines the remuneration arrangements, philosophy
and framework of the Elanor Investors Group (Group) in accordance with the requirements of the Corporations
Act 2001 (Cth) and its regulations.

The remuneration report is set out under the following main headings:

a)
b)
c)
d)
e)
f)
g)
h)

Remuneration Policy and Approach
Key Management Personnel
Executive Remuneration Arrangements
Executive Remuneration Outcomes
Non-Executive Director Remuneration Arrangements and Outcomes
Additional Disclosures Relating to Long Term Incentive Plans and Securities
Loans to Key Management Personnel
Other Transactions and Balances with Key Management Personnel and their Related Parties

The information provided in the Remuneration Report has been audited as required by section 308 (3C) of the
Corporations Act 2001 (Cth).

Directors' Report

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT

9.
9.
a)
a)

Remuneration Report (continued)
Remuneration Report (continued)
Remuneration Policy and Approach
Remuneration Policy and Approach

The Elanor Investors Group aims to attract, retain and motivate highly skilled people and therefore ensures its
The Elanor Investors Group aims to attract, retain and motivate highly skilled people and therefore ensures its
remuneration is competitive with prevailing employment market conditions and also provides sufficient
remuneration is competitive with prevailing employment market conditions and also provides sufficient
motivation by ensuring that remuneration is aligned to the Group’s results.
motivation by ensuring that remuneration is aligned to the Group’s results.

The Group’s remuneration framework seeks to align executive reward with the achievement of strategic
The Group’s remuneration framework seeks to align executive reward with the achievement of strategic
objectives and in particular, the creation of sustainable value and earnings growth for investors. In addition,
objectives and in particular, the creation of sustainable value and earnings growth for investors. In addition,
the Board seeks to have reference to market best practice to ensure that executive remuneration remains
the Board seeks to have reference to market best practice to ensure that executive remuneration remains
competitive, fair and reasonable.
competitive, fair and reasonable.

The Group has a formally constituted Remuneration and Nomination Committee which comprises three Non-
The Group has a formally constituted Remuneration and Nomination Committee which comprises three Non-
Executive Director (NED) members, Mr Anthony Fehon (Chair), Mr Paul Bedbrook and Mrs Karyn Baylis.
Executive Director (NED) members, Mr Anthony Fehon (Chair), Mr Paul Bedbrook and Mrs Karyn Baylis.

The Remuneration and Nomination Committee met 6 times during the year for the purposes of reviewing and
The Remuneration and Nomination Committee met 6 times during the year for the purposes of reviewing and
making recommendations to the Elanor Investors Group Board on the level of remuneration of the senior
making recommendations to the Elanor Investors Group Board on the level of remuneration of the senior
executives and the Directors.
executives and the Directors.

Specifically, the Board approves the remuneration arrangements of the Managing Director and other
Specifically, the Board approves the remuneration arrangements of the Managing Director and other
executives and all aggregate and individual awards made under the short term (STI) and long-term incentive
executives and all aggregate and individual awards made under the short term (STI) and long-term incentive
(LTI) plans, following recommendations from the Remuneration and Nomination Committee. The Board also
(LTI) plans, following recommendations from the Remuneration and Nomination Committee. The Board also
sets the aggregate remuneration of NED's, which is then subject to securityholder approval.
sets the aggregate remuneration of NED's, which is then subject to securityholder approval.

The Remuneration and Nomination Committee endeavours to ensure that the remuneration outcomes strike
The Remuneration and Nomination Committee endeavours to ensure that the remuneration outcomes strike
an appropriate balance between the interests of the Group’s securityholders and rewarding, retaining and
an appropriate balance between the interests of the Group’s securityholders and rewarding, retaining and
motivating the Group's executives and the Directors.
motivating the Group's executives and the Directors.

Further information on the Remuneration and Nomination Committee’s role and responsibilities can be viewed
Further information on the Remuneration and Nomination Committee’s role and responsibilities can be viewed
at www.elanorinvestors.com.
at www.elanorinvestors.com.

b)
b)

Key Management Personnel
Key Management Personnel

The remuneration report details the remuneration arrangements for Key Management Personnel (KMP), who
The remuneration report details the remuneration arrangements for Key Management Personnel (KMP), who
are defined as those persons having authority and responsibility for planning, directing and controlling the
are defined as those persons having authority and responsibility for planning, directing and controlling the
major activities of the Group, directly or indirectly, including the directors (whether executive or otherwise).
major activities of the Group, directly or indirectly, including the directors (whether executive or otherwise).
The KMP of the Elanor Investors Group for the year ended 30 June 2022 were:
The KMP of the Elanor Investors Group for the year ended 30 June 2022 were:

Executive
Executive
Mr Glenn Willis
Mr Glenn Willis
Mr Paul Siviour
Mr Paul Siviour
Mr Symon Simmons
Mr Symon Simmons

Non-Executive
Non-Executive
Mr Paul Bedbrook
Mr Paul Bedbrook
Mr Nigel Ampherlaw
Mr Nigel Ampherlaw
Mr Anthony Fehon
Mr Anthony Fehon
Mr Su Kiat Lim
Mr Su Kiat Lim
Mrs Karyn Baylis
Mrs Karyn Baylis

Position
Position
Managing Director and Chief Executive Officer
Managing Director and Chief Executive Officer
Chief Operating Officer
Chief Operating Officer
Chief Financial Officer and Company Secretary
Chief Financial Officer and Company Secretary

Position
Position
Independent Chairman and Non-Executive Director
Independent Chairman and Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Executive Director (appointed 1 October 2021)
Non-Executive Director (appointed 1 October 2021)
Independent Non-Executive Director (appointed 1 November 2021)
Independent Non-Executive Director (appointed 1 November 2021)

21
21

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Remuneration Report (continued)

Executive Remuneration Arrangements

The Group's executive remuneration framework has three components:

•
•
•

Base pay, including superannuation;
Short term incentives; and
Long term incentives.

Remuneration levels are considered annually through an assessment of each executive based on the
individual's performance and achievements during the financial year and taking into account the overall
performance of the Elanor Investors Group and prevailing remuneration rates of executives in similar positions.

Remuneration Structure

Base pay, including superannuation

-
Base pay is determined by reference to appropriate benchmark information, taking into account an individual's
responsibilities, performance, qualifications and experience. There are no guaranteed base pay increases in
any executive's contracts.

Short term incentive

-
The Group has an STI scheme (the STI Scheme), based on an annual profit share, which is available to all
staff. The STI Scheme is based on a profit share pool, to be calculated each year based on the Group's
financial performance for the relevant year.

The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
provided that the employee remains with the Group and maintains minimum performance standards. The
holder of the securities is entitled to dividends in the two-year deferral period.

The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
distribution of the profit share pool will be at the Board's absolute discretion, taking into consideration the
forecast and actual financial performance and position of the Group.

Long term incentive

-
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.

During the year, the Board reviewed the Group’s LTI scheme and determined that the Loan Securities and
Executive Options remained the most appropriate equity award vehicles for the 2022 LTIP awards,
encouraging a continued focus on security price growth, distributions and strong alignment of executives to
Securityholders. No LTI Awards were granted to KMP’s in FY22.

Under the executive loan security plan, awards (comprising the loan of funds to eligible Elanor employees to
acquire Securities which are subject to vesting conditions) have been issued to certain employees. Awards
totalling 17.5 million Securities were on issue at 30 June 2022 (2021: 17.0 million).

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT

Directors' Report

Remuneration Report (continued)
Remuneration Report (continued)
Remuneration Report (continued)
Remuneration Report (continued)
Executive Remuneration Arrangements (continued)
Executive Remuneration Arrangements (continued)
Executive Remuneration Arrangements (continued)
Executive Remuneration Arrangements (continued)

9.
9.
9.
9.
c)
c)
c)
c)
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
distribution.
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
distribution.
distribution.
distribution.
In addition to the loan security plan, the Group has an executive option plan comprising rights to acquire
In addition to the loan security plan, the Group has an executive option plan comprising rights to acquire
Securities at a specified exercise price, subject to the achievement of vesting conditions, which may be offered
In addition to the loan security plan, the Group has an executive option plan comprising rights to acquire
In addition to the loan security plan, the Group has an executive option plan comprising rights to acquire
Securities at a specified exercise price, subject to the achievement of vesting conditions, which may be offered
to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief Executive Officer
Securities at a specified exercise price, subject to the achievement of vesting conditions, which may be offered
Securities at a specified exercise price, subject to the achievement of vesting conditions, which may be offered
to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief Executive Officer
and other selected key executives) as determined by the Board. No options were issued or exercised under
to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief Executive Officer
to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief Executive Officer
and other selected key executives) as determined by the Board. No options were issued or exercised under
the plan in 2022 (2021: 2.0 million).
and other selected key executives) as determined by the Board. No options were issued or exercised under
and other selected key executives) as determined by the Board. No options were issued or exercised under
the plan in 2022 (2021: 2.0 million).
the plan in 2022 (2021: 2.0 million).
the plan in 2022 (2021: 2.0 million).
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
in the case of the options plan.
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
in the case of the options plan.
in the case of the options plan.
in the case of the options plan.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
and reward for executives.
and reward for executives.
d)
d)
d)
d)
The table below sets out summary information about the Group's earnings and movements in securityholder
The table below sets out summary information about the Group's earnings and movements in securityholder
wealth for the year ended 30 June 2022:
The table below sets out summary information about the Group's earnings and movements in securityholder
The table below sets out summary information about the Group's earnings and movements in securityholder
wealth for the year ended 30 June 2022:
wealth for the year ended 30 June 2022:
wealth for the year ended 30 June 2022:

Executive Remuneration Outcomes
Executive Remuneration Outcomes
Executive Remuneration Outcomes
Executive Remuneration Outcomes

The financial performance measure driving STI payment outcomes is pre-tax return on equity (ROE). The
The financial performance measure driving STI payment outcomes is pre-tax return on equity (ROE). The
required pre-tax return hurdle was not achieved for the financial year. Reported earnings for the year were
The financial performance measure driving STI payment outcomes is pre-tax return on equity (ROE). The
The financial performance measure driving STI payment outcomes is pre-tax return on equity (ROE). The
required pre-tax return hurdle was not achieved for the financial year. Reported earnings for the year were
($7.4) million before tax or ($4.2) million after tax. This reflects a basic earnings per security of 0.82 cents
required pre-tax return hurdle was not achieved for the financial year. Reported earnings for the year were
required pre-tax return hurdle was not achieved for the financial year. Reported earnings for the year were
($7.4) million before tax or ($4.2) million after tax. This reflects a basic earnings per security of 0.82 cents
based on average equity employed for the year.
($7.4) million before tax or ($4.2) million after tax. This reflects a basic earnings per security of 0.82 cents
($7.4) million before tax or ($4.2) million after tax. This reflects a basic earnings per security of 0.82 cents
based on average equity employed for the year.
based on average equity employed for the year.
based on average equity employed for the year.
For the year ended 30 June 2022 the Group achieved Core Earnings of $18.3 million. Total distributions per
For the year ended 30 June 2022 the Group achieved Core Earnings of $18.3 million. Total distributions per
security during the year were 13.48 cents. The Group’s closing trading price on 30 June 2022 was $1.65 per
For the year ended 30 June 2022 the Group achieved Core Earnings of $18.3 million. Total distributions per
For the year ended 30 June 2022 the Group achieved Core Earnings of $18.3 million. Total distributions per
security during the year were 13.48 cents. The Group’s closing trading price on 30 June 2022 was $1.65 per
security, a 12.7% decrease on the $1.89 price at 1 July 2021.
security during the year were 13.48 cents. The Group’s closing trading price on 30 June 2022 was $1.65 per
security during the year were 13.48 cents. The Group’s closing trading price on 30 June 2022 was $1.65 per
security, a 12.7% decrease on the $1.89 price at 1 July 2021.
security, a 12.7% decrease on the $1.89 price at 1 July 2021.
security, a 12.7% decrease on the $1.89 price at 1 July 2021.
On 1 July 2022, the Board confirmed the vesting and removal of trading restrictions over the 2020 STI award
On 1 July 2022, the Board confirmed the vesting and removal of trading restrictions over the 2020 STI award
securities, with effect on 1 July 2022.
On 1 July 2022, the Board confirmed the vesting and removal of trading restrictions over the 2020 STI award
On 1 July 2022, the Board confirmed the vesting and removal of trading restrictions over the 2020 STI award
securities, with effect on 1 July 2022.
34
securities, with effect on 1 July 2022.
23
securities, with effect on 1 July 2022.
23
23
23

Elanor Investors GroupAnnual Report 2022e
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Directors' Report

DIRECTORS’ REPORT

ELANOR INVESTORS GROUP

Remuneration Report (continued)

Executive Remuneration Outcomes (continued)

Table 2: Remuneration components as a proportion of total remuneration on an annualised basis

No key management personnel appointed during the year received a payment as part of their consideration
for agreeing to hold the position.

Remuneration and other terms of employment for the key management personnel are formalised in their
employment contracts. The key provisions of the employment contracts for key management personnel are
set out below.

Table 3: Employment contracts of key management personnel

Executive

G. Willis

P. Siviour

S. Simmons

Position

Managing Director and
Chief Executive Officer

Chief Operating Officer

Chief Financial Officer
and Company Secretary

Term

No fixed term

Salary
Superannuation)

(including

Incentive
remuneration

$693,000

$565,031

$551,250

Eligible for an award of
short term and long-
term incentive
remuneration (if any)
as described above

Eligible for an award of
short term and long-term
incentive remuneration
(if any) as described
above

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Remuneration Report (continued)

Executive Remuneration Outcomes (continued)

Executive

G. Willis

P. Siviour

S. Simmons

Benefits

Entitled to participate in
Elanor Investors Group
benefit plans that are
made available

Notice period

shall
Employment
the
continue with
Group unless either
party gives 12 months’
notice in writing

Employment
shall
continue with the Group
unless either party gives
9 months’ notice
in
writing

Employment
shall
continue with the Group
unless either party gives
4 weeks’ notice in writing

Restraint

12 months from the
time of Termination

N/A

Non-Executive Director Remuneration Arrangements and Outcomes

The Elanor Board determines the remuneration structure for NED's based on recommendations from the
Remuneration and Nomination Committee. The NED's individual fees are annually reviewed by the
Remuneration and Nomination Committee taking into consideration the level of fees paid to NED's by
companies of similar size and stature. The maximum aggregate amount of fees that can be paid to NEDs is
subject to approval by securityholders at the Annual General Meeting (currently $750,000, as approved by
securityholders in October 2019).

The NEDs receive a fixed remuneration amount, in respect of their services provided to the Responsible Entity
and Elanor Investors Limited. They do not receive any performance-based remuneration or any retirement
benefits other than statutory superannuation.

Table 4: Remuneration of Non-Executive Directors

1Mr S. K. Lim and Mrs K. Baylis were appointed in FY22.

Directors' Report

DIRECTORS’ REPORT

ELANOR INVESTORS GROUP

Remuneration Report (continued)

Non-Executive Director Remuneration Arrangements and Outcomes (continued)

During the year no options were issued to the NEDs.

Remuneration and other items of appointment of the NEDs are formalised in contracts.

The NEDs are employed on employment contracts with no fixed term. The NEDs employment is subject to
the Constitution of the Group, the Corporations Act, and the 3 year cycle of the rotation and election of
Directors.

f)
and Securities

Additional Disclosures Relating to Short Term incentive plans, Long Term Incentive Plans

Details of Short Term Incentive Plan payments granted or vested as deferred securities compensation to Key
Management Personnel during the current financial year:

1The maximum value of the grants yet to vest is the fair value amount at the grant date yet to be reflected in the Group's consolidated
income statement. The minimum future value is $nil as the future performance and service conditions may not be met.

The fair value of the Short Term incentive plans is the closing share price on grant date.

Details of Long Term Incentive Plan payments granted or vested as Loan Security compensation to Key
Management Personnel during the current financial year:

The expected vesting date of the Loan Securities are in line with the financial statement approval date of the
relevant performance year.

The Loan Security plan has been accounted for as 'in-substance' options. The fair value at grant date of each
Loan Security was $0.12 ($0.19 for each of the Chief Executive Officer’s Loan Securities).
38

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

Remuneration Report (continued)

f)
and Securities (continued)

Additional Disclosures Relating to Short Term incentive plans, Long Term Incentive Plans

Details of Long Term Incentive Plan payments granted or vested as option security compensation to Key
Management Personnel during the current financial year:

No options were granted in FY22.

The fair value at grant date of each option was $0.07. The vesting date of the options is 31 July 2023 and the
expiry date of the options is 28 August 2024.

The following table summarises the value of options granted during the financial year, in relation to options
granted to Key Management Personnel as part of the remuneration:

1 The value of options granted during the financial year is calculated as at the grant date using a Monte Carlo Simulation. This grant date
value is allocated to the remuneration of key management personnel on a straight-line basis over the period from commencement of the
performance period to vesting date.
2 The value of options exercised during the financial year is calculated as at the exercise date using a Monte Carlo Simulation. No options
were exercised in the year to 30 June 2022.

Directors' Report

DIRECTORS’ REPORT

ELANOR INVESTORS GROUP

Remuneration Report (continued)

Key Management Personnel equity holdings

Changes to the interests of Key Management Personnel in the Group's Securities are set out below:

Elanor Investors Group – Stapled Securities

1The number of stapled securities acquired during the year includes issues of securities under the Group’s short term and long term
incentive schemes, and securities acquired on market.

No securities were issued to Non-Executive Directors in FY22.

Options over Elanor Investors Group – Stapled Securities

All options issued to Key Management Personnel were made in accordance with the provisions of the
employee share option plan.

No options were issued to Non-Executive Directors in FY22 (FY21: nil)

Loans to Key Management Personnel

No loans have been provided to Key Management Personnel of the Group during the year.

Other Transactions and Balances with Key Management Personnel and their Related Parties

There were no transactions with Key Management Personnel and their Related Parties during the financial
year that are not otherwise referred to in the consolidated financial statements.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

10.

Company Secretary

Symon Simmons held the position of Company Secretary of the Responsible Entity during the year. Symon
is the Chief Financial Officer of the Group, and holds a Bachelor of Economics with majors in Economics and
Accounting, and has extensive experience as a company secretary, is a Justice of the Peace in NSW and is
a Responsible Manager on the Australian Financial Services Licence held by the Responsible Entity.

11.

Indemnification and insurance of officers and auditors

During the financial year, the Group paid a premium in respect of a contract insuring the Directors of the Group
(as named above), the Company Secretary, and all executive officers of the Company and of any related body
corporate against a liability incurred in their capacity as Directors and officers of the Company to the extent
permitted by the Corporations Act 2001 (Cth). The contract of insurance prohibits disclosure of the nature of
the liability and the amount of the premium.

The Company has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an officer of the Company or of any related body corporate against
a liability incurred in their capacity as an officer.

The Group and the EIF Group indemnifies the auditor (PricewaterhouseCoopers Australia) against any liability
(including legal costs) for third party claims arising from a breach by Group or EIF Group of the auditor’s
engagement terms, except where prohibited by the Corporations Act 2001.

12.

Environmental regulation

To the best of their knowledge and belief after making due enquiry, the Directors have determined that the
Group has complied with all significant environmental regulations applicable to its operations in the jurisdictions
in which it operates.

13.

Significant changes in state of affairs

Other than as described in this report, there was no significant change in the state of affairs of the Group during
the year.

14.

Auditor's independence declaration

A copy of the auditor's independence declaration, as required under section 307C of the Corporations Act
2001 (Cth), is included on the page following the Directors' Report.

ELANOR INVESTORS GROUP

Directors' Report

DIRECTORS’ REPORT

15.

Non audit services

Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
are outlined in Note 29 to the consolidated financial statements.

The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
person or firm on the auditor’s behalf) is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001 (Cth).

The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
statements do not compromise the external auditor’s independence, based on advice received from the Audit
and Risk Committee, for the following reasons:

•

All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and

None of the services undermine the general principles relating to auditor independence as set out in
APES 110 ‘Code of Ethics for Professional Accountants’ issued by the Accounting Professional &
Ethical Standards Board, including reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity for the Group, acting as advocate for the group or jointly
sharing economic risks and rewards.

16.

Likely developments and expected results of operations

The financial statements have been prepared on the basis of the current known market conditions. The extent
of any potential deterioration in either the capital or physical property markets on the future results of the Group
is unknown. Such results could include property market valuations, the ability of borrowers, including the
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.

At the date of this report and to the best of the Directors’ knowledge and belief, there are no other anticipated
changes in the operations of the Group which would have a material impact on the future results of the Group.

17.

Fees paid to the Responsible Entity or its associates

The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
during the financial year are disclosed in Note 25 to the consolidated financial statements.

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

DIRECTORS’ REPORT

18.

Events occurring after reporting date

Subsequent to year end, a distribution of 4.43 cents per stapled security has been declared by the Board of
Directors. The total distribution amount of $5.4 million will be paid on 31 August 2022 in respect of the year
ended 30 June 2022.

In addition, Elanor has completed the following significant funds management initiatives:

On 19 August 2022, at an Extraordinary General Meeting, Elanor Retail Property Fund (ASX: ERF)
securityholders approved the privatisation and delisting of ERF including the syndication of ERF’s Tweed Mall
property to Elanor’s wholesale private capital partners. As a result, ERF is expected to delist from the ASX in
November 2022.

Following delisting, ERF will become the Elanor Property Income Fund (EPIF), an open-ended, unlisted, multi
sector reliable income real estate fund.

Other than the events disclosed above, the directors are not aware of any other matters or circumstances not
otherwise dealt with in the financial reports or the Directors' Report that has significantly affected or may
significantly affect the operations of the Group, the results of those operations or the state of affairs of the
Group in the financial year subsequent to the year ended 30 June 2022.

19.

Rounding of amounts to the nearest thousand dollars

In accordance with Legislative Instrument 2016/191 issued by the Australian Securities and Investments
Commission relating to the rounding off of amounts in the financial statements, amounts in the financial
statements have been rounded to the nearest thousand dollars in accordance with that Legislative Instrument,
unless otherwise indicated.

The Director’s report is made in accordance with a resolution of the Boards of Directors of Elanor Funds
Management Limited and Elanor Investors Limited. The Financial Statements were authorised for issue by the
Directors on 23 August 2022.

Signed in accordance with a resolution of the Directors pursuant to section 298(2) of the Corporations Act
2001 (Cth). The Directors have the power to amend and re-issue the Financial Statements.

Paul Bedbrook
Chairman

Sydney, 23 August 2022

Glenn Willis
CEO and Managing Director

Auditor’s Independence Declaration

As lead auditor for the audit of Elanor Investors Limited and Elanor Investment Fund for the year
ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit; and

(b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Elanor Investors Limited and the entities it controlled during the period.

N R McConnell
Partner
PricewaterhouseCoopers

Sydney
23 August 2022

PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Elanor Investors GroupAnnual Report 2022Consolidated Statements
of Profit or Loss
For the year ended 30 June 2022

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2022

ELANOR INVESTORS GROUP

of Comprehensive Income

The above Consolidated Statements of Profit or Loss should be read in conjunction with the accompanying notes.

The above Consolidated Statements of Comprehensive Income should be read in conjunction with the accompanying notes

Consolidated Statements
of Comprehensive Income
For the year ended 30 June 2022

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022

ELANOR INVESTORS GROUP

The above Consolidated Statements of Comprehensive Income should be read in conjunction with the accompanying notes.

The above Consolidated Statements of Profit or Loss should be read in conjunction with the accompanying notes

Elanor Investors GroupAnnual Report 2022
Consolidated Statements
of Financial Position
For the year ended 30 June 2022

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2022

ELANOR INVESTORS GROUP

The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes.

The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes

ELANOR INVESTORS GROUP

Consolidated Statements of Financial Position
For the year ended 30 June 2022

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2022

The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes.

The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes

Elanor Investors GroupAnnual Report 2022

2
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Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

Consolidated Statements
of Cash Flows
For the year ended 30 June 2022
Consolidated Statement

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022

The above Consolidated Statements of Cash Flows should be read in conjunction with the accompanying notes.

The above Consolidated Statements of Cash Flows should be read in conjunction with the accompanying notes

Notes to the Consolidated
Financial Statements
For the year ended 30 June 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

ELANOR INVESTORS GROUP

About this Report

The notes to the consolidated Financial Statements have been organised into the following sections for
reduced complexity and ease of navigation:

RESULTS ......................................................................................................................................................................... 57
SEGMENT INFORMATION ........................................................................................................................................ 57
1.
REVENUE ............................................................................................................................................................. 59
2.
DISTRIBUTIONS ..................................................................................................................................................... 61
3.
EARNINGS PER STAPLED SECURITY ............................................................................................................................. 61
4.
INCOME TAX ......................................................................................................................................................... 63
5.
CASH FLOW INFORMATION ...................................................................................................................................... 66
6.
OPERATING ASSETS ............................................................................................................................................................ 68
PROPERTY, PLANT AND EQUIPMENT .......................................................................................................................... 68
7.
INVESTMENT PROPERTIES ........................................................................................................................................ 75
8.
9.
EQUITY ACCOUNTED INVESTMENTS ........................................................................................................................... 78
FINANCE AND CAPITAL STRUCTURE ....................................................................................................................................... 84
INTEREST BEARING LIABILITIES .................................................................................................................................. 84
10.
DERIVATIVE FINANCIAL INSTRUMENTS ....................................................................................................................... 87
11.
OTHER FINANCIAL ASSETS ....................................................................................................................................... 88
12.
CONTRIBUTED EQUITY ............................................................................................................................................ 89
13.
14.
RESERVES ............................................................................................................................................................ 90
FINANCIAL RISK MANAGEMENT ................................................................................................................................ 91
15.
GROUP STRUCTURE ............................................................................................................................................................ 96
BUSINESS COMBINATION ........................................................................................................................................ 96
16.
PARENT ENTITY ..................................................................................................................................................... 97
17.
18.
SUBSIDIARIES AND CONTROLLED ENTITIES .................................................................................................................. 98
OTHER INFORMATION ...................................................................................................................................................... 100
RECEIVABLES ...................................................................................................................................................... 100
19.
PAYABLES AND OTHER LIABILITIES ........................................................................................................................... 100
20.
INTANGIBLE ASSETS .............................................................................................................................................. 102
21.
GOVERNMENT GRANTS ......................................................................................................................................... 103
22.
COMMITMENTS .................................................................................................................................................. 103
23.
SHARE-BASED PAYMENTS ...................................................................................................................................... 104
24.
RELATED PARTIES ................................................................................................................................................ 106
25.
SIGNIFICANT EVENTS ............................................................................................................................................ 108
26.
OTHER ACCOUNTING POLICIES ............................................................................................................................... 109
27.
EVENTS OCCURRING AFTER REPORTING DATE ............................................................................................................ 110
28.
AUDITOR'S REMUNERATION .................................................................................................................................. 110
29.
30.
NON-PARENT DISCLOSURE .................................................................................................................................... 111
DIRECTORS’ DECLARATION TO STAPLED SECURITYHOLDERS...................................................................................................... 124
DEPENDENT AUDITOR’S REPORT ......................................................................................................................................... 125

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

About this Report (continued)

Elanor Investors Group (Group, Consolidated Group or Elanor) is a ‘stapled’ entity comprising Elanor Investors
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
Investment Fund (EIF Group).

Statement of compliance

The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.

For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
been presented in Australian dollars unless otherwise stated.

The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
conventions, except for investment properties, investment properties within the equity accounted
investments, derivative financial instruments, and other financial assets or liabilities which are stated at their
fair value.

Compliance with international reporting standards

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.

Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.

New accounting standards and interpretations

New and amended standards adopted by the Group

There are no standards, interpretations or amendments to existing standards that are effective for the first time
for the financial year beginning 1 July 2021 that have a material impact on the amounts recognised in prior
periods or will affect the current or future periods.

New standards, amendments and interpretations effective after 1 July 2022 and have not been early adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2022, and have not been adopted early in preparing these financial statements. None
of these are expected to have a material effect on the financial statements of the Group.

Rounding

The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director’s
Reports) Instrument 2016/191.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

About this Report (continued)

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amount of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

In preparing the consolidated financial statements for the year ended 30 June 2022, significant areas of
estimation, uncertainty and critical judgements in applying accounting policies that have the most significant
effect on the amount recognised in the financial statements are consistent with those disclosed in the financial
report of the previous financial year.

Changing market conditions (high inflation pressure and expected further cash rate increases by the Reserve
Bank of Australia) can result in continued elevated levels of uncertainty in the preparation of the financial
statements. Where changing market conditions have heightened uncertainty in applying these accounting
estimates and critical judgements for the year ended 30 June 2022, enhanced disclosures have been
incorporated throughout the consolidated financial statements to enable users to understand the basis for the
estimates and judgements utilised.

In response to the recent market volatility, the appropriateness of the inputs to the valuation of the Group’s
property, plant and equipment (including average daily rate assumptions and occupancy levels) and
investment properties (including vacancy allowances, lease renewal probabilities, levels of leasing incentives
and market rent growth assumptions), and the impact of any changes in these inputs have been considered
in detail in both independent and internal property valuations (including relevant sensitivity analysis) with
respect to the fair value hierarchies. The fair value assessments as at the balance date include the best
estimate of the changing market conditions using information available at the time of preparation of the financial
statements and includes forward looking assumptions.

Refer to Note 7 and 8 for further information.

The recoverability of the Group’s receivables from Elanor’s Managed Funds applied the simplified approach
to provide for expected credit losses. Refer to Note 15 Financial Risk Management for further discussion on
the Group’s management of credit risk.

Enhanced disclosures have been incorporated throughout the consolidated financial statements to enable
users to understand the basis for the estimates and judgements utilised. The estimates or assumptions which
are material to the financial statements are discussed in the following notes:

 Deferred taxes - assumptions underlying recognition and recoverability - Note 5c
 Property, Plant and Equipment - assumptions underlying fair value - Note 7

 Derivative financial instruments - assumptions underlying fair value – Note 11

Investment Properties - assumptions underlying fair value - Note 8

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

About this Report (continued)

Basis of Consolidation

The consolidated Financial Statements of the Group incorporate the assets and liabilities of Elanor Investors
Limited (the Parent) and all of its subsidiaries, including Elanor Investment Fund and its subsidiaries as at 30
June 2022. Elanor Investors Limited is the parent entity in relation to the stapling. The results and equity of
Elanor Investment Fund (which is not directly owned by Elanor Investors Limited) have been treated and
disclosed as a non-controlling interest. Whilst the results and equity of Elanor Investment Fund are disclosed
as a non-controlling interest, the stapled securityholders of Elanor Investment Fund are the same as the
stapled securityholders of Elanor Investors Limited.

These consolidated Financial Statements also include a separate column representing the consolidated
Financial Statements of EIF Group, incorporating the assets and liabilities of Elanor Investment Fund and all
of its subsidiaries, as at 30 June 2022.

Control of Elanor Hotel Accommodation Fund (EHAF), Elanor Wildlife Park Fund (EWPF),
Bluewater Square Syndicate (Bluewater) and Stirling Street Syndicate (Stirling)

Elanor Hotel Accommodation Fund (EHAF)

EHAF comprises stapled securities in Elanor Hotel Accommodation Fund (formerly known as Elanor Metro
and Prime Regional Hotel Fund), Elanor Metro and Prime Regional Hotel Fund II (formerly known as Elanor
Metro and Prime Regional Hotel Fund), Elanor Hotel Accommodation Fund III (formerly known as Elanor
Hospitality and Accommodation Fund II), Elanor Hotel Accommodation Fund Limited (formerly known as
Elanor Luxury Hotel Fund), Elanor Metro and Prime Regional Hotel Fund II (formerly known as EMPR II
Management Pty Limited). The Group holds 35.07% (2021: 42.94%) of the equity in EHAF. The Group's
ownership interest in EHAF gives the Group the same percentage of voting rights in EHAF. EHAF is an
unregistered trust for which Elanor Funds Management Limited acts as the Manager of the asset and Trustee
of the trust.

As disclosed in the Annual Financial Report for the year ended 30 June 2021, EHAF was established on 30
September 2021 through the acquisition of the previous Elanor Luxury Hotel Fund (ELHF) and Albany Hotel
by the previous Elanor Metro and Prime Regional Hotel Fund (EMPR), together forming the new combined
fund.

The Group had previously held a controlling interest in both ELHF and EMPR as at 30 June 2021, and as a
result of the Group’s continued controlling interest in EHAF as at 30 June 2022, the Group continues to
consolidate the underlying assets and liabilities of EHAF in the current year. During the year, the Group sold
down part of its equity interest in EHAF totalling $35.8 million (or 7.87%). The impact of this sell down to the
Group’s consolidated balance sheet is to increase non-controlling interest in relation to EHAF.

Elanor Wildlife Park Fund (EWPF)

EWPF comprises stapled securities in Elanor Wildlife Park Fund and Elanor Wildlife Park Pty Limited. The
Group holds 42.82% (2021: 26.61%) of the equity in EWPF. The Group's 42.82% ownership interest in EWPF
gives the Group the same percentage of voting rights in EWPF. EWPF is an unregistered trust for which Elanor
Funds Management Limited acts as the Manager and Trustee of the trust. As the Group’s ownership interest
increased in EWPF on 31 August 2021 it is deemed that the Group has control over EWPF since this date and
EWPF has been consolidated in the Group’s consolidated Financial Statements. Refer to Note 16 Business
Combinations for further details.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

About this Report (continued)

Control of Elanor Hotel Accommodation Fund (EHAF), Elanor Wildlife Park Fund (EWPF),
Bluewater Square Syndicate (Bluewater) and Stirling Street Syndicate (Stirling) (continued)

Stirling Street Syndicate (Stirling)

The Group holds 42.98% (2021: 2.03%) of the equity in Stirling. The Group's ownership interest in Stirling
gives the Group the same percentage of the voting rights in Stirling. Stirling is an unregistered trust for which
Elanor Funds Management Limited acts as the Manager of the asset and Trustee of the trust. As the Group’s
ownership interest increased in Stirling on 30 November 2021 it is deemed that the Group has control over
Stirling since this date and Stirling has been consolidated in the Group’s consolidated Financial Statements.
Refer to Note 16 Business Combinations for further details.

Bluewater Square Syndicate (Bluewater)

The Group holds 42.27% (2021: 42.27%) of the equity in Bluewater. The Group's ownership interest in
Bluewater gives the Group the same percentage of voting rights in Bluewater. Bluewater is an unregistered
trust for which Elanor Funds Management Limited acts as the Manager of the asset and Trustee of the trust.

The responsible entity of EHAF, EWPF, Stirling and Bluewater is wholly owned by the Group and governed by
the licencing and legal obligations of a professional asset manager. The powers of the Trustee are governed
by the constitution of EHAF, EWPF, Stirling and Bluewater respectively which sets out the basis of fees that
the relevant Trustee can receive. These fees include management fees, performance fees, and acquisition
fees.

Based on the assessment above, at the current level of equity investment in EHAF, EWPF, Stirling and
Bluewater and the Group’s ability to direct the relevant activities of these entities based on the powers of the
Trustee, the AASB 10 definition of control for these investments is met, and therefore each of these
investments are consolidated into Elanor Investors Group Financial Statements.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Results

This section focuses on the operating results and financial performance of the Group. It includes
disclosures of segmental information, revenue, distributions and cash flow including the relevant
accounting policies adopted in each area.

Segment information

OVERVIEW

Segment information is presented on the same basis as that used for internal reporting purposes. The
segments are reported in a manner that is consistent with internal reporting provided to the chief operating
decision maker. The chief operating decision maker has been identified as the Board of Directors of Elanor
Investors Limited and the Responsible Entity.

The main income statement items used by management to assess each of the divisions are divisional revenue
and divisional EBITDA.

BUSINESS SEGMENTS

The Group is organised into the following divisions by business type:

Funds Management

The Funds Management division manages third party owned investment funds and syndicates. As at 30 June
2022, the Funds Management division has approximately $2,721.9 million of external investments under
management, being the managed investments.

Hotels, Tourism and Leisure

Hotels, Tourism and Leisure originates and manages investment and funds management assets. The current
investment portfolio includes 1834 Hospitality, along with a co-investment in EHAF and EWPF. EHAF and
EWPF are consolidated in the Financial Statements.

Retail

Retail originates and manages investment and funds management assets in the retail real estate sector. The
current investment portfolio comprises co-investments in Elanor Retail Property Fund (ASX: ERF), Bluewater
Square Syndicate, Hunters Plaza Syndicate, Waverley Gardens Fund and Belconnen Markets Syndicate. The
Bluewater Square Syndicate is consolidated in the Financial Statements.

Commercial Office

Commercial Office originates and manages investment and funds management assets in the commercial office
real estate sector. The current investment portfolio comprises co-investments in the Elanor Commercial
Property Fund (ASX: ECF), the Stirling Street Syndicate and Harris Street Fund. The Stirling Street Syndicate
is consolidated in the Financial Statements.

Healthcare

Healthcare originates and manages investment and funds management assets in the healthcare real estate
sector. No co-investments are held in this sector by the Group.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Segment information (continued)

The table below shows the Group’s segment results:

Consolidated Group – 30 June 2022

Consolidated Group – 30 June 2021

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Revenue from operating activities

OVERVIEW

This note provides a breakdown of revenue from operating activities by activity type.

‐Revenue from operating activities

ACCOUNTING POLICY

Revenue recognition

The Group recognises revenue in each period for each of Elanor’s activities based on the delivery of
performance obligations and when control has been transferred to customers in accordance with the set out
in AASB 15 Revenue from Contracts with Customers as described below.

Funds management fee revenue

Fund management fees
Fund management fees are received for performance obligations fulfilled over time with revenue recognised
accordingly. Fund management fees are determined in accordance with relevant agreements for each fund,
based on the fund’s monthly Gross Asset Value (GAV). Generally, invoicing of funds for management fees
occurs on a monthly basis and are receivable within 21 days.

Performance fees
Performance fee revenue is recognised to the extent that it is highly probable that the amount of variable
consideration recognised will not be significantly reversed when the uncertainty is resolved. Detailed
calculations are completed to inform the assessment of the appropriate revenue to recognise. Invoicing of
funds for performance fees occurs in accordance with the contractual performance fee payment date.

Cost recoveries
Accounting, marketing and administrative services provided to managed funds are charged as an expense
recovery. Revenue is recognised over time as the performance obligations are fulfilled. Invoicing of funds for
expense recoveries occur on a monthly or quarterly basis depending on the recovery type and are receivable
within 21 days.

Asset management fees
Asset management services provided to managed funds are charged as an asset management fee. Revenue
is recognised over time as the performance obligations are fulfilled. Invoicing of funds for asset management
fees occur on a monthly basis and are receivable within 21 days.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Revenue from operating activities (continued)

ACCOUNTING POLICY (continued)

Leasing and development management fees
Leasing and development management services provided to managed funds are charged as leasing and
development management fees. Revenue is recognised over time as the performance obligations are fulfilled.
Invoicing of funds for leasing and development management fees occur on a monthly basis and are receivable
within 21 days.

Acquisition fees
Acquisition fee revenue is recognised over time depending on the fulfilment of the performance obligation in
accordance with the constitutions of the managed funds. Invoicing of funds for acquisition fees occur in
accordance with the contractual acquisition fee payment date.

Equity raising fee
Equity raising fee revenue is recognised over time depending on the fulfilment of the performance obligation
in accordance with the constitutions of the managed funds. Invoicing of funds for acquisition fees occur in
accordance with the contractual acquisition fee payment date.

Hotel and wildlife park revenue

The revenue of operations from the hotels primarily consists of room rentals, food and beverage sales and
other ancillary goods and services from hotel properties. Room revenue is recognised over time when rooms
are occupied, and food and beverage revenue is recognised at a point in time when goods and services have
been delivered or rendered.

The revenue of operations from the wildlife parks primarily consists of the sale of tickets, food and beverage
sales and other ancillary goods and services from the wild parks. Ticket revenue is recognised at a point in
time when tickets are sold to customers, and food and beverage revenue is recognised at a point in time when
goods and services have been delivered or rendered.

Rental income

The Group is the lessor to a number of operating leases. Rental income arising from operating leases is
recognised as revenue on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the lease asset and recognised as an expense over the term of the lease on the same basis as the lease
income.

When an agreement to waive rent is made with tenants impacted by the COVID-19 pandemic to waive rent,
any rent waived that relates to future occupancy is spread over the remaining lease term and recognised on a
straight-line basis. Rent waived that relates to past occupancy is expensed immediately in other expenses,
except to the extent of a pre-existing provision for expected credit losses then the rent waived is expensed to
the provision.

Rental deferrals as part of COVID-19 rent concessions subsequently waived in consideration for extension of
the lease term will be treated as a lease modification on a straight-line basis over the new lease term.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Distributions

OVERVIEW

When determining distributions, the Group’s Board considers a number of factors, including forecast earnings
and expected economic conditions. Elanor Investors Group aims to distribute 90% of Core Earnings to its
securityholders. Core Earnings reflects the Director’s view of the underlying earnings from ongoing operating
activities for the year.

The following distributions were declared by the ENN Group either during the year or post balance sheet date:

ENN Group

1. The interim distribution of 9.05 cents per stapled security was declared on 31 December 2021 and paid on 28 February 2022.
2. The final distribution of 4.43 cents per stapled security was declared after 30 June 2022, but is recognised in the accounts at balance
date. The final distribution will be paid on 31 August 2022.

ACCOUNTING POLICY

Distributions are recognised as a liability when declared or at the record date (if earlier). Distributions paid and
payable are recognised as distributions within equity. Distributions paid are included in cash flows from
financing activities in the consolidated statement of cash flows.

Earnings per stapled security

OVERVIEW

This note provides information about Elanor Investor Group’s earnings on a per security basis. Earnings per
security (EPS) is a measure that makes it easier for users of Elanor’s financial report to compare Elanor’s
performance between different reporting periods. Accounting standards require the disclosure of two EPS
measures, basic EPS and diluted EPS. EPS information provides a measure of interest of each issued ordinary
security of the parent entity in the performance of the entity over the reporting period while diluted EPS
information provides the same information but takes into account the impact of all potential dilutive, ordinary
securities outstanding during the period, such as Elanor’s options.

The tables below show the earnings per share of the Company, the parent entity of the Group and its controlled
entities as required by accounting standards.

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
4.
4.
4.
4.
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
4.
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
4.
attributable to securityholders:
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
attributable to securityholders:
attributable to securityholders:
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
attributable to securityholders:
The earning / (losses) per stapled security measure shown below is based on the profit / (loss)
attributable to securityholders:
attributable to securityholders:

Earnings per stapled security (continued)
Earnings per stapled security (continued)
Earnings per stapled security (continued)
Earnings per stapled security (continued)
Earnings per stapled security (continued)
Earnings per stapled security (continued)

The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
in the calculation of the weighted average number of stapled securities used.
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted earnings
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
in the calculation of the weighted average number of stapled securities used.
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
in the calculation of the weighted average number of stapled securities used.
per stapled securities shown above is based on the number of stapled securities on issue and options outstanding during the period. The
in the calculation of the weighted average number of stapled securities used.
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
comparative period’s basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result of a change
in the calculation of the weighted average number of stapled securities used.
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
attributable to securityholders of the ENN Group:
in the calculation of the weighted average number of stapled securities used.
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
attributable to securityholders of the ENN Group:
attributable to securityholders of the ENN Group:
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
attributable to securityholders of the ENN Group:
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
attributable to securityholders of the ENN Group:
attributable to securityholders of the ENN Group:

The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
of a change in the calculation of the weighted average number of stapled securities used.
The weighted average number of stapled securities and options granted used as the denominator in calculating basic and diluted
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
of a change in the calculation of the weighted average number of stapled securities used.
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
of a change in the calculation of the weighted average number of stapled securities used.
earnings/ (losses) per stapled securities shown above is based on the number of stapled securities on issue and options granted during
of a change in the calculation of the weighted average number of stapled securities used.
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
ACCOUNTING POLICY
the year. The comparative period basic and diluted earnings per stapled security has been adjusted by an immaterial amount as a result
of a change in the calculation of the weighted average number of stapled securities used.
ACCOUNTING POLICY
ACCOUNTING POLICY
of a change in the calculation of the weighted average number of stapled securities used.
ACCOUNTING POLICY
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
ACCOUNTING POLICY
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
ACCOUNTING POLICY
the weighted average number of ordinary stapled securities issued.
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
the weighted average number of ordinary stapled securities issued.
the weighted average number of ordinary stapled securities issued.
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
the weighted average number of ordinary stapled securities issued.
Basic earnings per stapled security is calculated as profit after tax attributable to securityholders divided by
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
the weighted average number of ordinary stapled securities issued.
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
the weighted average number of ordinary stapled securities issued.
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
average number of stapled securities and dilutive stapled securities.
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
average number of stapled securities and dilutive stapled securities.
average number of stapled securities and dilutive stapled securities.
Diluted earnings per stapled security is calculated as profit after tax attributable to securityholders adjusted for
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
62
average number of stapled securities and dilutive stapled securities.
any profit recognised in the period in relation to potential dilutive stapled securities divided by the weighted
51
average number of stapled securities and dilutive stapled securities.
51
51
average number of stapled securities and dilutive stapled securities.
51
51
51

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Income tax

OVERVIEW

This note provides detailed information about the Group’s income tax items including a reconciliation of income
tax expense, if Australia’s company income tax rate of 30% was applied to the Group’s (loss) / profit before
income tax as shown in the income statement, to the actual income tax expense / benefit.

(a) Income Tax Expense

(b) Reconciliation of income tax expense to prima facie tax expense

ACCOUNTING POLICY

Accounting standards require the application of the “balance sheet method” to account for Elanor’s income
tax. Accounting profit does not always equal taxable income. There are a number of timing differences between
the recognition of accounting expenses and the availability of tax deductions or when revenue is recognised
for accounting and tax purposes. These timing differences reverse over time, but they are recognised as
deferred tax assets and deferred tax liabilities in the balance sheet until they are fully reversed. This method
is referred to as the “balance sheet method”.

The Trust is not subject to Australian income tax provided their taxable income is fully distributed to the
unitholders each year.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Income tax (continued)

Income tax expense comprises current and deferred tax and is recognised in the statement of profit or loss
and other comprehensive income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.

EIL and its wholly-owned Australian resident entities are part of a tax-consolidated group, formed on 11 July
2014, and are therefore taxed as a single entity, with any deferred tax assets and liabilities of these entities
set off in the consolidated financial statements. The head entity within the tax-consolidated group is Elanor
Investors Limited.

Elanor Hotel Accommodation Fund Limited (EHAF Company I; previously named ‘EMPR Management Pty
Limited’) and its wholly-owned Australian resident entities are part of a tax-consolidated group, formed on 6
November 2017, and are therefore taxed as a single entity, with any deferred tax assets and liabilities of these
entities set off in the consolidated financial statements. The head entity within the tax-consolidated group is
EHAF Company I.

EMPR II Management Pty Limited and its wholly-owned Australian resident entities are part of a tax-
consolidated group, formed on 21 March 2016, and are therefore taxed as a single entity, with any deferred
tax assets and liabilities of these entities set off in the consolidated financial statements. The head entity within
the tax-consolidated group is EMPR II Management Pty Limited.

Elanor Hotel Accommodation Fund II Limited (EHAF Company II; previously named ‘Elanor Luxury Hotel Fund
Pty Limited’) and its wholly-owned Australian resident entities are part of a tax-consolidated group, formed on
2 December 2019, and are therefore taxed as a single entity, with any deferred tax assets and liabilities of
these entities set off in the consolidated financial statements. The head entity within the tax-consolidated group
is EHAF Company II.

Elanor Wildlife Park management Pty Limited and its wholly-owned Australian resident entities are part of a
tax-consolidated group, formed on 20 September 2019, and are therefore taxed as a single entity, with any
deferred tax assets and liabilities of these entities set off in the consolidated financial statements. The head
entity within the tax-consolidated group is Elanor Wildlife Park Fund management Pty Limited.

(c)

Deferred taxes

OVERVIEW

Management judgement is required in reviewing the recoverability of deferred tax assets carried by the Group,
which involves estimates of key assumptions including cash flow projection, growth rates and discount rates.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Income tax (continued)

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Income tax (continued)

ACCOUNTING POLICY

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. The following differences are not provided for: initial recognition of goodwill; the initial recognition of
assets or liabilities that affect neither accounting nor taxable profit; and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred
tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets
and liabilities within the tax groups, using tax rates enacted or substantively enacted at the reporting date.

Cash flow information

OVERVIEW

This note provides further information on the consolidated cash flow statements of the Group. It reconciles
(loss) / profit for the year to cash flows from operating activities, reconciles liabilities arising from financing
activities and provides information about non-cash transactions.

(a)

Reconciliation of profit after income tax to net cash flows from operating activities

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Cash flow information (continued)

(b)

Reconciliation of liabilities arising from financing activities

(c)

Net debt reconciliation

ELANOR INVESTORS GROUP

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Operating Assets

This section includes information about the assets used by the Group to generate revenue and profits,
specifically relating to its property, plant and equipment, and investments.

Property, plant and equipment

OVERVIEW

All owner-occupied investment properties held by the Group are deemed to be held for use by the Group for
the supply of services, and are therefore classified as property, plant and equipment under Australian
Accounting Standards. At balance date, the Group’s owner-occupied investment property portfolio comprised
15 accommodation hotels and 3 wildlife parks in Australia. All 15 individual accommodation hotels and one
wildlife park have been independently valued as at 30 June 2022.

(a)

Carrying value and movement in property, plant and equipment (including right-of-use asset)

The carrying amount of property, plant and equipment (including the right-of-use asset) at the beginning and
end of the current year is set out below:

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

7.
A reconciliation of the carrying amount of property, plant and equipment (including right-of-use assets) at the
beginning and end of the 30 June 2021 year is set out below:
A reconciliation of the carrying amount of property, plant and equipment (including right-of-use assets) at the
beginning and end of the 30 June 2021 year is set out below:

(b)

Carrying value of property, plant and equipment

The following table represents the total fair value of property, plant and equipment at 30 June 2022:
(b)

Carrying value of property, plant and equipment

The following table represents the total fair value of property, plant and equipment at 30 June 2022:

As at 30 June 2022, the Directors assessed the fair value of the properties above, supported by independent
valuation reports.
As at 30 June 2022, the Directors assessed the fair value of the properties above, supported by independent
valuation reports.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

Had the Consolidated Group’s property, plant and equipment been measured on a historical cost less
accumulated depreciation basis, their carrying amount would have been as follows:

(c)

Leases / right of use assets

This note provides information for leases where the group is a lessee.

Amounts recognised in the balance sheet

The balance sheet shows the following amounts relating to leases:

During the year, a right of use asset and lease liability was recognised, and lease accounting adopted in
relation to a property lease obligation of the Group. Subsequent to recognition, an impairment of $1.5 million
was recognised against the right of use asset in accordance with AASB 136 Impairment of Assets as the
Group had entered into a third party sub-lease of the space as at 1 February 2022, and the recoverable
amount of the sub-lease is lower than the future lease expense of the head lease.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

Amounts recognised in the statement of profit or loss

The statement of profit or loss shows the following amounts relating to leases:

The total cash outflow for leases during the year ended 30 June 2022 was $2.1 million (2021: $0.8 million).

ACCOUNTING POLICY

Fair value of Property, Plant and Equipment

Land and Buildings are carried at fair value with changes in fair value recognised in other comprehensive
income in the statement of comprehensive income. Fair value is defined as the price at which an asset or
liability could be exchanged in an arm's length transaction between knowledgeable, willing parties, other than
in a forced or liquidation sale.

In reaching estimates of fair value, management judgement needs to be exercised. The level of management
judgement required in establishing fair value of the land and buildings for which there is no quoted price in an
active market is reduced through the use of external valuations.

Land and Buildings

All owner-occupied properties in the Hotel, Tourism and Leisure class are held for use by the Group for the
supply of services and are classified as land and buildings and stated at their revalued amounts under the
revaluation model, being the fair value at the date of revaluation, less any subsequent accumulated
depreciation and subsequent accumulated impairment losses. Fair value is the amount for which the land and
buildings could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Revaluation increases arising from changes in the fair value of land and buildings are recognised in other
comprehensive income and accumulated within equity, except to the extent that it reverses a revaluation
decrease for the same asset previously recognised in profit or loss, in which case the increase is credited to
profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on
the revaluation of such land and buildings is recognised in profit or loss to the extent that it exceeds the
balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

Furniture, fittings and equipment

Furniture, fittings and equipment are stated at cost less accumulated depreciation.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

Right-of-use assets

The Group recognises right-of-use assets at commencement of a lease which is considered to be the date at
which the underlying asset is available for use. The initial measurement of right-of-use asset includes the
amount of lease liabilities recognised, initial direct cost incurred, lease payments made at or before the
commencement date, less any lease incentives received.

Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses
and is adjusted for any remeasurement of lease liabilities. The right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life and the lease term unless the Group is reasonably
certain that they will obtain ownership of the asset at the end of the lease term.

Depreciation

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate
their cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the case of
leasehold improvements and certain leased plant and equipment, the shorter lease term as follows:

Buildings
Plant and equipment:
 Vehicles
 Computer equipment
 Furniture, fittings and equipment

40 years

8 years
3-5 years
3-25 years

(d)

Valuation technique and inputs

The key inputs used to measure fair values of property, plant and equipment are disclosed below along with
the fair value sensitivity to an increase or decrease of these key inputs.

The property assets fair values presented are based on market values, which are derived using the
capitalisation and the discounted cash flow methods. The Group's preferred or primary method is the
capitalisation method.

Property Assets

The aim of the valuation process is to ensure that assets are held at fair value and the Group is compliant with
applicable Australian Accounting Standards, regulations, and the Trust’s Constitution and Compliance Plan.

All properties are required to be internally valued every six months with the exception of those independently
valued during that six-month period. The internal valuations are performed by utilising the information from a
combination of asset plans and forecasting tools prepared by the asset management team. Appropriate
capitalisation rate, terminal yield and discount rates based on comparable market evidence and recent external
valuation parameters are used to produce a capitalisation-based valuation and a discounted cash flow
valuation. Both valuations are considered to determine the final valuation.

The internal valuations are reviewed by the Fund Manager, Chief Operating Officer and Chief Financial Officer
who recommends each property's valuation to the Audit, Risk & Compliance Committee. The Audit and Risk
Committee recommends the property valuations to the Board in accordance with the Group's Property
Valuation Policy.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

(d)

Valuation technique and inputs (continued)

Property Assets (continued)

The Group's valuation policy requires that each property in the portfolio is valued by an independent valuer at
least every three years. In practice, properties may be valued more frequently than every three years primarily
where there may have been a material movement in the market and where there is a significant variation
between the carrying value and the internal valuation. Independent valuations are performed by independent
and external valuers who hold a recognised relevant professional qualification and have specialised expertise
in the types of property assets valued.

Capitalisation method

Capitalisation rate is an approximation of the ratio between the net operating income produced by a property
asset and its fair value. This excludes consideration of costs of acquisition or disposal. The net income is
capitalised in perpetuity from the valuation date at an appropriate investment yield. The adopted percentage
rate investment yield reflects the capitalisation rate and includes consideration of the property type, location,
comparable sales and whether the property is subject to vacant possession (in the case of hotel properties).

Discounted cash flows (DCF)

Under the DCF method, a property's fair value is estimated using explicit assumptions regarding the benefits
and liabilities of ownership over the asset's life including an exit or terminal value. The DCF method involves
the projection of a series of cash flows on a real property interest. To this projected cash flow series, an
appropriate discount rate is applied to establish the present value of the income stream associated with the
property. The discount rate is the rate of return used to convert a monetary sum, payable or receivable in the
future, into present value. The rate is determined with regard to market evidence and prior independent
valuation.

All property investments are categorised as level 3 in the fair value hierarchy. There were no transfers between
the hierarchies during the year.

Assets measured at fair value

The significant unobservable inputs associated with the valuation of the Group's property, plant and
equipment are as follows:

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)
Property, plant and equipment (continued)
Property, plant and equipment (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)

7.
7.
7.
(c)
(c)
(c)
Sensitivity Information
Sensitivity Information
Sensitivity Information
The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below
The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below
along with sensitivity to a significant increase or decrease set out in the following table:
The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below
along with sensitivity to a significant increase or decrease set out in the following table:
along with sensitivity to a significant increase or decrease set out in the following table:

Sensitivity Analysis
Sensitivity Analysis
Sensitivity Analysis
When calculating the capitalisation method, the net property income has a strong inter-relationship with the
When calculating the capitalisation method, the net property income has a strong inter-relationship with the
adopted capitalisation rate given the methodology involves assessing the total income receivable from the
When calculating the capitalisation method, the net property income has a strong inter-relationship with the
adopted capitalisation rate given the methodology involves assessing the total income receivable from the
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
adopted capitalisation rate given the methodology involves assessing the total income receivable from the
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify
the impact to the fair value.
rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify
the impact to the fair value.
the impact to the fair value.
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield
could potentially magnify the impact to the fair value.
adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield
could potentially magnify the impact to the fair value.
could potentially magnify the impact to the fair value.
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the
accommodation hotel assets. The average daily rate reflects the average rate for a room sold over a period of
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the
accommodation hotel assets. The average daily rate reflects the average rate for a room sold over a period of
time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time.
accommodation hotel assets. The average daily rate reflects the average rate for a room sold over a period of
time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time.
An increase in these assumptions will increase the forecast hotel revenue and valuation of the hotels, whilst a
time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time.
An increase in these assumptions will increase the forecast hotel revenue and valuation of the hotels, whilst a
decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.
An increase in these assumptions will increase the forecast hotel revenue and valuation of the hotels, whilst a
decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.
decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.

63
63

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 63 7. Property, plant and equipment (continued) (c) Valuation technique and inputs (continued) Sensitivity Information The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below along with sensitivity to a significant increase or decrease set out in the following table: Sensitivity Analysis When calculating the capitalisation method, the net property income has a strong inter-relationship with the adopted capitalisation rate given the methodology involves assessing the total income receivable from the property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value. The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify the impact to the fair value. When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield could potentially magnify the impact to the fair value. The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the accommodation hotel assets. The average daily rate reflects the average rate for a room sold over a period of time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time. An increase in these assumptions will increase the forecast hotel revenue and valuation of the hotels, whilst a decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Property, plant and equipment (continued)

Sensitivity Analysis (continued)

Investment properties

The carrying amount of investment properties at the beginning and end of the current year is set out below:

The following table represents the total fair value of investment properties at 30 June 2022:

As at 30 June 2022, the Directors assessed the fair value of the investment property above, supported by
internal and an independent external valuation report. The investment properties are categorised as level 3 in
the fair value hierarchy. There were no transfers between hierarchies during the year.

The external valuation was completed with reference to both a discounted cash flow and capitalisation
valuation methods. The property valuations were completed using detailed forecasts prepared by the Group’s
asset management team. Key valuation assumptions including capitalisation rates, terminal yields and
discount rates were determined based on comparable market evidence and valuation parameters determined
in external valuations completed for comparable properties.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Investment properties (continued)

The internal valuations are performed by utilising the information from a combination of asset plans and
forecasting tools prepared by the asset management team. Appropriate capitalisation rate, terminal yield and
discount rates based on comparable market evidence and recent external valuation parameters are used to
produce a capitalisation-based valuation and a discounted cash flow valuation. Both valuations are considered
to determine the final valuation.

The value of Bluewater Square increased by 4.5% from $55.5 million as at 30 June 2021 to $58.0 million as
at 30 June 2022. This increase is mainly attributable to the success of the asset management team’s focus on
leasing activity at the property.

ACCOUNTING POLICY

Fair value of Investment Properties

Investment properties are properties held to earn rentals and / or for capital appreciation (including property
under construction for such purposes). Investment properties are measured initially at its cost, including
transaction costs. Subsequent to initial recognition, investment properties are measured at fair value. Gains
and losses arising from changes in the fair value of investment properties are included in profit or loss in the
period in which they arise. In reaching estimates of fair value, management judgement needs to be exercised.
At each reporting date, the carrying values of the investment properties are assessed by the Directors and
where the carrying value differs materially from the Directors' assessment of fair value, an adjustment to the
carrying value is recorded as appropriate.

The Directors' assessment of fair value of each investment property takes into account latest independent
valuations, with updates taking into account any changes in estimated yield, underlying income and valuations
of comparable properties. In determining the fair value, the capitalisation of net income method and / or the
discounting of future net cash flows to their present value have been used, which are based upon assumptions
and judgements in relation to future rental income, property capitalisation rate or estimated yield and make
reference to market evidence of transaction prices for similar properties.

An investment property is derecognised upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the asset. Any gain or loss arising on
de-recognition of the property (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in profit or loss in the period in which the property is derecognised.

Fair value measurement

The fair value measurement for investment properties has been categorised as Level 3 fair value based on
the key inputs to the valuation techniques used below:

Valuation Techniques

Discounted cash flows – involves the projection of a series of inflows
and outflows to which a market-derived discount rate is applied to
establish an indication of the present value of the income stream
associated with the property.

Capitalisation method – involves determining the net market income of
the investment property. This net market income is then capitalised at
the adopted capitalisation rate to derive a core value.

Significant unobservable
inputs

30 June 2022 30 June 2021

Adopted discount rate

5.75% -6.75%

7.25%

Adopted terminal yield

5.50% - 6.50%

6.50%

Adopted capitalisation rate

5.25% - 6.50%

6.25%

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Investment properties (continued)

Valuation technique

Capitalisation method

Capitalisation rate is an approximation of the ratio between the net operating income produced by an
investment property and its fair value. This excludes consideration of costs of acquisition or disposal. The net
income is capitalised in perpetuity from the valuation date at an appropriate investment yield. The adopted
percentage rate investment yield reflects the capitalisation rate and includes consideration of the property type,
location and comparable sales.

Discounted cash flows (DCF)

Under the DCF method, a property's fair value is estimated using explicit assumptions regarding the benefits
and liabilities of ownership over the asset's life including an exit or terminal value. The DCF method involves
the projection of a series of cash flows on a real property interest. The cash flow projections reflect tenants
currently in occupation or are contracted to meet lease commitments or are likely to be in occupation based
on market’s general perception and relevant available market evidence. To this projected cash flow series, an
appropriate discount rate is applied to establish the present value of the income stream associated with the
property. The discount rate is the rate of return used to convert a monetary sum, payable or receivable in the
future, into present value. The rate is determined with regard to market evidence and prior independent
valuation.

Sensitivity information

The key unobservable inputs to measure the fair value of investment properties are disclosed below along with
sensitivity to a significant increase or decrease set out in the following table:

Sensitivity Analysis

When calculating the capitalisation approach, the net property income has a strong inter-relationship with the
adopted capitalisation rate given the methodology involves assessing the total income receivable from the
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify
the impact to the fair value.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Investment properties (continued)

Sensitivity Analysis

When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield
could potentially magnify the impact to the fair value.

Equity accounted investments

OVERVIEW

This note provides an overview and detailed financial information of the Group’s investments that are
accounted for using the equity method of accounting.

The Group’s equity accounted investments are as follows:

30 June 2022

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Equity accounted investments

Investment properties (continued)

OVERVIEW

Sensitivity Analysis

30 June 2021

The carrying amount of equity accounted investments at the beginning and end of the current year is set out
below:

Equity accounted investments

OVERVIEW

This note provides an overview and detailed financial information of the Group’s investments that are
accounted for using the equity method of accounting.

The Group’s equity accounted investments are as follows:

30 June 2022

Details of Material Associates

Summarised financial information in respect of each of the Group's material associates is set out below.
Materiality is assessed on the investments’ contribution to Group income and net assets. The summarised
financial information below represents amounts shown in the associate's financial statements prepared in
accordance with accounting standards, adjusted by the Group for equity accounting purposes.

The following information represents the aggregated financial position and financial performance of the Elanor
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and Harris Street Fund.
This summarised financial information represents amounts shown in the associate's financial statements
prepared in accordance with AASBs, adjusted by the Group for equity accounting purposes.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Equity accounted investments (continued)

Reconciliation of the above summarised financial information to the carrying amount of the interest in each of
the material associates recognised in the consolidated financial statements:

¹ Other movements are primarily due to the Funds issuing new units to external investors at a price above or below the underlying net
assets of the fund, or where the Group has acquired units on-market at a price different to the fund’s NTA.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Equity accounted investments (continued)

Details of Material Associates (continued)

30 June 2021

Reconciliation of the above summarised financial information to the carrying amount of the interest in each of
the material associates recognised in the consolidated financial statements:

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Equity accounted investments (continued)

Aggregate information of associates that are not individually material

ACCOUNTING POLICY

Investment in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control over
those policy decisions.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control.

Management of the Group reviewed and assessed the classification of the Group's investment in the
associated entities in accordance with AASB 128 on the basis that the Group has significant influence over
the financial and operating policy decisions of the investee.

The results, assets and liabilities of associates or joint ventures are incorporated in these financial statements
using the equity method of accounting, except when the investment, or a portion thereof, is classified as held
for sale, in which case it is accounted for in accordance with AASB 5. Under the equity method, an investment
in an associate or a joint venture is initially recognised in the statement of financial position at cost and adjusted
thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate
or joint venture. When the Group's share of losses of an associate or a joint venture exceeds the Group's
interest in that associate or joint venture (which includes any long-term interests that, in substance, form part
of the Group's net investment in the associate or joint venture), the Group discontinues recognising its share
of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of the associate or joint venture.

When an entity transacts with an associate or a joint venture of the Group, profits and losses resulting from
the transactions with the associate or joint venture are recognised in the Group's financial statements only to
the extent of interests in the associate or joint venture that are not related to the Group.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Equity accounted investments (continued)

ACCOUNTING POLICY (continued)

Investment in associates and joint ventures (continued)

Investments in associates and joint ventures are assessed for impairment when indicators of impairment are
present. When necessary, the entire carrying amount of the investment (including goodwill) is tested for
impairment in accordance with AASB 136 Impairment of Assets as a single asset by comparing its recoverable
amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss
recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is
recognised in accordance with AASB 136 to the extent that the recoverable amount of the investment
subsequently increases.

An assessment has been performed for each of the Managed Funds to ensure the underlying property assets
of these Funds have been recognised at fair value, in accordance with the Group’s accounting policy and
methodology for fair value measurement of Property, Plant and Equipment and Investment Properties as
described in Note 7 and 8 above.

Furthermore, the forecast cash flows of the underlying assets of the Group’s Managed Funds have been
assessed. For the Group’s retail and commercial office Managed Funds, recoverability risks have been
assessed through detailed tenant specific reviews of the financial position of certain tenants in addition to
maintaining active tenant engagement and observation of relevant market conditions and factored into the
cash flow forecast of these funds.

In previous year, due to ongoing and uncertain economic impacts of COVID-19, the recoverable amount of the
Group’s investment in 1834 Hospitality was impaired by $0.8 million. As the trading activity of 1834 Hospitality
structurally increased during the year, at balance sheet date the recoverable amount has been estimated
through a fair value less costs to sell calculation. The calculation was based on a revenue multiple of 6 times
applied on total revenue for the year ended 30 June 2022, less estimated costs to sell of 1% of the calculated
fair value. As a result, the prior year impairment has been reversed for the Group’s investment in 1834
Hospitality.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

acne and Capital Structure

Finance and Capital Structure

This section provides further information on the Group’s debt finance, financial assets and contributed
equity.

10.

Interest bearing liabilities

OVERVIEW

The Group borrows funds from financial institutions to partly fund the acquisition of income producing assets,
such as investment properties, securities or the acquisition of businesses. The Group’s borrowings are
generally fixed, either directly or through the use of interest rate swaps and have a fixed term. This note
provides information about the Group’s debt facilities, including the facilities of EHAF, EWPF, Stirling and
Bluewater. The EHAF, EWPF, Stirling and Bluewater facilities are secured by the assets of these entities.

The term debt is secured by registered mortgages over all freehold property and registered security interests
over all present and acquired property of key Group entities and companies. The terms of the debt also impose
certain covenants on the Group including Loan to Value ratio and Interest Cover covenants. The Group is
currently meeting all its covenants.

Unsecured Notes

On 30 June 2022, the Group has raised $40 million in unsecured medium-term notes in two tranches: a $25
million issue of 3.25-year fixed rate medium-term notes (7.75% p.a.), maturing 30 September 2025; a $15
million issue of 4-year floating rate medium-term notes (4.5% p.a. margin above BBSW), maturing 30 June
2026. The fair value of the unsecured notes is $24.3 million and $13.9 million respectively. The fair values of
the unsecured notes are based on discounted cash flows using a current borrowing rate.

Of the $40 million (2021: $60 million) corporate notes the Group has bought $1 million (2021: $1 million) as an
investment in the Group’s unsecured notes on issues. This has been deducted from the corporate notes
balances to present the net position. The unsecured notes include Loan to Value Ratio and Interest Cover
Covenants. The Group is currently meeting all of its covenants.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

10.

Interest bearing liabilities (continued)

On 24 November 2019, the EWPF issued $25.0 million 7.2% secured 5-year fixed rate notes. The $25.0 million
secured fix rate notes are due for repayment on 29 November 2024. The fair value of the secured notes is
$24.3 million. The fair value of the secured notes are based on discounted cash flows using a current borrowing
rate. The unsecured notes include Loan to Value Ratio and Interest Cover Covenants. The EWPF is currently
meeting all of its covenants.

CREDIT FACILITIES

As at 30 June 2022, the Group had unrestricted access to the following credit facilities:

Note: The debt facilities of EMPR and ELHF from 30 June 2021 have been included in EHAF at establishment of the fund and have
been refinanced by EHAF in the year. Refer below for further information on the EHAF debt facility.

The ENN Group has access to a $65.0 million secured debt facility, with a maturity date of 31 July 2025. The
drawn amount at 30 June 2022 is $59.9 million and this facility is not hedged. The fair value of this debt facility
is $57.4 million. The fair value of the debt facility is based on discounted cash flows using a current borrowing
rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants. The ENN Group is currently
meeting all of its covenants.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

10.
10.

Interest bearing liabilities (continued)
Interest bearing liabilities (continued)

The EHAF Group has access to two secured debt facilities of $82.5 million each, from which both the EHAF
The EHAF Group has access to two secured debt facilities of $82.5 million each, from which both the EHAF
hotel management companies and property trusts can draw. The drawn amount as at 30 June 2022 is $82.5
hotel management companies and property trusts can draw. The drawn amount as at 30 June 2022 is $82.5
million each and both will mature on 23 December 2024. The amount of drawn facility was hedged to 51% as
million each and both will mature on 23 December 2024. The amount of drawn facility was hedged to 51% as
at 30 June 2022. The fair value of each debt facility is $75.8 million. The fair value of the debt facilities is based
at 30 June 2022. The fair value of each debt facility is $75.8 million. The fair value of the debt facilities is based
on discounted cash flows using a current borrowing rate. The debt facilities include Loan to Value Ratio and
on discounted cash flows using a current borrowing rate. The debt facilities include Loan to Value Ratio and
Interest Cover Covenants. The EHAF Group is currently meeting all of its covenants.
Interest Cover Covenants. The EHAF Group is currently meeting all of its covenants.
The Stirling has access to a $19.8 million facility. The drawn amount as at 30 June 2022 is $19.8 million which
The Stirling has access to a $19.8 million facility. The drawn amount as at 30 June 2022 is $19.8 million which
will mature on 26 August 2023. As at 30 June 2022, the drawn amount was not hedged. The fair value of this
will mature on 26 August 2023. As at 30 June 2022, the drawn amount was not hedged. The fair value of this
debt facility is $19.5 million. The fair value of the debt facility is based on discounted cash flows using a current
debt facility is $19.5 million. The fair value of the debt facility is based on discounted cash flows using a current
borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants. The Stirling is
borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants. The Stirling is
currently meeting all of its covenants.
currently meeting all of its covenants.
The Bluewater has access to a $30.5 million facility. The drawn amount as at 30 June 2022 is $30.5 million
The Bluewater has access to a $30.5 million facility. The drawn amount as at 30 June 2022 is $30.5 million
which will mature on 31 December 2023. As at 30 June 2022, the drawn amount was not hedged. The fair
which will mature on 31 December 2023. As at 30 June 2022, the drawn amount was not hedged. The fair
value of this debt facility is $29.0 million. The fair value of the debt facility is based on discounted cash flows
value of this debt facility is $29.0 million. The fair value of the debt facility is based on discounted cash flows
using a current borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants.
using a current borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants.
The Bluewater is currently meeting all of its covenants.
The Bluewater is currently meeting all of its covenants.
All of the facilities have variable interest rates. The interest rates on the loans are partially fixed using interest
All of the facilities have variable interest rates. The interest rates on the loans are partially fixed using interest
rate swaps.
rate swaps.
The weighted average annual interest rates payable of all the loans at 30 June 2022, including the impact
The weighted average annual interest rates payable of all the loans at 30 June 2022, including the impact
of the interest rate swaps, is 3.87% per annum (2021: 3.85%).
of the interest rate swaps, is 3.87% per annum (2021: 3.85%).
BORROWING COST
BORROWING COST
A breakdown of the borrowing costs included in the Group’s Consolidated Statement of Profit or Loss is
A breakdown of the borrowing costs included in the Group’s Consolidated Statement of Profit or Loss is
provided below:
provided below:

ACCOUNTING POLICY
ACCOUNTING POLICY

Interest bearing liabilities
Interest bearing liabilities
Interest bearing liabilities are recognised initially at fair value, being the consideration received net of
Interest bearing liabilities are recognised initially at fair value, being the consideration received net of
transaction costs associated with the borrowing. After initial recognition, interest bearing liabilities are stated
transaction costs associated with the borrowing. After initial recognition, interest bearing liabilities are stated
at amortised cost using the effective interest method. Under the effective interest method, any transaction fees,
at amortised cost using the effective interest method. Under the effective interest method, any transaction fees,
costs, discounts, and premiums directly related to the borrowings are recognised in the statement of profit or
costs, discounts, and premiums directly related to the borrowings are recognised in the statement of profit or
loss and other comprehensive income over the expected life of the borrowings.
loss and other comprehensive income over the expected life of the borrowings.
Interest bearing liabilities are classified as current liabilities where the liability has been drawn under a financing
Interest bearing liabilities are classified as current liabilities where the liability has been drawn under a financing
facility which expires within 12 months. Amounts drawn under financial facilities which expire after 12 months
facility which expires within 12 months. Amounts drawn under financial facilities which expire after 12 months
86
are classified as non-current.
are classified as non-current.

75
75

Elanor Investors GroupAnnual Report 202275 ELANOR INVESTORS GROUP NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 10. Interest bearing liabilities (continued)The EHAF Group has access to two secured debt facilities of $82.5 million each, from which both the EHAF hotel management companies and property trusts can draw. The drawn amount as at 30 June 2022 is $82.5 million each and both will mature on 23 December 2024. The amount of drawn facility was hedged to 51% as at 30 June 2022. The fair value of each debt facility is $75.8 million. The fair value of the debt facilities is based on discounted cash flows using a current borrowing rate. The debt facilities include Loan to Value Ratio and Interest Cover Covenants. The EHAF Group is currently meeting all of its covenants. The Stirling has access to a $19.8 million facility. The drawn amount as at 30 June 2022 is $19.8 million which will mature on 26 August 2023. As at 30 June 2022, the drawn amount was not hedged. The fair value of this debt facility is $19.5 million. The fair value of the debt facility is based on discounted cash flows using a current borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants. The Stirling is currently meeting all of its covenants. The Bluewater has access to a $30.5 million facility. The drawn amount as at 30 June 2022 is $30.5 million which will mature on 31 December 2023. As at 30 June 2022, the drawn amount was not hedged. The fair value of this debt facility is $29.0 million. The fair value of the debt facility is based on discounted cash flows using a current borrowing rate. The debt facility includes Loan to Value Ratio and Interest Cover Covenants. The Bluewater is currently meeting all of its covenants. All of the facilities have variable interest rates. The interest rates on the loans are partially fixed using interest rate swaps. The weighted average annual interest rates payable of all the loans at 30 June 2022, including the impact of the interest rate swaps, is 3.87% per annum (2021: 3.85%). BORROWING COST A breakdown of the borrowing costs included in the Group’s Consolidated Statement of Profit or Loss is provided below: ACCOUNTING POLICY Interest bearing liabilities Interest bearing liabilities are recognised initially at fair value, being the consideration received net of transaction costs associated with the borrowing. After initial recognition, interest bearing liabilities are stated at amortised cost using the effective interest method. Under the effective interest method, any transaction fees, costs, discounts, and premiums directly related to the borrowings are recognised in the statement of profit or loss and other comprehensive income over the expected life of the borrowings. Interest bearing liabilities are classified as current liabilities where the liability has been drawn under a financing facility which expires within 12 months. Amounts drawn under financial facilities which expire after 12 months are classified as non-current. ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Interest bearing liabilities (continued)
Interest bearing liabilities (continued)
Interest bearing liabilities (continued)

10.
10.
Borrowing costs
10.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
or sale.
or sale.
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
11. Derivative financial instruments
11. Derivative financial instruments
OVERVIEW
11. Derivative financial instruments
OVERVIEW
The Group’s derivative financial instruments consist of interest rate swap contracts to hedge its exposure to
OVERVIEW
The Group’s derivative financial instruments consist of interest rate swap contracts to hedge its exposure to
movements in variable interest rates. The interest rate swap agreements allow the Group to raise long term
movements in variable interest rates. The interest rate swap agreements allow the Group to raise long term
borrowings at a floating rate and effectively swap them into a fixed rate.
The Group’s derivative financial instruments consist of interest rate swap contracts to hedge its exposure to
borrowings at a floating rate and effectively swap them into a fixed rate.
movements in variable interest rates. The interest rate swap agreements allow the Group to raise long term
borrowings at a floating rate and effectively swap them into a fixed rate.

EHAF have entered into interest rate swap agreements with a notional principal amount totalling $83.8 million
EHAF have entered into interest rate swap agreements with a notional principal amount totalling $83.8 million
that entitles it to receive interest, at quarterly intervals, at a floating rate on the notional principal and oblige
that entitles it to receive interest, at quarterly intervals, at a floating rate on the notional principal and oblige
EHAF have entered into interest rate swap agreements with a notional principal amount totalling $83.8 million
it to pay interest at a fixed rate.
it to pay interest at a fixed rate.
that entitles it to receive interest, at quarterly intervals, at a floating rate on the notional principal and oblige
The interest rate swap agreements allow the raising of long-term borrowings at a floating rate and effectively
it to pay interest at a fixed rate.
The interest rate swap agreements allow the raising of long-term borrowings at a floating rate and effectively
swap them into a fixed rate.
swap them into a fixed rate.
The interest rate swap agreements allow the raising of long-term borrowings at a floating rate and effectively
ACCOUNTING POLICY
swap them into a fixed rate.
ACCOUNTING POLICY

ACCOUNTING POLICY
Derivatives
Derivatives
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and are
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and are
Derivatives
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and are
recognised in profit or loss immediately.
recognised in profit or loss immediately.
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is
Valuation, techniques and inputs
recognised in profit or loss immediately.
Valuation, techniques and inputs

Financial Instruments
Valuation, techniques and inputs
Financial Instruments
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques. These valuation techniques maximise the use of
Financial Instruments
derivatives) is determined using valuation techniques. These valuation techniques maximise the use of
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
observable market data where it is available and rely as little as possible on entity specific estimates. If all
observable market data where it is available and rely as little as possible on entity specific estimates. If all
derivatives) is determined using valuation techniques. These valuation techniques maximise the use of
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
observable market data where it is available and rely as little as possible on entity specific estimates. If all
76
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
76

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

11. Derivative financial instruments (continued)

Financial Instruments (continued)

If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is not applicable for the Group or the EIF Group.

Specific valuation techniques used to value financial instruments include:

• The use of quoted market prices or dealer quotes for similar instruments; and
• The fair value of interest rate swaps is calculated as the present value of the estimated future cash

flows based on observable yield curves.

All of the resulting fair value estimates of financial instruments are included in level 2. There are no level 3
financial instruments in either the Group or the EIF Group.

12. Other financial assets

OVERVIEW

The Group’s other financial assets consist of short-term financing provided by the Group to certain managed
funds. The Group’s other financial assets as at 30 June 2022 are detailed below:

ACCOUNTING POLICY

The Group measures its other financial assets at amortised cost.

At initial recognition, the Group measures its other financial assets at fair value and subsequently at amortised
cost. The Group assessed that the credit risk of its financial asset has not significantly increased since initial
recognition. Hence, the Group applies the 3-stage expected credit loss impairment model under AASB 9
measuring the expected credit loss allowance (ECL) for the other financial assets.

The loss allowances are based on assumptions about the risk of default and expected loss rates. The Group
uses judgement in making these assumptions based on the Group’s historical credit loss experience, adjusted
for factors that are specific to the debtors and general economic conditions, where appropriate at reporting
date.

Refer to Note 15(b) for further discussion on the Group’s management of credit risk, including that for its
financial assets.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

13. Contributed equity

OVERVIEW

The shares of Elanor Investors Limited (Company) and the units of Elanor Investment Fund (EIF) are combined
and issued as stapled securities. The shares of the Company and units of EIF cannot be traded separately
and can only be traded as stapled securities.

Below is a summary of contributed equity of the Company and EIF separately and for Elanor’s combined
stapled securities. The basis of allocation of the issue price of stapled securities to Company shares and EIF
units post stapling is determined by agreement between the Company and EIF as set out in the Stapling Deed.

Contributed equity for the year ended 30 June 2022

A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:

Contributed equity for the year ended 30 June 2021

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

13. Contributed equity (continued)

A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:

ACCOUNTING POLICY

Equity-settled security-based payments to employees and others providing similar services are measured at the
fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the equity-settled security-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
estimate, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate,
with a corresponding adjustment to the equity-settled employee benefits reserve.

14. Reserves

OVERVIEW

Reserves are balances that form part of equity that record other comprehensive income amounts that are
retained in the business and not distributed until such time the underlying balance sheet item is realised. This
note provides information about movements in the other reserves line item of the balance sheet and a
description of the nature and purpose of each reserve.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

14. Reserves (continued)

The asset revaluation reserve is used to record increments and decrements on the revaluation of property,
plant and equipment.

The cash flow hedge reserve is used to recognise increments and decrements in the fair value of cash flow
hedges.

The stapled security-based payment reserve is used to recognise the fair value of loan, restricted securities
and options issued to employees but not yet exercised under the Group's DSTI and LTIP.

15. Financial risk management

OVERVIEW

The Group's principal financial instruments comprise cash, receivables, financial assets carried at fair value
through profit and loss, interest bearing loans, derivatives, payables and distributions payable.

The Group's activities are exposed to a variety of financial risks: market risk (including interest rate risk and
equity price risk), credit risk and liquidity risk.

This note presents information about the Group's exposure to each of the above risks, the Group's objectives,
policies and processes for measuring and managing risk and the Group's management of capital. Further
quantitative disclosures are included through these consolidated financial statements.

The Group's Board of Directors (Board) has overall responsibility for the establishment and oversight of the
Group's risk management framework. The Board has established an Audit & Risk Committee (ARC), which is
responsible for monitoring the identification and management of key risks to the business. The ARC meets
regularly and reports to the Board on its activities.

The Board has established Treasury Guidelines outlining principles for overall risk management and policies
covering specific areas, such as mitigating foreign exchange, interest rate and liquidity risks.

The Group's Treasury Guidelines provide a framework for managing the financial risks of the Group with a key
philosophy of risk mitigation. Derivatives are exclusively used for hedging purposes, not as trading or other
speculative instruments. The Group uses derivative financial instruments such as interest rate swaps where
possible to hedge certain risk exposures.

The Group uses different methods to measure different types of risk to which it is exposed. These methods
include sensitivity analysis in the case of interest rate risk, ageing analysis for credit risk and cash flow
forecasting for liquidity risk.

There have been no other significant changes in the types of financial risks or the Group's risk management
program (including methods used to measure the risks).

(a)

Market risk

Market risk refers to the potential for changes in the value of the Group's financial instruments or revenue
streams from changes in market prices. There are various types of market risks to which the Group is exposed
including those associated with interest rates, currency rates and equity market price.

(i)

Interest rate risk

Interest rate risk refers to the potential fluctuations in the fair value or future cash flows of a financial instrument
because of changes in market interest rates. The Group’s main interest rate risk arises from long-term
borrowings with variable rates, which expose the Group to cash flow interest rate risk.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15. Financial risk management (continued)

(a)

(i)

Market risk (continued)

Interest rate risk(continued)

As at reporting date, the Consolidated Group had the following interest-bearing assets and liabilities:

The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the
Group to cash flow interest rate risk.

As at 30 June 2022 $83.8 million (2021: $134.9 million) of the $335.8 million (2021: $209.2 million) of floating
interest-bearing loans have been hedged using interest rate swap agreements. These agreements are in place
to swap the variable / floating interest payable to a fixed rate to minimise the interest rate risk.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15. Financial risk management (continued)

(ii)

Interest Rate Sensitivity

At reporting date if Australian interest rates had been 1% higher / lower and all other variables were held
constant, the impact on the Group in relation to cash and cash equivalents, derivatives, interest bearing loans
and the Group's profit and equity would be:

(b)

Credit risk

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

The Group manages credit risk on trade receivables and contract assets by performing credit reviews of
prospective debtors, obtaining collateral where appropriate and performing detailed reviews on any debtor
arrears. Credit risk on derivatives is managed through limiting transactions to investment grade counterparties.

At balance date, the Group’s outstanding debtors consists primarily of loans to Elanor’s Managed Funds and
accrued funds management fees payable by these Managed Funds, rent receivables from its investment
property Bluewater Square, and outstanding payments receivable from hotel guests across its hotel portfolio.

In respect of outstanding loans and trade debtor’s receivable from its Managed Funds, the Group has
performed a detailed analysis of the recoverability of these amounts with reference to the cash flow forecasts
of each of these funds. For each of the Group’s Managed Funds, the Group’s management teams have
performed a detailed asset level analysis of the recoverability of the outstanding arrears at balance date for
these assets.

For the Group’s retail investment property Bluewater Square, the Group applied the AASB 9 simplified
approach using the provision matrix for measuring the expected credit losses (ECL) which uses a lifetime
expected loss allowance. The ECL calculation is based on assumptions about risk of default and expected
loss rates. The group has considered the following in assessing the expected credit loss: ageing of the debtor’s
balances, tenant payment history, assessment of the tenant’s financial position, existing market conditions and
forward-looking estimates.

At balance date, the Group has recognised an expected credit loss provision of $0.9 million (2021: $0.2 million)
in respect to the rent receivables of Bluewater Square Syndicate.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15. Financial risk management (continued)

(b)

Credit risk (continued)

For the Group’s Hotels, Tourism and Leisure Managed Funds (HTL Funds), the group applied the AASB 9
simplified approach using the provision matrix for measuring the expected credit losses which uses a lifetime
expected loss allowance (ECL). The lifetime ECL calculation is based on the ageing of the debtors and forward-
looking estimates.

At balance date, no provisions have been recognised in respect of loans and funds management fees
receivable from the Group’s HTL Funds and a provision of $0.3 million has been recognised in respect of the
consolidated HTL Funds’ trade debtors (2021: $0.7 million).

(i)

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date is detailed below:

Where entities have the right to off-set and intend to settle on a net basis under netting arrangements, this off-
set has been recognised in the consolidated financial statements on a net basis. Details of the Group's
commitments are disclosed in Note 23.

Trade and other receivables consist of GST, trade debtors and other receivables.

At balance date there were no other significant concentrations of credit risk.

No allowance has been recognised for the GST and trade debtors from the taxation authorities and related
parties respectively. Based on historical experience, there is no evidence of default from these counterparties
which would indicate that an allowance was necessary.

(ii)

Impairment losses

The ageing of trade and other receivables at reporting date is detailed below:

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

15. Financial risk management (continued)

(c)

Liquidity risk

The Group manages liquidity risk by maintaining sufficient cash including working capital and other reserves,
as well as through securing appropriate committed credit facilities.

The following are the undiscounted contractual cash flows of derivatives and non-derivative financial liabilities
shown at their nominal amount (including future interest payable).

(d)

Capital risk management

The Group maintains its capital structure with the objective to safeguard its ability to continue as a going
concern, to increase the returns for securityholders and to maintain an optimal capital structure. The capital
structure of the Group consists of equity as listed in Note 13.

The Group assesses its capital management approach as a key part of the Group's overall strategy, and it is
continuously reviewed by management and the Directors.

To achieve the optimal capital structure, the Board may use the following strategies: amend the distribution
policy of the Group; issue new securities through a private or public placement; activate the Distribution
Reinvestment Plan (DRP); issue securities under a Security Purchase Plan (SPP); conduct an on-market
buyback of securities; acquire debt; or dispose of investment properties.

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

Group Structure

This section provides information about the Group’s structure including parent entity information,
information about controlled entities (subsidiaries) and business combination information relating to the
acquisition of controlled entities.

16. Business Combination

During the year, the Group increased its ownership interests in Stirling Street Syndicate (Stirling) and Elanor
Wildlife Park Fund (EWPF), to 42.98% and 42.82% respectively. As a result, the Group obtained a controlling
interest in these funds. Refer to the Basis of Consolidation for further discussion.

The consolidation of these investments, which are previously equity accounted, are considered business
combinations under AASB 3 Business Combinations.

Details of the purchase consideration and the net assets acquired are as follows:

Revenue and net profit contribution

The contribution to the Group’s revenue for the period from the consolidation of Stirling and EWPF was $1.8
million and $10.8 million respectively, while their contribution to the Group’s net profit or (loss) for the period
was $0.3 million and ($3.2) million respectively. If the acquisition had occurred on 1 July 2021, the contribution
to the Group’s revenue and net profit/(loss) for the year would have been $3.1 million and $0.6 million for
Stirling, and $11.3 million and ($4.7) million for EWPF respectively.

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

17. Parent entity

OVERVIEW

The financial information below on Elanor Investor Group’s parent entity Elanor Investors Limited (the
Company) and the Trust’s parent entity Elanor Investment Fund (EIF) as stand-alone entities have been
provided in accordance with the requirements of the Corporations Act 2001. The financial information of the
parent entities of the Group and the EIF Group have been prepared on the same basis as the consolidated
financial statements.

(a) Summarised financial information

1Elanor Investors Limited is the parent entity of the Consolidated Group.
2Elanor Investment Fund is the parent entity of the EIF Group.

(b) Commitments

At balance date Elanor Investors Limited and Elanor Investment Fund had no commitments (2021: nil) in
relation to capital expenditure contracted for but not recognised as liabilities.

At balance date Elanor Investors Limited and Elanor Investment Fund had no outstanding guarantees (2021:
nil).

(d) Contingent liabilities

At balance date Elanor Investors Limited and Elanor Investment Fund had no contingent liabilities (2021: nil).

ELANOR INVESTORS GROUP

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

18. Subsidiaries and Controlled entities

OVERVIEW

18. Subsidiaries and Controlled entities
18. Subsidiaries and Controlled entities
18. Subsidiaries and Controlled entities
OVERVIEW
OVERVIEW
OVERVIEW
This note provides information about the Group’s subsidiaries and controlled entities.
This note provides information about the Group’s subsidiaries and controlled entities.
This note provides information about the Group’s subsidiaries and controlled entities.
Details of the Group's material subsidiaries at the end of the reporting year are as follows:
Details of the Group's material subsidiaries at the end of the reporting year are as follows:
Details of the Group's material subsidiaries at the end of the reporting year are as follows:

This note provides information about the Group’s subsidiaries and controlled entities.
Details of the Group's material subsidiaries at the end of the reporting year are as follows:

1 Elanor Investors Limited (“EIL”) is the head entity within the EIL tax-consolidated group. The companies in which EIL has 100% ownership are members
of the EIL tax-consolidated group.
2 EMPR II Management Pty Limited is the head entity of the old EMPR II tax-consolidated group.
3 Elanor Hotel Accommodation Fund Limited (EHAF Company I/ previously named ‘EMPR Management Pty Limited’) is the head entity of the EHAF tax-
consolidated group.
4 Elanor Hotel Accommodation Fund II Limited (EHAF Company II/ previously named ‘Elanor Luxury Hotel Fund Pty Limited’) is the head entity of the EHAF
Company II tax-consolidated group. EIL does not have a 100% ownership in EHAF Company II (only rounded up to 100% in the above table), and hence
this entity is not part of the EIL tax-consolidated group.

1 Elanor Investors Limited (“EIL”) is the head entity within the EIL tax-consolidated group. The companies in which EIL has 100% ownership are members
1 Elanor Investors Limited (“EIL”) is the head entity within the EIL tax-consolidated group. The companies in which EIL has 100% ownership are members
of the EIL tax-consolidated group.
1 Elanor Investors Limited (“EIL”) is the head entity within the EIL tax-consolidated group. The companies in which EIL has 100% ownership are members
of the EIL tax-consolidated group.
2 EMPR II Management Pty Limited is the head entity of the old EMPR II tax-consolidated group.
2 EMPR II Management Pty Limited is the head entity of the old EMPR II tax-consolidated group.
of the EIL tax-consolidated group.
3 Elanor Hotel Accommodation Fund Limited (EHAF Company I/ previously named ‘EMPR Management Pty Limited’) is the head entity of the EHAF tax-
3 Elanor Hotel Accommodation Fund Limited (EHAF Company I/ previously named ‘EMPR Management Pty Limited’) is the head entity of the EHAF tax-
2 EMPR II Management Pty Limited is the head entity of the old EMPR II tax-consolidated group.
98
consolidated group.
3 Elanor Hotel Accommodation Fund Limited (EHAF Company I/ previously named ‘EMPR Management Pty Limited’) is the head entity of the EHAF tax-
consolidated group.
4 Elanor Hotel Accommodation Fund II Limited (EHAF Company II/ previously named ‘Elanor Luxury Hotel Fund Pty Limited’) is the head entity of the EHAF
4 Elanor Hotel Accommodation Fund II Limited (EHAF Company II/ previously named ‘Elanor Luxury Hotel Fund Pty Limited’) is the head entity of the EHAF
consolidated group.
Company II tax-consolidated group. EIL does not have a 100% ownership in EHAF Company II (only rounded up to 100% in the above table), and hence
4 Elanor Hotel Accommodation Fund II Limited (EHAF Company II/ previously named ‘Elanor Luxury Hotel Fund Pty Limited’) is the head entity of the EHAF
Company II tax-consolidated group. EIL does not have a 100% ownership in EHAF Company II (only rounded up to 100% in the above table), and hence
this entity is not part of the EIL tax-consolidated group.
this entity is not part of the EIL tax-consolidated group.
Company II tax-consolidated group. EIL does not have a 100% ownership in EHAF Company II (only rounded up to 100% in the above table), and hence
this entity is not part of the EIL tax-consolidated group.
87
87
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Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

18. Subsidiaries and Controlled entities (continued)

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

Other Information
Other Information
This section includes other information that must be disclosed to comply with the Accounting Standards,
Other Information
This section includes other information that must be disclosed to comply with the Accounting Standards,
the Corporations Act 2001 or the Corporations Regulations, but which are not considered critical in
Other Information
the Corporations Act 2001 or the Corporations Regulations, but which are not considered critical in
understanding the financial performance or position of the Group, including information about related
This section includes other information that must be disclosed to comply with the Accounting Standards,
This section includes other information that must be disclosed to comply with the Accounting Standards,
understanding the financial performance or position of the Group, including information about related
parties, events after the end of the reporting period and certain EIF Group disclosures.
the Corporations Act 2001 or the Corporations Regulations, but which are not considered critical in
the Corporations Act 2001 or the Corporations Regulations, but which are not considered critical in
parties, events after the end of the reporting period and certain EIF Group disclosures.
understanding the financial performance or position of the Group, including information about related
understanding the financial performance or position of the Group, including information about related
parties, events after the end of the reporting period and certain EIF Group disclosures.
parties, events after the end of the reporting period and certain EIF Group disclosures.

19. Trade and other receivables
19. Trade and other receivables
19. Trade and other receivables
OVERVIEW
19. Trade and other receivables
OVERVIEW
This note provides further information about assets that are incidental to the Group’s trading activities, being
OVERVIEW
This note provides further information about assets that are incidental to the Group’s trading activities, being
trade and other receivables. Refer to Note 15(b) for discussion on the Group’s management of credit risk,
OVERVIEW
trade and other receivables. Refer to Note 15(b) for discussion on the Group’s management of credit risk,
including that of the Group’s trade and other receivables.
This note provides further information about assets that are incidental to the Group’s trading activities, being
This note provides further information about assets that are incidental to the Group’s trading activities, being
including that of the Group’s trade and other receivables.
trade and other receivables. Refer to Note 15(b) for discussion on the Group’s management of credit risk,
trade and other receivables. Refer to Note 15(b) for discussion on the Group’s management of credit risk,
including that of the Group’s trade and other receivables.
including that of the Group’s trade and other receivables.

During the year, the Group made an $8.4 million Manager Contribution to ECF to support ECF’s acquisition of
During the year, the Group made an $8.4 million Manager Contribution to ECF to support ECF’s acquisition of
a 49.9% interest in the 19 Harris Street property. Under the Australian Accounting Standards, this contribution
a 49.9% interest in the 19 Harris Street property. Under the Australian Accounting Standards, this contribution
During the year, the Group made an $8.4 million Manager Contribution to ECF to support ECF’s acquisition of
is required to be recognised as a contract asset upon initial recognition. $3.9 million has been subsequently
During the year, the Group made an $8.4 million Manager Contribution to ECF to support ECF’s acquisition of
is required to be recognised as a contract asset upon initial recognition. $3.9 million has been subsequently
a 49.9% interest in the 19 Harris Street property. Under the Australian Accounting Standards, this contribution
released through the Statement of Profit or Loss as a non-cash expense in the period in respect of transaction
a 49.9% interest in the 19 Harris Street property. Under the Australian Accounting Standards, this contribution
released through the Statement of Profit or Loss as a non-cash expense in the period in respect of transaction
is required to be recognised as a contract asset upon initial recognition. $3.9 million has been subsequently
related funds management fees received from ECF. The remaining balance of the contract asset will be
is required to be recognised as a contract asset upon initial recognition. $3.9 million has been subsequently
related funds management fees received from ECF. The remaining balance of the contract asset will be
released through the Statement of Profit or Loss as a non-cash expense in the period in respect of transaction
amortised as a non-cash expense through the Profit or Loss over a 5-year period.
released through the Statement of Profit or Loss as a non-cash expense in the period in respect of transaction
amortised as a non-cash expense through the Profit or Loss over a 5-year period.
related funds management fees received from ECF. The remaining balance of the contract asset will be
related funds management fees received from ECF. The remaining balance of the contract asset will be
amortised as a non-cash expense through the Profit or Loss over a 5-year period.
20. Payables and other liabilities
amortised as a non-cash expense through the Profit or Loss over a 5-year period.
20. Payables and other liabilities
20. Payables and other liabilities
OVERVIEW
20. Payables and other liabilities
OVERVIEW
This note provides further information about liabilities that are incidental to the Group’s trading activities, being
OVERVIEW
This note provides further information about liabilities that are incidental to the Group’s trading activities, being
payables, other liabilities and provisions.
OVERVIEW
payables, other liabilities and provisions.
This note provides further information about liabilities that are incidental to the Group’s trading activities, being
This note provides further information about liabilities that are incidental to the Group’s trading activities, being
payables, other liabilities and provisions.
payables, other liabilities and provisions.
Payables
Payables

Payables
Payables

100

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89

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

20. Payables and other liabilities (continued)

Other liabilities

1The distribution payable is related to distributions declared by the consolidated Funds including the guaranteed distribution payable by
EHAF to the fund’s investors for the financial year ending 30 June 2022 (2021: only EMPR Fund).

Provisions

ACCOUNTING POLICY

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (where the effect of the time value of money is
material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received,
and the amount of the receivable can be measured reliably.

101

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

20. Payables and other liabilities (continued)

Employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave when it is probable that settlement will be required, and they are capable of being measured
reliably.

Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using
the remuneration rate expected to apply at the time of settlement.

Liabilities recognised in respect of long term employee benefits are measured as the present value of the
estimated future cash outflows, using a high quality Corporate Bond rate as the discount rate, to be made in
respect of services provided by employees up to reporting date.

21.

Intangible assets

OVERVIEW

This note sets out the Intangible assets of the Group.

Management Rights represent the acquisition of funds management rights and associated licences at IPO for
$1.5 million. At IPO, the estimated life of the acquired funds management rights was 10 years.

ACCOUNTING POLICY

Funds management rights

Funds management rights have a finite useful life and are carried at cost less accumulated amortisation and
impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of licenses
over their estimated useful lives of 10 years.

Software

Software expenditure is capitalised and recognised as finite life intangibles and are amortised using the
straight-line method over its estimated life of 5 years.

102

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

22. Government grants

During the year, the Group’s Hotels, Tourism and Leisure Managed Funds (consolidated in the Group financial
statements) received a total of $0.6 million (2021: $5.4 million) of government grants.

ACCOUNTING POLICY

Government grants are recognised when there is reasonable assurance the group will comply with the
conditions attaching to them and the grant will be received. Government grants are presented as part of profit
and loss.

23. Commitments

OVERVIEW

This note sets out the material commitments of the Group.

Contingent liabilities and commitments

The Group has capital expenditure commitments related to EHAF, but not recognised as liabilities, as at 30
June 2022 of $5.9 million (30 June 2021: nil).

Lease commitments: the Group as lessor

The Group has non-cancellable leases in respect of premises. The leases are for a duration of between 1 to
10 years and are classified as operating leases. The minimum lease commitments receivable are as follows:

In the opinion of the Directors, there were no other commitments at the end of the reporting period.

103

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
24. Share-based payments
24. Share-based payments
24. Share-based payments
OVERVIEW
24. Share-based payments
OVERVIEW
24. Share-based payments
24. Share-based payments
OVERVIEW
24. Share-based payments
OVERVIEW
The Group has short term and long-term ownership-based compensation schemes for executives and senior
OVERVIEW
The Group has short term and long-term ownership-based compensation schemes for executives and senior
OVERVIEW
employees.
The Group has short term and long-term ownership-based compensation schemes for executives and senior
OVERVIEW
employees.
The Group has short term and long-term ownership-based compensation schemes for executives and senior
employees.
The Group has short term and long-term ownership-based compensation schemes for executives and senior
The Group has short term and long-term ownership-based compensation schemes for executives and senior
STI scheme
employees.
employees.
STI scheme
The Group has short term and long-term ownership-based compensation schemes for executives and senior
employees.
STI scheme
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
employees.
STI scheme
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
STI scheme
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
STI scheme
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
STI scheme
for the relevant year.
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
for the relevant year.
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
for the relevant year.
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
for the relevant year.
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
for the relevant year.
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
Scheme is based on a profit share pool, to be calculated each year based on the Group's financial performance
for the relevant year.
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
for the relevant year.
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
provided that the employee remains with the Group and maintains minimum performance standards. The
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
provided that the employee remains with the Group and maintains minimum performance standards. The
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
holder of the securities is entitled to dividends in the two-year deferral period.
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
provided that the employee remains with the Group and maintains minimum performance standards. The
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
holder of the securities is entitled to dividends in the two-year deferral period.
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
provided that the employee remains with the Group and maintains minimum performance standards. The
provided that the employee remains with the Group and maintains minimum performance standards. The
holder of the securities is entitled to dividends in the two-year deferral period.
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
provided that the employee remains with the Group and maintains minimum performance standards. The
holder of the securities is entitled to dividends in the two-year deferral period.
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
holder of the securities is entitled to dividends in the two-year deferral period.
provided that the employee remains with the Group and maintains minimum performance standards. The
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
holder of the securities is entitled to dividends in the two-year deferral period.
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
holder of the securities is entitled to dividends in the two-year deferral period.
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
actual financial performance and position of the Group.
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
actual financial performance and position of the Group.
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
actual financial performance and position of the Group.
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
actual financial performance and position of the Group.
LTI scheme
actual financial performance and position of the Group.
distribution of the profit share pool will be at the Board's discretion, taking into consideration the forecast and
LTI scheme
actual financial performance and position of the Group.
LTI scheme
actual financial performance and position of the Group.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
LTI scheme
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
LTI scheme
options plan.
LTI scheme
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
LTI scheme
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
options plan.
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
acquire securities which are subject to vesting conditions) have been issued to certain employees.
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
acquire securities which are subject to vesting conditions) have been issued to certain employees.
options plan.
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
acquire securities which are subject to vesting conditions) have been issued to certain employees.
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
acquire securities which are subject to vesting conditions) have been issued to certain employees.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
acquire securities which are subject to vesting conditions) have been issued to certain employees.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
acquire securities which are subject to vesting conditions) have been issued to certain employees.
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
acquire securities which are subject to vesting conditions) have been issued to certain employees.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
abnormal distribution.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
abnormal distribution.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
abnormal distribution.
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
abnormal distribution.
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
abnormal distribution.
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an
abnormal distribution.
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
abnormal distribution.
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
The purpose of the LTI Scheme is to assist in attracting, motivating and retaining key management and
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
employees. The LTI Scheme operates by providing key management and employees with the opportunity to
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
participate in the future performance of Group securities. The vesting conditions of LTI plans and related
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
in the case of the options plan.
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
awards include both a service-based hurdle and an absolute total securityholder return (TSR) performance
in the case of the options plan.
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
in the case of the options plan.
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
in the case of the options plan.
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
in the case of the options plan.
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
in the case of the options plan.
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
in the case of the options plan.
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
and reward for executives.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
No LTI’s were issued to KMP’s in FY22 (2021: 8.5 million).
and reward for executives.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
104
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
93
and reward for executives.
93
and reward for executives.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
93
93
and reward for executives.
93
93
93

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

24. Share-based payments (continued)

LTI scheme (continued)

The following share-based payment arrangements were in existence during the current reporting period:

Employee Loan Securities

1 Service and market conditions include financial and non-financial targets along with a deferred vesting period.

Options

1Service and market conditions include financial and non-financial targets along with a deferred vesting period

No options were granted in FY22.

The Group recognises the fair value at the grant date of equity settled securities above as an employee benefit
expense proportionally over the vesting period with a corresponding increase in equity. Fair value of options
is measured at grant date using a Monte-Carlo Simulation and Binomial option pricing model, performed by
an independent valuer, and models the future price of the Group's stapled securities.

Securities issued under STI plan

1 Service conditions include a deferred vesting period.

The total expense recognised during the year in relation to the Group's equity settled share-based payments
was $3,770,702 (2021: $3,302,395).

105

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

24. Share-based payments (continued)

ACCOUNTING POLICY

Share-Based Payments

In accordance with AASB 2 Share-based Payment, Equity-settled share-based payments to employees and
others providing similar services are measured at the fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
estimates, if any, is recognised in the profit or loss such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

25. Related parties

OVERVIEW

Related parties are persons or entities that are related to the Group as defined by AASB 124 Related Party
Disclosures. This note provides information about transactions with related parties during the year.

Elanor Investors Group

Controlled entities

Interests in controlled entities are set out in Note 18.

Responsible Entity fees

Elanor Funds Management Limited (EFML) is the Responsible Entity of the Elanor Investment Fund (EIF) (a
wholly owned subsidiary of Elanor Investors Limited).

In accordance with the Constitution of Elanor Investment Fund (EIF), EFML is entitled to receive a
management fee equal to its reasonable costs in providing its services as Responsible Entity for which it is not
otherwise reimbursed. For the year ended 30 June 2022, this amount is $129,996 (2021: $129,996).

EFML makes payments for EIF from time to time. These payments are incurred by EFML in properly performing
or exercising its powers or duties in relation to EIF. EFML has a right of indemnity from EIF for any liability
incurred by EFML in properly performing or exercising any of its powers or duties in relation to EIF. The amount
reimbursed for the year ended 30 June 2022 was nil (2021: nil).

EFML acted as Trustee and Manager and/or Custodian of a number of registered and unregistered managed
investment schemes, including schemes where the Group also held an investment. EFML is entitled to fee
income, as set out in the Constitution of each scheme, including management fees, acquisition fees, equity
raise fees and performance fees. EFML is also entitled to be reimbursed from each Scheme for costs incurred
in properly performing or exercising any of its powers or duties in relation to each Scheme.

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ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

25. Related parties (continued)

A summary of the income earned during the year from these managed investment schemes is provided below:

1The ERF income earned includes $1.82 million of Syndication fees recognised for the proposed syndication
of ERF’s Tweed Mall property.

Outstanding receivables balances with related parties

The following balances arising through the normal course of business were due from related parties at
balance date:

107

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

25. Related parties (continued)

Key Management Personnel (KMP)

Executive
Mr. Glenn Willis
Mr. Paul Siviour
Mr. Symon Simmons

Non-Executive
Mr. Paul Bedbrook
Mr. Nigel Ampherlaw
Mr. Anthony Fehon
Mr. Su Kiat Lim
Mrs. Karyn Baylis

Position
Managing Director and Chief Executive Officer
Chief Operating Officer
Chief Financial Officer and Company Secretary

Position
Independent Chairman and Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Executive Director
Independent Non-Executive Director

The aggregate compensation made to the Key Management Personnel of the Group is set out below:

26. Significant events

Harris Street Fund

The Group established the Harris Street Fund in May 2021 which acquired the commercial property asset, 19
Harris Street in Pyrmont, NSW for $185.0 million, with the Elanor Commercial Property Fund (ASX: ECF)
acquiring a 49.9% interest alongside Elanor’s wholesale private capital partners.

Elanor Hotel Accommodation Fund

On 30 September 2021, the Elanor Hotels and Accommodation Fund (EHAF) was successfully established by
the Elanor Metro and Prime Regional Hotel Fund (EMPR) acquiring the Elanor Luxury Hotel Fund (ELHF) and
the Albany Hotel, creating a $346.2 million hotel fund.

On 30 June 2022 EHAF acquired Estate Tuscany from the ENN Group (which acquired Estate Tuscany in
March 2022) and Sanctuary Inn Tamworth accommodation hotels for approximately $29 million. The
acquisition of Sanctuary Inn Tamworth settled early August 2022.

Elanor Healthcare Real Estate Fund

The Elanor Health Care Real Estate Fund completed one property acquisition Highpoint Health Hub in
Ashgrove, QLD, for $51.9 million in October 2021.
108

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26. Significant events (continued)
26. Significant events (continued)

Warrawong Plaza Fund
Warrawong Plaza Fund
The Group establishment the Warrawong Plaza Fund in October 2021 which acquired the Warrawong Plaza
The Group establishment the Warrawong Plaza Fund in October 2021 which acquired the Warrawong Plaza
shopping centre in Wollongong, NSW, for $136.4 million.
shopping centre in Wollongong, NSW, for $136.4 million.

Elanor Commercial Property Fund
Elanor Commercial Property Fund

As noted above, on 25 May 2022, ECF acquired a 49.9% interest in Harris Street Fund alongside Elanor’s
As noted above, on 25 May 2022, ECF acquired a 49.9% interest in Harris Street Fund alongside Elanor’s
wholesale private capital partners.
wholesale private capital partners.

Elanor Retail Property Fund
Elanor Retail Property Fund

Securityholder approval of the proposed liquidity event and privatisation of the Elanor Retail Property Fund
Securityholder approval of the proposed liquidity event and privatisation of the Elanor Retail Property Fund
(ASX: ERF) occurred in August 2022. The privatisation and delisting incorporates the syndication of the fund’s
(ASX: ERF) occurred in August 2022. The privatisation and delisting incorporates the syndication of the fund’s
Tweed Mall property to Elanor’s wholesale private capital partners, a security buy-back offer and the delisting
Tweed Mall property to Elanor’s wholesale private capital partners, a security buy-back offer and the delisting
of ERF to become the Elanor Property Income Fund (EPIF). EPIF will be an open-ended, multi-sector, property
of ERF to become the Elanor Property Income Fund (EPIF). EPIF will be an open-ended, multi-sector, property
fund generating secure income from a portfolio of high investment quality real estate assets.
fund generating secure income from a portfolio of high investment quality real estate assets.

27. Other accounting policies
27. Other accounting policies
Rental income
Rental income
The Group is the lessor in a number of operating leases. Rental income arising from operating leases is
The Group is the lessor in a number of operating leases. Rental income arising from operating leases is
recognised as revenue on a straight-line basis over the lease term.
recognised as revenue on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the lease asset and recognised as an expense over the term of the lease on the same basis as the lease
of the lease asset and recognised as an expense over the term of the lease on the same basis as the lease
income.
income.

When an agreement to waive rent is made with tenants impacted by the COVID-19 pandemic to waive rent,
When an agreement to waive rent is made with tenants impacted by the COVID-19 pandemic to waive rent,
any rent waived that relates to future occupancy is spread over the remaining lease term and recognised on a
any rent waived that relates to future occupancy is spread over the remaining lease term and recognised on a
straight-line basis. Rent waived that relates to past occupancy is expensed immediately in other expenses,
straight-line basis. Rent waived that relates to past occupancy is expensed immediately in other expenses,
except to the extent of a pre-existing provision for expected credit losses then the rent waived is expensed to
except to the extent of a pre-existing provision for expected credit losses then the rent waived is expensed to
the provision.
the provision.

Rental deferrals as part of COVID-19 rent concessions subsequently waived in consideration for extension of
Rental deferrals as part of COVID-19 rent concessions subsequently waived in consideration for extension of
the lease term will be treated as lease modification on straight-line basis over the new lease term.
the lease term will be treated as lease modification on straight-line basis over the new lease term.

Cash and cash equivalents
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, cash held by property managers in trust, other short-term,
hand, deposits held at call with financial institutions, cash held by property managers in trust, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known
highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the balance sheet.
overdrafts are shown within borrowings in current liabilities in the balance sheet.

Inventories
Inventories
Inventories, which principally comprise beverage and consumables of the hotel and wildlife park businesses,
Inventories, which principally comprise beverage and consumables of the hotel and wildlife park businesses,
are stated at the lower of cost and net realisable value.
109
are stated at the lower of cost and net realisable value.

98
98

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

28. Events occurring after reporting date

Following delisting, ERF will become the Elanor Property Income Fund (EPIF), an open-ended, unlisted, multi
sector reliable income real estate fund.

Other than the events disclosed above, the directors are not aware of any other matter or circumstance not
otherwise dealt with in the financial report or the Directors' Report that has significantly affected or may
significantly affect the operations of the Group, the results of those operations or the state of affairs of the
Group in the financial year subsequent to the year ended 30 June 2022.

29. Auditor's remuneration

OVERVIEW

PricewaterhouseCoopers are
(2021:
PricewaterhouseCoopers) and have provided a number of audit and other assurance related services as well
as other non-assurance related services to Elanor Investors Group and the Trust during the year.

independent auditors of Elanor

Investors Group

the

is a summary of

Below
fees paid
PricewaterhouseCoopers) during the year.

for various services

to PricewaterhouseCoopers

(2021:

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ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure
30. Non-Parent disclosure
OVERVIEW
30. Non-Parent disclosure
OVERVIEW
This note provides information relating to the non-parent EIF Group only. The accounting policies are
OVERVIEW
This note provides information relating to the non-parent EIF Group only. The accounting policies are
consistent with the Group, except as otherwise disclosed.
consistent with the Group, except as otherwise disclosed.
This note provides information relating to the non-parent EIF Group only. The accounting policies are
Segment information
consistent with the Group, except as otherwise disclosed.
Segment information
Chief operating decisions are based on the segment information as reported by the consolidated Group and
Segment information
Chief operating decisions are based on the segment information as reported by the consolidated Group and
therefore EIF is deemed to only have one segment.
therefore EIF is deemed to only have one segment.
Chief operating decisions are based on the segment information as reported by the consolidated Group and
therefore EIF is deemed to only have one segment.
Distributions
Distributions
The following distributions were declared by the EIF Group either during the year or post balance date:
Distributions
The following distributions were declared by the EIF Group either during the year or post balance date:

The following distributions were declared by the EIF Group either during the year or post balance date:

1The interim distribution of 9.05 cents per stapled security was paid on 28 February 2022.
1The interim distribution of 9.05 cents per stapled security was paid on 28 February 2022.
2The final distribution of 4.43 cents per stapled security was declared after 30 June 2022, but is recognised in the accounts at balance
2The final distribution of 4.43 cents per stapled security was declared after 30 June 2022, but is recognised in the accounts at balance
date. The final distribution will be paid on 31 August 2022.
1The interim distribution of 9.05 cents per stapled security was paid on 28 February 2022.
date. The final distribution will be paid on 31 August 2022.
2The final distribution of 4.43 cents per stapled security was declared after 30 June 2022, but is recognised in the accounts at balance
Taxation of the Trust
date. The final distribution will be paid on 31 August 2022.
Taxation of the Trust
Under current Australian income tax legislation, the Trust and its sub-trusts are not liable for income tax on
Taxation of the Trust
Under current Australian income tax legislation, the Trust and its sub-trusts are not liable for income tax on
their taxable income (including assessable realised capital gains) provided that the unitholders are presently
their taxable income (including assessable realised capital gains) provided that the unitholders are presently
entitled to the income of the Trust. Accordingly, the Group only pays tax on Company taxable earnings and
Under current Australian income tax legislation, the Trust and its sub-trusts are not liable for income tax on
entitled to the income of the Trust. Accordingly, the Group only pays tax on Company taxable earnings and
there is no separate tax disclosure for the Trust.
their taxable income (including assessable realised capital gains) provided that the unitholders are presently
there is no separate tax disclosure for the Trust.
entitled to the income of the Trust. Accordingly, the Group only pays tax on Company taxable earnings and
Earnings / (losses) per stapled security
there is no separate tax disclosure for the Trust.
Earnings / (losses) per stapled security
The earnings / (losses) per stapled security measure shown below is based on the profit / (loss) attributable
Earnings / (losses) per stapled security
The earnings / (losses) per stapled security measure shown below is based on the profit / (loss) attributable
to securityholders:
to securityholders:
The earnings / (losses) per stapled security measure shown below is based on the profit / (loss) attributable
to securityholders:

100
100

100

111

ELANOR INVESTORS GROUP

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Investment Properties

Movement in investment properties

The carrying value of investment properties at the beginning and end of the current year is set out below:

Refer to Note 7 Property, plant and equipment and Note 8 Investment properties for further details of the
valuations of the underlying property assets.

ACCOUNTING POLICY

Fair value of Investment Properties

Investment property relates to the land and buildings owned by the EIF Group (being the Elanor Investment
Fund and its controlled entities) only, in which rental income is earned from entities within the EIL Group.

Valuation, technique and inputs

Investment properties are categorised as level 3 in the fair value hierarchy. There were no transfers between
hierarchies during the year.

Fair value measurement

The significant unobservable inputs associated with the valuation of the Group's investment properties are as
follows:

112

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ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Equity accounted investments

The Trust’s equity accounted investments are as follows:

30 June 2022

30 June 2021

The following information represents the aggregated financial position and financial performance of the Elanor
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund.
This summarised financial information represents amounts shown in the associate's financial statements
prepared in accordance with Australian Accounting Standards, adjusted by the Trust for equity accounting
purposes.

102

113

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Equity accounted investments (continued)

30 June 2022

A reconciliation of the above summarised financial information to the carrying amount of the interest in Elanor
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund
recognised in the consolidated financial statements is provided below:

¹ Other movements are primarily due to the issue of new units to external investors at a price above or below the underlying net assets of
the fund, or where the Group has acquired units on-market at a price different to the fund’s NTA.

114

103

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ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Equity accounted investments (continued)

30 June 2021

A reconciliation of the above summarised financial information to the carrying amount of the interest in Elanor
Retail Property Fund, Elanor Commercial Property Fund and the Waverley Gardens Fund recognised in the
consolidated financial statements is provided below:

104

115

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Aggregate information of associates that are not individually material

Interest bearing liabilities

As part of the internal funding of the Fund, EIF entered into a long-term interest-bearing loan with EIL at arm’s
length terms, maturing in July 2024. As at 30 June 2022, the outstanding payable to the Company was $43.9
million (2021: $74.5 million).

116

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ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Credit facilities

As at 30 June 2022, the EIF Group had unrestricted access to the following credit facilities:

The ENN Group has access to a $65 million secured debt facility, with a maturity date of 31 July 2025. The
drawn amount at 30 June 2022 is $59.9 million and this facility is not hedged. The fair value of this debt facility
$57.4 million. The fair value of the debt facility is based on discounted cash flows using a current borrowing
rate.

The EHAF Group has access to two secured debt facilities of $82.5 million each, on which both the EHAF
hotel management companies and property trusts can draw. The drawn amount at 30 June 2022 is $82.5
million each and both will mature on 23 December 2024. The amount of drawn facility was hedged to 51% as
at 30 June 2022. The fair value of each debt facility is $75.8 million. The fair value of the debt facilities is based
on discounted cash flows using a current borrowing rate.

The Stirling Street Syndicate has access to a $19.8 million facility. The drawn amount at 30 June 2022 is $19.8
million which will mature on 23 August 2023. As at 30 June 2022, the drawn amount was not hedged. The fair
value of this debt facility is $19.5 million. The fair value of the debt facility is based on discounted cash flows
using a current borrowing rate.

117

106

ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022
30. Non-Parent disclosure (continued)

30. Non-Parent disclosure (continued)
Credit facilities (continued)
30. Non-Parent disclosure (continued)
30. Non-Parent disclosure (continued)
Credit facilities (continued)
The Bluewater Square Syndicate has access to a $30.5 million (2021: $30.5 million) facility. The drawn amount
Credit facilities (continued)
at 30 June 2022 was $30.5 million (2021: $30.5 million) which will mature on 31 December 2023. At 30 June
Credit facilities (continued)
The Bluewater Square Syndicate has access to a $30.5 million (2021: $30.5 million) facility. The drawn amount
2022, the drawn amount was not hedged. The fair value of this debt facility is $29.0 million. The fair value of
The Bluewater Square Syndicate has access to a $30.5 million (2021: $30.5 million) facility. The drawn amount
at 30 June 2022 was $30.5 million (2021: $30.5 million) which will mature on 31 December 2023. At 30 June
The Bluewater Square Syndicate has access to a $30.5 million (2021: $30.5 million) facility. The drawn amount
the debt facility is based on discounted cash flows using a current borrowing rate.
at 30 June 2022 was $30.5 million (2021: $30.5 million) which will mature on 31 December 2023. At 30 June
2022, the drawn amount was not hedged. The fair value of this debt facility is $29.0 million. The fair value of
at 30 June 2022 was $30.5 million (2021: $30.5 million) which will mature on 31 December 2023. At 30 June
2022, the drawn amount was not hedged. The fair value of this debt facility is $29.0 million. The fair value of
the debt facility is based on discounted cash flows using a current borrowing rate.
All of the facilities have a variable interest rate. The interest rates on the loans are partially fixed using interest
2022, the drawn amount was not hedged. The fair value of this debt facility is $29.0 million. The fair value of
the debt facility is based on discounted cash flows using a current borrowing rate.
rate swaps. The weighted average annual interest rates payable of the loans at 30 June 2022, including
the debt facility is based on discounted cash flows using a current borrowing rate.
All of the facilities have a variable interest rate. The interest rates on the loans are partially fixed using interest
the impact of the interest rate swaps, is 3.78% per annum (2021: 3.88%).
All of the facilities have a variable interest rate. The interest rates on the loans are partially fixed using interest
rate swaps. The weighted average annual interest rates payable of the loans at 30 June 2022, including
All of the facilities have a variable interest rate. The interest rates on the loans are partially fixed using interest
rate swaps. The weighted average annual interest rates payable of the loans at 30 June 2022, including
the impact of the interest rate swaps, is 3.78% per annum (2021: 3.88%).
rate swaps. The weighted average annual interest rates payable of the loans at 30 June 2022, including
Derivative Financial instruments
the impact of the interest rate swaps, is 3.78% per annum (2021: 3.88%).
the impact of the interest rate swaps, is 3.78% per annum (2021: 3.88%).
Derivative Financial instruments
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.
Derivative Financial instruments
Derivative Financial instruments
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.

Reserves

Reserves
Reserves are balances that form part of equity that record other comprehensive income amounts that are
Reserves
retained in the business and not distributed until such time the underlying balance sheet item is realised. This
Reserves
Reserves are balances that form part of equity that record other comprehensive income amounts that are
note provides information about movements in the other reserves line item of the balance sheet and a
Reserves are balances that form part of equity that record other comprehensive income amounts that are
retained in the business and not distributed until such time the underlying balance sheet item is realised. This
Reserves are balances that form part of equity that record other comprehensive income amounts that are
description of the nature and purpose of each reserve.
retained in the business and not distributed until such time the underlying balance sheet item is realised. This
note provides information about movements in the other reserves line item of the balance sheet and a
retained in the business and not distributed until such time the underlying balance sheet item is realised. This
note provides information about movements in the other reserves line item of the balance sheet and a
description of the nature and purpose of each reserve.
note provides information about movements in the other reserves line item of the balance sheet and a
description of the nature and purpose of each reserve.
description of the nature and purpose of each reserve.

The asset revaluation reserve is used to record increments and decrements on the revaluation of property,
plant and equipment.
The asset revaluation reserve is used to record increments and decrements on the revaluation of property,
118
The asset revaluation reserve is used to record increments and decrements on the revaluation of property,
plant and equipment.
107
The asset revaluation reserve is used to record increments and decrements on the revaluation of property,
plant and equipment.
plant and equipment.

107
107
107

Elanor Investors GroupAnnual Report 2022ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Reserves (continued)

The cash flow reserve presented in the comparatives was used to recognise increments and decrements in
the fair value of cash flow hedges. In FY22 all cash flow hedges are discontinued, and no new hedge
relationships are recognised.

The stapled security-based payment reserve is used to recognise the fair value of loan, restricted securities
and options issued to employees but not yet exercised under the Group's DSTI and LTIP.

(1)

Market Risk

Interest rate risk

As at reporting date, the EIF Group had the following interest-bearing assets and liabilities:

Of the $217.7 million floating interest-bearing loans as at 30 June 2022 (2021: $172.7 million), $83.8 million
(2021: $134.9 million) have been hedged using interest rate swap agreements. These agreements are in place
to swap the variable / floating interest payable to a fixed rate to minimise the interest rate risk.

108

119

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Interest Rate Sensitivity

(2)

Credit Risk

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date is detailed below:

Impairment losses

The ageing of trade and other receivables at reporting date is detailed below:

120

109

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

(3)

Liquidity risk

Other financial assets and liabilities

This note provides further information about material financial assets and liabilities that are incidental to the
EIF and the Trust’s trading activities, being trade and other receivables and trade and other payables.

Trade and Other Receivables

110

121

Notes to the Consolidated Financial Statements
For the year ended 30 June 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Payables

Cash flow information

This note provides further information on the consolidated cash flow statements of the Trust. It reconciles profit
for the year to cash flows from operating activities and information about non-cash transactions.

Reconciliation of profit after income tax to net cash flows from operating activities

Directors’ Declaration to

122

111

Elanor Investors GroupAnnual Report 2022

ELANOR INVESTORS GROUP

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

30. Non-Parent disclosure (continued)

Other expenses

A breakdown of other expenses included in the EIF Group’s Consolidated Statement of Profit or Loss is
provided below:

112

123

Directors’ Declaration to
Stapled Securityholders

ELANOR INVESTORS GROUP

DIRECTORS’ DECLARATION TO STAPLED SECURITYHOLDERS

In the opinion of the Directors of Elanor Investors Limited and Elanor Funds Management Limited as
responsible entity for the Elanor Investment Fund:

the financial statements and notes set out on pages 45-123 are in accordance with the Corporations
Act 2001 (Cth) including:

ii.

complying with Australian Accounting Standards, the Corporations Regulations 2001 and
other mandatory professional reporting requirements; and

giving a true and fair view of the Group's and EIF's financial position as at 30 June 2022 and
of their performance, for the financial year ended on that date; and

there are reasonable grounds to believe that the Group and EIF will be able to pay their debts as and
when they become due and payable.

the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.

d) The Directors have been given the declarations by the Chief Executive Officer and Chief Financial

Officer required by Section 295A of the Corporations Act 2001 (Cth).

This declaration is made in accordance with a resolution of the Boards of Directors in accordance with
Section 295(5) of the Corporations Act 2001 (Cth).

Glenn Willis
CEO and Managing Director

Sydney
23 August 2022

dependent Auditor’s Report

124

113

Elanor Investors GroupAnnual Report 2022 PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999 Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999 Liability limited by a scheme approved under Professional Standards Legislation. Independent auditor’s report To the stapled securityholders of Elanor Investors Limited and Elanor Investment Fund Report on the audit of the financial reports Our opinion In our opinion: The accompanying financial reports of: ● Elanor Investors Limited (the Company) and its controlled entities (together the Group or Elanor), and ● Elanor Investment Fund (the Registered Scheme) and its controlled entities (the EIF Group) are in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the financial positions of Elanor and the EIF Group as at 30 June 2022 and of their financial performance for the year then ended (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The financial reports of Elanor and the EIF Group (the financial reports) comprise: ● the consolidated statements of financial position as at 30 June 2022 ● the consolidated statements of comprehensive income for the year then ended ● the consolidated statements of profit or loss for the year then ended ● the consolidated statements of changes in equity for the year then ended ● the consolidated statements of cash flows for the year then ended ● the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information ● the directors’ declaration to stapled securityholders. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of Elanor and the EIF Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial reports in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

125

PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999 Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999 Liability limited by a scheme approved under Professional Standards Legislation. Independent auditor’s report To the stapled securityholders of Elanor Investors Limited and Elanor Investment Fund Report on the audit of the financial reports Our opinion In our opinion: The accompanying financial reports of: ● Elanor Investors Limited (the Company) and its controlled entities (together the Group or Elanor), and ● Elanor Investment Fund (the Registered Scheme) and its controlled entities (the EIF Group) are in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the financial positions of Elanor and the EIF Group as at 30 June 2022 and of their financial performance for the year then ended (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The financial reports of Elanor and the EIF Group (the financial reports) comprise: ● the consolidated statements of financial position as at 30 June 2022 ● the consolidated statements of comprehensive income for the year then ended ● the consolidated statements of profit or loss for the year then ended ● the consolidated statements of changes in equity for the year then ended ● the consolidated statements of cash flows for the year then ended ● the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information ● the directors’ declaration to stapled securityholders. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of Elanor and the EIF Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial reports in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Independent auditor’s reportTo the stapled securityholders of Elanor Commercial Property Fund (comprising Elanor CommercialProperty Fund I and Elanor Commercial Property Fund II)Report on the audit of the financial reportOur opinionIn our opinion:The accompanying financial reports of:●Elanor Commercial Property Fund I (the Registered Scheme) and its controlled entities(together the Group), and●Elanor Commercial Property Fund II (ECPF II)are in accordance with theCorporations Act 2001,including:(a)giving a true and fair view of the financial positions of the Group and ECPF II as at 30 June2022 and of their financial performance for the year then ended(b)complying with Australian Accounting Standards and theCorporations Regulations 2001.What we have auditedThe financial reports of the Group and ECPF II (the financial report) comprise:●the consolidated statements of financial position as at 30 June 2022●the consolidated statements of comprehensive income for the year then ended●the consolidated statements of profit or loss for the year then ended●the consolidated statements of changes in equity for the year then ended●the consolidated statements of cash flows for the year then ended●the notes to the consolidated financial statements, which include significant accounting policiesand other explanatory information●the directors’ declaration to stapled securityholders.Basis for opinionWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities underthose standards are further described in theAuditor’sresponsibilities for the audit of the financialreportsection of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.PricewaterhouseCoopers, ABN 52 780 433 757One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001T: +61 2 8266 0000, F: +61 2 8266 9999Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124T: +61 2 9659 2476, F: +61 2 8266 9999Liability limited by a scheme approved under Professional Standards Legislation.126

Elanor Investors GroupAnnual Report 2022 Our audit approach An audit is designed to provide reasonable assurance about whether the financial reports are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial reports. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial reports as a whole, taking into account the geographic and management structure of Elanor and the EIF Group, their accounting processes and controls and the industry in which they operate. Materiality Audit scope Key audit matters ● For the purpose of our audit of Elanor and EIF Group, we used overall materiality of approximately $683,000 and $474,000, respectively, using earnings before interest, tax, depreciation and amortisation (EBITDA) as the benchmark in setting materiality. ● We applied this threshold, together with qualitative considerations, to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial report as a whole. ● We chose EBITDA because, in our view, it is the benchmark against which the performance of Elanor and EIF Group are most commonly measured. ● Our audit focused on where Elanor and the EIF Group made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events. ● The audit team consisted of individuals with the appropriate skills and competencies needed for the audits, and this included industry expertise in real estate, as well as valuation and tax professionals. ● Amongst other relevant topics, we communicated the following key audit matters to the Audit and Risk Committee: ○ Valuation of Property, plant and equipment and investment property ○ Carrying value of equity accounted investments ● These are further described in the Key audit matters section of our report. 127

Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial reports for the current period and were determined separately for Elanor and the EIF Group. The key audit matters were addressed in the context of our audit of the financial reports as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context. Key audit matter How our audit addressed the key audit matter Valuation of Property, plant and equipment and Investment property (Refer to notes 7, 8 and 30) Elanor’s property portfolio consists primarily of hotel and wildlife park properties classified as property, plant and equipment (PPE) and retail and commercial investment property as at 30 June 2022. EIF Group’s property portfolio comprises the same assets, however all are classified as investment property in its financial report. The fair value of PPE and investment property was determined using the valuation methodologies outlined in notes 7 and 8. This was a key audit matter because of the: ● relative size of the PPE and investment property to net assets and the related valuation movements, ● inherent subjectivity in the determination of fair value estimates; and ● the sensitivity of fair values to changes in key assumptions. Our procedures included, amongst others: ● Obtaining an understanding of Elanor and EIF Group’s processes and controls for determining the valuation of PPE and investment property. ● Considering the design and implementation of controls relevant to the valuation of PPE and investment property. ● Agreeing the adopted fair values of all properties to external valuation reports or internal valuation models and assessing the scope, competency and capability of the relevant external or internal valuer. ● For hotel and wildlife park properties engaging PwC Valuation experts to assess the appropriateness of the valuation methodologies utilised and the reasonableness of the significant assumptions adopted in the valuations, and testing selected inputs. ● For investment property held by Elanor, assessing the appropriateness of significant assumptions with reference to market data where possible and testing a sample of inputs. ● Testing the mathematical accuracy of a sample of the valuations. ● Considering the reasonableness of the disclosures made in light of the requirements of Australian Accounting Standards. 128

Elanor Investors GroupAnnual Report 2022 Key audit matter How our audit addressed the key audit matter Carrying value of equity accounted investments (Refer to notes 9 and 30) Elanor and EIF Group’s Equity Accounted Investments (EAI) mainly consist of investments in the funds Elanor manages. EAI are accounted for in accordance with the accounting policy included in note 9. The carrying value of the EAI is assessed for impairment when indicators of impairment are identified. The assets are tested for impairment by comparing their recoverable amount (higher of value in use and fair value less costs to sell) with their carrying amount. The determination of the recoverable amount involves the use of estimates. This was a key audit matter because of the: ● relative size of the EAI to net assets and the related profit from EAI for the year, and ● inherent subjectivity of the key assumptions that underpin the recoverable amount of EAI. As it relates to assessing the recoverable amount of EAI, our procedures included, amongst others: ● Obtaining an understanding of Elanor and EIF Group’s process over the determination of the carrying value of its EAI, and whether or not indicators of impairment exist for which the recoverable amount is required to be assessed; ● Assessing, together with our internal valuation experts, the appropriateness of the methodology and significant assumptions in Elanor and EIF Group’s determination of the recoverable amount of EAI where indicators of impairment have been identified; and ● Testing the mathematical accuracy of the recoverable amount calculations. Other information The directors of Elanor Investors Limited and the directors of Elanor Funds Management Limited, Responsible Entity of the Registered Scheme (collectively referred to as the directors), are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2022, but does not include the financial reports and our auditor’s report thereon. Prior to the date of this auditor's report, the other information we obtained included the Directors' Report. We expect the remaining other information to be made available to us after the date of this auditor's report. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the other information not yet received, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors and use our professional judgement to determine the appropriate action to take. Responsibilities of the directors for the financial report The directors are responsible for the preparation of the financial reports that give a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial reports that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial reports, the directors are responsible for assessing the ability of Elanor and the EIF Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate Elanor and the EIF Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial reports as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial reports. A further description of our responsibilities for the audit of the financial reports is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in pages 20 to 29 of the directors’ report for the year ended 30 June 2022. In our opinion, the remuneration report of Elanor Investors Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers N R McConnell Partner Sydney 23 August 2022 Responsibilities of the directors for the financial report The directors are responsible for the preparation of the financial reports that give a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial reports that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial reports, the directors are responsible for assessing the ability of Elanor and the EIF Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate Elanor and the EIF Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial reports as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial reports. A further description of our responsibilities for the audit of the financial reports is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included inpages31 to 40of the directors’report for the year ended 30 June 2022. In our opinion, the remuneration report ofElanor Investors Limited for the year ended 30 June 2022complieswithsection 300A of the Corporations Act 2001.ResponsibilitiesThe directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers N R McConnell PartnerSydney 23 August 2022 129

Responsibilities of the directors for the financial report The directors are responsible for the preparation of the financial reports that give a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial reports that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial reports, the directors are responsible for assessing the ability of Elanor and the EIF Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate Elanor and the EIF Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial reports as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial reports. A further description of our responsibilities for the audit of the financial reports is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in pages 20 to 29 of the directors’ report for the year ended 30 June 2022. In our opinion, the remuneration report of Elanor Investors Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers N R McConnell Partner Sydney 23 August 2022 Responsibilities of the directors for the financial report The directors are responsible for the preparation of the financial reports that give a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial reports that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial reports, the directors are responsible for assessing the ability of Elanor and the EIF Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate Elanor and the EIF Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial reports as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial reports. A further description of our responsibilities for the audit of the financial reports is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included inpages31 to 40of the directors’report for the year ended 30 June 2022. In our opinion, the remuneration report ofElanor Investors Limited for the year ended 30 June 2022complieswithsection 300A of the Corporations Act 2001.ResponsibilitiesThe directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers N R McConnell PartnerSydney 23 August 2022 Corporate Governance

The Board of Directors of Elanor Investors Group (Group) have approved the Group’s Corporate Governance
Statement as at 30 June 2022. In accordance with ASX Listing Rule 4.10.3, the Group’s Corporate Governance
Statement can be found on its website at: www.elanorinvestors.com/sustainability/governance

The Board of Directors is responsible for the overall corporate governance of the Group, including establishing
and monitoring key strategy and performance goals. The Board monitors the operational and financial position and
performance of the Group, and oversees its business strategy, including approving the Group’s strategic goals.

The Board seeks to ensure that the Group is properly managed to protect and enhance securityholder interests,
and that the Group, its Directors, officers and personnel operate in an appropriate environment of corporate
governance.

Accordingly, the Board has created a framework for managing the Group, including Board and Committee Charters
and various corporate governance policies designed to promote the responsible management and conduct of the
Group.

130

Elanor Investors GroupAnnual Report 2022Securityholder Analysis
As at 16 August 2022

Stapled Securities
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the Group.
The Group’s securities are traded on the Australian Securities Exchange (ASX: ENN), having listed on 11 July
2014. The units of the Trust and shares of the Company cannot be traded separately and can only be traded as
stapled securities. In accordance with the ASX’s requirements for stapled securities, the ASX reserves the right
(but without limiting its absolute discretion) to remove the Company or the Trust or both from the ASX Official List if
any of the units and the shares cease to be stapled together or any equity securities issued by the Company or the
Trust which are not stapled to equivalent securities in the other entity.

Top 20 Securityholders

Number

Securityholder

HSBC Custody Nominees (Australia) Limited

Rockworth Investment Holdings Pte Ltd

J P Morgan Nominees Australia Pty Limited

CPU Share Plans Pty Ltd

Perpetual Corporate Trust Ltd

H & G Limited

BNP Paribas Nominees Pty Ltd

Mr Glenn Willis

Citicorp Nominees Pty Limited

Armada Investments Pty Ltd

CPU Share Plans Pty Ltd

BNP Paribas Noms Pty Ltd

Danissa Pty Ltd

National Nominees Limited

Scanlon Capital Investments Pty Ltd

BNP Paribas Noms Pty Ltd HUB24 Custodial Serv Ltd

Danissa Pty Ltd

Alady Super Pty Ltd

Citano Pty Ltd

Total

Balance of Register

Grand Total

No. of
Securities

18,845,568

15.29

17,932,967

14.55

7,831,625

4,385,431

4,159,930

3,550,122

3,237,760

2,858,244

2,430,528

2,295,605

1,336,940

1,161,136

880,705

824,591

722,500

589,727

568,091

550,000

545,795

533,839

6.35

3.56

3.38

2.88

2.63

2.32

1.97

1.86

1.08

0.94

0.71

0.67

0.59

0.48

0.46

0.45

0.44

0.43

75,241,104

61.05

48,011,660

38.95

123,252,764

100.00

131

Securityholder Analysis
16 August 2022

Range Report

Range

No. of Securities

No. of Holders

100,001 and over

10,001 to 100,000

5,001 to 10,000

1,001 to 5,000

1 to 1,000

Total

88,942,328

28,255,462

3,939,863

1,952,579

162,532

72.16

22.92

3.20

1.58

0.13

1,030

502

619

361

3.68

39.49

19.25

23.73

13.84

123,252,764

100.00

2,608

100.00

The total number of Securityholders with an unmarketable parcel of securities was 130.

Substantial Securityholders

Securityholder

Rockworth Investment Holdings Pte Ltd

Perpetual Limited

No. of Securities

17,932,967

14,877,096

14.71

12.30

Voting rights
On a poll, each Securityholder has, in relation to resolutions of the Trust, one vote for each dollar value of their
total units held in the Trust and in relation to resolutions of the Company, one vote for each share held in the
Company.

On-Market Buy-back

There is no current on-market buy-back program in place.

132

Elanor Investors GroupAnnual Report 2022Corporate Directory

Elanor Investors Group (ASX Code: ENN)
Elanor Investors Limited (ACN 169 308 187) and
Elanor Investment Fund (ARSN 169 450 926)
(Elanor Funds Management Limited (ACN 125 903 031)
is the Responsible Entity)

Level 38
259 George Street
Sydney NSW 2000
T: +61 2 9239 8400

Directors of the Responsible Entity and Elanor Investors Limited
Paul Bedbrook (Chair)
Glenn Willis (Managing Director and CEO)
Nigel Ampherlaw
Anthony (Tony) Fehon
Su Kiat Lim
Karyn Baylis

Company Secretary of the Responsible Entity and Elanor Investors Limited
Symon Simmons

Security Registry
Computershare Investor Services Pty Limited
Level 3
60 Carrington Street
Sydney NSW 2000

Auditors
PricewaterhouseCoopers
One International Towers
Watermans Quay
Barangaroo NSW 2000

Custodian
The Trust Company (Australia) Limited
Level 18
123 Pitt Street
Sydney NSW 2000

Website
www.elanorinvestors.com

133

Level 38, 259 George Street
Sydney NSW 2000
T: +61 2 9239 8400

elanorinvestors.com