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2023 ReportPeers and competitors of Elanor Investors Group:
Elanor Investors GroupInvestors Group
Annual Report
For the year ended 30 June 2023
19 Harris Street, Pyrmont, Sydney (NSW)
Meeting of Securityholders
The meeting of Securityholders will be held on Wednesday
25 October 2023 at 10:00am (Sydney time) at Level 1, Hart Room,
Amora Hotel Jamison, 11 Jamison 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 — 2023 Highlights
06 — Environmental, Social and Governance Achievements
08 — Message from the Chair
10 — CEO’s Message
12 — Financial Report
13 — Directors’ Report
49 — Auditor’s Independence Declaration
50 — Consolidated Financial Statements
57 — Notes to the Consolidated Financial Statements
132 — Directors’ Declaration
133 — Independent Auditor’s Report
138 — Corporate Governance
139 — Securityholder Analysis
141 — Corporate Directory
Financial Calendar
OCT
25 October 2023
Meeting of Securityholders
DEC
FEB
JUN
AUG
December 2023
Estimated interim distribution announcement
and securities trade ex-distribution
February 2024
Interim results announcement and
interim distribution payment
June 2024
Estimated final distribution announcement
and securities trade ex-distribution
August 2024
Full-year results announcement and
final distribution payment
SEP
September 2024
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).
3
2023 Highlights
Growing the value of the funds management platform
Strong growth in funds management EBITDA with material earnings accretion in FY24
from the Challenger transaction1.
Actual FY23
Proforma FY23
(Post Challenger Transaction)
$34.1m
Recurring Funds
Management Income
(excl. acq fees)
$17.1m
Funds Management
EBITDA
$12.5m
Core Earnings2
$20.9m
Proforma FY23
Core Earnings3
19% on FY22
16% on FY22
31% on FY22
67% on FY23 actual
9.13cps
FY23 Distribution
per security
$329m
Managed Fund equity
raised in FY23 relating
to FUM of $591m
$2.97bn
Group FUM
$6.2bn
Proforma Group
FUM4
32% on FY22
Well positioned
for FUM growth
9% on FY22
109% on FY23 actual
1. Elanor acquired Challenger’s commercial real estate funds management business on 7 July 2023
2. Core Earnings for the prior comparative period included transactional income of $5.2 million
3. Proforma Core Earnings for FY23 assuming the acquisition of Challenger’s commercial real estate business completed
on 1 July 2022 and generated incremental funds management EBITDA of $12m for the year ($8.4m after tax)
4. Post Challenger transaction which completed on 7 July 2023
4
Elanor Investors GroupAnnual Report 2023
Funds Under
Management
$6.2bn1
Retail
$2.6bn
Office
$2.4bn
Unlisted Retail Funds
Listed and Unlisted Office Funds
Hotels, Tourism & Leisure
Healthcare
Industrial
$0.6bn
Unlisted Hotel, Tourism
and Leisure Funds
$0.3bn
$0.3bn
Unlisted Healthcare Funds
Unlisted Industrial Funds
The Group’s investments are
located across Australia and
New Zealand
Assets
Hotels, Tourism & Leisure
WA
Commercial
Retail
Healthcare
Industrial
1. Post Challenger transaction which completed on 7 July 2023
Darwin
NT
SA
QLD
Brisbane
Auckland
Sydney
Canberra
Wellington
Adelaide
VIC
Melbourne
TAS
Hobart
5
5
Perth
NSW
Environmental,
Social and Governance
Achievements
We continue to make positive and impactful social
and environmental contributions to the communities
in which we operate, and more broadly.
Elanor’s ESG Committee is
responsible for, and oversees,
the Group’s ESG strategy.
Elanor’s 2023 ESG Report
summarises the Group’s
achievements during the
year and the direction for
our future sustainability
endeavours across our nine
areas of focus.
Environmental
Elanor has now measured energy usage and scope
1 & 2 carbon emissions across its diverse and growing
portfolio. In FY23 Elanor’s emissions intensity (using
the location-based approach and excluding purchased
carbon credits) was 33 kg-CO2e/m2, which was an
improvement on FY22 of 35 kg-CO2e/m2.
Elanor has incorporated climate change vulnerability
assessments into the due diligence process for asset
acquisitions. These important assessments look out
to 2050 highlighting risks and mitigation strategies in
relation to rising air temperatures, extreme rainfall, storm
activity, flooding, bushfire and sea level rise.
6
Elanor's investment
due diligence
process incorporates
comprehensive
climate change
vulnerability
assessments
Elanor Investors GroupAnnual Report 2023 Elanor continues
to donate over 1%
of core earnings
to 'for purpose'
organisations
Social
Elanor has strengthened its partnerships with The Smith
Family and FSHD Global Research Foundation during
the year. Elanor continues to donate over 1% of core
earnings to 'for purpose' organisations.
Elanor continues to enhance its employee engagement
programs (including the Personal Growth Review
program), wellness and mental health related initiatives,
and learning and development resources for its people.
Governance
Elanor recently lodged its Modern Slavery Statement
with the Australian Federal Government and further
enhanced its ESG Policy outlining how ESG risks and
opportunities are managed across the Group.
Elanor strives to do business ‘the right way’ and with
a robust ESG governance framework. Elanor recently
acquired three significant institutional investment
mandates, having satisfied extensive ESG due
diligence reviews.
7
7
Message 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 2023.
We saw more challenging market
conditions for the property sector
over the year. Nonetheless, the
Group has had another successful
year financially, and even more so
strategically. Financially, the Group
grew funds under management
by $250 million to $3.0 billion at
30 June 2023 and achieved Core
Earnings of $12.5 million or
10.15 cents per security. Given
the economic environment,
this was a solid result.
Strategically, we successfully
executed a key objective of the
Group, that is, to grow funds under
management through strategic
acquisitions, by completing the
Challenger real estate funds
management business acquisition
on 7 July 2023. The successful
completion of this ‘step-change’
transaction has grown the Group’s
funds under management to
$6.2 billion (a 128% increase
from $2.7 billion at 30 June 2022)
and positions the Group for
continued success.
Results
The results for the 2023 Financial
Year reflect the strength of the
Group’s funds management
platform. Funds management
income grew strongly over the year,
increasing 20% to $49.5 million,
with recurring funds management
revenues increasing by 19% to
$34.1 million. Growing recurring
management fees remains a major
focus of the Group.
The aggregate property valuations
of the Group’s managed fund
investments have proved resilient
in the prevailing market conditions,
decreasing by less than 0.7%
over the year on a like-for-like
basis. This result reflects improved
market rents and the strength of
the operating performance of the
assets, particularly in the Retail,
Healthcare and Hotel sectors.
Notwithstanding challenging
market conditions in the commercial
office sector, valuations of the
Group’s office portfolio reduced
by only 5.0%.
Elanor’s gearing of 31.7%,
combined with the available capital
from the realisation and recycling
of Elanor’s managed fund
co-investments, provides the Group
with significant capacity to continue
to grow funds under management.
Delivering Securityholder Value
In July 2023, we completed the
acquisition of Challenger Limited’s
(Challenger) Australian real estate
funds management business
for $37.7 million. Elanor issued
new securities to Challenger
representing 13.6% of the Group
as consideration for the acquisition.
As part of the transaction, Elanor
and Challenger also entered into
a strategic partnership whereby
Elanor has become Challenger’s
real estate funds management
partner in Australia and New
Zealand, with Fidante (Challenger’s
multi-affiliate funds management
business) now Elanor’s exclusive
distribution partner for its real
estate managed funds.
The acquisition delivers a
step-change in size and scale
for Elanor, increasing funds under
management to $6.2 billion with
the addition of two significant
institutional real estate mandates
in Challenger Life Company and
the Abu Dhabi Investment Council
(ADIC). The strategic partnership
with Fidante, Challenger’s market
leading capital raising platform,
further positions the Group for
continuing growth.
Further detail and commentary of
the 2023 Financial Year results and
specific achievements can be found
in the CEO’s Message that follows.
Funds Under Management
Following completion of the Challenger transaction
$6.2bn
8
Elanor Investors GroupAnnual Report 2023 Sustainability
Elanor continues to make
positive and impactful social and
environmental contributions to
the communities in which we
operate, and more broadly. The
Group’s Environmental, Social and
Governance (ESG) Management
Committee, chaired by the CEO, is
responsible for, and oversees, the
Group’s ESG strategy.
Elanor will shortly publish its 2023
ESG Report which summarises our
ESG achievements during the year
and sets the direction for our future
sustainability endeavours across
our nine areas of ESG focus.
Acknowledgements
The strength of the Group’s results
and the successful completion
of the Challenger transaction
is a testament to the capability
of Elanor’s funds management
platform, led by Elanor’s CEO and
senior executives. I thank them
for their dedication and energy in
continuing to execute the Group’s
key strategic objective, to become
the leading Australian real estate
funds management group known
for driving exceptional investment
returns for our capital partners.
On behalf of the Elanor Board,
I would like to thank our capital
partners and Securityholders for
your ongoing support this year.
I look forward to discussing the
business further at our Annual
General Meeting in Sydney on
25 October 2023.
Yours sincerely,
Paul Bedbrook
Independent Non-Executive
Director and Chair
Governance
The Board continues to strengthen
the Group’s corporate governance
structure and processes consistent
with Elanor’s growth, strategic intent
and operating activities. Recently,
the Group has appointed two new
Non-Executive Directors to the
Elanor Board, Victor Rodriguez in
July 2023 (as Challenger’s nominee
to the Board) and Ian Mackie as
an Independent Non-Executive
Director (and Chair-designate) in
August 2023.
Ian’s appointment follows my
notification to the Board of my
intention to retire as an Independent
Non-Executive Director and Chair
of Elanor at the end of 2023. It
has been rewarding and enjoyable
to have chaired Elanor Investors
Group since its ASX Listing in 2014.
Great to contribute and be part
of a successful real estate funds
management group, but now after
nine years, and with the recent
transformational transaction with
Challenger, the timing is right for
succession to a new Chair.
Mayfair Hotel, Adelaide, SA
9
CEO’s
Message
I am pleased to report
that over the year we
made significant progress
toward our mission for
the Group: to grow Elanor
into the leading real estate
funds management group
known for delivering
exceptional investment
returns and making positive
and impactful social and
environmental contributions
to our communities.
I am particularly pleased with the
performance of our managed
funds for our capital partners over
the year. In challenging market
conditions, valuations of the
Group’s comparable managed
funds assets decreased by less
than 0.7% on a like-for-like basis.
The Group achieved strong growth
in funds management EBITDA
in FY23 and is well positioned to
achieve material earnings accretion
in FY24 from the successful
completion of the acquisition of
Challenger Limited’s real estate
funds management business.
These achievements contribute
significant value to Elanor’s funds
management platform.
Key Results
• Core Earnings for the year
of $12.5 million (10.15 cents
per security)
• Distribution for the year of
9.13 cents per security
(90% payout ratio)
• Funds management income of
$49.5 million for the year (20%
increase on FY22); recurring
funds management income
increased 19% to $34.1 million
• Funds management
EBITDA increased by
16% to $17.1 million
10
Funds under management has
grown by 128% to $6.2 billion
since 30 June 2022 following the
acquisition of Challenger’s real
estate funds management business
on 7 July 2023.
• Strengthened recurring funds
management fees – increasing
annualised run-rate base
management fees to $40.7
million (from $23.6 million in
FY23)
• Step-change in size and
scale – increasing funds under
management from $3.0 billion
to $6.2 billion
• Positioning for growth – with
Challenger becoming Elanor’s
largest Securityholder (13.6%)
and Abu Dhabi Investment
Council holding 3%
• Exclusive distribution agreement
with Fidante combines Elanor’s
leading real estate funds
management platform with
Challenger’s best in class capital
raising capability
Combining Elanor’s real estate
funds management capability
with Challenger’s market
leading capital raising platform
delivers significant size and scale
benefits and positions us for further
strong growth.
Sustainability
Elanor’s mission is to become
the leading real estate funds
management business known for
delivering exceptional investment
returns for its capital partners whilst
making positive and impactful social
and environmental contributions
to the communities in which it
operates, and more broadly.
Funds Management
We are pleased with the
performance of the Group’s
managed fund investments during
a period of challenging market
conditions. The resilience of the
Group’s managed fund investments
and stability of asset valuations
reflect our risk first approach to real
estate investing and highly active
approach to asset management.
Our differentiated real estate funds
management capability positions
us well for further growth. We
believe that the prevailing economic
environment will present an
increasing number of deep value
investment opportunities.
Challenger Transaction
The acquisition of Challenger’s real
estate funds management business
is a milestone achievement for
Elanor Investors Group. Growing
funds under management through
strategic acquisitions is a key
objective of the Group.
The acquisition was completed
on 7 July 2023 and successfully
integrated into Elanor’s funds
management platform during
July 2023. The integration of
Challenger’s real estate business
into our funds management
platform has realised significant
transaction synergies for the
Group and underpins our forecast
incremental funds management
EBITDA of over $12 million in FY24.
The transaction delivers significant
Securityholder value through:
•
Material Earnings Accretion –
based on forecast incremental
FY24 funds management
EBITDA of $12 million,
reflecting a transaction
EBITDA multiple of ~3x
Elanor Investors GroupAnnual Report 2023 We are pleased with the Group’s
pipeline of high quality funds
management opportunities
emerging from the prevailing
investment environment. We
continue to pursue strategic
opportunities to grow funds under
management.
The Group is well positioned to
grow Securityholder value.
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 our commitment
to growing Elanor into the leading
Australian real estate funds
management group.
Yours sincerely,
Glenn Willis
Managing Director and
Chief Executive Officer
With a strong presence across
regional Australia, Elanor provides
a significant number of employment
opportunities for people in the
regions from both the ongoing
operation of our investments and
the delivery of value-add capital
expenditure projects at the assets.
We have now measured energy
usage and scope 1 and 2 carbon
emissions across our managed
fund portfolio. In FY23, Elanor’s
emissions intensity (using the
location-based approach and
excluding purchased carbon
credits) was 33 kg-CO2e/m2,
which was an improvement on
FY22 of 35 kg-CO2e/m2.
Elanor has incorporated climate
change vulnerability assessments
into the due diligence process for
all investment acquisitions. These
important assessments look out
to 2050 and highlight risks and
mitigation strategies in relation to
rising air temperatures, extreme
rainfall, storm activity, flooding,
bushfire and sea level rises.
Furthermore, during the year
we continued to drive initiatives
to strengthen collaboration with
the communities in which our
investments are located. In addition,
we are progressing initiatives to
improve energy efficiency across our
portfolio, including the installation
of rooftop renewable energy
generation at our retail shopping
centres. Sustainable procurement
initiatives at our hotels and leisure
parks also remains a key focus.
The Group’s strategic partnerships
with The Smith Family to support
disadvantaged youth and the
FSHD Foundation to support
treatment and medical research,
are fundamental to the Group’s
mission to make positive and
impactful social contributions
to our communities.
Capital Management
We remain focused on maintaining
conservative gearing for the
Group while retaining capacity
to pursue funds management
growth opportunities.
The Group has significant capital
management opportunities to
unlock material Securityholder
value through the realisation and
recycling of our co-investments.
Furthermore, we are focused on
executing strategic, ‘capital-lite’,
initiatives to grow ROE and EPS.
Outlook
The Group’s key strategic objective
remains unchanged: to deliver
strong investment returns for
Elanor’s capital partners and
grow Securityholder value.
The resilience of the Group’s
managed fund investments and
stability of asset valuations reflect
our risk first approach to real
estate investing and highly active
approach to asset management.
Funds Management
Income
Recurring Funds
Management Income
(excl. acq fees)
$49.5m
$34.1m
20% on FY22
19% on FY22
11
Financial
Report
For the year ended
30 June 2023
13 — Directors’ Report
49 — Auditor’s Independence Declaration
50 — Consolidated Statements of Profit or Loss
51 — Consolidated Statements of Comprehensive Income
52 — Consolidated Statements of Financial Position
54 — Consolidated Statements of Changes in Equity
56 — Consolidated Statements of Cash Flows
57 — Notes to the Consolidated Financial Statements
132 — Directors’ Declaration to Stapled Securityholders
133 — Independent Auditor’s Report
12
12
Elanor Investors GroupAnnual Report 2023 Directors’
Report
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
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
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
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
(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
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
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
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
(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
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
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
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
together with the consolidated financial report of Elanor Investors Group (Group, Consolidated Group or
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 2023 (year).
June 2023 (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
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
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
June 2023 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
June 2023 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
June 2023 (year).
Elanor) and the consolidated financial report of the Elanor Investment Fund (EIF Group) for the year ended 30
June 2023 (year).
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
June 2023 (year).
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
June 2023 (year).
June 2023 (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 consolidated financial report of the
including Elanor Investment Fund (Trust) and its controlled entities. The consolidated financial report of the
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
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 consolidated financial report of the
The annual financial report of Elanor Investors Group comprises the Company and its controlled entities,
EIF Group comprises Elanor Investment Fund and its controlled entities.
EIF Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The consolidated financial report of the
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 consolidated financial report of the
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 consolidated financial report of the
EIF Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The consolidated financial report of the
EIF Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The consolidated financial report of the
EIF Group comprises Elanor Investment Fund and its controlled entities.
including Elanor Investment Fund (Trust) and its controlled entities. The consolidated 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
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
EIF Group comprises Elanor Investment Fund and its controlled entities.
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
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
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
Elanor Investors Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered
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
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
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
office and principal place of business is Level 38, 259 George Street, Sydney NSW 2000. The Trust was
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.
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
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
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
2014.
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
2014.
registered as a managed investment scheme on 21 May 2014 and the Company was incorporated on 1 May
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
2014.
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
2014.
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
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
The units of the Trust and the shares of the Company are combined and issued as stapled securities in the
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.
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
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
Group. The Group's securities are traded on the Australian Securities Exchange (ASX: ENN). The units of 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
Although there is no ownership interest between the Trust and the Company, the Company is deemed to be
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
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
Trust and shares of the Company cannot be traded separately and can only be traded as stapled securities.
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.
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.
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.
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.
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.
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.
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
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
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
the parent entity of the Group under Australian Accounting Standards.
information for the Group is taken from the consolidated financial reports and notes.
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
The Directors' report is a combined Directors' report that covers both the Company and the Trust. The financial
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
information for the Group is taken from the consolidated financial reports and notes.
information for the Group is taken from the consolidated financial reports and notes.
1.
1.
information for the Group is taken from the consolidated financial reports and notes.
information for the Group is taken from the consolidated financial reports and notes.
1.
1.
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.
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:
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
The following persons have held office as Directors of the Responsible Entity and Company during the year
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
• Paul Bedbrook (Chair)
• Paul Bedbrook (Chair)
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:
• Paul Bedbrook (Chair)
• Glenn Willis (Managing Director and Chief Executive Officer)
• Glenn Willis (Managing Director and Chief Executive Officer)
and up to the date of this report:
• Paul Bedbrook (Chair)
• Paul Bedbrook (Chair)
and up to the date of this report:
• Paul Bedbrook (Chair)
• Glenn Willis (Managing Director and Chief Executive Officer)
• Paul Bedbrook (Chair)
• Nigel Ampherlaw
• Nigel Ampherlaw
• Glenn Willis (Managing Director and Chief Executive Officer)
• Paul Bedbrook (Chair)
• Glenn Willis (Managing Director and Chief Executive Officer)
• Paul Bedbrook (Chair)
• Glenn Willis (Managing Director and Chief Executive Officer)
• Nigel Ampherlaw
• Glenn Willis (Managing Director and Chief Executive Officer)
• Anthony Fehon
• Anthony Fehon
• Nigel Ampherlaw
• Glenn Willis (Managing Director and Chief Executive Officer)
• Nigel Ampherlaw
• Glenn Willis (Managing Director and Chief Executive Officer)
• Nigel Ampherlaw
• Anthony Fehon
• Nigel Ampherlaw
• Su Kiat Lim
• Su Kiat Lim
• Anthony Fehon
• Nigel Ampherlaw
• Anthony Fehon
• Nigel Ampherlaw
• Anthony Fehon
• Su Kiat Lim
• Anthony Fehon
• Karyn Baylis
• Karyn Baylis
• Su Kiat Lim
• Anthony Fehon
• Su Kiat Lim
• Anthony Fehon
• Su Kiat Lim
• Karyn Baylis
• Su Kiat Lim
• Victor Rodriguez (appointed on 7 July 2023)
• Victor Rodriguez (appointed on 7 July 2023)
• Karyn Baylis
• Su Kiat Lim
• Karyn Baylis
• Su Kiat Lim
• Karyn Baylis
• Victor Rodriguez (appointed on 7 July 2023)
• Karyn Baylis
• Victor Rodriguez (appointed on 7 July 2023)
• Karyn Baylis
• Victor Rodriguez (appointed on 7 July 2023)
• Karyn Baylis
• Victor Rodriguez (appointed on 7 July 2023)
• Victor Rodriguez (appointed on 7 July 2023)
• Victor Rodriguez (appointed on 7 July 2023)
• Victor Rodriguez (appointed on 7 July 2023)
2.
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.
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 real estate backed businesses.
investment in, and operation of, a portfolio of real estate assets and real estate backed businesses.
The principal activities of the Group are the management of investment funds and syndicates and the
The principal activities of the Group are the management of investment funds and syndicates and the
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 real estate backed 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 real estate backed 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 real estate backed 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 real estate backed businesses.
investment in, and operation of, a portfolio of real estate assets and real estate backed businesses.
3.
3.
investment in, and operation of, a portfolio of real estate assets and real estate backed businesses.
investment in, and operation of, a portfolio of real estate assets and real estate backed businesses.
3.
3.
3.
3.
Distributions relating to the year ended 30 June 2023 comprise:
3.
Distributions relating to the year ended 30 June 2023 comprise:
3.
Distributions relating to the year ended 30 June 2023 comprise:
3.
Distributions relating to the year ended 30 June 2023 comprise:
Distributions relating to the year ended 30 June 2023 comprise:
Distributions relating to the year ended 30 June 2023 comprise:
Distributions relating to the year ended 30 June 2023 comprise:
Distribution
Distribution
Distributions relating to the year ended 30 June 2023 comprise:
Distributions relating to the year ended 30 June 2023 comprise:
Distribution
Interim Distribution
Interim Distribution
Distribution
Distribution
Distribution
Interim Distribution
Amount paid (cents per stapled security)
Distribution
Amount paid (cents per stapled security)
Interim Distribution
Interim Distribution
Distribution
Interim Distribution
Amount paid (cents per stapled security)
Payment date
Distribution
Payment date
Interim Distribution
Amount paid (cents per stapled security)
Amount paid (cents per stapled security)
Interim Distribution
Amount paid (cents per stapled security)
Payment date
Interim Distribution
Final Distribution
Amount paid (cents per stapled security)
Final Distribution
Payment date
Payment date
Amount paid (cents per stapled security)
Payment date
Final Distribution
Amount paid (cents per stapled security)
Amount payable (cents per stapled security)
Payment date
Amount payable (cents per stapled security)
Final Distribution
Final Distribution
Payment date
Final Distribution
Amount payable (cents per stapled security)
Payment date
Payment date
Payment date
Final Distribution
Amount payable (cents per stapled security)
Amount payable (cents per stapled security)
Final Distribution
Amount payable (cents per stapled security)
Payment date
Final Distribution
Amount payable (cents per stapled security)
Payment date
Payment date
Amount payable (cents per stapled security)
Payment date
Amount payable (cents per stapled security)
Payment date
Payment date
Payment date
Year Ended 30 June 2023
Year Ended 30 June 2023
Year Ended 30 June 2023
Year Ended 30 June 2023
Year Ended 30 June 2023
Year Ended 30 June 2023
7.51
Year Ended 30 June 2023
7.51
Year Ended 30 June 2023
7.51
28 February 2023
Year Ended 30 June 2023
28 February 2023
7.51
7.51
7.51
28 February 2023
7.51
28 February 2023
28 February 2023
7.51
28 February 2023
7.51
1.62
28 February 2023
1.62
28 February 2023
1.62
28 February 2023
31 August 2023
31 August 2023
1.62
1.62
1.62
31 August 2023
1.62
31 August 2023
31 August 2023
1.62
31 August 2023
1.62
31 August 2023
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
31 August 2023
31 August 2023
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
13
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
The Final Distribution of 1.62 cents per stapled security brings distributions in respect of the year ended 30
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
1
1
June 2023 to 9.13 cents per stapled security (2022:13.48 cents).
1
1
1
1
1
1
Principal activities
Principal activities
Principal activities
Principal activities
Principal activities
Principal activities
Principal activities
Principal activities
Principal activities
Distributions
Distributions
Distributions
Distributions
Distributions
Distributions
Distributions
Distributions
Distributions
Directors
Directors
Directors
Directors
Directors
Directors
Directors
Directors
Directors
1
Directors' Report
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
Operating and financial review
Operating and financial review
Operating and financial review
4.
4.
4.
OVERVIEW AND STRATEGY
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
Elanor is a real estate funds management group with an investment focus on acquiring and unlocking value in
real estate assets that generate high quality income and strong capital growth. Elanor's highly active approach
real estate assets that generate high quality income and strong capital growth. Elanor's highly active approach
real estate assets that generate high quality income and strong capital growth. Elanor's highly active approach
to asset management is fundamental to delivering investment outperformance.
to asset management is fundamental to delivering investment outperformance.
to asset management is fundamental to delivering investment outperformance.
Elanor's key investment sectors of focus are the retail, commercial office, industrial, healthcare and the
Elanor's key investment sectors of focus are the retail, commercial office, industrial, healthcare and the
Elanor's key investment sectors of focus are the retail, commercial office, industrial, healthcare and the
accommodation hotels, tourism and leisure real estate sectors.
accommodation hotels, tourism and leisure real estate sectors.
accommodation hotels, tourism and leisure real estate sectors.
During the year, Elanor increased its funds under management from $2.7 billion to $3.0 billion. Following the
During the year, Elanor increased its funds under management from $2.7 billion to $3.0 billion. Following the
During the year, Elanor increased its funds under management from $2.7 billion to $3.0 billion. Following the
acquisition of the Challenger real estate business on 7 July 2023, the Group’s funds under management is
acquisition of the Challenger real estate business on 7 July 2023, the Group’s funds under management is
acquisition of the Challenger real estate business on 7 July 2023, the Group’s funds under management is
now $6.2 billion. The growth in funds under management has been supported by strong growth in the Group's
now $6.2 billion. The growth in funds under management has been supported by strong growth in the Group's
now $6.2 billion. The growth 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
institutional and private wholesale investors base (refer to page 16 for a table detailing the Group's funds
institutional and private wholesale investors base (refer to page 16 for a table detailing the Group's funds
under management and investments as at 30 June 2023).
under management and investments as at 30 June 2023).
under management and investments as at 30 June 2023).
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
In July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate funds
In July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate funds
In July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate funds
management business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger
management business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger
management business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger
also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds. On 3
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds. On 3
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds. On 3
August 2023 Elanor announced that the acquisition of Challenger’s Australian real estate funds management
August 2023 Elanor announced that the acquisition of Challenger’s Australian real estate funds management
August 2023 Elanor announced that the acquisition of Challenger’s Australian real estate funds management
business had been successfully integrated into Elanor’s funds management platform, including the full
business had been successfully integrated into Elanor’s funds management platform, including the full
business had been successfully integrated into Elanor’s funds management platform, including the full
realisation of cost savings that underpin forecast incremental funds management EBITDA of over $12 million
realisation of cost savings that underpin forecast incremental funds management EBITDA of over $12 million
realisation of cost savings that underpin forecast incremental funds management EBITDA of over $12 million
for the year ending 30 June 2024. The business has been acquired on an EBITDA multiple of approximately
for the year ending 30 June 2024. The business has been acquired on an EBITDA multiple of approximately
for the year ending 30 June 2024. The business has been acquired on an EBITDA multiple of approximately
3 times.
3 times.
3 times.
The acquisition delivers a step-change in size and scale for Elanor, increasing funds under management from
The acquisition delivers a step-change in size and scale for Elanor, increasing funds under management from
The acquisition delivers a step-change in size and scale for Elanor, increasing funds under management from
$3.0 billion to $6.2 billion with the addition of two significant institutional real estate mandates in Challenger
$3.0 billion to $6.2 billion with the addition of two significant institutional real estate mandates in Challenger
$3.0 billion to $6.2 billion with the addition of two significant institutional real estate mandates in Challenger
Life Company and the Abu Dhabi Investment Council (ADIC). The strategic partnership with Fidante,
Life Company and the Abu Dhabi Investment Council (ADIC). The strategic partnership with Fidante,
Life Company and the Abu Dhabi Investment Council (ADIC). The strategic partnership with Fidante,
Challenger’s market leading capital raising platform, further positions the Group for strong growth.
Challenger’s market leading capital raising platform, further positions the Group for strong growth.
Challenger’s market leading capital raising platform, further positions the Group for strong growth.
The acquisition was completed on 7 July 2023, with Elanor issuing 24.8 million ENN securities as
The acquisition was completed on 7 July 2023, with Elanor issuing 24.8 million ENN securities as
The acquisition was completed on 7 July 2023, with Elanor issuing 24.8 million ENN securities as
consideration, representing 16.6% of securities on issue at that time. Challenger has transferred 4.5 million
consideration, representing 16.6% of securities on issue at that time. Challenger has transferred 4.5 million
consideration, representing 16.6% of securities on issue at that time. Challenger has transferred 4.5 million
of the new securities in Elanor to ADIC, resulting in Challenger’s and ADIC’s holding in Elanor representing
of the new securities in Elanor to ADIC, resulting in Challenger’s and ADIC’s holding in Elanor representing
of the new securities in Elanor to ADIC, resulting in Challenger’s and ADIC’s holding in Elanor representing
approximately 13.6% and 3.0% of securities on issue, respectively. Elanor has also granted ADIC options to
approximately 13.6% and 3.0% of securities on issue, respectively. Elanor has also granted ADIC options to
approximately 13.6% and 3.0% of securities on issue, respectively. Elanor has also granted ADIC options to
acquire up to 7.5 million additional Elanor securities at exercise prices of between $2.25 to $2.75 per security,
acquire up to 7.5 million additional Elanor securities at exercise prices of between $2.25 to $2.75 per security,
acquire up to 7.5 million additional Elanor securities at exercise prices of between $2.25 to $2.75 per security,
with vesting milestones linked to ADIC committing a further $0.5 billion in AUM.
with vesting milestones linked to ADIC committing a further $0.5 billion in AUM.
with vesting milestones linked to ADIC committing a further $0.5 billion in AUM.
This acquisition is a milestone achievement for Elanor in the execution of its key strategic objective to become
This acquisition is a milestone achievement for Elanor in the execution of its key strategic objective to become
This acquisition is a milestone achievement for Elanor in the execution of its key strategic objective to become
the leading Australian real estate funds management group known for delivering exceptional investment
the leading Australian real estate funds management group known for delivering exceptional investment
the leading Australian real estate funds management group known for delivering exceptional investment
returns for its capital partners.
returns for its capital partners.
returns for its capital partners.
The completion of the Challenger transaction delivers significant Securityholder value through:
The completion of the Challenger transaction delivers significant Securityholder value through:
The completion of the Challenger transaction delivers significant Securityholder value through:
• Material Earnings Accretion; based on forecast incremental funds management EBITDA of $12 million
• Material Earnings Accretion; based on forecast incremental funds management EBITDA of $12 million
• Material Earnings Accretion; based on forecast incremental funds management EBITDA of $12 million
p.a.;
p.a.;
p.a.;
Size and Scale; the integration of Challenger’s real estate business into Elanor’s high calibre, scalable
Size and Scale; the integration of Challenger’s real estate business into Elanor’s high calibre, scalable
real estate funds management platform increases Elanor’s funds under management by more than 2
Size and Scale; the integration of Challenger’s real estate business into Elanor’s high calibre, scalable
real estate funds management platform increases Elanor’s funds under management by more than 2
times to $6.2 billion;
real estate funds management platform increases Elanor’s funds under management by more than 2
times to $6.2 billion;
times to $6.2 billion;
•
•
•
14
14
2
2
2
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
DIRECTORS' REPORT
4.
Operating and financial review (continued)
OVERVIEW AND STRATEGY (continued)
• Growth; the addition of two significant institutional capital partners in conjunction with exclusive capital
raising arrangements with Fidante, Challenger’s market leading funds management distribution
platform; and
•
Strategic Alignment; Challenger holds a 13.6% and ADIC holds a 3.0% interest in Elanor.
Funds Management Initiatives
In addition to the Challenger transaction, the significant funds management initiatives completed during the
year included:
•
•
•
•
•
•
•
•
•
the privatisation and delisting of the Elanor Retail Property Fund (ASX: ERF) (delivering ERF
Securityholders a 15% premium to the trading price immediately prior to the privatisation
announcement) and launch of the open-ended, unlisted, multi-sector Elanor Property Income Fund
(EPIF) with an initial portfolio value of $117 million;
the acquisition of the Tweed Mall shopping Centre by the Tweed Mall Mixed-use Real Estate Fund for
$87 million;
the recapitalisation of the $289 million Elanor Healthcare Real Estate Fund (EHREF) in December 2022
(providing a full liquidity event for investors) and establishment of a partnership with an Asian-based
institutional real estate investor to grow EHREF’s portfolio of core healthcare real estate assets;
the repositioning and refinancing of the Riverside Plaza shopping centre following execution of the
value-add strategy at the Centre – generating a valuation uplift of $49 million and a capital return to
investors of 52 cents per unit (reflecting an IRR of 45% since the Fund’s inception);
the acquisition of four hotels, Sanctuary Inn Tamworth (NSW), Chateau Yering Hotel (Victoria), Wildes
Boutique Hotel (NSW), and Leura Gardens Resort (NSW) by Elanor Hotel and Accommodation Fund
(EHAF) for a combined $67.3 million (Leura Gardens Resort settled on 28 July 2023). Post-acquisition
of the Leura Gardens Resort, EHAF has a diverse portfolio of 19 high investment quality
accommodation hotel assets with a portfolio value of approximately $470 million;
the acquisition by Elanor of the Country Place conference and events centre located in the Dandenong
Ranges (Victoria) in November 2022, for $6 million. The conference facility is being converted and
repositioned into a significant regional accommodation hotel suitable for EHAF, and has recently been
rebranded as Panorama Retreat and Resort;
acquisition of Riverton Forum shopping centre, a dominant convenience-based shopping centre
situated on a 6.3 hectare Perth metropolitan site by the newly established Riverton Forum Fund for
$98.8 million;
establishment of the Riverside Mixed Use Development Fund for a mixed-use development on a
strategic Queanbeyan CBD site. The development, expected to comprise 180 residential dwellings as
well as street activated retail, has an estimated total project cost of $67 million; and
addition of a new real estate funds management investment sector for the Group, with the
establishment of an industrial real estate investment capability.
Elanor's strong investment track record (average realised IRR of 21%) continues to drive demand from
wholesale and institutional investors for the Group's funds.
15
3
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
DIRECTORS' REPORT
Operating and financial review (continued)
Operating and financial review (continued)
4.
4.
MANAGED FUNDS AND INVESTMENT PORTFOLIO
MANAGED FUNDS AND INVESTMENT PORTFOLIO
Managed Funds
Managed Funds
The following table shows the Gross Asset Value of the Group’s Managed Funds, from which the Group
The following table shows the Gross Asset Value of the Group’s Managed Funds, from which the Group
generates funds management income.
generates funds management income.
Funds
Funds
Retail Real Estate
Retail Real Estate
Elanor Property Income Fund
Elanor Property Income Fund
Waverley Gardens Fund
Waverley Gardens Fund
Clifford Gardens Fund
Clifford Gardens Fund
Warrawong Plaza Fund
Warrawong Plaza Fund
Fairfield Centre Syndicate
Fairfield Centre Syndicate
Riverside Plaza Syndicate
Riverside Plaza Syndicate
Belconnen Markets Syndicate
Belconnen Markets Syndicate
Hunters Plaza Syndicate
Hunters Plaza Syndicate
Bluewater Square Syndicate
Bluewater Square Syndicate
Commercial Office
Commercial Office
Elanor Commercial Property Fund
Elanor Commercial Property Fund
(ASX: ECF)
(ASX: ECF)
Harris Street Fund
Harris Street Fund
Burke Street Fund
Burke Street Fund
Stirling Street Syndicate
Stirling Street Syndicate
Healthcare Real Estate
Healthcare Real Estate
Elanor Healthcare Real Estate
Elanor Healthcare Real Estate
Fund
Fund
Hotels, Tourism and Leisure
Hotels, Tourism and Leisure
Elanor Hotel and Accommodation
Elanor Hotel and Accommodation
Fund
Fund
Elanor Wildlife Park Fund
Elanor Wildlife Park Fund
Additions since 30 June 2022
Additions since 30 June 2022
Tweed Mall Mixed-Use Real
Tweed Mall Mixed-Use Real
Estate Fund
Estate Fund
Elanor Hotel and Accommodation
Elanor Hotel and Accommodation
Fund
Fund
Elanor Hotel and Accommodation
Elanor Hotel and Accommodation
Fund
Fund
Elanor Hotel and Accommodation
Elanor Hotel and Accommodation
Fund
Fund
Riverton Forum Fund
Riverton Forum Fund
Location2
Location2
NSW (2), QLD (2), TAS (1)
NSW (2), QLD (2), TAS (1)
Mulgrave, VIC
Mulgrave, VIC
Toowoomba, QLD
Toowoomba, QLD
Warrawong, NSW
Warrawong, NSW
Fairfield, NSW
Fairfield, NSW
Queanbeyan, NSW
Queanbeyan, NSW
Canberra, ACT
Canberra, ACT
Auckland, NZ
Auckland, NZ
Redcliffe, QLD
Redcliffe, QLD
Type
Type
Sub-regional and neighbourhood
Sub-regional and neighbourhood
shopping centres
shopping centres
Sub-regional shopping centre
Sub-regional shopping centre
Neighbourhood shopping centre
Neighbourhood shopping centre
Sub-regional shopping centre
Sub-regional shopping centre
Neighbourhood shopping centre
Neighbourhood shopping centre
Neighbourhood shopping centre
Neighbourhood shopping centre
Retail development
Retail development
Sub-regional shopping centre
Sub-regional shopping centre
Neighbourhood shopping centre
Neighbourhood shopping centre
QLD (5), SA (1), WA (1), ACT (1)
QLD (5), SA (1), WA (1), ACT (1)
Commercial office buildings
Commercial office buildings
Sydney, NSW
Sydney, NSW
Woolloongabba, QLD
Woolloongabba, QLD
Perth, WA
Perth, WA
QLD (4), WA (2)
QLD (4), WA (2)
NSW (7), ACT (2), SA (4), TAS (1), WA (1)
NSW (7), ACT (2), SA (4), TAS (1), WA (1)
NSW (3)
NSW (3)
Tweed Heads, NSW
Tweed Heads, NSW
Tamworth, NSW
Tamworth, NSW
Yarra Valley, VIC
Yarra Valley, VIC
Kangaroo Valley, NSW
Kangaroo Valley, NSW
Riverton, WA
Riverton, WA
Commercial office building
Commercial office building
Commercial office building
Commercial office building
Commercial office building
Commercial office building
Commercial healthcare properties
Commercial healthcare properties
Luxury and regional
Luxury and regional
accommodation hotels
accommodation hotels
Leisure parks
Leisure parks
Sub-regional shopping centre
Sub-regional shopping centre
Regional accommodation hotel
Regional accommodation hotel
Regional accommodation hotel
Regional accommodation hotel
Regional accommodation hotel
Regional accommodation hotel
Sub-regional shopping centre
Sub-regional shopping centre
Sub-regional shopping centre
Sub-regional shopping centre
Disposals since 30 June 2022
Disposals since 30 June 2022
Elanor Property Income Fund
Elanor Property Income Fund
Tweed Heads, NSW
Tweed Heads, NSW
Gross Asset
Gross Asset
Value
Value
30 June 2023
30 June 2023
$'m
$'m
206.5
206.5
222.9
222.9
177.0
177.0
173.8
173.8
123.7
123.7
118.8
118.8
95.4
95.4
56.7
56.7
56.0
56.0
492.8
492.8
172.2
172.2
84.2
84.2
35.4
35.4
307.7
307.7
419.3
419.3
65.5
65.5
91.5
91.5
16.5
16.5
1(cid:27).(cid:27)
1(cid:27).(cid:27)
1(cid:21).(cid:19)
1(cid:21).(cid:19)
114.3
114.3
(89.2)
(89.2)
Total Managed Funds1
2,971.8
Total Managed Funds1
2,971.8
Note 1: The funds under management balance of $2,971.8 million represents the gross asset value of the Group's Managed Funds at 30
Note 1: The funds under management balance of $2,971.8 million represents the gross asset value of the Group's Managed Funds at 30
June 2023, including those funds that have been consolidated in the Group's financial statements. As at 30 June 2023, Elanor Hotel and
June 2023, including those funds that have been consolidated in the Group's financial statements. As at 30 June 2023, Elanor Hotel and
Accommodation Fund (EHAF), Elanor Wildlife Park Fund (EWPF), Stirling Street Syndicate (Stirling) and the Bluewater Square Syndicate
Accommodation Fund (EHAF), Elanor Wildlife Park Fund (EWPF), Stirling Street Syndicate (Stirling) and the Bluewater Square Syndicate
(Bluewater) have been consolidated in the Group’s financial statements.
(Bluewater) 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 2: The numbers included in brackets under the 'Location' column represents the number of assets within each state for the Group's
multi-asset funds.
multi-asset funds.
16
4
4
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
DIRECTORS' REPORT
4.
Operating and financial review (continued)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (continued)
Investment Portfolio
The following table shows the Group’s investment portfolio, from which the Group receives distribution income.
Carrying
Value
30 June 2023
$'m
3.8
1.9
Co-
Investments
Value
$'m
77.7
40.8
16.5
13.2
7.0
14.8
1.6
0.4
6.3
10.0
6.7
9.0
6.0
(4.1)
211.6
Asset
1834 Hospitality
Cougal Street
Location
Adelaide, SA
Southport, QLD
Type
Hotel management
Commercial office building
Note
2
Managed Fund
Co-Investments
Elanor Hotel and Accommodation
Fund
Elanor Commercial Property Fund
(ASX: ECF)
Elanor Property Income Fund
NSW (9), ACT (3), SA (4), TAS (1),
WA (1)
QLD (5), SA (1), WA (1), ACT (1)
Luxury and regional
accommodation hotels
Commercial office buildings
NSW (1), QLD (2), TAS (1)
Waverley Gardens Fund
Bluewater Square Syndicate
Elanor Wildlife Park Fund
Hunters Plaza Syndicate
Belconnen Markets Syndicate
Stirling Street Syndicate
Harris Street Fund
Mulgrave, VIC
Redcliffe, QLD
NSW (3)
Auckland, NZ
Canberra, ACT
Perth, WA
Sydney, NSW
Sub-regional and neighbourhood
shopping centres
Sub-regional shopping centre
Neighbourhood shopping centre
Leisure parks
Sub-regional shopping centre
Retail development
Commercial office building
Commercial office building
1,3
2
2
2
3
3
2
2
3
2
Additions since 30 June 2022
Elanor Healthcare Real Estate
Fund
QLD (4), WA (2)
Commercial healthcare properties
2
Riverton Forum Fund
Panorama Retreat & Resort
Riverton, WA
Dandenong Ranges, VIC
Sub-regional shopping centre
Regional accommodation hotel
Disposals since 30 June 2022
Harris Street Fund
Total Investment Portfolio
Sydney, NSW
Commercial office building
2
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 EHAF, EWPF, Stirling and the Bluewater have been consolidated in the financial statements. The amount
shown assumes that the investments were accounted for using the equity method.
17
5
Directors' Report
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
Operating and financial review (continued)
4.
4.
4.
4.
4.
4.
4.
4.
4.
4.
4.
MANAGED FUNDS AND INVESTMENT PORTFOLIO (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)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (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)
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
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
Update on the Group's Managed Funds
Update on the Group's Managed Funds
Update on the Group's Managed Funds
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
Commercial Office
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
The listed Elanor Commercial Property Fund (ASX: ECF) achieved its distribution guidance for the year,
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
reflecting the strength of the Fund’s high investment quality commercial office properties and tenants, and the
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
Fund’s prudent capital management and interest rate hedging. ECF has maintained high occupancy, well
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
above industry occupancy levels, achieved strong like for like income growth, and delivered significant leasing
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
impacted capital values, however this has been partially offset by positive upward movements in market rents.
success with positive leasing spreads. Upward movements in capitalisation and discount rates have negatively
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
impacted capital values, however this has been partially offset by positive upward movements in market rents.
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
leasing outcomes at both properties.
Execution of the investment strategy for the Stirling Street and Harris Street Funds is in progress, with positive
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
leasing outcomes at both properties.
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
The value of the Group’s commercial managed fund portfolio decreased by $60.3 million during the year to
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
decompression in the weighted average portfolio capitalisation rate.
$749.7 million as at 30 June 2023. The valuation decrease was primarily driven by a 50-basis-point
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
decompression in the weighted average portfolio capitalisation rate.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
The total funds under management for commercial office was $784.6 million as at 30 June 2023.
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
Healthcare Real Estate
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
The Elanor Healthcare Real Estate Fund (EHREF) continues to perform strongly. During the year EHREF was
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
successfully recapitalised, providing full liquidity to Fund Investors (reflecting an IRR of 12.2% since the Fund’s
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
to grow the Fund’s portfolio of core healthcare real estate assets.
inception). The Fund is now majority-owned by an Asian-based institutional real estate investor, with a strategy
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
to grow the Fund’s portfolio of core healthcare real estate assets.
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
characteristics and secure income of the sector.
Investor demand for high quality healthcare real estate continued to remain strong given the defensive
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
characteristics and secure income of the sector.
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
at 30 June 2023.
The value of the healthcare real estate portfolio increased by $4.6 million during the year to $291.9 million as
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
at 30 June 2023.
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
to $307.7 million as at 30 June 2023.
The total funds under management for healthcare real estate increased from $304.3 million as at 30 June 2022
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
to $307.7 million as at 30 June 2023.
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
Retail and Mixed-Use Real Estate
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
The Group's retail and mixed-use real estate managed funds continue to focus on investments in non-
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
experienced continued growth in customer visitation and trading activity over the year.
discretionary focused neighbourhood and sub-regional shopping centre assets. The retail portfolio
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
experienced continued growth in customer visitation and trading activity over the year.
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
The security buy-back offer and delisting of the Elanor Retail Property Fund (ASX: ERF) was completed in
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
November 2022, creating the Elanor Property Income Fund (EPIF). The delisting of ERF has delivered to the
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ERF investors a 15% premium to the trading price prior to the privatisation announcement. EPIF is an open-
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
estate assets.
ended, multi-sector, property fund generating reliable income from a portfolio of high investment quality real
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
estate assets.
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
During the year, the Group also established the Riverton Forum Fund in March 2023 and two new mixed-use
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
Use Development Fund (June 2023)) with wholesale private capital partners.
development funds (the Tweed Mall Mixed-Use Real Estate Fund (September 2022) and the Riverside Mixed-
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
Use Development Fund (June 2023)) with wholesale private capital partners.
18
6
6
6
6
6
6
6
6
6
6
6
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
DIRECTORS' REPORT
4.
Operating and financial review (continued)
MANAGED FUNDS AND INVESTMENT PORTFOLIO (continued)
The retail real estate portfolio increased in value by $216.6 million during the year to $1,297.5 million at 30
June 2023. The increase in the portfolio value reflects the acquisition of Riverton Forum and significant leasing
deals at Riverside Plaza and Warrawong Plaza.
Total retail real estate funds under management increased from $1,122.1 million at 30 June 2022 to $1,347.4
million as at 30 June 2023.
Hotels, Tourism and Leisure
The hotel accommodation sector continues to recover from the impacts of COVID-19. Hotel occupancy was
impacted by a decline in traveller confidence following consecutive interest rate rises and cost of living
pressures. However, average room rates continue to improve. Operating costs across the portfolio are being
revised in line with prevailing market conditions to maximise profitability.
The value of the hotels, tourism and leisure portfolio increased by $90.6 million during the year to $455.2
million at 30 June 2023 (of which $37.3 million was due to fair value movement on a like-for-like basis on the
existing portfolio and $53.3 million due to acquisitions in the portfolio). The growth in the portfolio valuation
includes the acquisitions of Wildes Boutique Hotel, Chateau Yering and Panorama Retreat, and value-add
projects at EHAF’s Barossa Weintal, Clare Country Club and Parklands Resort hotels. Growth in the valuation
of the portfolio also includes valuation improvements reflecting increased confidence in the growth of the
business-to-business segments (corporate, wholesale, groups and conference and events) and average room
rates at the Fund’s hotels.
Total funds under management for hotels, tourism and leisure increased from $394.6 million as at 30 June
2022 to $466.6 million as at 30 June 2023.
Elanor Wildlife Park Fund
Featherdale Wildlife Park earnings recovered strongly over the financial year as global travel restrictions eased
and international visitation increased. Earnings from Mogo Wildlife Park and Hunter Valley Wildlife Park have
normalised following COVID-19 related peaks, when restrictions were in place on interstate and overseas
travel.
The value of the wildlife park portfolio decreased by $4.4 million during the year to $60.9 million at 30 June
2023. The valuation decrease reflects normalised earnings at Hunter Valley and Mogo Wildlife Parks.
The total funds under management for Elanor Wildlife Park Fund was $65.5 million as at 30 June 2023.
Summary
Notwithstanding the prevailing market conditions, the Group's Managed Funds are well positioned to grow
earnings as market conditions improve.
The acquisition of Challenger’s real estate funds management business, on 7 July 2023, is a milestone
achievement for Elanor in the execution of its key strategic objective to become the leading Australian real
estate funds management group known for delivering exceptional investment returns for its capital partners.
The combination of Elanor’s real estate funds management capability with Challenger’s market leading capital
raising platform positions the Group for further strong growth.
19
7
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATING RESULTS
Statutory results
The Consolidated Group recorded a net statutory loss after tax of $30.7 million for the year ended 30 June
2023 (30 June 2022: $4.2 million loss).
At balance date, Elanor held a 30.60% (30 June 2022: 35.07%) interest in the Elanor Hotel Accommodation
Fund (EHAF), a 42.82% (30 June 2022: 42.82%) interest in Elanor Wildlife Park Fund (EWPF), a 42.27% (30
June 2022: 42.27%) interest in the Bluewater Square Syndicate (Bluewater) and 42.98% (30 June 2022:
42.98%) 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.
All other managed fund co-investments are accounted for using the equity method in the Group's consolidated
financial statements.
Revenue from operating activities for the Consolidated Group for the year ended 30 June 2023 was $139.1
million (30 June 2022: $92.2 million), including strong growth in the Group's funds management income as a
result of the execution of a range of funds management initiatives.
The Group's balance sheet as at year end reflects net assets of $352.3 million (30 June 2022: $341.3 million)
and cash on hand of $25.3 million (30 June 2022: $27.8 million).
The Group recorded a statutory net loss after tax for the year of $30.7 million (30 June 2022: $4.2 million loss).
Revenue from operating activities and rental income has increased significantly from the prior year. Total
expenses have increased with rises in borrowing costs as well as salary and employee benefit costs.
A summary of the Group and EIF Group's statutory results for the year is set out below:
Summary Financial Results
Net (loss) / profit after tax ($'000)
Net (loss) / profit attributable to ENN security holders ($'000)
Statutory earnings per stapled security (cents)
Statutory earnings per weighted average stapled security (cents)
Net tangible assets ($ per stapled security)
Gearing (net debt / total assets less cash) (%)
Adjusted Statement of Profit and Loss
ENN Group
30 June
2023
(30,674)
(19,707)
(15.88)
(16.35)
2.83
47.1
ENN Group
30 June
2022
(4,234)
966
0.79
0.82
2.79
44.9
EIF Group
30 June
2023
17,245
(2,730)
EIF Group
30 June
2022
18,337
12,799
2.69
45.3
2.56
40.6
The table below provides a reconciliation from the Group's statutory net loss after tax to the adjusted net loss
after tax, presented on the basis that EHAF, EWPF, Bluewater and Stirling are equity accounted, rather than
consolidated in accordance with Accounting Standards. Elanor considers that presenting the operating
performance of the Group on this adjusted basis gives a representation of the Group that is consistent with the
management and reporting of the Group. The results provided on this basis are presented as the 'ENN Group'.
20
8
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
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.
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2023
ENN Group
30 June
30 June
2023
30 June
$'000
30 June
2023
ENN Group
2023
$'000
2023
2023
$'000
(30,674)
30 June
$'000
(30,674)
$'000
$'000
2023
(30,674)
(30,674)
17,028
(30,674)
(30,674)
$'000
17,028
17,028
17,028
(5,631)
(30,674)
17,028
17,028
(5,631)
(5,631)
(5,631)
17,028
(19,277)
(5,631)
(5,631)
(19,277)
(19,277)
(19,277)
(5,631)
(19,277)
(19,277)
(19,277)
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2022
ENN Group
30 June
30 June
2022
30 June
$'000
30 June
2022
ENN Group
2022
$'000
2022
2022
$'000
(4,234)
30 June
$'000
(4,234)
$'000
$'000
2022
(4,234)
(4,234)
2,850
(4,234)
(4,234)
$'000
2,850
2,850
2,850
4,842
(4,234)
2,850
2,850
4,842
4,842
4,842
2,850
3,458
4,842
4,842
3,458
3,458
3,458
4,842
3,458
3,458
3,458
Statutory Net (Loss)/ Profit After Tax
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Statutory Net (Loss)/ Profit After Tax
Statutory Net (Loss)/ Profit After Tax
Statutory Net (Loss)/ Profit After Tax
Stirling and Bluewater
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Statutory Net (Loss)/ Profit After Tax
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Statutory Net (Loss)/ Profit After Tax
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Stirling and Bluewater
Stirling and Bluewater
Stirling and Bluewater
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
Statutory Net (Loss)/ Profit After Tax
and Bluewater using the equity method
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Stirling and Bluewater
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Stirling and Bluewater
Adjustment to remove the impact of the consolidated statutory results of EHAF, EWPF,
and Bluewater using the equity method
Adjusted Net (Loss)/ Profit After Tax
and Bluewater using the equity method
and Bluewater using the equity method
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Stirling and Bluewater
Adjusted Net (Loss)/ Profit After Tax
and Bluewater using the equity method
and Bluewater using the equity method
Adjusted Net (Loss)/ Profit After Tax
Adjusted Net (Loss)/ Profit After Tax
Adjustment to include the impact of recognising the investments in EHAF, EWPF, Stirling
Adjusted Net (Loss)/ Profit After Tax
Adjusted Net (Loss)/ Profit After Tax
and Bluewater using the equity method
Set out below is a build up by component of the adjusted net loss after tax.
Set out below is a build up by component of the adjusted net loss after tax.
Adjusted Net (Loss)/ Profit After Tax
Set out below is a build up by component of the adjusted net loss after tax.
Set out below is a build up by component of the adjusted net loss after tax.
Set out below is a build up by component of the adjusted net loss after tax.
Set out below is a build up by component of the adjusted net loss after tax.
Set out below is a build up by component of the adjusted net loss after tax.
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2023
ENN Group
30 June
30 June
2023
30 June
$'000
30 June
2023
ENN Group
2023
$'000
2023
49,481
2023
$'000
30 June
$'000
49,481
$'000
(13,025)
$'000
49,481
2023
49,481
309
(13,025)
49,481
49,481
(13,025)
$'000
(13,025)
309
(45,459)
309
(13,025)
309
(13,025)
49,481
(45,459)
309
(45,459)
(8,694)
309
(45,459)
(13,025)
(8,694)
(45,459)
(927)
(45,459)
(8,694)
309
(8,694)
(927)
(3,515)
(927)
(8,694)
(45,459)
(8,694)
(927)
(3,515)
(927)
(927)
(3,515)
(13,136)
(3,515)
(8,694)
(13,136)
(3,515)
(936)
(3,515)
(927)
(13,136)
(13,136)
(936)
1,150
(936)
(13,136)
(3,515)
(13,136)
(936)
1,150
(936)
847
(936)
1,150
1,150
(13,136)
847
1,150
(7,641)
1,150
847
(936)
847
(7,641)
847
847
(7,641)
1,150
(19,716)
(7,641)
(7,641)
(19,716)
(7,641)
439
847
(19,716)
(19,716)
439
(19,716)
(7,641)
439
(19,277)
(19,716)
439
(19,277)
439
439
(19,277)
(19,716)
(19,277)
(19,277)
439
(19,277)
(19,277)
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2022
ENN Group
30 June
30 June
2022
30 June
$'000
30 June
2022
ENN Group
2022
$'000
2022
41,315
Funds management income
2022
$'000
30 June
$'000
41,315
Funds management income
$'000
6,624
Share of (loss) / profit from equity accounted investments
$'000
Funds management income
41,315
2022
41,315
Funds management income
1,626
6,624
Share of (loss) / profit from equity accounted investments
Revenue from investment portfolio
Funds management income
41,315
Funds management income
41,315
6,624
Share of (loss) / profit from equity accounted investments
$'000
6,624
Share of (loss) / profit from equity accounted investments
1,626
Revenue from investment portfolio
(33,355)
Operating expenses
1,626
6,624
Share of (loss) / profit from equity accounted investments
Revenue from investment portfolio
1,626
6,624
Share of (loss) / profit from equity accounted investments
Revenue from investment portfolio
41,315
Funds management income
(33,355)
Operating expenses
1,626
Revenue from investment portfolio
(33,355)
Operating expenses
16,210
EBITDA
1,626
Revenue from investment portfolio
(33,355)
Operating expenses
6,624
Share of (loss) / profit from equity accounted investments
16,210
EBITDA
(33,355)
Operating expenses
(3,855)
Amortisation of contract asset
(33,355)
Operating expenses
16,210
EBITDA
1,626
Revenue from investment portfolio
16,210
EBITDA
(3,855)
Amortisation of contract asset
(3,613)
Depreciation and amortisation
(3,855)
Amortisation of contract asset
16,210
EBITDA
(33,355)
Operating expenses
16,210
EBITDA
(3,855)
Amortisation of contract asset
(3,613)
Depreciation and amortisation
(3,855)
Amortisation of contract asset
(3,855)
Amortisation of contract asset
(3,613)
Depreciation and amortisation
8,742
EBIT
(3,613)
Depreciation and amortisation
16,210
EBITDA
8,742
EBIT
(3,613)
Depreciation and amortisation
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
(3,613)
Depreciation and amortisation
(3,855)
Amortisation of contract asset
8,742
EBIT
8,742
EBIT
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
5,120
Gain on sale of investments
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
8,742
EBIT
(3,613)
Depreciation and amortisation
8,742
EBIT
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
5,120
Gain on sale of investments
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
1,039
Interest income
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
5,120
Gain on sale of investments
5,120
Gain on sale of investments
8,742
EBIT
1,039
Interest income
5,120
Gain on sale of investments
(5,966)
Interest expense
5,120
Gain on sale of investments
1,039
Interest income
(6,094)
Fair value loss on revaluation of PP&E, investment property and financial liabilities
1,039
Interest income
(5,966)
Interest expense
1,039
Interest income
1,039
Interest income
(5,966)
Interest expense
5,120
Gain on sale of investments
2,841
Net profit / (loss) before income tax expense
(5,966)
Interest expense
(5,966)
Interest expense
2,841
Net profit / (loss) before income tax expense
(5,966)
Interest expense
617
Income tax benefit
1,039
Interest income
2,841
Net profit / (loss) before income tax expense
2,841
Net profit / (loss) before income tax expense
617
Income tax benefit
2,841
Net profit / (loss) before income tax expense
(5,966)
Interest expense
617
Income tax benefit
3,458
Adjusted net (loss) / profit after income tax
2,841
Net profit / (loss) before income tax expense
617
Income tax benefit
3,458
Adjusted net (loss) / profit after income tax
617
Income tax benefit
617
Income tax benefit
3,458
Adjusted net (loss) / profit after income tax
2,841
Net profit / (loss) before income tax expense
3,458
Adjusted net (loss) / profit after income tax
3,458
Adjusted net (loss) / profit after income tax
Core Earnings
617
Income tax benefit
3,458
Adjusted net (loss) / profit after income tax
Core Earnings
Core Earnings
Adjusted net (loss) / profit after income tax
3,458
Core Earnings
Core Earnings
Core Earnings
Core Earnings represents an estimate of the underlying recurring cash earnings of the Group. Core Earnings
Core Earnings represents an estimate of the underlying recurring cash earnings of the Group. Core Earnings
Core Earnings
Core Earnings represents an estimate of the underlying recurring cash earnings of the Group. Core Earnings
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
Core Earnings represents an estimate of the underlying recurring cash earnings of the Group. Core Earnings
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
is used by the Board to make strategic decisions and as a guide to assessing appropriate distribution
is used by the Board to make strategic decisions and as a guide to assessing appropriate distribution
declarations.
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
is used by the Board to make strategic decisions and as a guide to assessing appropriate distribution
declarations.
declarations.
declarations.
is used by the Board to make strategic decisions and as a guide to assessing appropriate distribution
declarations.
declarations.
A summary of the Group Core Earnings' results for the year is set out below:
A summary of the Group Core Earnings' results for the year is set out below:
declarations.
A summary of the Group Core Earnings' results for the year is set out below:
A summary of the Group Core Earnings' results for the year is set out below:
A summary of the Group Core Earnings' results for the year is set out below:
A summary of the Group Core Earnings' results for the year is set out below:
A summary of the Group Core Earnings' results for the year is set out below:
Summary Financial Results
Summary Financial Results
Net (loss) / profit after tax ($'000)
Summary Financial Results
Summary Financial Results
Net (loss) / profit after tax ($'000)
Summary Financial Results
Adjusted net (loss) / profit after tax ($'000)
Summary Financial Results
Net (loss) / profit after tax ($'000)
Net (loss) / profit after tax ($'000)
Adjusted net (loss) / profit after tax ($'000)
Net (loss) / profit after tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Net (loss) / profit after tax ($'000)
Adjusted net (loss) / profit after tax ($'000)
Summary Financial Results
Adjusted net (loss) / profit after tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Adjusted net (loss) / profit after tax ($'000)
Core Earnings ($'000)
Adjusted net (loss) / profit after tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Net (loss) / profit after tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Core Earnings ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Distributions paid / payable to Securityholders ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Core Earnings ($'000)
Adjusted net (loss) / profit after tax ($'000)
Core Earnings ($'000)
Distributions paid / payable to Securityholders ($'000)
Core Earnings ($'000)
Core earnings per stapled security (cents)
Core Earnings ($'000)
Distributions paid / payable to Securityholders ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Distributions paid / payable to Securityholders ($'000)
Core earnings per stapled security (cents)
Core earnings per weighted average stapled security (cents)
Distributions paid / payable to Securityholders ($'000)
Distributions paid / payable to Securityholders ($'000)
Core earnings per stapled security (cents)
Core Earnings ($'000)
Core earnings per stapled security (cents)
Core earnings per weighted average stapled security (cents)
Distributions (cents per stapled security / unit)
Core earnings per stapled security (cents)
Core earnings per weighted average stapled security (cents)
Core earnings per stapled security (cents)
Core earnings per weighted average stapled security (cents)
Distributions paid / payable to Securityholders ($'000)
Distributions (cents per stapled security / unit)
Net tangible assets ($ per stapled security)
Core earnings per weighted average stapled security (cents)
Distributions (cents per stapled security / unit)
Core earnings per weighted average stapled security (cents)
Distributions (cents per stapled security / unit)
Core earnings per stapled security (cents)
Net tangible assets ($ per stapled security)
Distributions (cents per stapled security / unit)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Distributions (cents per stapled security / unit)
Net tangible assets ($ per stapled security)
Net tangible assets ($ per stapled security)
Core earnings per weighted average stapled security (cents)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Net tangible assets ($ per stapled security)
Gearing (net debt / total assets less cash) (%)
Net tangible assets ($ per stapled security)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Distributions (cents per stapled security / unit)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Gearing (net debt / total assets less cash) (%)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Gearing (net debt / total assets less cash) (%)
Net tangible assets ($ per stapled security)
Gearing (net debt / total assets less cash) (%)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Gearing (net debt / total assets less cash) (%)
Gearing (net debt / total assets less cash) (%)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Gearing (net debt / total assets less cash) (%)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2023
ENN Group
30 June
30 June
2023
30 June
(30,674)
30 June
2023
ENN Group
2023
(30,674)
2023
(19,277)
2023
(30,674)
30 June
(30,674)
(19,277)
(30,674)
(30,674)
(19,277)
2023
(19,277)
(19,277)
12,529
(19,277)
(30,674)
12,529
11,276
12,529
(19,277)
12,529
11,276
12,529
10.15
12,529
11,276
11,276
10.40
10.15
11,276
11,276
10.15
12,529
10.15
9.13
10.40
10.40
10.15
10.40
10.15
11,276
9.13
9.13
1.23
10.40
9.13
10.40
10.15
9.13
1.23
9.13
1.23
10.40
1.23
1.23
9.13
31.7
1.23
31.7
31.7
1.23
31.7
31.7
31.7
31.7
ENN Group
ENN Group
30 June
ENN Group
ENN Group
30 June
ENN Group
2022
ENN Group
30 June
30 June
2022
30 June
(4,234)
30 June
2022
ENN Group
2022
(4,234)
2022
3,458
2022
(4,234)
30 June
(4,234)
3,458
(4,234)
(4,234)
3,458
2022
3,458
3,458
18,259
3,458
(4,234)
18,259
16,433
18,259
3,458
18,259
16,433
18,259
14.98
18,259
16,433
16,433
15.56
14.98
16,433
16,433
14.98
18,259
14.98
13.48
15.56
15.56
14.98
15.56
14.98
16,433
13.48
13.48
1.40
15.56
13.48
15.56
14.98
13.48
1.40
13.48
1.40
15.56
1.40
1.40
13.48
30.2
1.40
30.2
30.2
1.40
30.2
30.2
30.2
30.2
21
9
9
9
9
9
9
9
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
The table below provides a reconciliation from adjusted net loss after tax to distributable Core Earnings:
Adjusted Net (Loss)/ Profit After Tax
Adjustments for items included in statutory profit / (loss)
Increase in equity accounted investments to reflect distributions received / receivable
Net (gain) / loss on disposals of equity accounted investments
Profit on Sale of EHAF
Profit on Sale of EHAF Retained
Building depreciation expense
Amortisation amounts
Corporate transaction costs
Tax and other non-cash adjustments
Core Earnings
ENN Group
30 June
2023
$'000
(19,277)
ENN Group
30 June
2022
$'000
3,458
22,112
(825)
–
–
31
5,263
5,315
(90)
12,529
1,281
(5,120)
11,031
(2,659)
101
5,357
–
4,810
18,259
Note
2
3
4
4
5
6
7
8
1
Note 1: Core Earnings represents the Directors view of underlying earnings from ongoing operating activities of the group level for the
year, 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 those 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 ($10.5 million) was included in Core Earnings in the prior year. Furthermore, an amount of $2.7 million of this profit was 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 $1.0 million, however only the depreciation expense on buildings of $0.03 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), Long Term Incentive (LTI) amounts, intangibles and borrowing costs.
These amounts have been added back for the purposes of calculating Core Earnings.
Note 7: During the year, the Group incurred non-recurring profit and loss charges in respect of corporate transaction costs, including in
respect of the acquisition of the Challenger real estate business. These amounts have been added back for the purposes of calculating
Core Earnings.
Note 8: 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 for non-cash items during the year.
22
10
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
Funds Management Income
Funds Management Income
Funds Management Income
The table below provides a breakdown of ENN Group's funds management income, including Group’s
The table below provides a breakdown of ENN Group's funds management income, including Group’s
consolidated funds.
The table below provides a breakdown of ENN Group's funds management income, including Group’s
consolidated funds.
consolidated funds.
ENN Group
ENN Group
30 June
ENN Group
30 June
2023
30 June
2023
$'000
2023
$'000
28,245
$'000
28,245
5,839
28,245
5,839
8,257
5,839
8,257
7,140
8,257
7,140
49,481
7,140
49,481
49,481
ENN Group
ENN Group
30 June
ENN Group
30 June
2022
30 June
2022
$'000
2022
$'000
23,610
Management fees and related cost recoveries
$'000
Management fees and related cost recoveries
23,610
5,076
Leasing and development management fees
23,610
Management fees and related cost recoveries
5,076
Leasing and development management fees
12,629
Acquisition fees and related cost recoveries
5,076
Leasing and development management fees
12,629
Acquisition fees and related cost recoveries
–
Performance fees
12,629
Acquisition fees and related cost recoveries
–
Performance fees
41,315
Total funds management income
Performance fees
–
41,315
Total funds management income
Note: Total funds management income includes $14.4 million (30 June 2022: $12.6 million) relating to the Group's consolidated funds
Total funds management income
41,315
Note: Total funds management income includes $14.4 million (30 June 2022: $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.
Note: Total funds management income includes $14.4 million (30 June 2022: $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.
(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 year as a result of the execution of a
The Group’s funds management income has grown strongly during the year as a result of the execution of a
range of funds management initiatives. Management fees generated from the Group’s hotel operating platform
The Group’s funds management income has grown strongly during the year as a result of the execution of a
range of funds management initiatives. Management fees generated from the Group’s hotel operating platform
are expected to grow as the demand for domestic tourism and leisure continues to strengthen. Leasing and
range of funds management initiatives. Management fees generated from the Group’s hotel operating platform
are expected to grow as the demand for domestic tourism and leisure continues to strengthen. Leasing and
development management fees continue to be a sustainable and growing income stream as a result of the
are expected to grow as the demand for domestic tourism and leisure continues to strengthen. 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
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.
breadth of development and repositioning projects across the Group’s Managed Funds in the Retail, Hotels
and Commercial sectors.
and Commercial sectors.
Distributions from Co-Investments
Distributions from Co-Investments
Distributions from Co-Investments
The Group measures the performance of its co-investments based on distributions received / receivable from
The Group measures the performance of its co-investments based on distributions received / receivable from
these co-investments. The table below provides a breakdown of the Group's distributions received / receivable
The Group measures the performance of its co-investments based on distributions received / receivable from
these co-investments. The table below provides a breakdown of the Group's distributions received / receivable
from its Managed Funds for the year ended 30 June 2023.
these co-investments. The table below provides a breakdown of the Group's distributions received / receivable
from its Managed Funds for the year ended 30 June 2023.
from its Managed Funds for the year ended 30 June 2023.
ENN Group
ENN Group
30 June
ENN Group
30 June
2022
30 June
2022
$'000
2022
$'000
3,737
Elanor Commercial Property Fund
$'000
Elanor Commercial Property Fund
3,737
1,344
Elanor Hotel Accommodation Fund
3,737
Elanor Commercial Property Fund
1,344
Elanor Hotel Accommodation Fund
1,438
Elanor Property Income Fund
1,344
Elanor Hotel Accommodation Fund
1,438
Elanor Property Income Fund
399
Waverley Gardens Syndicate
1,438
Elanor Property Income Fund
399
Waverley Gardens Syndicate
25
Harris Street Fund
399
Waverley Gardens Syndicate
25
Harris Street Fund
–
Elanor Healthcare Real Estate Fund
25
Harris Street Fund
–
Elanor Healthcare Real Estate Fund
–
Riverton Forum Fund
–
Elanor Healthcare Real Estate Fund
–
Riverton Forum Fund
195
Stirling Street Syndicate
–
Riverton Forum Fund
195
Stirling Street Syndicate
32
Hunters Plaza Syndicate
195
Stirling Street Syndicate
32
Hunters Plaza Syndicate
400
Bluewater Square Syndicate
32
Hunters Plaza Syndicate
400
Bluewater Square Syndicate
195
Elanor Wildlife Park Fund
400
Bluewater Square Syndicate
195
Elanor Wildlife Park Fund
140
Warrawong Plaza Syndicate
195
Elanor Wildlife Park Fund
140
Warrawong Plaza Syndicate
7,905
Total distributions received / receivable from Managed Funds
Warrawong Plaza Syndicate
140
7,905
Total distributions received / receivable from Managed Funds
Note: As the Group consolidates Stirling, EHAF and Bluewater into its consolidated financial results, the distributions receivable from
7,905
Total distributions received / receivable from Managed Funds
Note: As the Group consolidates Stirling, EHAF and Bluewater into its consolidated financial results, the distributions receivable from
these funds are eliminated on consolidation. The distributions receivable relating to the other funds that are equity accounted are
Note: As the Group consolidates Stirling, EHAF and Bluewater into its consolidated financial results, the distributions 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 reduce the equity accounted investments balance when the distribution
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 reduce the equity accounted investments balance when the distribution
is received.
contained within the equity accounted investments balance and reduce the equity accounted investments balance when the distribution
is received.
is received.
Total co-investment distributions received or receivable during the year was $9.1 million.
Total co-investment distributions received or receivable during the year was $9.1 million.
Total co-investment distributions received or receivable during the year was $9.1 million.
ENN Group
ENN Group
30 June
ENN Group
30 June
2023
30 June
2023
$'000
2023
$'000
3,737
$'000
3,737
3,125
3,737
3,125
694
3,125
694
643
694
643
342
643
342
263
342
263
171
263
171
75
171
75
37
75
37
–
37
–
–
–
–
–
–
–
9,087
–
9,087
9,087
23
11
11
11
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
Risk Management
Elanor’s continued growth and success depends on its ability to evaluate, measure and manage risk. Good
risk management practices will not only protect established value, but they will also assist in identifying and
capitalising on opportunities to create value. By effectively evaluating and managing risk, the Group provides
greater certainty and confidence for all Elanor Securityholders.
Elanor regularly assesses the key business risks and opportunities that could impact performance and the
ability to execute the Group’s strategy. Risks to the Group in the coming year primarily relate to the potential
earnings variability associated with general economic and market conditions, 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.
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
active management of its capital structure.
The current rising interest rate environment has the potential to impact earnings across both Elanor and its
managed funds through higher borrowing costs and through downward pressure on property valuations as a
result of softening valuation metrics and tightening debt and equity capital markets. The Group continues to
monitor and actively manage this risk, primarily through the adoption of appropriate interest rate hedging
strategies.
Climate-related risks and opportunities
As the owner and manager of a large portfolio of office, retail, hotel and leisure assets across Australia and
New Zealand, Elanor recognises the impact that climate change is having on the environment and the
importance of contributing to climate change mitigation initiatives.
As part of Elanor’s commitment to sustainability and responsible business practices, the Group continues to
progress disclosure on monitoring, measuring and reporting of climate related risks and opportunities in line
with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and in
anticipation of an Australian equivalent of the recently released International Sustainability Standards.
The following sections outline the measures Elanor has undertaken on climate change initiatives in line with
the TCFD framework covering governance, strategy, risk management and targets and metrics.
Governance
The Elanor Investors Group Board takes responsibility for overseeing the Group’s sustainability strategy and
policies, which includes managing climate change risks. The Group’s ESG Committee, operating under a
Charter, reports to the Board as a Management Committee. The ESG Committee plays a pivotal role in
assessing and overseeing the implementation of impactful ESG initiatives across the business, with a particular
focus on sustainability matters, including climate-related risks and opportunities.
24
12
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
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.
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
Operating and financial review (continued)
4.
4.
Operating and financial review (continued)
Operating and financial review (continued)
4.
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
manages material risks, including those related to climate change and sustainability, in accordance with
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
manages material risks, including those related to climate change and sustainability, in accordance with
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
Chaired by the CEO and Managing Director, the ESG Committee ensures the Group identifies, assesses, and
manages material risks, including those related to climate change and sustainability, in accordance with
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
manages material risks, including those related to climate change and sustainability, in accordance with
manages material risks, including those related to climate change and sustainability, in accordance with
manages material risks, including those related to climate change and sustainability, in accordance with
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
manages material risks, including those related to climate change and sustainability, in accordance with
manages material risks, including those related to climate change and sustainability, in accordance with
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
Elanor's Risk Management Framework. Working closely with Elanor’s Executive Management Committee and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
implementation of Elanor's ESG initiatives.
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
implementation of Elanor's ESG initiatives.
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
key business unit managers, the ESG Committee collaborates to achieve the successful formulation and
implementation of Elanor's ESG initiatives.
implementation of Elanor's ESG initiatives.
implementation of Elanor's ESG initiatives.
implementation of Elanor's ESG initiatives.
implementation of Elanor's ESG initiatives.
implementation of Elanor's ESG initiatives.
Strategy
Strategy
Strategy
Strategy
Strategy
Strategy
Strategy
Strategy
Elanor’s mission is to become the leading real estate funds management business known for delivering
Elanor’s mission is to become the leading real estate funds management business known for delivering
Elanor’s mission is to become the leading real estate funds management business known for delivering
exceptional investment returns for its capital partners whilst making positive and impactful social and
Elanor’s mission is to become the leading real estate funds management business known for delivering
Elanor’s mission is to become the leading real estate funds management business known for delivering
Elanor’s mission is to become the leading real estate funds management business known for delivering
exceptional investment returns for its capital partners whilst making positive and impactful social and
Elanor’s mission is to become the leading real estate funds management business known for delivering
Elanor’s mission is to become the leading real estate funds management business known for delivering
exceptional investment returns for its capital partners whilst making positive and impactful social and
environmental contributions to the communities in which it operates, and more broadly.
exceptional investment returns for its capital partners whilst making positive and impactful social and
exceptional investment returns for its capital partners whilst making positive and impactful social and
exceptional investment returns for its capital partners whilst making positive and impactful social and
environmental contributions to the communities in which it operates, and more broadly.
exceptional investment returns for its capital partners whilst making positive and impactful social and
exceptional investment returns for its capital partners whilst making positive and impactful social and
environmental contributions to the communities in which it operates, and more broadly.
environmental contributions to the communities in which it operates, and more broadly.
environmental contributions to the communities in which it operates, and more broadly.
environmental contributions to the communities in which it operates, and more broadly.
environmental contributions to the communities in which it operates, and more broadly.
environmental contributions to the communities in which it operates, and more broadly.
With a strong presence across regional Australia, Elanor provides a significant number of employment
With a strong presence across regional Australia, Elanor provides a significant number of employment
With a strong presence across regional Australia, Elanor provides a significant number of employment
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
With a strong presence across regional Australia, Elanor provides a significant number of employment
With a strong presence across regional Australia, Elanor provides a significant number of employment
With a strong presence across regional Australia, Elanor provides a significant number of employment
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
With a strong presence across regional Australia, Elanor provides a significant number of employment
With a strong presence across regional Australia, Elanor provides a significant number of employment
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
opportunities for people in the regions from both the ongoing operation of investments and through the delivery
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
considerations, representing both risks and opportunities across the business.
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
considerations, representing both risks and opportunities across the business.
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
of value-add capital expenditure projects. Climate-related issues are an integral part of Elanor’s strategic
considerations, representing both risks and opportunities across the business.
considerations, representing both risks and opportunities across the business.
considerations, representing both risks and opportunities across the business.
considerations, representing both risks and opportunities across the business.
considerations, representing both risks and opportunities across the business.
considerations, representing both risks and opportunities across the business.
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
Elanor’s inaugural ESG Annual report, released last year, set out the Group’s ESG strategy. Short, medium
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
energy and carbon management, ecological impacts, water management, waste impacts, climate change
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
energy and carbon management, ecological impacts, water management, waste impacts, climate change
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
and long-term goals have been identified against 5 key areas of focus in the environmental space, including
energy and carbon management, ecological impacts, water management, waste impacts, climate change
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
energy and carbon management, ecological impacts, water management, waste impacts, climate change
energy and carbon management, ecological impacts, water management, waste impacts, climate change
energy and carbon management, ecological impacts, water management, waste impacts, climate change
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
energy and carbon management, ecological impacts, water management, waste impacts, climate change
energy and carbon management, ecological impacts, water management, waste impacts, climate change
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
and ESG resourcing are priorities.
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
and ESG resourcing are priorities.
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
vulnerability. Currently, portfolio-wide energy and water usage data capture, carbon emission measurement
and ESG resourcing are priorities.
and ESG resourcing are priorities.
and ESG resourcing are priorities.
and ESG resourcing are priorities.
and ESG resourcing are priorities.
and ESG resourcing are priorities.
Risk management
Risk management
Risk management
Risk management
Risk management
Risk management
Risk management
Risk management
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
To ensure that climate risks are managed in a coordinated manner, sustainability and climate related risks are
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
integrated into Elanor’s Risk Management Framework and Risk Appetite Statement along with broader ESG,
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
monitoring and managing climate-related risk.
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
monitoring and managing climate-related risk.
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
business-related and macro-economic matters. The Elanor Board and ESG Committee are responsible for
monitoring and managing climate-related risk.
monitoring and managing climate-related risk.
monitoring and managing climate-related risk.
monitoring and managing climate-related risk.
monitoring and managing climate-related risk.
monitoring and managing climate-related risk.
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
To ensure the Group addresses climate-related issues more effectively, a climate change vulnerability analysis
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
scenario analysis to identify and assess climate-related risks and opportunities.
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
scenario analysis to identify and assess climate-related risks and opportunities.
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
process has been integrated into due diligence procedures for all new asset acquisitions. This process includes
scenario analysis to identify and assess climate-related risks and opportunities.
scenario analysis to identify and assess climate-related risks and opportunities.
scenario analysis to identify and assess climate-related risks and opportunities.
scenario analysis to identify and assess climate-related risks and opportunities.
scenario analysis to identify and assess climate-related risks and opportunities.
scenario analysis to identify and assess climate-related risks and opportunities.
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
In the coming year, this analysis will be extended to cover Elanor’s entire portfolio, evaluating climate-related
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
risks and opportunities thoroughly from both a physical risk and transition risk perspective.
Metrics and targets
Metrics and targets
Metrics and targets
Metrics and targets
Metrics and targets
Metrics and targets
Metrics and targets
Metrics and targets
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Elanor is committed to reducing its environmental impact on the planet.
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
Energy usage data and scope 1 and 2 carbon emissions has been collected for all Elanor-managed assets for
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
financial years 2022 and 2023. In the coming year, this data collection will be expanded to include the newly
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
emission targets for the Group’s portfolio.
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
emission targets for the Group’s portfolio.
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
acquired Challenger and ADIC portfolios. This data will help to establish energy consumption and carbon
emission targets for the Group’s portfolio.
emission targets for the Group’s portfolio.
emission targets for the Group’s portfolio.
emission targets for the Group’s portfolio.
emission targets for the Group’s portfolio.
emission targets for the Group’s portfolio.
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
minimise its carbon footprint. These efforts include:
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
minimise its carbon footprint. These efforts include:
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
Elanor is currently evaluating the impact of its business operations on the environment and exploring ways to
minimise its carbon footprint. These efforts include:
minimise its carbon footprint. These efforts include:
minimise its carbon footprint. These efforts include:
minimise its carbon footprint. These efforts include:
minimise its carbon footprint. These efforts include:
minimise its carbon footprint. These efforts include:
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
• Energy efficiency improvements across Elanor’s portfolio of real estate investments
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Operating and financial review (continued)
4.
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
• On-site renewable energy generation
• On-site renewable energy generation
• Power purchase agreements for renewable energy
• Power purchase agreements for renewable energy
Elanor's second ESG report, to be released later in 2023, will provide comprehensive details on the Group’s
Elanor's second ESG report, to be released later in 2023, will provide comprehensive details on the Group’s
energy and carbon management initiatives, achievements, and future plans across the portfolio.
energy and carbon management initiatives, achievements, and future plans across the portfolio.
By adhering to the TCFD recommendations and enhancing the Group’s focus on climate-related risks and
By adhering to the TCFD recommendations and enhancing the Group’s focus on climate-related risks and
opportunities, Elanor aims to foster sustainable and responsible business practices that benefit both the
opportunities, Elanor aims to foster sustainable and responsible business practices that benefit both the
Group’s stakeholders and the environment.
Group’s stakeholders and the environment.
Summary and Outlook
Summary and Outlook
The Group's key strategic objective remains unchanged: to deliver strong investment returns for Elanor’s
The Group's key strategic objective remains unchanged: to deliver strong investment returns for Elanor’s
capital partners and grow Securityholder value. Furthermore, the Group is acutely focused on growing funds
capital partners and grow Securityholder value. Furthermore, the Group is acutely focused on growing funds
management earnings and recycling co-investment capital to facilitate growth in a ‘capital-lite’ manner.
management earnings and recycling co-investment capital to facilitate growth in a ‘capital-lite’ manner.
The performance of Elanor’s managed portfolio has remained resilient in the face of an increasing interest rate
The performance of Elanor’s managed portfolio has remained resilient in the face of an increasing interest rate
environment. This reflects the high investment quality of the assets within the portfolio and Elanor’s highly
environment. This reflects the high investment quality of the assets within the portfolio and Elanor’s highly
active asset management approach in managing these assets. The Group continues to have a strong pipeline
active asset management approach in managing these assets. The Group continues to have a strong pipeline
of funds management opportunities and continues to actively pursue funds management opportunities in new
of funds management opportunities and continues to actively pursue funds management opportunities in new
real estate sectors in addition to pursuing strategic opportunities to deliver its growth objectives.
real estate sectors in addition to pursuing strategic opportunities to deliver its growth objectives.
The Group acquired Challenger’s Real Estate business on 7 July 2023 increasing the Group’s funds under
The Group acquired Challenger’s Real Estate business on 7 July 2023 increasing the Group’s funds under
management to $6.2 billion. The transaction delivers on several key strategic objectives of the business,
management to $6.2 billion. The transaction delivers on several key strategic objectives of the business,
delivering material earnings accretion and return on equity, and step-change growth in AUM with new strategic
delivering material earnings accretion and return on equity, and step-change growth in AUM with new strategic
capital partnerships.
capital partnerships.
Having completed the integration of the Challenger Real Estate business into Elanor’s funds management
Having completed the integration of the Challenger Real Estate business into Elanor’s funds management
platform and realised transaction cost savings, the acquisition delivers significant value to Elanor
platform and realised transaction cost savings, the acquisition delivers significant value to Elanor
Securityholders:
Securityholders:
• A 78% increase in forecast base management fee income for year ending 30 June 2024 with
• A 78% increase in forecast base management fee income for year ending 30 June 2024 with
incremental annualised base management fees of $16.1 million;
incremental annualised base management fees of $16.1 million;
• Forecast incremental EBITDA of over $12 million in FY24 (representing a transaction EBITDA multiple
• Forecast incremental EBITDA of over $12 million in FY24 (representing a transaction EBITDA multiple
of ~ 3x);
of ~ 3x);
• New institutional capital partners and Elanor Securityholders (Challenger 13.6% and Abu Dhabi
• New institutional capital partners and Elanor Securityholders (Challenger 13.6% and Abu Dhabi
Investment Council (“ADIC”) 3.0%);
Investment Council (“ADIC”) 3.0%);
• Grant of options to ADIC to acquire a further 7.5 million ENN securities at exercise prices of between
• Grant of options to ADIC to acquire a further 7.5 million ENN securities at exercise prices of between
$2.25 to $2.75 (options are linked to ADIC committing a further $0.5 billion in AUM); and
$2.25 to $2.75 (options are linked to ADIC committing a further $0.5 billion in AUM); and
• Exclusive capital raising agreement with Fidante to distribute Elanor’s real estate managed funds.
• Exclusive capital raising agreement with Fidante to distribute Elanor’s real estate managed funds.
The combination of Elanor’s real estate funds management capability with Challenger’s market leading capital
The combination of Elanor’s real estate funds management capability with Challenger’s market leading capital
raising platform positions the Group for further strong growth.
raising platform positions the Group for further strong growth.
26
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Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
DIRECTORS' REPORT
4.
Operating and financial review (continued)
REVIEW OF FINANCIAL AND OPERATIONAL RESULTS (continued)
This acquisition is a milestone achievement for Elanor as we execute on our key strategic objective to become
the leading Australian real estate funds management group known for delivering exceptional investment
returns for our capital partners.
5.
Interests in the Group
The movement in stapled securities of the Group during the year is set out below:
Stapled securities on issue at the beginning of the year
Stapled securities issued under the short term incentive scheme
Stapled securities exercised under the long term incentive scheme
Stapled securities on issue at the end of the year
Consolidated Consolidated
Group
30 June
2022
$'000
120,975
941
–
121,916
Group
30 June
2023
$'000
121,916
1,337
816
124,069
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ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
6.
Directors
Name
Paul
Bedbrook
Particulars
Independent Non-Executive Chairman
Member, Audit and Risk Committee
Member, Remuneration and Nomination Committee
Member, Transaction Approval Committee
Paul was appointed as a Director of both the Company and the Responsible Entity 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 was previously
the Chairman of Zurich Financial Services Australia and its Life, General and Investment
Companies.
Paul is a non-executive director of the National Blood Authority.
Former listed directorships in the last three years: Nil
Interest in stapled securities: 306,137
Qualifications: B.Sc, F FIN, FAICD
Glenn
Willis
Managing Director and Chief Executive Officer
Member, Transaction Approval Committee
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: Nil
Interest in stapled securities: 5,527,613
Qualifications: B.Bus (Econ & Fin)
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DIRECTORS' REPORT
6.
Directors (continued)
Name
Nigel
Ampherlaw
Particulars
Independent Non-Executive Director
Chairman, Audit and Risk Committee
Nigel was appointed as a Director of both the Company and the Responsible Entity 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: Nil
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
Chairman, Transaction Approval Committee
Tony was appointed as a Director of both the Company and the Responsible Entity 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 Accommodation
II Limited, enlighten Australia Pty Limited, BaaS Technology Limited, and numerous small
companies. He 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.
Former listed directorships in the last three years: Nil
Interest in stapled securities: 55,797
Qualifications: B. Com, FCA
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Directors' Report
DIRECTORS' REPORT
DIRECTORS' REPORT
6.
6.
Directors (continued)
Directors (continued)
Name
Name
Su Kiat
Su Kiat
Lim
Lim
Karyn
Karyn
Baylis
Baylis
Particulars
Particulars
Non-Executive Director
Non-Executive Director
Su Kiat was appointed as a Director of both Elanor Investors Limited and the Responsible
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
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.
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
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
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
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
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
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.
career in real estate as a Consultant in Retail Economics at Urbis.
Su Kiat is a non-executive Director of Aspen Group Holdings Ltd a diversified group listed on
Su Kiat is a non-executive Director of Aspen Group Holdings Ltd a diversified group listed on
the SGX.
the SGX.
Former listed directorships in the last three years: Nil
Former listed directorships in the last three years: Nil
Interest in stapled securities: Nil
Interest in stapled securities: Nil
Qualifications: B.Bus, PhD (Econ)
Qualifications: B.Bus, PhD (Econ)
Independent Non-Executive Director
Independent Non-Executive Director
Member, Remuneration and Nominations Committee
Member, Remuneration and Nominations Committee
Member, Environmental, Social & Governance Management Committee
Member, Environmental, Social & Governance Management Committee
Member, Work, Health & Safety Committee
Member, Work, Health & Safety Committee
Karyn was appointed as Director of both the Company and the Responsible Entity in November
Karyn was appointed as Director of both the Company and the Responsible Entity in November
2021. Karyn was most recently CEO of Jawun, a position she has held since 2009, and joined
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.
the Jawun Board in 2017. She retired from Jawun in January 2022.
Karyn has led a distinguished business career in Australia and internationally, having held a
range of senior management and C-suite executive roles in multinational businesses including
Karyn has led a distinguished business career in Australia and internationally, having held a
at Optus, Insurance Australia Group and Senior Vice President The Americas at Qantas
range of senior management and C-suite executive roles in multinational businesses including
Airways. In 2009 she was appointed CEO of Jawun and spent 12 years working with some of
at Optus, Insurance Australia Group and Senior Vice President The Americas at Qantas
the leading indigenous reform voices in the country along with outstanding organisations. She
Airways. In 2009 she was appointed CEO of Jawun and spent 12 years working with some of
retired from Jawun in January 2022.
the leading indigenous reform voices in the country along with outstanding organisations. She
retired from Jawun in January 2022.
Karyn has received a number of awards, notably a Member in the General Division of the
Order of Australia (AM) for significant service to the Indigenous community in the 2018
Karyn has received a number of awards, notably a Member in the General Division of the
Queen’s Birthday Honours and The Australian Financial Review and Westpac 100 Women of
Order of Australia (AM) for significant service to the Indigenous community in the 2018
Influence Award in Diversity in 2015. Karyn is also a current member of Chief Executive
Queen’s Birthday Honours and The Australian Financial Review and Westpac 100 Women of
Women (CEW) and Australian Institute of Company Directors (AICD).
Influence Award in Diversity in 2015. Karyn is also a current member of Chief Executive
Women (CEW) and Australian Institute of Company Directors (AICD).
Previous Board positions include CARE Australia, Cure Cancer, Grocon Holdings Pty Ltd and
NRMA Financial Management and Life Nominees.
Previous Board positions include CARE Australia, Cure Cancer, Grocon Holdings Pty Ltd and
NRMA Financial Management and Life Nominees.
Former listed directorships in the last three years: Nil
Former listed directorships in the last three years: Nil
Interest in stapled securities: 35,000
Interest in stapled securities: 35,000
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DIRECTORS' REPORT
DIRECTORS' REPORT
6.
6.
Directors (continued)
Directors (continued)
Name
Name
Victor
Su Kiat
Rodriguez
Lim
Karyn
Baylis
Particulars
Particulars
Non-Executive Director
Non-Executive Director
Victor was appointed a Director of both the Company and the Responsible Entity in July 2023.
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
Victor is currently Chief Executive, Funds Management of Challenger Limited (ASX:CFG)
private equity real estate investment management firm founded in 2017.
(Challenger), having been appointed to that role in August 2022, following five years as Head
of Fixed Income within the Challenger Investment Management business.
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
Victor has over 30 years’ investment management experience. Prior to joining Challenger,
Australia. In 2011 Su Kiat co-founded Rockworth Capital Partners, with direct real estate AUM
Victor was head of Asia Pacific Fixed Income at Aberdeen Asset Management based in
of circa $1bn by 2017. Prior to that, Su Kiat held key roles in investments management and
Singapore between 2014 to 2017. There he led a team of more than 30 investment
investment origination at Frasers Commercial Trust and ALLCO REIT. Su Kiat started his
professionals across the region. He was also a Regional Director overseeing the wider
career in real estate as a Consultant in Retail Economics at Urbis.
Aberdeen business.
Su Kiat is a non-executive Director of Aspen Group Holdings Ltd a diversified group listed on
Prior to relocating to Singapore, Victor led Aberdeen’s Australian Fixed Income business. Victor
the SGX.
also held various roles over 13 years at Credit Suisse Asset Management in Australia, including
Deputy Head of Fixed Income for three years up to 2009.
Former listed directorships in the last three years: Nil
Victor is a director of a number of Challenger Group entities.
Interest in stapled securities: Nil
Former listed directorships in the last three years: Nil.
Qualifications: B.Bus, PhD (Econ)
Interest in stapled securities: Nil.
Independent Non-Executive Director
Qualifications: B. Econ, GDip FINSIA
Member, Remuneration and Nominations Committee
Member, Environmental, Social & Governance Management Committee
Member, Work, Health & Safety Committee
Karyn was appointed as Director of both the Company and the Responsible Entity 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.
Karyn has led a distinguished business career in Australia and internationally, having held a
range of senior management and C-suite executive roles in multinational businesses including
at Optus, Insurance Australia Group and Senior Vice President The Americas at Qantas
Airways. In 2009 she was appointed CEO of Jawun and spent 12 years working with some of
the leading indigenous reform voices in the country along with outstanding organisations. She
retired from Jawun in January 2022.
Karyn has received a number of awards, notably a Member in the General Division of the
Order of Australia (AM) for significant service to the Indigenous community in the 2018
Queen’s Birthday Honours and The Australian Financial Review and Westpac 100 Women of
Influence Award in Diversity in 2015. Karyn is also a current member of Chief Executive
Women (CEW) and Australian Institute of Company Directors (AICD).
Previous Board positions include CARE Australia, Cure Cancer, Grocon Holdings Pty Ltd and
NRMA Financial Management and Life Nominees.
Former listed directorships in the last three years: Nil
Interest in stapled securities: 35,000
31
19
18
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
7.
Directors' relevant interests
Paul Bedbrook
Glenn Willis1
Nigel Ampherlaw
Anthony Fehon
Su Kiat Lim
Karyn Baylis
Victor Rodriguez
Stapled
securities at
1 July 2022
306,137
5,437,076
200,000
21,666
–
25,000
–
Net Movement
–
90,537
–
34,131
–
10,000
–
Stapled securities
at the date of this
report
306,137
5,527,613
200,000
55,797
–
35,000
–
1 Glenn Willis has an entitlement to an additional 5,000,000 securities under equity based executive incentive plans.
8.
Meetings of Directors
Paul Bedbrook
Glenn Willis
Nigel Ampherlaw
Anthony Fehon
Su Kiat Lim
Karyn Baylis
Elanor Board
(Responsible Entity &
the Company)
Audit & Risk
Committee
Remuneration and
Nominations
Committee
Eligible to
attend
14
14
14
14
14
14
Attended
14
14
13
13
13
14
Eligible to
attend
7
-
7
7
-
-
Attended
7
-
7
5
-
-
Eligible to
attend
8
-
-
8
-
8
Attended
8
-
-
8
-
8
During the year, the Board met 14 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 2023 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 Short Term Incentive Plans, 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).
32
20
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
9.
a)
Remuneration Report (continued)
Remuneration Policy and Approach
The Elanor Investors Group aims to attract, retain and motivate highly skilled people and therefore ensures
remuneration is competitive with prevailing employment market conditions and also provides sufficient
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
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
competitive, fair and reasonable.
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.
The Remuneration and Nomination Committee met 8 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
executives and the Directors.
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
(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.
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
motivating the Group's executives and the Directors.
Further information on the Remuneration and Nomination Committee's role and responsibilities can be viewed
at www.elanorinvestors.com.
b)
Key Management Personnel
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
major activities of the Group, directly or indirectly, including the directors (whether executive or otherwise).
The KMP of Elanor Investors Group for the year ended 30 June 2023 were:
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
33
21
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
9.
9.
9.
c)
c)
c)
Remuneration Report (continued)
Remuneration Report (continued)
Remuneration Report (continued)
Executive Remuneration Arrangements
Executive Remuneration Arrangements
Executive Remuneration Arrangements
The Group's executive remuneration framework has three components:
The Group's executive remuneration framework has three components:
The Group's executive remuneration framework has three components:
• Base pay, including superannuation;
• Base pay, including superannuation;
• Base pay, including superannuation;
• Short term incentives; and
• Short term incentives; and
• Short term incentives; and
Long term incentives.
•
Long term incentives.
•
Long term incentives.
•
Remuneration levels are considered annually through an assessment of each executive based on the
Remuneration levels are considered annually through an assessment of each executive based on the
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
individual's performance and achievements during the financial year and taking into account the overall
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.
performance of the Elanor Investors Group and prevailing remuneration rates of executives in similar positions.
performance of the Elanor Investors Group and prevailing remuneration rates of executives in similar positions.
Remuneration Structure
Remuneration Structure
Remuneration Structure
-
-
-
Base pay, including superannuation
Base pay, including superannuation
Base pay, including superannuation
Base pay is determined by reference to appropriate benchmark information, taking into account an individual's
Base pay is determined by reference to appropriate benchmark information, taking into account an individual's
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
responsibilities, performance, qualifications and experience. There are no guaranteed base pay increases in
responsibilities, performance, qualifications and experience. There are no guaranteed base pay increases in
any executive's contracts.
any executive's contracts.
any executive's contracts.
-
-
-
Short term incentive
Short term incentive
Short term incentive
The Group has an STI scheme (the STI Scheme), based on an annual profit share, which is available to all
The Group has an STI scheme (the STI Scheme), based on an annual profit share, which is available to all
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
staff. The STI Scheme is based on a profit share pool, to be calculated each year based on the Group's
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.
financial performance for the relevant year.
financial performance for the relevant year.
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
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
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
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
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
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
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
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,
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
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
provided that the employee remains with the Group and maintains minimum performance standards. The
holder of the securities is entitled to dividends during the two-year deferral period.
holder of the securities is entitled to dividends during the two-year deferral period.
holder of the securities is entitled to dividends during the two-year deferral period.
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
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
distribution of the profit share pool will be at the Board's absolute discretion, taking into consideration the
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.
forecast and actual financial performance and position of the Group.
forecast and actual financial performance and position of the Group.
-
-
-
Long term incentive
Long term incentive
Long term incentive
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
options plan.
options plan.
During the year, the Board reviewed the Group's LTI scheme and determined that the Loan Securities and
During the year, the Board reviewed the Group's LTI scheme and determined that the Loan Securities and
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 2023 LTI awards, encouraging
Executive Options remained the most appropriate equity award vehicles for the 2023 LTI awards, encouraging
Executive Options remained the most appropriate equity award vehicles for the 2023 LTI awards, encouraging
a continued focus on security price growth, distributions and strong alignment of executives to Securityholders.
a continued focus on security price growth, distributions and strong alignment of executives to Securityholders.
a continued focus on security price growth, distributions and strong alignment of executives to Securityholders.
No LTI Awards were granted to KMP's in FY23.
No LTI Awards were granted to KMP's in FY23.
No LTI Awards were granted to KMP's in FY23.
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
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
acquire Securities which are subject to vesting conditions) have been issued to certain employees. Awards
acquire Securities which are subject to vesting conditions) have been issued to certain employees. Awards
totalling 18.6 million Securities were on issue at 30 June 2023 (2022: 17.5 million).
totalling 18.6 million Securities were on issue at 30 June 2023 (2022: 17.5 million).
totalling 18.6 million Securities were on issue at 30 June 2023 (2022: 17.5 million).
34
22
22
22
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
9.
c)
Remuneration Report (continued)
Executive Remuneration Arrangements (continued)
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 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
and other selected key executives) as determined by the Board. No options were issued or exercised under
the plan in 2023 (2022: Nil).
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
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
in the case of the options plan.
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
35
23
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
9.
d)
Remuneration Report (continued)
Executive Remuneration Outcomes
The table below sets out summary information about the Group's earnings and movements in Securityholder
returns for the year ended 30 June 2023:
Net profit / (loss) before tax ($'000)
Adjusted Net profit / (loss) before tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Net profit / (loss) after tax ($'000)
Adjusted Net profit / (loss) after tax ($'000)
(EHAF, EWPF, Stirling and Bluewater equity accounted)
Core earnings ($'000)
Security price at start of year
Security price at end of year
Interim distribution
Final distribution
Total distributions
Basic earnings per security
Basic earnings per security
(EHAF, EWPF, Stirling and Bluewater equity accounted)
30 June
2023
(26,133)
(19,716)
(30,674)
(19,277)
30 June
2022
(7,395)
2,841
(4,234)
3,458
30 June
2021
9,467
7,468
30 June
2020
(26,419)
(18,151)
30 June
2019
19,867
22,412
7,817
5,939
(23,390)
(17,988)
16,044
17,601
12,529
$1.65
$1.63
7.51 cents
1.62 cents
9.13 cents
(16.35) cents
(16.00) cents
18,259
$1.89
$1.65
9.05 cents
4.43 cents
13.48 cents
0.82 cents
2.95 cents
15,146
$1.12
$1.89
4.13 cents
7.14 cents
11.27 cents
6.73 cents
5.08 cents
15,434
$1.83
$1.12
9.51 cents
–
9.51 cents
(16.59) cents
(17.39) cents
17,548
$2.06
$1.83
6.32 cents
9.74 cents
16.06 cents
16.04 cents
18.31 cents
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
($26.1) million before tax or ($30.7) million after tax. This reflects a basic earnings per security of (16.35) cents
based on average equity employed for the year.
On 29 July 2022, the Board approved a retention based STI bonus pool of $5.1 million, utilising the Board’s
discretion, which is incorporated into the Group’s results for the year ended 30 June 2023.
For the year ended 30 June 2023 the Group achieved Core Earnings of $12.5 million. Total distributions per
security during the year were 9.13 cents. The Group's closing trading price on 30 June 2023 was $1.63 per
security, a 1.2% decrease on the $1.65 price at 1 July 2022.
36
24
Elanor Investors GroupAnnual Report 2023
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T
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
9.
d)
Remuneration Report (continued)
Executive Remuneration Outcomes (continued)
Table 2: Remuneration components as a proportion of total remuneration on an annualised basis
Executive Officers
G. Willis
P. Siviour
S. Simmons
Fixed remuneration
%
57.79
44.58
59.33
52.21
59.78
52.38
Remuneration linked
to performance
%
42.21
55.42
40.67
47.79
40.22
47.62
Year
2023
2022
2023
2022
2023
2022
Total
%
100.00
100.00
100.00
100.00
100.00
100.00
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
Position
G. Willis
P. Siviour
S. Simmons
Managing Director and
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer and
Company Secretary
Term
No fixed term
No fixed term
No fixed term
Salary (including
Superannuation)
Incentive remuneration
$800,000
$650,000
$635,000
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
Eligible for an award of
short term and long-term
incentive remuneration (if
any) as described above
38
26
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
9.
d)
Remuneration Report (continued)
Executive Remuneration Outcomes (continued)
Executive
Benefits
Notice period
G. Willis
P. Siviour
S. Simmons
Entitled to participate in
Elanor Investors Group
benefit plans that are made
available
Entitled to participate in
Elanor Investors Group
benefit plans that are made
available
Entitled to participate in
Elanor Investors Group
benefit plans that are made
available
Employment shall continue
with the 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 6
months’ notice in writing
Restraint
12 months from the time of
Termination
N/A
N/A
e)
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 reviewed annually by the
Remuneration and Nomination Committee taking into consideration the level of fees paid to NEDs 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
Non-Executive Directors
P. Bedbrook
N. Ampherlaw
A. Fehon
S.K. Lim1
K. Baylis1
Year
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Short-term employee benefits
Salary
$
169,683
157,727
107,500
100,000
107,500
90,909
107,500
75,000
97,285
60,606
Committee
Fees
$
–
15,000
15,000
15,000
15,000
15,000
–
–
–
–
Total
$
169,683
172,727
122,500
115,000
122,500
105,909
107,500
75,000
97,285
60,606
Post-
employment
benefits
Super
$
17,817
17,273
–
–
–
9,091
–
–
10,215
6,061
1 Mr S. K. Lim and Mrs K. Baylis were appointed in FY22.
Total
$
187,500
190,000
122,500
115,000
122,500
115,000
107,500
75,000
107,500
66,667
39
27
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
9.
e)
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.
40
28
Elanor Investors GroupAnnual Report 2023 P
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E
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
9.
f)
Remuneration Report (continued)
Additional Disclosures Relating to Short Term Incentive Plans, Long Term Incentive Plans and
Securities (continued)
Details of Long Term Incentive Plan payments granted or vested as option security compensation to Key
Management Personnel during the current financial year:
During the financial year
Name
G. Willis
Award Type
Options
Year
2023
2022
Number
Granted
–
–
No options were granted in FY23.
Number % of Grant
Vested
–
–
Vested Forfeited
–
–
Number % of Grant
Forfeited
N/A
N/A
0%
0%
% of the actual
compensation for
the year consisting
of awards
0%
0%
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:
Name
G. Willis
Year
2023
2022
Value of options granted at the
grant date1
$
–
–
Value of options granted at the
exercise date2
$
–
–
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 2023.
43
31
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
9.
f)
Remuneration Report (continued)
Additional Disclosures Relating to Short Term Incentive Plans, Long Term Incentive Plans and
Securities (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
Name
Non-Executive Directors
P. Bedbrook
N. Ampherlaw
A. Fehon
S.K. Lim
K. Baylis
Executive Officers
G. Willis
P. Siviour
S. Simmons
Opening Balance
1 July 2022
Acquired1
Disposed
Closing Balance
30 June 2023
306,137
200,000
21,666
–
25,000
5,437,076
2,105,123
1,138,374
–
–
34,131
–
10,000
90,537
90,537
90,537
–
–
–
–
–
–
–
–
306,137
200,000
55,797
–
35,000
5,527,613
2,195,660
1,228,911
1 The 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 FY23.
Options over Elanor Investors Group – Stapled Securities
Name
G. Willis
Opening
Balance
1 July 2022
2,000,000
Acquired under Exercised or
the Group's Disposed or
Closing
Balance
Cancelled 30 June 2023
2,000,000
–
incentive plans
–
Balance
vested at
Closing
–
Vested
but not
exercisable
–
Options
vested
during
the year
–
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 FY23 (FY22: nil).
g)
Loans to Key Management Personnel
No loans have been provided to Key Management Personnel of the Group during the year.
h)
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.
44
32
Elanor Investors GroupAnnual Report 2023
ELANOR 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. 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.
45
33
Directors' Report
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
DIRECTORS' REPORT
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
14. Non audit services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
14. Non audit services
14. Non audit services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
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.
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.
are outlined in Note 29 to the consolidated financial statements.
are outlined in Note 29 to the consolidated financial statements.
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.
are outlined in Note 29 to the consolidated financial statements.
are outlined in Note 29 to the consolidated financial statements.
are outlined in Note 29 to the consolidated financial statements.
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
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.
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
are outlined in Note 29 to the consolidated financial statements.
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
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
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
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
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
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
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another
imposed by the Corporations Act 2001 (Cth).
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).
imposed by the Corporations Act 2001 (Cth).
imposed by the Corporations Act 2001 (Cth).
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).
imposed by the Corporations Act 2001 (Cth).
imposed by the Corporations Act 2001 (Cth).
imposed by the Corporations Act 2001 (Cth).
person or firm on the auditor's behalf) is compatible with the general standard of independence for auditors
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).
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
imposed by the Corporations Act 2001 (Cth).
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
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
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
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
statements do not compromise the external auditor's independence, based on advice received from the Audit
statements do not compromise the external auditor's independence, based on advice received from the Audit
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
statements do not compromise the external auditor's independence, based on advice received from the Audit
statements do not compromise the external auditor's independence, based on advice received from the Audit
statements do not compromise the external auditor's independence, based on advice received from the Audit
The Directors are of the opinion that the services as disclosed in Note 29 to the consolidated financial
and Risk Committee, for the following reasons:
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:
and Risk Committee, for the following reasons:
and Risk Committee, for the following reasons:
statements do not compromise the external auditor's independence, based on advice received from the Audit
and Risk Committee, for the following reasons:
and Risk Committee, for the following reasons:
and Risk Committee, for the following reasons:
and Risk Committee, for the following reasons:
statements do not compromise the external auditor's independence, based on advice received from the Audit
statements do not compromise the external auditor's independence, based on advice received from the Audit
and Risk Committee, for the following reasons:
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 Risk Committee, for the following reasons:
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
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
and objectivity of the auditor; and
and objectivity of the auditor; and
and objectivity of the auditor; and
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
and objectivity of the auditor; and
and objectivity of the auditor; and
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
• 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
and objectivity of the auditor; and
and objectivity of the auditor; and
• None of the services undermine the general principles relating to auditor independence as set out in
• None of the services undermine the general principles relating to auditor independence as set out in
• None of the services undermine the general principles relating to auditor independence as set out in
• None of the services undermine the general principles relating to auditor independence as set out in
• None of the services undermine the general principles relating to auditor independence as set out in
• None of the services undermine the general principles relating to auditor independence as set out in
• 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 &
• 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 &
APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional &
APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional &
APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional &
• 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 &
APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional &
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
• 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 &
• None of the services undermine the general principles relating to auditor independence as set out in
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
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
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
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
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
APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional &
management or decision-making capacity for the Group, acting as advocate for the group or jointly
management or decision-making capacity for the Group, acting as advocate for the group or jointly
management or decision-making capacity for the Group, acting as advocate for the group or jointly
management or decision-making capacity for the Group, acting as advocate for the group or jointly
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
management or decision-making capacity for the Group, acting as advocate for the group or jointly
management or decision-making capacity for the Group, acting as advocate for the group or jointly
sharing economic risks and rewards.
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
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
sharing economic risks and rewards.
sharing economic risks and rewards.
sharing economic risks and rewards.
sharing economic risks and rewards.
management or decision-making capacity for the Group, acting as advocate for the group or jointly
sharing economic risks and rewards.
sharing economic risks and rewards.
sharing economic risks and rewards.
management or decision-making capacity for the Group, acting as advocate for the group or jointly
sharing economic risks and rewards.
management or decision-making capacity for the Group, acting as advocate for the group or jointly
sharing economic risks and rewards.
sharing economic risks and rewards.
sharing economic risks and rewards.
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
The financial statements have been prepared on the basis of the current known market conditions. The extent
15. Likely developments and expected results of operations
15. Likely developments and expected results of operations
The financial statements have been prepared on the basis of the current known market conditions. The extent
The financial statements have been prepared on the basis of the current known market conditions. The extent
The financial statements have been prepared on the basis of the current known market conditions. The extent
The financial statements have been prepared on the basis of the current known market conditions. The extent
The financial statements have been prepared on the basis of the current known market conditions. The extent
The financial statements have been prepared on the basis of the current known market conditions. The extent
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
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
of any potential deterioration in either the capital or physical property markets on the future results of the Group
of any potential deterioration in either the capital or physical property markets on the future results of the Group
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
of any potential deterioration in either the capital or physical property markets on the future results of the Group
of any potential deterioration in either the capital or physical property markets on the future results of the Group
of any potential deterioration in either the capital or physical property markets on the future results of the Group
The financial statements have been prepared on the basis of the current known market conditions. The extent
is unknown. Such results could include property market valuations, the ability of borrowers, including the
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
is unknown. Such results could include property market valuations, the ability of borrowers, including the
is unknown. Such results could include property market valuations, the ability of borrowers, including the
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
is unknown. Such results could include property market valuations, the ability of borrowers, including the
is unknown. Such results could include property market valuations, the ability of borrowers, including the
is unknown. Such results could include property market valuations, the ability of borrowers, including the
of any potential deterioration in either the capital or physical property markets on the future results of the Group
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
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.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
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.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
is unknown. Such results could include property market valuations, the ability of borrowers, including the
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.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
16. Fees paid to the Responsible Entity or its associates
Group, to raise or refinance debt, and the cost of such debt and the ability to raise equity.
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. Fees paid to the Responsible Entity or its associates
16. 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
16. Fees paid to the Responsible Entity or its associates
16. 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
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
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.
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.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
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.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
The fees paid to the responsible entity of EIF, Elanor Funds Management Limited, and its related entities
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.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
during the financial year are disclosed in Note 25 to the consolidated financial statements.
17. Events occurring after reporting date
during the financial year are disclosed in Note 25 to the consolidated financial statements.
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
17. Events occurring after reporting date
Distribution
17. Events occurring after reporting date
17. Events occurring after reporting date
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Distribution
Distribution
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
Acquisition of Challenger real estate funds management business
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
On 7 July 2023, Elanor completed the acquisition of Challenger Limited’s (Challenger) Australian real estate
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
funds management business for a consideration of $37.7 million. As part of the transaction, Elanor and
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
Challenger also entered into a strategic partnership whereby Elanor has become Challenger’s real estate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management partner in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
management business) is now Elanor’s exclusive distribution partner for its real estate managed funds.
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
including minimum base funds management fee targets.
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
including minimum base funds management fee targets.
including minimum base funds management fee targets.
including minimum base funds management fee targets.
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
including minimum base funds management fee targets.
including minimum base funds management fee targets.
including minimum base funds management fee targets.
including minimum base funds management fee targets.
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
including minimum base funds management fee targets.
46
including minimum base funds management fee targets.
including minimum base funds management fee targets.
including minimum base funds management fee targets.
34
34
34
34
34
34
34
34
34
34
34
34
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
DIRECTORS' REPORT
In addition, Elanor has also granted ADIC options to acquire up to 7.5 million in additional Elanor securities at
exercise prices of between $2.25 to $2.75 per security, with vesting milestones linked to ADIC committing a
further $0.5 billion in AUM.
As at the signing date of these financial statements, the accounting assessment of the transaction is not yet
complete, and the Group is currently finalising its determination of the nature of the transaction and the fair
values of identifiable assets acquired and liabilities assumed.
The transaction will be accounted for as a business combination under AASB 3 Business Combinations as
follows:
•
•
Identifiable assets will include intangible assets in relation to key Investment Management
Agreements acquired. The amount that the consideration paid exceeds the (net) fair value of all
identified assets and liabilities will be allocated to goodwill.
In accordance with AASB112 Income Taxes, a deferred tax asset or liability will be recognised when
a temporary difference arises between the carrying amount of an asset or liability and its tax base.
The existence of a deferred liability on an intangible asset will result in an increase to goodwill.
• The fair value of the consideration is $39.7 million and based on the fair value of the securities issued
with reference to the share price ($1.60) on the day of the transaction completion.
• The value of securities subject to claw-back arrangements will be classified as a financial liability
based on the definitions in AASB 132 Financial Instruments: Presentation.
The Group will finalise the accounting for the transaction in the ensuing reporting period in which the
transaction completed.
Acquisition of Leura Gardens Resort
On 28 July 2023 EHAF settled the acquisition of the Leura Gardens Resort in the Blue Mountains, NSW for
$20 million.
Other matters
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 2023.
47
35
ELANOR INVESTORS GROUP
Directors' Report
DIRECTORS' REPORT
18. Rounding of amounts to the nearest thousand dollars
In accordance with Legislative Instrument 2022/519 issued by the Australian Securities and Investments
Commission relating to the rounding off of amounts in the Directors’ Report, amounts in the Directors’ Report
have been rounded to the nearest thousand dollars in accordance with that Legislative Instrument, unless
otherwise indicated.
The Directors’ 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 22 August 2023.
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
Chair
Glenn Willis
CEO and Managing Director
Sydney, 22 August 2023
48
36
Elanor Investors GroupAnnual Report 2023 49
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. Auditor’s Independence Declaration As lead auditor for the audit of Elanor Investors Limited and Elanor Investment Fund for the year ended 30 June 2023, 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 inrelation 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 SydneyPartner PricewaterhouseCoopers 22 August 2023 Consolidated Statements
of Profit or Loss
For the year ended 30 June 2023
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2023
ELANOR INVESTORS GROUP
Revenue and other income
Revenue from operating activities
Interest income
Rental income
Share of profit from equity accounted investments
Realised gain on disposal of investment
Fair value gain on revaluation of PP&E and investment
properties
Fair value gain on revaluation of derivatives
Other income
Total revenue and other income
Expenses
Changes in inventories of finished goods
Salary and employee benefits
Property expenses
Operator management costs
Borrowing costs
Depreciation
Amortisation
Marketing and promotion
Repairs, maintenance and technology
Share of loss from equity accounted investments
Fair value loss on revaluation of PP&E and investment
properties
Fair value loss on revaluation of derivatives
Impairment expense
Corporate transaction costs
Insurance expense
Other expenses
Total expenses
Net profit / (loss) before income tax expense
Income tax (expense) / benefit
Net profit / (loss) for the year
Attributable to security holders of:
- Parent Entity
- Non-controlling interest EIF
Net profit / (loss) attributable to ENN security holders
Attributable to security holders of:
- External Non-controlling interest
Net profit / (loss) for the year
Basic earnings / (loss) per stapled security (cents)
Diluted earnings / (loss) per stapled security (cents)
Note
2
1
10
8,9
12
11,30
8
10
8,9
12
10
5
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
EIF
Group
30 June
2023
$'000
EIF1
Group
30 June
2022
$'000
139,141
230
8,733
–
1,200
–
–
2,108
151,412
9,678
68,449
14,416
9,341
20,166
13,430
670
4,047
2,806
7,042
6,856
1,295
2,831
4,071
3,269
9,178
177,545
(26,133)
(4,541)
(30,674)
92,164
405
6,293
10,050
1,635
–
2,621
2,268
115,436
6,335
51,366
9,503
4,428
16,217
12,554
444
2,660
2,673
–
2,447
–
753
–
2,819
10,632
122,831
(7,395)
3,161
(4,234)
(16,977)
(2,730)
(19,707)
(11,833)
12,799
966
(10,967)
(30,674)
(16.35)
(13.91)
(5,200)
(4,234)
0.82
0.69
–
14
23,658
–
1,200
35,006
–
24
59,902
–
2,878
2,561
5,456
17,223
–
129
10
56
7,312
–
1,268
2,831
–
–
2,933
42,657
17,245
–
17,245
(2,730)
–
(2,730)
19,975
17,245
(2.27)
(1.93)
–
–
16,692
9,871
1,634
13,513
2,621
12,350
56,681
–
2,865
1,362
5,329
12,815
–
6
5
289
–
–
–
–
–
–
15,673
38,344
18,337
–
18,337
12,799
–
12,799
5,538
18,337
10.91
9.19
Basic earnings / (loss) of the parent entity (cents)
Diluted earnings / (loss) of the parent entity (cents)
1 EIF Group restated to reclassify $16.3 million revaluation gain on investment property from the consolidated statement of comprehensive
income to the consolidated statement of profit or loss, with no impact on net assets or total equity. Refer to Note 30.
(10.08)
(8.50)
(14.09)
(11.98)
The above Consolidated Statements of Profit or Loss should be read in conjunction with the accompanying notes
50
The above Consolidated Statements of Profit or Loss should be read in conjunction with the accompanying notes
38
Elanor Investors GroupAnnual Report 2023
Consolidated Statements
of Comprehensive Income
For the year ended 30 June 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
ELANOR INVESTORS GROUP
Net (loss) / profit for the year
Other comprehensive income
Items that may be reclassified subsequently to profit and loss
Gain on revaluation of cash flow hedge
Items that may not be reclassified to profit and loss
Share of reserves of equity accounted investments
Gain on revaluation of property, plant and equipment
Other comprehensive income for the year, net of tax
Total comprehensive income / (loss) for the year, net of tax
Attributable to security holders of:
- Parent entity
- Non-controlling interest - EIF
Total comprehensive income / (loss) for the year, net of tax,
of ENN security holders
Consolidated Consolidated
Group
30 June
2022
$'000
(4,234)
Group
30 June
2023
$'000
(30,674)
EIF
Group
30 June
2023
$'000
17,245
EIF1
Group
30 June
2022
$'000
18,337
–
361
–
359
(38)
28,286
28,248
(2,426)
(6,964)
(3,511)
(10,475)
68
16,292
16,721
12,487
(5,636)
13,417
7,781
(781)
–
(781)
16,464
(3,511)
–
(3,511)
68
–
427
18,764
13,417
–
13,417
Attributable to security holders of:
- External Non-controlling interest
8,049
4,706
19,975
5,348
18,765
Total comprehensive income / (loss) for the year, net of tax
1 EIF Group restated to reclassify $16.3 million revaluation gain on investment property from the consolidated statement of comprehensive
income to the consolidated statement of profit or loss, with no impact on net assets or total equity. Refer to Note 30.
(2,426)
12,487
16,464
The above Consolidated Statements of Comprehensive Income 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
51
39
ELANOR INVESTORS GROUP
Consolidated Statements
of Financial Position
For the year ended 30 June 2023
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Derivative financial instruments
Total current assets
Non-current assets
Property, plant and equipment
Contract assets
Investment properties
Derivative financial instruments
Equity accounted investments
Intangible assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Payables
Interest bearing liabilities
Loan from the Company
Lease liabilities
Current provisions
Other current liabilities
Income tax payable
Contract liabilities
Total current liabilities
Non-current liabilities
Interest bearing liabilities
Non-current provisions
Lease liabilities
Loan from the Company
Total non-current liabilities
Total liabilities
Net assets
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
25,269
18,157
4,095
1,893
3,207
1,353
53,974
521,054
3,618
91,875
–
97,834
1,478
10,083
725,942
779,916
17,987
8,542
–
1,887
5,401
16,656
610
2,196
53,279
372,159
296
1,870
–
374,325
427,604
352,312
27,774
17,653
2,186
1,809
2,241
1,898
53,561
437,454
4,545
93,875
723
110,394
1,448
12,150
660,589
714,150
15,569
–
–
1,660
4,367
10,188
–
1,323
33,107
335,835
196
3,758
–
339,789
372,896
341,254
Note
6
19,30
13
12,30
8(a)
19
9,30
12,30
10,30
21
5
20,30
11
30
8
20
20,30
11,30
20
8
30
EIF
Group
30 June
2023
$'000
1,182
41,902
–
–
15
1,353
44,452
–
–
591,870
–
93,610
–
–
685,480
729,932
9,566
5,982
12,592
–
–
13,130
–
276
41,546
312,633
–
–
42,036
354,669
396,215
333,717
EIF
Group
30 June
2022
$'000
9,008
47,528
–
–
61
1,898
58,495
–
–
498,382
723
107,182
–
–
606,287
664,782
7,349
–
16,302
–
–
9,826
–
–
33,477
275,392
–
–
43,950
319,342
352,819
311,963
The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes
52
The above Consolidated Statements of Financial Position should be read in conjunction with the accompanying notes
40
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Equity
Equity Holders of Parent Entity
Contributed equity
Treasury shares
Reserves
Accumulated losses
Parent entity interest
Equity Holders of Non Controlling Interest
Contributed equity - Elanor Investment Fund
Treasury shares
Reserves
Accumulated losses
Non-controlling interest
Equity Holders of Non Controlling Interest - External
Contributed equity - External
Reserves
Accumulated (losses) / Retained profits
External Non-controlling interest
Total equity attributable to stapled security holders:
- Parent Entity
- Non-controlling Interest - EIF
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
Note
14
14
15
14
14
15
73,555
(759)
32,285
(73,403)
31,678
108,093
(2,610)
31,190
(24,739)
111,934
167,121
69,399
(27,820)
208,700
72,783
(1,682)
22,517
(56,424)
37,194
105,559
(5,086)
33,567
(7,528)
126,512
140,000
50,384
(12,836)
177,548
EIF
Group
30 June
2023
$'000
108,093
(2,610)
31,190
(24,739)
111,934
–
–
–
–
–
EIF1
Group
30 June
2022
$'000
105,559
(5,086)
33,567
(7,528)
126,512
–
–
–
–
–
166,120
21,854
33,809
221,783
145,646
21,855
17,950
185,451
31,678
111,934
37,194
126,512
111,934
–
126,512
–
Total equity attributable to ENN security holders
Total equity attributable to stapled security holders:
185,451
- Non-controlling interest - External
Total equity
311,963
1 EIF Group restated to reclassify $16.3 million revaluation gain on investment property from the consolidated statement of comprehensive
income to the consolidated statement of profit or loss, with no impact on net assets or total equity. Refer to Note 30.
177,548
341,254
208,700
352,312
221,783
333,717
111,934
126,512
143,612
163,706
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
53
41
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55
ELANOR INVESTORS GROUP
Consolidated Statements
of Cash Flows
For the year ended 30 June 2023
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs paid
Rental Receipts
Income tax paid
Net cash flows from operating activities
Cash flows from investing activities
Financial assets (provided) / repaid
Payments for property, plant and equipment / investment properties
Loans to associates
Receipts for equity accounted investments
Payments for equity accounted investments
Payments for the business combination subsidiaries
Receipts of cash held in trust
Payments of corporate transaction costs
Distributions received from equity accounted investments
Loans from Company
Net cash flows from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Payments for lease liability
Proceeds from equity raisings
Costs associated with equity raisings
Distributions paid to securityholders
Net cash flows from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash at the end of the year
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
168,310
(131,776)
525
(18,234)
–
(892)
17,933
(2,218)
(72,719)
(4,246)
19,333
(18,751)
–
3,163
(1,171)
14,797
–
(61,812)
100,585
(57,750)
(2,029)
25,500
(669)
(24,263)
41,374
(2,505)
27,774
25,269
106,561
(98,453)
324
(12,960)
–
(253)
(4,781)
9,120
(21,972)
(663)
49,301
(43,569)
(9,952)
–
–
8,399
–
(9,336)
317,101
(293,160)
(2,077)
28,629
(1,946)
(27,427)
21,120
7,003
20,771
27,774
EIF
Group
30 June
2023
$'000
–
(9,281)
14
(13,846)
23,658
–
545
–
(64,732)
519
19,092
(18,724)
–
–
–
14,799
(3,925)
(52,971)
101,782
(57,750)
–
25,500
(669)
(24,263)
44,600
(7,826)
9,008
1,182
EIF
Group
30 June
2022
$'000
–
(8,563)
–
(8,161)
16,692
–
(32)
–
(18,865)
(1,072)
46,218
(43,516)
(9,854)
–
–
8,399
(17,925)
(36,615)
305,688
(261,242)
–
28,629
(1,947)
(27,427)
43,701
7,054
1,954
9,008
The above Consolidated Statements of Cash Flows should be read in conjunction with the accompanying notes
56
The above Consolidated Statements of Cash Flows should be read in conjunction with the accompanying notes
44
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
Notes to the Consolidated
Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
1.
2.
3.
4.
5.
6.
7.
Segment information
Revenue from operating activities
Distributions
Earnings per stapled security
Income tax
Cash and cash equivalents
Cash flow information
OPERATING ASSETS
8.
9.
10.
Property, plant and equipment
Investment properties
Equity accounted investments
FINANCE AND CAPITAL STRUCTURE
11.
12.
13.
14.
15.
16.
Interest bearing liabilities
Derivative financial instruments
Other financial assets
Contributed equity
Reserves
Financial Risk Management
GROUP STRUCTURE
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Parent entity
Subsidiaries and Controlled entities
Trade and other receivables
Payables and other liabilities
Intangible assets
Government grants
Commitments
Share-based payments
Related parties
Significant events
Other accounting policies
Events occurring after reporting date
Auditor's remuneration
Non-Parent disclosure
45
62
62
64
66
66
68
71
72
74
74
82
85
91
91
94
96
97
98
99
104
104
105
108
108
110
111
111
112
114
116
117
118
119
120
57
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
About this report (continued)
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
About this report (continued)
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
About this report (continued)
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
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
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
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
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
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
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
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
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
Elanor Investors Group (Group, Consolidated Group or Elanor) is a 'stapled' entity comprising Elanor Investors
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
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
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
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
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
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
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
Limited (EIL or Company) and its controlled entities (EIL Group) and Elanor Investment Fund (Trust) and its
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
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
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
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
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
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
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
controlled entities (EIF Group). The units in the Trust are stapled to shares in the Company. The stapled
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
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
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
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
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
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
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
securities cannot be traded or dealt with separately. The stapled securities of the Group are listed on the
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
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
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
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
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
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
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
Australian Securities Exchange (ASX: ENN). As permitted by ASIC Corporations Instrument 2015/838 issued
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
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
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
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
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
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
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
by the Australian Securities and Investments Commission (ASIC), this report is a combined report that presents
Investment Fund.
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
Investment Fund.
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
Investment Fund.
Investment Fund.
Investment Fund.
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
Investment Fund.
Investment Fund.
the consolidated financial statements and accompanying notes of both Elanor Investors Group and the Elanor
Investment Fund.
Investment Fund.
Investment Fund.
Investment Fund.
Investment Fund.
Investment Fund.
Investment Fund.
Statement of compliance
Investment Fund.
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
Statement of compliance
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Statement of compliance
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Statement of compliance
The financial report is a general purpose financial report that has been prepared in accordance with Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
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
The financial report is a general purpose financial report that has been prepared in accordance with Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
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
The financial report is a general purpose financial report that has been prepared in accordance with Australian
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, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
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, Australian Interpretations, other authoritative pronouncements of the Australian
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.
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
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
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
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.
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
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.
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
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.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
For the purposes of preparing the financial statements, the Group is a for-profit entity. The financial report has
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.
been presented in Australian dollars unless otherwise stated.
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.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
been presented in Australian dollars unless otherwise stated.
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
been presented in Australian dollars unless otherwise stated.
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
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,
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
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,
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
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,
conventions, except for investment properties, investment properties within the equity accounted investments,
conventions, except for investment properties, investment properties within the equity accounted investments,
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
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,
conventions, except for investment properties, investment properties within the equity accounted investments,
The Consolidated Financial Statements have been prepared on a going concern basis using historical cost
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
conventions, except for investment properties, investment properties within the equity accounted investments,
conventions, except for investment properties, investment properties within the equity accounted investments,
conventions, except for investment properties, investment properties within the equity accounted investments,
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
conventions, except for investment properties, investment properties within the equity accounted investments,
conventions, except for investment properties, investment properties within the equity accounted investments,
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
conventions, except for investment properties, investment properties within the equity accounted investments,
conventions, except for investment properties, investment properties within the equity accounted investments,
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
conventions, except for investment properties, investment properties within the equity accounted investments,
or liabilities which are stated at their fair value.
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
or liabilities which are stated at their fair value.
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
property, plant and equipment (EHAF and EWPF), derivative financial instruments, and other financial assets
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
or liabilities which are stated at their fair value.
Compliance with international reporting standards
or liabilities which are stated at their fair value.
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
Compliance with international reporting standards
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
Compliance with international reporting standards
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
Compliance with international reporting standards
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
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
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
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
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
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
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
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
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting
Accounting Standards Board.
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
Accounting Standards Board.
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Accounting Standards Board.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Accounting Standards Board.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.
the financial report.
the financial report.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.
the financial report.
Comparative figures have been restated where appropriate to ensure consistency of presentation throughout
the financial report.
the financial report.
the financial report.
the financial report.
the financial report.
the financial report.
the financial report.
New accounting standards and interpretations
the financial report.
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New accounting standards and interpretations
New and amended standards adopted by the Group
New accounting standards and interpretations
New and amended standards adopted by the Group
New accounting standards and interpretations
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
New and amended standards adopted by the Group
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
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
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
There are no standards, interpretations or amendments to existing standards that are effective for the first time
There are no standards, interpretations or amendments to existing standards that are effective for the first time
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
There are no standards, interpretations or amendments to existing standards that are effective for the first time
periods or will affect the current or future periods.
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
periods or will affect the current or future periods.
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
periods or will affect the current or future periods.
periods or will affect the current or future periods.
for the financial year beginning 1 July 2022 that have a material impact on the amounts recognised in prior
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
periods or will affect the current or future periods.
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
periods or will affect the current or future periods.
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
New standards, amendments and interpretations effective after 1 July 2023 and have not been early adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
A number of new standards, amendments to standards and interpretations are effective for annual periods
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
A number of new standards, amendments to standards and interpretations are effective for annual periods
of these are expected to have a material effect on the financial statements of the Group.
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, 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.
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, 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.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
beginning after 1 July 2023, and have not been adopted early in preparing these financial statements. None
beginning after 1 July 2023, 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.
of these are expected to have a material effect on the financial statements of the Group.
beginning after 1 July 2023, 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.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
of these are expected to have a material effect on the financial statements of the Group.
Rounding
of these are expected to have a material effect on the financial statements of the Group.
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
Rounding
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
Rounding
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
Rounding
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
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
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
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
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
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
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
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
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
The amounts in the consolidated financial statements have been rounded off to the nearest one thousand
Reports) Instrument 2022/519.
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
Reports) Instrument 2022/519.
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
dollars, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Director's
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
Reports) Instrument 2022/519.
58
Reports) Instrument 2022/519.
46
46
46
46
46
46
46
46
46
46
46
46
46
46
46
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023, 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 2023, 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 8 and 9 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 16 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 8
Investment Properties - assumptions underlying fair value – Note 9
•
• Equity accounted investments – impairment assessment – Note 10
• Derivative financial instruments - assumptions underlying fair value – Note 12
59
47
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023. 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 2023.
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, Elanor Hotel Accommodation Fund
II, Elanor Hotel Accommodation Fund III, Elanor Hotel Accommodation Limited, Elanor Hotel Accommodation
II Limited. The Group holds 30.60% (2022: 35.07%) 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.
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% (2022: 42.82%) 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.
60
48
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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% (2022: 42.98%) 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.
Bluewater Square Syndicate (Bluewater)
The Group holds 42.27% (2022: 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.
61
49
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
1.
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
2023, the Funds Management division has $2,971.8 million of external investments under management.
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 Property Income Fund, Bluewater, Hunters
Plaza Syndicate, Waverley Gardens Fund, Riverton Forum Fund and Belconnen Markets Syndicate.
Bluewater 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), Stirling and the Harris Street Fund. Stirling is consolidated in the Financial
Statements.
Healthcare
Healthcare originates and manages investment and funds management assets in the healthcare real estate
sector. The current investment portfolio comprises a co-investment in the Elanor Healthcare Real Estate Fund.
62
50
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Segment information (continued)
Segment information (continued)
Segment information (continued)
Segment information (continued)
Segment information (continued)
Segment information (continued)
1.
1.
1.
1.
1.
1.
The table below shows the Group's segment results:
The table below shows the Group's segment results:
The table below shows the Group's segment results:
The table below shows the Group's segment results:
The table below shows the Group's segment results:
The table below shows the Group's segment results:
Consolidated Group – 30 June 2023
Consolidated Group – 30 June 2023
Consolidated Group – 30 June 2023
Consolidated Group – 30 June 2023
Consolidated Group – 30 June 2023
Consolidated Group – 30 June 2023
Revenue from operating activities
Revenue from operating activities
Revenue from operating activities
Rental income
Revenue from operating activities
Rental income
Revenue from operating activities
Rental income
Revenue from operating activities
Share of profit / (loss) of equity
Rental income
Share of profit / (loss) of equity
Rental income
Share of profit / (loss) of equity
Rental income
accounted investments
Share of profit / (loss) of equity
accounted investments
Share of profit / (loss) of equity
accounted investments
Share of profit / (loss) of equity
Operating expense
accounted investments
Operating expense
accounted investments
Operating expense
accounted investments
Divisional EBITDA
Operating expense
Operating expense
Divisional EBITDA
Operating expense
Divisional EBITDA
Depreciation
Divisional EBITDA
Depreciation
Divisional EBITDA
Depreciation
Divisional EBITDA
Amortisation
Depreciation
Amortisation
Depreciation
Amortisation
Depreciation
Amortisation
Divisional EBIT from continuing
Amortisation
Divisional EBIT from continuing
Amortisation
Divisional EBIT from continuing
operations
Divisional EBIT from continuing
operations
Divisional EBIT from continuing
operations
Divisional EBIT from continuing
Fair value adjustment on revaluation of
operations
Fair value adjustment on revaluation of
operations
Fair value adjustment on revaluation of
operations
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
derivatives
Fair value adjustment on revaluation of
derivatives
Fair value adjustment on revaluation of
derivatives
Fair value adjustment on revaluation of
Realised gain/(loss) on disposal of
derivatives
Realised gain/(loss) on disposal of
derivatives
Realised gain/(loss) on disposal of
derivatives
investment
Realised gain/(loss) on disposal of
investment
Realised gain/(loss) on disposal of
investment
Interest income
Realised gain/(loss) on disposal of
investment
Interest income
investment
Interest income
investment
Borrowing costs
Interest income
Borrowing costs
Interest income
Borrowing costs
Interest income
Net tax expense
Borrowing costs
Net tax expense
Borrowing costs
Net tax expense
Borrowing costs
Profit / (loss) for the year
Net tax expense
Profit / (loss) for the year
Net tax expense
Profit / (loss) for the year
Net tax expense
Total assets
Profit / (loss) for the year
Total assets
Profit / (loss) for the year
Total assets
Profit / (loss) for the year
Total liabilities
Total assets
Total liabilities
Total assets
Total liabilities
Total assets
Total liabilities
Total liabilities
Total liabilities
Consolidated Group – 30 June 2022
Consolidated Group – 30 June 2022
Consolidated Group – 30 June 2022
Consolidated Group – 30 June 2022
Consolidated Group – 30 June 2022
Consolidated Group – 30 June 2022
Revenue from operating activities
Revenue from operating activities
Revenue from operating activities
Rental income
Revenue from operating activities
Rental income
Revenue from operating activities
Rental income
Share of profit / (loss) of equity
Revenue from operating activities
Rental income
Share of profit / (loss) of equity
Rental income
Share of profit / (loss) of equity
accounted investments
Rental income
Share of profit / (loss) of equity
accounted investments
Share of profit / (loss) of equity
accounted investments
Operating expense
accounted investments
Share of profit / (loss) of equity
Operating expense
accounted investments
Operating expense
accounted investments
Divisional EBITDA
Operating expense
Divisional EBITDA
Operating expense
Divisional EBITDA
Depreciation
Operating expense
Divisional EBITDA
Depreciation
Divisional EBITDA
Depreciation
Amortisation
Divisional EBITDA
Depreciation
Amortisation
Depreciation
Amortisation
Depreciation
Amortisation
Divisional EBIT from continuing
Amortisation
Divisional EBIT from continuing
Divisional EBIT from continuing
operations
Amortisation
Divisional EBIT from continuing
operations
Divisional EBIT from continuing
operations
Fair value adjustment on revaluation of
operations
Divisional EBIT from continuing
operations
Fair value adjustment on revaluation of
Fair value adjustment on revaluation of
investment property
operations
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
investment property
Fair value adjustment on revaluation of
Fair value adjustment on revaluation of
derivatives
investment property
Fair value adjustment on revaluation of
derivatives
Fair value adjustment on revaluation of
derivatives
derivatives
Realised gain/(loss) on disposal of
Fair value adjustment on revaluation of
derivatives
Realised gain/(loss) on disposal of
Realised gain/(loss) on disposal of
investment
derivatives
Realised gain/(loss) on disposal of
investment
Realised gain/(loss) on disposal of
investment
Interest income
investment
Realised gain/(loss) on disposal of
Interest income
investment
Interest income
Borrowing costs
investment
Interest income
Borrowing costs
Interest income
Borrowing costs
Net tax benefit
Borrowing costs
Interest income
Net tax benefit
Borrowing costs
Net tax benefit
Profit / (loss) for the year
Net tax benefit
Borrowing costs
Profit / (loss) for the year
Net tax benefit
Profit / (loss) for the year
Total assets
Net tax benefit
Profit / (loss) for the year
Total assets
Profit / (loss) for the year
Total assets
Total liabilities
Total assets
Profit / (loss) for the year
Total liabilities
Total assets
Total liabilities
Total liabilities
Total assets
Total liabilities
Total liabilities
Funds
Funds
Funds
Management
Funds
Management
Funds
Funds
Management
Management
Management
Management
$'000
$'000
$'000
34,117
$'000
34,117
$'000
34,117
$'000
–
34,117
–
34,117
–
34,117
–
–
–
–
–
–
–
–
(1,524)
–
(1,524)
(1,524)
32,593
(1,524)
(1,524)
32,593
(1,524)
32,593
–
32,593
–
32,593
–
32,593
–
–
–
–
–
–
–
–
32,593
–
32,593
32,593
32,593
32,593
32,593
–
–
–
–
–
–
–
–
–
–
–
–
1,089
1,089
1,089
1,089
1,089
–
–
1,089
–
–
–
–
–
–
–
–
–
–
–
–
–
33,682
–
33,682
–
33,682
–
39,015
33,682
39,015
33,682
39,015
33,682
11,071
39,015
11,071
39,015
11,071
39,015
11,071
11,071
11,071
Hotels,
Hotels,
Hotels,
Tourism
Hotels,
Tourism
Hotels,
Hotels,
Tourism
& Leisure
Tourism
& Leisure
Tourism
& Leisure
Tourism
$'000
& Leisure
$'000
& Leisure
$'000
& Leisure
105,024
$'000
105,024
$'000
105,024
$'000
749
105,024
749
105,024
749
105,024
749
749
152
749
152
152
152
152
(94,064)
152
(94,064)
(94,064)
11,861
(94,064)
(94,064)
11,861
(94,064)
11,861
(10,050)
11,861
(10,050)
11,861
(10,050)
11,861
–
(10,050)
–
(10,050)
–
(10,050)
–
–
1,811
–
1,811
1,811
1,811
1,811
1,811
(5,672)
(5,672)
(5,672)
(5,672)
(5,672)
(5,672)
(1,268)
(1,268)
(1,268)
(1,268)
(1,268)
(1,268)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(5,129)
–
(5,129)
–
(5,129)
–
514,788
(5,129)
514,788
(5,129)
514,788
(5,129)
267,340
514,788
267,340
514,788
267,340
514,788
267,340
267,340
267,340
Funds
Funds
Funds
Management
Funds
Management
Funds
Management
Funds
Management
Management
$'000
Management
$'000
$'000
27,068
$'000
27,068
$'000
27,068
–
$'000
27,068
–
27,068
–
27,068
–
–
–
–
–
–
–
–
(2,951)
(2,951)
–
(2,951)
24,117
(2,951)
24,117
(2,951)
24,117
(150)
(2,951)
24,117
(150)
24,117
(150)
–
24,117
(150)
–
(150)
–
(150)
–
–
23,967
23,967
–
23,967
23,967
23,967
–
23,967
–
–
–
–
–
–
–
–
–
–
1,478
–
1,478
1,478
1,478
1,478
–
–
–
1,478
–
–
–
–
–
–
–
–
–
–
–
25,445
–
–
25,445
–
25,445
38,133
–
25,445
38,133
25,445
38,133
18,091
38,133
25,445
18,091
38,133
18,091
18,091
38,133
18,091
18,091
Hotels,
Hotels,
Hotels,
Tourism
Hotels,
Tourism
Hotels,
Tourism
& Leisure
Hotels,
Tourism
& Leisure
Tourism
& Leisure
$'000
Tourism
& Leisure
$'000
& Leisure
$'000
65,096
& Leisure
$'000
65,096
$'000
65,096
716
$'000
65,096
716
65,096
716
65,096
716
716
82
82
716
82
82
82
(56,287)
(56,287)
82
(56,287)
9,607
(56,287)
9,607
(56,287)
9,607
(10,767)
(56,287)
9,607
(10,767)
9,607
(10,767)
–
9,607
(10,767)
–
(10,767)
–
(10,767)
–
–
(1,160)
(1,160)
–
(1,160)
(1,160)
(1,160)
(5,127)
(1,160)
(5,127)
(5,127)
(5,127)
(5,127)
2,621
(5,127)
2,621
2,621
2,621
2,621
(69)
2,621
(69)
(69)
(69)
(69)
–
–
–
(69)
–
–
–
–
–
–
–
–
–
–
–
(3,735)
–
–
(3,735)
–
(3,735)
392,698
–
(3,735)
392,698
(3,735)
392,698
183,233
392,698
(3,735)
183,233
392,698
183,233
183,233
392,698
183,233
183,233
51
51
51
51
51
51
–
(8,722)
Retail Commercial Healthcare Unallocated
Retail Commercial Healthcare Unallocated
Retail Commercial Healthcare Unallocated
Corporate
Retail Commercial Healthcare Unallocated
Corporate
Retail Commercial Healthcare Unallocated
Retail Commercial Healthcare Unallocated
Corporate
Corporate
Corporate
Corporate
$'000
$'000
$'000
–
$'000
–
$'000
–
$'000
310
–
310
–
310
–
310
310
–
310
–
–
–
–
(8,722)
(8,722)
(8,722)
(8,412)
(8,722)
(8,722)
(8,412)
(8,412)
(3,380)
(8,412)
(3,380)
(8,412)
(3,380)
(8,412)
(541)
(3,380)
(541)
(3,380)
(541)
(3,380)
(541)
(541)
(12,333)
(541)
(12,333)
(12,333)
(12,333)
(12,333)
(12,333)
2,416
2,416
2,416
2,416
2,416
2,416
(27)
(27)
(27)
(27)
(27)
(27)
113
113
113
113
113
230
230
230
(20,166)
230
(20,166)
230
(20,166)
230
(4,541)
(20,166)
(4,541)
(20,166)
(4,541)
(20,166)
(34,308)
(4,541)
(34,308)
(4,541)
(34,308)
(4,541)
128,188
(34,308)
128,188
(34,308)
128,188
(34,308)
89,212
128,188
89,212
128,188
89,212
128,188
89,212
89,212
89,212
Office
Office
Office
Office
Office
Office
$'000
$'000
$'000
–
$'000
–
$'000
–
$'000
3,271
–
3,271
–
3,271
–
3,271
3,271
(5,979)
3,271
(5,979)
(5,979)
(5,979)
(5,979)
(10,441)
(5,979)
(10,441)
(10,441)
(13,149)
(10,441)
(10,441)
(13,149)
(10,441)
(13,149)
–
(13,149)
–
(13,149)
–
(13,149)
(118)
–
(118)
–
(118)
–
(118)
(118)
(13,267)
(118)
(13,267)
(13,267)
(13,267)
(13,267)
(13,267)
77
77
77
77
77
77
–
–
–
–
–
–
(2)
(2)
(2)
(2)
(2)
–
–
(2)
–
–
–
–
–
–
–
–
–
–
–
–
–
(13,192)
–
(13,192)
–
(13,192)
–
35,402
(13,192)
35,402
(13,192)
35,402
(13,192)
20,880
35,402
20,880
35,402
20,880
35,402
20,880
20,880
20,880
$'000
$'000
$'000
–
$'000
–
$'000
–
$'000
–
–
–
–
–
–
–
–
(968)
–
(968)
(968)
(968)
(968)
(2,106)
(968)
(2,106)
(2,106)
(3,074)
(2,106)
(2,106)
(3,074)
(2,106)
(3,074)
–
(3,074)
–
(3,074)
–
(3,074)
–
–
–
–
–
–
–
–
(3,074)
–
(3,074)
(3,074)
(3,074)
(3,074)
(3,074)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,074)
–
(3,074)
–
(3,074)
–
6,709
(3,074)
6,709
(3,074)
6,709
(3,074)
–
6,709
–
6,709
–
6,709
–
–
–
$'000
$'000
$'000
–
$'000
–
$'000
–
$'000
4,403
–
4,403
–
4,403
–
4,403
4,403
(247)
4,403
(247)
(247)
(247)
(247)
(9,121)
(247)
(9,121)
(9,121)
(4,965)
(9,121)
(9,121)
(4,965)
(9,121)
(4,965)
–
(4,965)
–
(4,965)
–
(4,965)
(11)
–
(11)
–
(11)
–
(11)
(11)
(4,976)
(11)
(4,976)
(4,976)
(4,976)
(4,976)
(4,976)
(3,677)
(3,677)
(3,677)
(3,677)
(3,677)
(3,677)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(8,653)
–
(8,653)
–
(8,653)
–
55,814
(8,653)
55,814
(8,653)
55,814
(8,653)
39,101
55,814
39,101
55,814
39,101
55,814
39,101
39,101
39,101
113
–
Retail Commercial Healthcare Unallocated
Retail Commercial Healthcare Unallocated
Retail Commercial Healthcare Unallocated
Corporate
Retail Commercial Healthcare Unallocated
Corporate
Retail Commercial Healthcare Unallocated
Corporate
Retail Commercial Healthcare Unallocated
Corporate
Corporate
$'000
$'000
Corporate
$'000
$'000
$'000
$'000
–
–
$'000
$'000
–
–
$'000
$'000
–
–
117
3,897
$'000
$'000
–
–
117
3,897
–
–
117
3,897
–
–
3,897
117
3,897
117
–
3,228
–
3,228
117
3,897
–
3,228
3,228
–
–
3,228
(9,724)
(9,751)
(9,724)
(9,751)
3,228
(9,724)
(9,751)
(9,607)
(2,626)
(9,751)
(9,724)
(9,607)
(2,626)
(9,724)
(9,751)
(9,607)
(2,626)
(1,637)
–
(9,724)
(9,751)
(2,626)
(9,607)
(1,637)
–
(9,607)
(2,626)
(1,637)
–
(438)
(6)
(9,607)
(2,626)
–
(1,637)
(438)
(6)
–
(1,637)
(438)
(6)
–
(1,637)
(6)
(438)
(438)
(6)
(11,682)
(2,632)
(11,682)
(2,632)
(6)
(438)
(11,682)
(2,632)
(2,632)
(11,682)
(2,632)
(11,682)
794
2,049
(11,682)
(2,632)
794
2,049
794
2,049
2,049
794
2,049
794
–
–
794
2,049
–
–
–
–
–
–
–
–
68
–
–
68
–
68
–
–
68
68
–
405
–
405
–
405
–
–
(16,217)
–
–
405
(16,217)
–
405
–
(16,217)
–
3,161
–
–
(16,217)
–
405
3,161
–
(16,217)
–
3,161
–
(23,471)
(583)
–
3,161
(16,217)
–
(23,471)
(583)
3,161
–
(23,471)
(583)
190,093
58,407
–
3,161
(583)
(23,471)
190,093
58,407
(583)
(23,471)
190,093
58,407
113,771
37,574
58,407
190,093
(23,471)
(583)
113,771
37,574
58,407
190,093
113,771
37,574
37,574
113,771
58,407
190,093
113,771
37,574
37,574
113,771
Office
Office
Office
Office
Office
$'000
Office
$'000
$'000
–
$'000
–
$'000
–
1,563
$'000
–
1,563
–
1,563
–
1,563
1,563
6,740
6,740
1,563
6,740
6,740
6,740
(9,820)
(9,820)
6,740
(9,820)
(1,517)
(9,820)
(1,517)
(9,820)
(1,517)
–
(9,820)
(1,517)
–
(1,517)
–
–
(1,517)
–
–
–
–
–
–
–
(1,517)
(1,517)
–
(1,517)
(1,517)
(1,517)
(163)
(1,517)
(163)
(163)
(163)
(163)
–
(163)
–
–
–
–
155
–
155
155
155
155
–
–
–
155
–
–
–
–
–
–
–
–
–
–
–
(1,525)
–
–
(1,525)
–
(1,525)
34,819
–
(1,525)
34,819
(1,525)
34,819
20,227
34,819
(1,525)
20,227
34,819
20,227
20,227
34,819
20,227
20,227
$'000
$'000
$'000
–
$'000
–
$'000
–
–
$'000
–
–
–
–
–
–
–
–
–
–
–
–
–
(368)
(368)
–
(368)
(368)
(368)
(368)
(368)
(368)
–
(368)
(368)
–
(368)
–
–
(368)
–
–
–
–
–
–
–
(368)
(368)
–
(368)
(368)
(368)
–
(368)
–
–
–
–
–
–
–
–
–
–
3
–
3
3
3
3
–
–
–
3
–
–
–
–
–
–
–
–
–
–
–
(365)
–
–
(365)
–
(365)
–
–
(365)
–
(365)
–
–
–
(365)
–
–
–
–
–
–
–
68
–
Total
Total
Total
Total
Total
Total
754
$'000
$'000
$'000
139,141
$'000
139,141
$'000
$'000
139,141
8,733
139,141
8,733
139,141
8,733
139,141
8,733
8,733
(7,042)
8,733
(7,042)
(7,042)
(7,042)
(7,042)
(125,978)
(7,042)
(125,978)
(125,978)
14,854
(125,978)
14,854
(125,978)
14,854
(125,978)
(13,430)
14,854
(13,430)
14,854
(13,430)
14,854
(670)
(13,430)
(670)
(13,430)
(670)
(13,430)
(670)
(670)
754
(670)
754
754
754
754
(6,856)
(6,856)
(6,856)
(6,856)
(6,856)
(1,295)
(1,295)
(1,295)
(1,295)
(1,295)
(1,295)
1,200
1,200
1,200
1,200
1,200
230
230
1,200
230
(20,166)
230
(20,166)
230
(20,166)
230
(4,541)
(20,166)
(4,541)
(20,166)
(4,541)
(20,166)
(30,674)
(4,541)
(30,674)
(4,541)
(30,674)
(4,541)
779,916
(30,674)
779,916
(30,674)
779,916
(30,674)
427,604
779,916
427,604
779,916
427,604
779,916
427,604
427,604
427,604
(6,856)
Total
Total
Total
Total
Total
Total
6,608
10,050
$'000
$'000
$'000
92,164
$'000
92,164
$'000
92,164
$'000
6,293
92,164
6,293
92,164
6,293
92,164
6,293
6,293
10,050
10,050
6,293
10,050
10,050
10,050
(88,901)
(88,901)
(88,901)
19,606
(88,901)
19,606
(88,901)
19,606
(12,554)
(88,901)
19,606
(12,554)
19,606
(12,554)
(444)
19,606
(12,554)
(444)
(12,554)
(444)
(12,554)
(444)
(444)
6,608
6,608
(444)
6,608
6,608
6,608
(2,447)
(2,447)
(2,447)
(2,447)
(2,447)
2,621
(2,447)
2,621
2,621
2,621
2,621
1,635
1,635
1,635
1,635
1,635
405
405
405
1,635
(16,217)
405
(16,217)
405
(16,217)
3,161
(16,217)
405
3,161
(16,217)
3,161
(4,234)
3,161
(16,217)
(4,234)
3,161
(4,234)
714,150
(4,234)
3,161
714,150
(4,234)
714,150
372,896
714,150
(4,234)
372,896
714,150
372,896
372,896
714,150
372,896
372,896
2,621
63
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
2.
2.
Revenue from operating activities
Revenue from operating activities
OVERVIEW
OVERVIEW
This note provides a breakdown of revenue from operating activities by activity type.
This note provides a breakdown of revenue from operating activities by activity type.
Revenue from Hotels operations
Revenue from Hotels operations
Revenue from Funds Management activities
Revenue from Funds Management activities
Revenue from Wildlife Parks operations
Revenue from Wildlife Parks operations
Amortisation of Contract Asset
Amortisation of Contract Asset
Total revenue from operating activities
Total revenue from operating activities
Consolidated Consolidated
Consolidated Consolidated
Group
Group
30 June
30 June
2022
2022
$'000
$'000
54,279
54,279
28,706
28,706
10,817
10,817
(1,638)
(1,638)
92,164
92,164
Group
Group
30 June
30 June
2023
2023
$'000
$'000
87,569
87,569
35,044
35,044
17,455
17,455
(927)
(927)
139,141
139,141
The below table provides a breakdown of revenue from fund management activities.
The below table provides a breakdown of revenue from fund management activities.
Management fees and related cost recoveries
Management fees and related cost recoveries
Leasing and development management fees
Leasing and development management fees
Acquisition fees and related cost recoveries
Acquisition fees and related cost recoveries
Performance fees
Performance fees
Total Funds Management activities
Total Funds Management activities
ACCOUNTING POLICY
ACCOUNTING POLICY
Revenue recognition
Revenue recognition
Consolidated Consolidated
Consolidated Consolidated
Group
Group
30 June
30 June
2022
2022
$'000
$'000
14,769
14,769
4,842
4,842
9,095
9,095
–
–
28,706
28,706
Group
Group
30 June
30 June
2023
2023
$'000
$'000
17,324
17,324
4,191
4,191
6,389
6,389
7,140
7,140
35,044
35,044
The Group recognises revenue in each period for each of Elanor's activities based on the delivery of
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
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.
in AASB 15 Revenue from Contracts with Customers as described below.
Funds management fee revenue
Funds management fee revenue
Fund management fees
Fund management fees
Fund management fees are received for performance obligations fulfilled over time with revenue recognised
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,
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
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.
occurs on a monthly basis and are receivable within 21 days.
Performance fees
Performance fees
Performance fee revenue is recognised to the extent that it is highly probable that the amount of variable
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
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
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.
funds for performance fees occurs in accordance with the contractual performance fee payment date.
64
52
52
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.
Revenue from operating activities (continued)
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.
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 fees
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 equity raising 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.
65
53
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
3.
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
Interim distribution (declared before year end) 1
Final distribution (declared after year end) 2
Distribution
cents per
Distribution
cents per
stapled security stapled security
30 June
2022
9.05
4.43
30 June
2023
7.51
1.62
Total
Amount
30 June
2023
$'000
9,261
2,015
Total
Amount
30 June
2022
$'000
11,037
5,397
1. The interim distribution of 7.51 cents per stapled security was declared on 31 December 2022 and paid on 28 February 2023.
2. The final distribution of 1.62 cents per stapled security was declared after 30 June 2023, but is recognised in the accounts at balance
date. The final distribution will be paid on 31 August 2023.
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.
4.
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 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.
66
54
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
4.
Earnings per stapled security (continued)
The earnings / (losses) per stapled security measure shown below is based on the profit / (loss)
attributable to securityholders:
Basic (cents)
Diluted (cents)
Profit / (loss) attributable to security holders used in calculating basic and diluted earnings
per stapled security ($'000)
Weighted average number of stapled securities used as denominator in calculating basic
earnings per stapled security
Weighted average number of stapled securities used as denominator in calculating diluted
earnings per stapled security
Consolidated Consolidated
Group
30 June
2022
0.82
Group
30 June
2023
(16.35)
(13.91)
(19,707)
0.69
966
120,513
117,337
141,693
139,203
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 year.
The earnings / (losses) per stapled security measures shown below are based upon the profit / (loss)
attributable to securityholders of the ENN Group:
Basic (cents)
Diluted (cents)
Profit / (loss) attributable to security holders used in calculating basic and diluted earnings
per stapled security ($'000)
Weighted average number of stapled securities used as denominator in calculating basic
earnings per stapled security
Weighted average number of stapled securities used as denominator in calculating diluted
earnings per stapled security
ENN Parent
30 June
2023
(14.09)
ENN Parent
30 June
2022
(10.08)
(11.98)
(8.50)
(16,977)
(11,833)
120,513
117,337
141,693
139,203
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 year.
ACCOUNTING POLICY
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.
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.
67
55
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 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Income tax
Income tax
Income tax
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
5.
5.
OVERVIEW
5.
OVERVIEW
This note provides detailed information about the Group's income tax items including a reconciliation of income
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
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).
This note provides detailed information about the Group's income tax items including a reconciliation of income
income tax as shown in the income statement, to the actual income tax expense / (benefit).
tax expense, if Australia's company income tax rate of 30% was applied to the Group's (loss) / profit before
(a)
income tax as shown in the income statement, to the actual income tax expense / (benefit).
(a)
Income Tax Expense
Income Tax Expense
(a)
Income Tax Expense
Current tax expense
Deferred tax expense / (benefit)
Current tax expense
Deferred tax expense / (benefit)
Income tax expense / (benefit)
Current tax expense
Income tax expense / (benefit)
Deferred tax expense / (benefit)
Income tax expense / (benefit)
(b)
(b)
Reconciliation of income tax expense to prima facie tax expense
Reconciliation of income tax expense to prima facie tax expense
(b)
Reconciliation of income tax expense to prima facie tax expense
Loss before income tax expense
Loss before income tax expense
Less: profit / (loss) from the Trust (which is not taxable)
Loss before income tax expense
Less: profit / (loss) from the Trust (which is not taxable)
Prima facie loss
Less: profit / (loss) from the Trust (which is not taxable)
Prima facie loss
Tax at the Australian tax rate of 30%
Prima facie loss
Tax at the Australian tax rate of 30%
Tax effect of amounts which are not deductible / (taxable) in calculating taxable income:
Tax at the Australian tax rate of 30%
Tax effect of amounts which are not deductible / (taxable) in calculating taxable income:
Tax effect of amounts which are not deductible / (taxable) in calculating taxable income:
Entertainment
Non-deductible depreciation and amortisation
Entertainment
Fair value adjustments to investment property in the Trust
Non-deductible depreciation and amortisation
Entertainment
Non-deductible expenses
Fair value adjustments to investment property in the Trust
Non-deductible depreciation and amortisation
Impact of consolidations
Non-deductible expenses
Fair value adjustments to investment property in the Trust
Non-assessable income
Impact of consolidations
Non-deductible expenses
Other
Non-assessable income
Impact of consolidations
Other
Non-assessable income
Other
Income tax expense / (benefit)
Income tax expense / (benefit)
Consolidated Consolidated
Group
Consolidated Consolidated
30 June
Group
Consolidated Consolidated
2022
30 June
Group
$'000
2022
30 June
827
$'000
2022
(3,988)
827
$'000
(3,988)
(3,161)
827
(3,161)
(3,988)
Group
30 June
Group
2023
30 June
Group
$'000
2023
30 June
3,275
$'000
2023
1,266
3,275
$'000
1,266
4,541
3,275
4,541
1,266
4,541
(3,161)
Consolidated Consolidated
Group
Consolidated Consolidated
30 June
Group
Consolidated Consolidated
2022
30 June
Group
$'000
2022
30 June
(7,395)
$'000
2022
(7,395)
$'000
(18,337)
(7,395)
(18,337)
(25,732)
(18,337)
(25,732)
(7,720)
(25,732)
(7,720)
Group
30 June
Group
2023
30 June
Group
$'000
2023
30 June
(26,133)
$'000
2023
(26,133)
$'000
(17,245)
(26,133)
(17,245)
(43,378)
(17,245)
(43,378)
(13,013)
(43,378)
(13,013)
(13,013)
64
2,138
64
9,783
2,138
64
3,677
9,783
2,138
(398)
3,677
9,783
–
(398)
3,677
2,290
–
(398)
2,290
4,541
–
4,541
2,290
(7,720)
61
1,574
61
4,857
1,574
61
(17)
4,857
1,574
(740)
(17)
4,857
(151)
(740)
(17)
(1,025)
(151)
(740)
(1,025)
(3,161)
(151)
(3,161)
(1,025)
4,541
(3,161)
Income tax expense / (benefit)
ACCOUNTING POLICY
ACCOUNTING POLICY
Accounting standards require the application of the “balance sheet method” to account for Elanor's income
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
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
Accounting standards require the application of the “balance sheet method” to account for Elanor's income
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
tax. Accounting profit does not always equal taxable income. There are a number of timing differences between
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
the recognition of accounting expenses and the availability of tax deductions or when revenue is recognised
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”.
for accounting and tax purposes. These timing differences reverse over time, but they are recognised as
is referred to as the “balance sheet method”.
deferred tax assets and deferred tax liabilities in the balance sheet until they are fully reversed. This method
The Trust is not subject to Australian income tax provided their taxable income is fully distributed to the
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.
unitholders each year.
The Trust is not subject to Australian income tax provided their taxable income is fully distributed to the
68
unitholders each year.
56
56
56
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
5.
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 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.
Elanor Hotel Accommodation 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.
69
57
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
5.
Income tax (continued)
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
1,656
278
1,208
7,409
1,770
12,321
17,173
(1,467)
(3,365)
(20)
12,321
4,399
7,922
117
2,121
2,238
5,023
(2,936)
151
2,238
117
2,121
1,282
2,710
1,707
10,774
700
17,173
10,310
2,034
4,858
(29)
17,173
3,554
13,619
154
4,869
5,023
2,422
2,404
197
5,023
154
4,869
10,083
12,150
4,961
3,638
172
1,312
4,044
5,879
384
1,843
10,083
12,150
(a) Deferred tax assets
The balance comprises temporary differences attributable to:
Employee entitlements
Asset acquisitions and blackhole expenses
Lease incentive
Tax losses recognised
Other
Total deferred tax assets
Movements:
Opening balance at beginning of year
Credited/(Debited) to the Consolidated Statements of Profit or Loss
Tax losses (utilised)/recognised
(Debited)/Credited to Equity
Closing balance at the end of the year
Deferred tax expected to be recovered within 12 months
Deferred tax expected to be recovered after more than 12 months
(b) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Employee incentive plans
Other
Total deferred tax liabilities
Movements:
Opening balance at beginning of year
Credited/(Debited) to the Consolidated Statements of Profit or Loss
Tax losses (utilised)/recognised
Closing balance at the end of the year
Deferred tax expected to be recovered within 12 months
Deferred tax expected to be recovered after more than 12 months
Net deferred tax position
(c) Deferred tax asset / liability per tax group
Deferred tax asset / (liability) of the EIL tax group
Deferred tax asset / (liability) of the EHAF tax group
Deferred tax asset / (liability) of the ELHF tax group
Deferred tax asset / (liability) of the EWPF tax group
Net deferred tax position
70
58
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
5.
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.
6.
Cash and cash equivalents
OVERVIEW
This note provides further information on the consolidated cash and cash equivalents of the Group.
Group cash and cash equivalents
Cash held in trust1
Total cash and cash equivalents
Consolidated Consolidated
Group
30 June
2022
$'000
27,774
–
Group
30 June
2023
$'000
22,106
3,163
25,269
27,774
1 The cash held in trust balance is held on behalf of a related entity and was transferred to that entity subsequent to balance date. The
funds are therefore not available for general use by the Group and a corresponding liability has been recognised to reflect the transfer
obligation.
71
59
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
7.
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
Loss for the year
Depreciation of non-current assets
Amortisation
Fair value adjustment on revaluation of investment property and derivatives
Net unrealised revenue/(loss) from equity accounted investments
Net realised loss on sale of investment
Other non-cash items
Employee costs funded directly through equity
Net cash provided by operating activities before changes in assets and liabilities
Movement in working capital:
Decrease / (increase) in trade and other receivables
Decrease / (increase) in stock
Increase / (decrease) in other current assets
Decrease / (increase) in deferred tax
Increase / (decrease) in trade and other payables
Increase / (decrease) in other liabilities
Increase / (decrease) in other provision
Increase / (decrease) in lease liabilities
Net cash from operating activities
Consolidated Consolidated
Group
30 June
2022
$'000
(4,234)
Group
30 June
2023
$'000
(30,674)
13,430
670
8,151
7,043
(1,200)
6,579
3,441
7,440
2,653
(84)
(385)
2,067
5,895
873
1,134
(1,660)
17,933
12,554
3,070
(2,447)
(10,050)
(1,635)
(2,982)
3,769
(1,955)
(5,831)
(1,631)
(2,577)
2,079
1,866
201
1,223
1,844
(4,781)
72
60
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
7.
Cash flow information (continued)
(b)
Reconciliation of liabilities arising from financing activities
.
.
.
.
.
.
Bank loans
Unsecured notes
Lease liability
30 June
2022 Cash flows Acquisitions
$'000
$'000
$'000
–
5,150
273,631
–
(3,250)
62,204
–
(2,029)
5,417
Consolidation of
Wildlife Parks
Fund and
Stirling Street
Syndicate
$'000
–
–
–
Proceeds
from new
liabilities
$'000
40,935
–
–
Total liabilities from financing activities
341,252
(129)
–
40,935
–
.
.
.
.
.
.
Bank loans
Unsecured notes
Lease liability
30 June
2021 Cash flows Acquisitions
$'000
$'000
$'000
–
45,772
207,718
–
(21,831)
59,554
–
(2,077)
3,575
Consolidation of
Wildlife Parks
Fund and
Stirling Street
Syndicate
$'000
19,772
24,481
–
Proceeds
from new
liabilities
$'000
369
–
3,920
Total liabilities from financing activities
270,847
21,864
–
4,289
44,253
30 June
2023
$'000
319,716
58,954
3,388
382,058
30 June
2022
$'000
273,631
62,204
5,417
341,252
(c)
Net debt reconciliation
Cash and cash equivalents
Borrowings
Lease liabilities
Net debt
Cash and liquid investments
Gross debt - fixed interest rates
Gross debt - variable interest rates
Net debt
Consolidated Consolidated
Group
30 June
2022
$'000
27,774
(335,835)
(5,417)
(313,478)
Group
30 June
2023
$'000
25,269
(380,701)
(3,757)
(359,189)
25,269
(65,508)
(318,950)
(359,189)
27,774
(67,621)
(273,631)
(313,478)
73
61
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
8.
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
19 accommodation hotels and 3 wildlife parks in Australia. Of the 19 accommodation hotels, 16
accommodation hotels and all of the wildlife parks have been independently valued as at 30 June 2023.
(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:
Opening balance
Additions
Transfers
Revaluation increments / (decrements)
Disposals
Closing balance
Accumulated depreciation at the beginning of the year
Depreciation
Accumulated depreciation at the end of the year
Land and
buildings equipment
$'000
78,364
12,324
10,186
–
(7)
Plant and Right-of-use
asset
$'000
6,801
–
–
–
–
$'000
416,159
62,259
(10,186)
22,454
–
Consolidated
Group
30 June
2023
$'000
501,324
74,583
–
22,454
(7)
490,686
100,867
6,801
598,354
(26,635)
(7,861)
(34,496)
(34,162)
(4,374)
(38,536)
(3,073)
(1,195)
(4,268)
(63,870)
(13,430)
(77,300)
Total carrying value at the end of the year
456,190
62,331
2,533
521,054
i) Non-current assets pledged as security
Refer to note 11 for information on non-current assets pledged as security by the Group.
74
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Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
Property, plant and equipment (continued)
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 2022 year is set out below:
Opening balance
Business combination
Additions
Impairment
Revaluation increments / (decrements)
Disposals
Closing balance
Land and
buildings equipment
$'000
63,384
8,122
7,840
–
–
(982)
78,364
Plant and Right-of-use
asset
$'000
5,127
–
3,177
(1,503)
–
–
6,801
$'000
333,625
54,196
10,591
–
17,747
–
416,159
Consolidated
Group
30 June
2022
$'000
402,136
62,318
21,608
(1,503)
17,747
(982)
501,324
Accumulated depreciation at the beginning of the year
Depreciation
Accumulated depreciation at the end of the year
(21,347)
(5,288)
(26,635)
(28,268)
(5,894)
(34,162)
(1,701)
(1,372)
(3,073)
(51,316)
(12,554)
(63,870)
Total carrying value at the end of the year
389,524
44,202
3,728
437,454
75
63
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
Property, plant and equipment (continued)
(b)
Carrying value of property, plant and equipment
The following table represents the total fair value of property, plant and equipment at 30 June 2023:
Property
Mayfair Hotel
Cradle Mountain Lodge
Byron Bay Hotel
Narrabundah Hotel
Eaglehawk Hotel
Parklands Resort Mudgee
Tamworth Hotel
Port Macquarie Hotel
Tall Trees Hotel
Wollongong Hotel
Clare Country Club
Adabco Boutique Hotel
Estate Tuscany Hotel
Barossa Weintal Hotel
Chateau Yering Hotel
Wildes Boutique Hotel
Pavilion Wagga Wagga Hotel
Albany Hotel
Featherdale Wildlife Park
Hunter Valley Wildlife Park
Mogo Wildlife Park
Panorama Retreat
Right-of-use asset
Other
Total
Valuation
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Internal
Internal
Independent
Internal
Independent
Independent
Independent
Independent
Consolidated Consolidated
Group
30 June
2022
$'000
87,000
73,500
34,500
32,000
21,000
19,500
–
15,000
14,000
13,500
10,500
13,000
12,750
7,500
–
–
7,500
3,100
30,100
17,500
18,600
–
3,728
3,176
437,454
Group
30 June
2023
$'000
91,500
80,000
34,500
33,500
22,500
24,000
16,800
15,500
14,000
15,000
17,250
15,500
12,750
13,500
18,750
12,050
9,000
3,100
33,100
16,900
10,900
6,000
2,533
2,421
521,054
As at 30 June 2023, the Directors assessed the fair value of the properties above, supported by independent
and internal valuations.
76
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Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
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:
Land and buildings
Plant and equipment
Right-of-use asset
Total
(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:
Right-of-use assets
Office premise lease
Total
Lease liabilities
Current
Non-current
Total
Consolidated Consolidated
Group
30 June
2022
$'000
266,817
46,521
3,728
Group
30 June
2023
$'000
322,630
64,469
2,533
389,632
317,066
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
2,533
2,533
1,887
1,870
3,757
3,728
3,728
1,660
3,758
5,418
77
65
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
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:
Depreciation charge of right-of-use assets
Office premise lease
Total
Interest expense
Office premise lease
Total
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
1,195
1,195
358
358
1,372
1,372
454
454
The total cash outflow for leases during the year ended 30 June 2023 was $2.1 million (2022: $2.1 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.
78
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Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
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:
40 years
• Vehicles
• Computer equipment
• Furniture, fittings and equipment
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.
Senior Management provides the property valuations to the Audit, Risk & Compliance Committee for
consideration. The Audit, Risk & Committee recommends the property valuations to the Board for adoption
and inclusion in the financial Report in accordance with the Group's Property Valuation Policy.
79
67
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
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:
Consolidated Group - Hotels
Assets measured at fair value
Property, plant and equipment
Consolidated Group - Wildlife Parks
Assets measured at fair value
Property, plant and equipment
80
Discount
Rate
%
Terminal Capitalisation Average Daily
Rate
$
Yield
%
Rate
%
Occupancy
%
7.75 - 11.00
5.75 - 9.25
5.75 - 11.00
154 - 505
56 - 81
Discount
Rate
%
Terminal Capitalisation
Rate
%
Yield
%
16.0 - 16.5
14.0 - 14.0
13.0 - 13.0
68
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Fair value measurement
Fair value measurement
Fair value measurement
sensitivity to increase
sensitivity to increase
Fair value measurement
sensitivity to increase
in input
Fair value measurement
in input
sensitivity to increase
Fair value measurement
in input
Fair value measurement
Decrease
sensitivity to increase
Decrease
in input
sensitivity to increase
Fair value measurement
Decrease
sensitivity to increase
Decrease
in input
Decrease
Decrease
in input
sensitivity to increase
Decrease
in input
Decrease
Decrease
Decrease
Decrease
Decrease
in input
Decrease
Decrease
Increase
Decrease
Increase
Decrease
Decrease
Decrease
Increase
Decrease
Increase
Decrease
Increase
Increase
Decrease
Decrease
Increase
Decrease
Increase
Increase
Increase
Decrease
Increase
Increase
Increase
Increase
Increase
Increase
Property, plant and equipment (continued)
Property, plant and equipment (continued)
Property, plant and equipment (continued)
Property, plant and equipment (continued)
Valuation technique and inputs (continued)
Property, plant and equipment (continued)
Valuation technique and inputs (continued)
Property, plant and equipment (continued)
Property, plant and equipment (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)
Property, plant and equipment (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)
Valuation technique and inputs (continued)
8.
8.
8.
8.
(c)
8.
(c)
8.
8.
(c)
(c)
8.
Sensitivity Information
(c)
Sensitivity Information
(c)
(c)
Sensitivity Information
Sensitivity Information
(c)
The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below
Sensitivity Information
The key unobservable inputs to measure the fair value of property, plant and equipment are disclosed below
Sensitivity Information
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:
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 Information
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
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
Fair value measurement
along with sensitivity to a significant increase or decrease set out in the following table:
Fair value measurement
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:
Fair value measurement
sensitivity to decrease
sensitivity to decrease
Fair value measurement
along with sensitivity to a significant increase or decrease set out in the following table:
sensitivity to decrease
in input
Fair value measurement
in input
sensitivity to decrease
Fair value measurement
in input
Fair value measurement
Increase
Discount rate (%)
sensitivity to decrease
Increase
Discount rate (%)
in input
sensitivity to decrease
Fair value measurement
Discount rate (%)
Increase
sensitivity to decrease
Increase
Terminal yield (%)
in input
Increase
Terminal yield (%)
Discount rate (%)
Increase
in input
sensitivity to decrease
Increase
Terminal yield (%)
in input
Increase
Capitalisation rate (%)
Discount rate (%)
Increase
Increase
Capitalisation rate (%)
Increase
Terminal yield (%)
Increase
Discount rate (%)
in input
Increase
Capitalisation rate (%)
Discount rate (%)
Increase
Decrease
Average daily rate ($)
Increase
Terminal yield (%)
Decrease
Average daily rate ($)
Increase
Capitalisation rate (%)
Increase
Terminal yield (%)
Increase
Discount rate (%)
Decrease
Average daily rate ($)
Increase
Terminal yield (%)
Decrease
Occupancy (%)
Increase
Capitalisation rate (%)
Decrease
Occupancy (%)
Decrease
Average daily rate ($)
Increase
Capitalisation rate (%)
Increase
Terminal yield (%)
Decrease
Occupancy (%)
Increase
Capitalisation rate (%)
Decrease
Average daily rate ($)
Decrease
Occupancy (%)
Decrease
Average daily rate ($)
Capitalisation rate (%)
Increase
Decrease
Average daily rate ($)
Decrease
Occupancy (%)
Sensitivity Analysis
Sensitivity Analysis
Decrease
Occupancy (%)
Decrease
Average daily rate ($)
Decrease
Occupancy (%)
Sensitivity Analysis
Sensitivity Analysis
Occupancy (%)
Decrease
When calculating the capitalisation method, the net property income has a strong inter-relationship with the
Sensitivity Analysis
When calculating the capitalisation method, the net property income has a strong inter-relationship with the
Sensitivity Analysis
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
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
Sensitivity Analysis
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
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
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
When calculating the capitalisation method, the net property income has a strong inter-relationship with 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
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
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.
adopted capitalisation rate given the methodology involves assessing the total income receivable from the
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
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
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
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the income and
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.
rate. A directionally opposite change in the income and the adopted capitalisation rate could potentially magnify
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
an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair value.
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
the impact to the fair value.
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.
The same can be said for a decrease in the income and a decrease (tightening) in the adopted capitalisation
the impact to the fair value.
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
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
the impact to the fair value.
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
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
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
the impact to the fair value.
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
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
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
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong
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
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The
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
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal
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
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
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
value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted
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
adopted terminal yield. A directionally similar change in the adopted discount rate and adopted terminal yield
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
discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. 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
could potentially magnify the impact to the fair value.
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.
same can be said for a decrease (tightening) in the adopted discount rate and an increase (softening) in the
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
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
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the
could potentially magnify the impact to the fair value.
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for 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.
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
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
could potentially magnify the impact to the fair value.
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
time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time.
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.
The average daily rate and occupancy percentage assumptions drive the forecast hotel revenue for the
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
An increase in these assumptions will increase the forecast hotel revenue and valuation of the hotels, whilst a
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
accommodation hotel assets. The average daily rate reflects the average rate for a room sold over a period of
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.
decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.
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.
time, while the occupancy percentage reflects the number of rooms occupied by guests over a period of time.
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
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.
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.
Increase by Decrease by
Increase by Decrease by
decrease in these assumptions will have the opposite effect on forecast hotel revenue and valuations.
Increase by Decrease by
0.50%
0.50%
Increase by Decrease by
0.50%
%
Increase by Decrease by
%
0.50%
Increase by Decrease by
%
Increase by Decrease by
0.7
0.50%
0.7
%
0.50%
Increase by Decrease by
0.7
0.50%
7.0
%
7.0
0.7
%
0.50%
7.0
%
7.8
0.7
7.8
7.0
0.7
%
7.8
0.7
7.0
7.8
7.0
0.7
7.0
7.8
7.8
7.0
7.8
Increase by Decrease by
Increase by Decrease by
7.8
Increase by Decrease by
2.50%
2.50%
Increase by Decrease by
2.50%
%
Increase by Decrease by
%
2.50%
Increase by Decrease by
%
Increase by Decrease by
(7.8)
2.50%
(7.8)
%
2.50%
Increase by Decrease by
(7.8)
2.50%
(7.7)
%
(7.7)
(7.8)
%
2.50%
(7.7)
%
(7.8)
(7.7)
(7.8)
81
%
(7.8)
(7.7)
(7.7)
(7.8)
(7.7)
(7.7)
Increase by Decrease by
Increase by Decrease by
Increase by Decrease by
0.50%
0.50%
Increase by Decrease by
0.50%
$'000
Increase by Decrease by
$'000
0.50%
Increase by Decrease by
$'000
Increase by Decrease by
3,218
0.50%
3,218
$'000
0.50%
Increase by Decrease by
3,218
0.50%
31,832
$'000
31,832
3,218
$'000
0.50%
31,832
$'000
35,320
3,218
35,320
31,832
3,218
$'000
35,320
3,218
31,832
35,320
31,832
3,218
31,832
35,320
35,320
31,832
35,320
Increase by Decrease by
Increase by Decrease by
35,320
Increase by Decrease by
2.50%
2.50%
Increase by Decrease by
2.50%
$'000
Increase by Decrease by
$'000
2.50%
Increase by Decrease by
$'000
Increase by Decrease by
(35,502)
2.50%
(35,502)
$'000
2.50%
Increase by Decrease by
(35,502)
2.50%
(34,967)
$'000
(34,967)
(35,502)
$'000
2.50%
(34,967)
$'000
(35,502)
(34,967)
(35,502)
$'000
(35,502)
(34,967)
(34,967)
(35,502)
(34,967)
(34,967)
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Fair value measurement sensitivity
Discount rate (%)
Discount rate (%)
Discount rate (%)
Terminal yield (%)
Terminal yield (%)
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
Discount rate (%)
Capitalisation rate (%)
Terminal yield (%)
Discount rate (%)
Capitalisation rate (%)
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
Terminal yield (%)
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
Capitalisation rate (%)
Terminal yield (%)
Capitalisation rate (%)
Capitalisation rate (%)
0.50%
0.50%
0.50%
$'000
$'000
0.50%
$'000
(3,628)
0.50%
(3,628)
$'000
0.50%
(3,628)
0.50%
(29,528)
$'000
(29,528)
(3,628)
$'000
0.50%
(29,528)
$'000
(31,862)
(3,628)
(31,862)
(29,528)
(3,628)
$'000
(31,862)
(3,628)
(29,528)
(31,862)
(29,528)
(3,628)
(29,528)
(31,862)
(31,862)
(29,528)
(31,862)
(31,862)
2.50%
2.50%
2.50%
$'000
$'000
2.50%
$'000
35,967
2.50%
35,967
$'000
2.50%
35,967
2.50%
35,950
$'000
35,950
35,967
$'000
2.50%
35,950
$'000
35,967
35,950
35,967
$'000
35,967
35,950
35,950
35,967
35,950
35,950
Average daily rate ($)
Average daily rate ($)
Average daily rate ($)
Occupancy (%)
Occupancy (%)
Average daily rate ($)
Occupancy (%)
Average daily rate ($)
Occupancy (%)
Average daily rate ($)
Average daily rate ($)
Occupancy (%)
Occupancy (%)
Average daily rate ($)
Occupancy (%)
Occupancy (%)
0.50%
0.50%
0.50%
%
%
0.50%
%
(0.8)
0.50%
(0.8)
%
0.50%
(0.8)
0.50%
(6.5)
%
(6.5)
(0.8)
%
0.50%
(6.5)
%
(7.0)
(0.8)
(7.0)
(6.5)
(0.8)
%
(7.0)
(0.8)
(6.5)
(7.0)
(6.5)
(0.8)
(6.5)
(7.0)
(7.0)
(6.5)
(7.0)
(7.0)
2.50%
2.50%
2.50%
%
%
2.50%
%
7.9
2.50%
7.9
%
2.50%
7.9
2.50%
7.9
%
7.9
7.9
%
2.50%
7.9
%
7.9
7.9
7.9
%
7.9
7.9
7.9
7.9
7.9
7.9
69
69
69
69
69
69
69
69
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
Property, plant and equipment (continued)
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
Fair value measurement sensitivity
Increase by Decrease by
0.50%
$'000
200
1,500
3,600
0.50%
$'000
(100)
(1,200)
(3,100)
Increase by Decrease by
0.50%
%
0.3
2.4
5.9
0.50%
%
(0.2)
(1.9)
(5.1)
9.
Investment properties
The carrying amount of investment properties at the beginning and end of the current year is set out below:
Carrying amount at the beginning of the year
Additions from consolidation of Stirling
Additions
Revaluation (decrements) / increments
Carrying amount at the end of the year
Consolidated Consolidated
Group
30 June
2022
$'000
55,500
34,000
2,489
1,886
93,875
Group
30 June
2023
$'000
93,875
–
2,361
(4,361)
91,875
The following table represents the total fair value of investment properties at 30 June 2023:
Property
Bluewater Square
Stirling Street
Cougal Street
Total
Valuation
Internal
Independent
Internal
Consolidated Consolidated
Group
30 June
2022
$'000
58,000
34,000
1,875
93,875
Group
30 June
2023
$'000
55,500
34,500
1,875
91,875
As at 30 June 2023, 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 independent 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.
82
70
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
9.
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 decreased by 4.3% from $58.0 million as at 30 June 2022 to $55.5 million as
at 30 June 2023. This decrease is mainly attributable to an increasing capitalisation rate.
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
Significant unobservable inputs
30 June 2023 30 June 2022
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.
Adopted discount rate
Adopted terminal yield
6.50% - 7.50% 5.75% - 6.75%
6.25% - 7.25% 5.50% - 6.50%
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.
Adopted capitalisation rate
6.00% - 7.00% 5.25% - 6.50%
83
71
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
9.
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:
Fair value measurement
sensitivity to increase
in input
Fair value measurement
sensitivity to decrease
in input
Decrease
Decrease
Decrease
Increase
Increase
Increase
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
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.
84
72
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
9.
Investment properties (continued)
Sensitivity Analysis (continued)
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.
Discount rate (%)
Terminal yield (%)
Capitalisation rate (%)
Fair value measurement sensitivity
Increase by Decrease by
0.50%
$'000
0.50%
$'000
Increase by Decrease by
0.50%
%
0.50%
%
(3,583)
(4,285)
(7,503)
5,389
4,724
7,449
(4.2)
(5.0)
(8.1)
6.3
5.5
8.9
10. 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 2023
Elanor Commercial Property Fund (ASX: ECF)
Elanor Property Income Fund
Waverley Gardens Fund
Riverton Forum Fund
Elanor Healthcare Real Estate
Harris Street Fund
1834 Hospitality
Hunters Plaza Syndicate
Belconnen Markets Syndicate
Total equity accounted investments
Principal activity
Commercial Office Properties
Real Estate Properties
Shopping Centre
Shopping Centre
Healthcare Properties
Commercial Office Property
Hotel Management
Shopping Centre
Shopping Centre
Percentage Consolidated
Group
Ownership
30 June
2023
$'000
40,830
16,497
13,171
9,000
6,709
5,853
3,777
1,550
447
12.56%
23.39%
15.00%
15.00%
5.00%
9.41%
25.00%
5.87%
1.04%
97,834
85
73
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10. Equity accounted investments (continued)
30 June 2022
Elanor Commercial Property Fund (ASX: ECF)
Elanor Property Income Fund
Waverley Gardens Fund
Harris Street Fund
1834 Hospitality
Hunters Plaza Syndicate
Belconnen Markets Syndicate
Total equity accounted investments
Principal activity
Commercial Office Properties
Shopping Centres
Shopping Centre
Commercial Office Property
Hotel Management
Shopping Centre
Shopping Centre
Percentage Consolidated
Group
Ownership
30 June
2022
$'000
51,459
27,725
14,005
12,305
2,881
1,688
331
12.56%
18.03%
15.00%
13.88%
25.00%
5.49%
1.04%
110,394
The carrying amount of equity accounted investments at the beginning and end of the year is set out below:
Carrying amount at the beginning of the year
Consolidation of Elanor Wildlife Park Fund and Stirling Street Syndicate
Share of (loss) / profit from equity accounted investments
Distributions received
Share of movement in reserves
Net investment in / (sale of) equity accounted investments
Realised gain on disposal of investments
(Impairment) / reversal of Impairment of equity accounted investments1
Total carrying value at the end of the year
110,394
1 During the year Elanor’s investment in Elanor Commercial Property Fund was revised to reflect Elanor’s share of Elanor Commercial
Property Fund’s net tangible assets. At 30 June 2023 a value in use calculation was performed to support the carrying value, using a
discount rate of 10.0%.
97,834
Consolidated Consolidated
Group
30 June
2022
$'000
92,588
(8,132)
10,050
(8,399)
68
21,998
1,482
739
Group
30 June
2023
$'000
110,394
–
(7,042)
(14,799)
(38)
10,950
1,200
(2,831)
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
Commercial Property Fund, Elanor Property Income Fund and Waverley Gardens 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.
86
74
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10. Equity accounted investments (continued)
30 June 2023
Financial position
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Contributed equity
Retained profits / (accumulated losses)
Total Equity
Financial performance
Profit / (loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Elanor
Property
Elanor
Waverley
Commercial Gardens Fund
Income Fund Property Fund
30 June
2023
$'000
12,964
511,793
30 June
2023
$'000
6,679
110,386
117,065
524,757
45,654
–
45,654
121,462
(50,051)
71,411
94,995
111,963
206,958
369,493
(51,694)
317,799
30 June
2023
$'000
3,722
218,621
222,343
5,913
125,826
131,739
88,001
2,603
90,604
Elanor
Property
Elanor
Waverley
Commercial Gardens Fund
Income Fund Property Fund
30 June
2023
$'000
30 June
2023
$'000
4,691
–
4,691
(32,176)
–
(32,176)
30 June
2023
$'000
(687)
–
(687)
731
Distributions received from the associates during the year
9,682
3,737
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:
Net assets of the associate
Proportion of the Group's ownership interest
Group's share of net assets of the associates
Other movements not accounted for under the equity method 1
Carrying amount of the Group's interest
Elanor
Property
Elanor
Waverley
Commercial Gardens Fund
Income Fund Property Fund
30 June
2023
$'000
317,799
12.56%
39,916
914
40,830
30 June
2023
$'000
71,411
23.39%
16,703
(206)
16,497
30 June
2023
$'000
90,604
15.00%
13,591
(420)
13,171
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.
87
75
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10. Equity accounted investments (continued)
Details of Material Associates (continued)
30 June 2022
Financial position
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Contributed equity
Retained profits / (accumulated losses)
Total Equity
Financial performance
Profit / (loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Elanor
Property
Elanor
Commercial Gardens Fund
Waverley Harris Street
Fund
Income Fund Property Fund
30 June
2022
$'000
13,136
567,194
580,330
30 June
2022
$'000
98,239
106,300
204,539
11,394
41,689
53,083
155,272
(3,816)
151,456
Elanor
Property
11,727
188,869
200,596
369,496
10,238
379,734
Elanor
30 June
2022
$'000
5,447
215,271
220,718
6,537
118,615
125,152
88,001
7,565
95,566
30 June
2022
$'000
2,981
185,000
187,981
1,478
98,300
99,778
87,100
1,103
88,203
Commercial Gardens Fund
Waverley Harris Street
Fund
Income Fund Property Fund
30 June
2022
$'000
43,948
825
44,773
30 June
2022
$'000
3,528
120
3,648
30 June
2022
$'000
23,773
–
23,773
30 June
2022
$'000
1,559
–
1,559
Distributions received from the associates during the year
4,340
3,414
350
–
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:
Elanor
Property
Elanor
Commercial Gardens Fund
Waverley Harris Street
Fund
Net assets of the associate
Proportion of the Group's ownership interest
Group's share of net assets of the associates
Other movements not accounted for under the equity method 1
Carrying amount of the Group's interest
Income Fund Property Fund
30 June
2022
$'000
379,734
12.56%
47,691
3,768
51,459
30 June
2022
$'000
151,456
18.03%
27,308
417
27,725
30 June
2022
$'000
95,566
15.00%
14,335
(330)
14,005
30 June
2022
$'000
88,203
13.88%
12,243
62
12,305
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.
88
76
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10. Equity accounted investments (continued)
Aggregate information of associates that are not individually material
Profit / (loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Year ended
30 June
2023
$'000
(42,397)
(18)
(42,415)
Year ended
30 June
2022
$'000
8,889
(67)
8,822
Aggregate carrying amount of the Group's interests in these associates
27,335
4,900
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.
89
77
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10. 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 8 and 9 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.
90
78
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Finance and Capital Structure
This section provides further information on the Group's debt finance, financial assets and contributed
equity.
11.
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.
Current
Bank loan - term debt
Bank loan - borrowing costs less amortisation
Total current
Non-current
Corporate notes
Corporate notes - borrowing costs less amortisation
Bank loan - term debt
Bank loan - borrowing costs less amortisation
Total non-current
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
8,750
(208)
8,542
56,027
(1,483)
318,738
(1,123)
372,159
–
–
–
64,000
(1,796)
275,175
(1,544)
335,835
Total interest bearing liabilities
380,701
335,835
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 $25.7 million and $15.8 million respectively. The fair values of
the unsecured notes are based on discounted cash flows using a current borrowing rate.
Of the $40 million (2022: $40 million) corporate notes the Group has bought $1 million (2022: $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.
91
79
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11.
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. During the year EWPF repaid $3.3 million.
The fair value of the secured notes is $22.3 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 2023, the Group had unrestricted access to the following credit facilities:
ENN Group
Facility - ENN
Total amount used
Total amount unused - ENN
EHAF Group
Facility - EHAF
Total amount used
Total amount unused - EHAF
Bluewater
Facility - Bluewater
Total amount used
Total amount unused - Bluewater
Stirling
Facility - Stirling
Total amount used
Total amount unused - Stirling
Consolidated Consolidated
Group
30 June
2022
$'000
65,000
(59,850)
5,150
Group
30 June
2023
$'000
67,000
(67,000)
–
210,020
(205,413)
4,607
165,000
(165,000)
–
30,525
(30,525)
–
19,800
(19,800)
–
30,525
(30,525)
–
19,800
(19,800)
–
Total amount unused - Consolidated Group
4,607
5,150
The ENN Group has access to a $2.0 million and a $65.0 million debt facility, with maturity dates of 14 April
2024 and 31 July 2025, respectively. The drawn amount at 30 June 2023 is $67.0 million and both facilities
are not hedged. The fair value of this debt facility is $67.5 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 ENN Group is currently meeting all of its covenants.
92
80
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11.
Interest bearing liabilities (continued)
The EHAF Group has access to secured debt facilities of $82.5 million, $109.5 million and an $18.0 million
capex facility (from which both the EHAF hotel management companies and property trusts can draw) which
will mature on 23 December 2024. The drawn amount at 30 June 2023 was $205.4 million. The $82.5 million
secured debt facility was 100% hedged, the remaining debt facilities were not hedged as of 30 June 2023. The
fair value of these debt facilities is $206.1 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.
Bluewater has access to a $30.5 million facility. The drawn amount as at 30 June 2023 was $30.5 million which
will mature on 31 August 2024. As at 30 June 2023, the drawn amount was not hedged. The fair value of this
debt facility is $30.9 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. Bluewater is
currently meeting all of its covenants.
Stirling has access to a $19.8 million facility. The drawn amount at 30 June 2023 was $19.8 million which will
mature on 31 August 2024. As at 30 June 2023, the drawn amount was not hedged. The fair value of this debt
facility is $20.1 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. Stirling is currently
meeting all of its covenants.
BORROWING COSTS
A breakdown of the borrowing costs included in the Group's Consolidated Statement of Profit or Loss is
provided below:
Interest expense
Amortisation of debt establishment costs
Total borrowing costs
ACCOUNTING POLICY
Interest bearing liabilities
Consolidated Consolidated
Group
30 June
2022
$'000
13,590
2,627
16,217
Group
30 June
2023
$'000
18,810
1,356
20,166
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.
93
81
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11.
Interest bearing liabilities (continued)
ACCOUNTING POLICY (continued)
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
added to the cost of those assets, until such time as the assets are substantially ready for their intended use
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.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
12. Derivative financial instruments
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
borrowings at a floating rate and effectively swap them into a fixed rate.
Current assets / (liabilities)
Interest rate swaps
Non-current assets
Interest rate swaps
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
1,353
1,353
–
–
1,898
1,898
723
723
Total derivative financial instruments
1,353
2,621
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 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.
94
82
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
12. Derivative financial instruments (continued)
ACCOUNTING POLICY
Derivatives
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is
recognised in profit or loss immediately.
Financial Instruments
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
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
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.
95
83
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13. 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 2023 are detailed below:
Other financial assets and receivables
Total other financial assets
ACCOUNTING POLICY
Consolidated Consolidated
Group
30 June
2022
$'000
2,186
Group
30 June
2023
$'000
4,095
4,095
2,186
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 16(b) for further discussion on the Group's management of credit risk, including that for its
financial assets.
96
84
Elanor Investors GroupAnnual Report 2023
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 2023
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
14. Contributed equity
14. Contributed equity
OVERVIEW
14. Contributed equity
OVERVIEW
14. Contributed equity
14. Contributed equity
The shares of Elanor Investors Limited (Company) and the units of Elanor Investment Fund (EIF) are combined
OVERVIEW
The shares of Elanor Investors Limited (Company) and the units of Elanor Investment Fund (EIF) are combined
OVERVIEW
and issued as stapled securities. The shares of the Company and units of EIF cannot be traded separately
and issued as stapled securities. The shares of the Company and units of EIF cannot be traded separately
OVERVIEW
The shares of Elanor Investors Limited (Company) and the units of Elanor Investment Fund (EIF) are combined
and can only be traded as stapled securities.
The shares of Elanor Investors Limited (Company) and the units of Elanor Investment Fund (EIF) are combined
and can only be traded as stapled securities.
and issued as stapled securities. The shares of the Company and units of EIF cannot be traded separately
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
Below is a summary of contributed equity of the Company and EIF separately and for Elanor's combined
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
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.
stapled securities. The basis of allocation of the issue price of stapled securities to Company shares and EIF
stapled securities. The basis of allocation of the issue price of stapled securities to Company shares and EIF
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
units post stapling is determined by agreement between the Company and EIF as set out in the Stapling Deed.
Below is a summary of contributed equity of the Company and EIF separately and for Elanor's combined
units post stapling is determined by agreement between the Company and EIF as set out in the Stapling Deed.
stapled securities. The basis of allocation of the issue price of stapled securities to Company shares and EIF
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
Contributed equity for the year ended 30 June 2023
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 2023
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.
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 2023
Contributed equity for the year ended 30 June 2023
EIF
EIF
Contributed equity for the year ended 30 June 2023
30 June
30 June
2023
EIF
2023
EIF
$'000
30 June
$'000
30 June
105,559
EIF
2023
105,559
2023
1,829
30 June
$'000
1,829
$'000
705
2023
105,559
705
105,559
$'000
108,093
1,829
108,093
1,829
105,559
705
705
1,829
108,093
108,093
705
108,093
Details
Details
Opening balance
Opening balance
2023 STI Securities granted
Details
2023 STI Securities granted
2023 LTI Securities exercised
Opening balance
2023 LTI Securities exercised
Opening balance
Securities on issue
2023 STI Securities granted
Securities on issue
2023 STI Securities granted
Opening balance
2023 LTI Securities exercised
2023 LTI Securities exercised
2023 STI Securities granted
Securities on issue
Securities on issue
2023 LTI Securities exercised
Securities on issue
A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:
Date of
Date of
income
income
entitlement
Date of
entitlement
Date of
1 Jul 2022
income
1 Jul 2022
income
Date of
15 Aug 2022
entitlement
15 Aug 2022
entitlement
income
28 Jun 2023
1 Jul 2022
28 Jun 2023
1 Jul 2022
entitlement
30 June 2023
15 Aug 2022
30 June 2023
15 Aug 2022
1 Jul 2022
28 Jun 2023
28 Jun 2023
15 Aug 2022
30 June 2023
30 June 2023
28 Jun 2023
30 June 2023
No. of
No. of
securities/
securities/
shares
No. of
shares
No. of
121,915,824
securities/
121,915,824
securities/
1,336,940
No. of
shares
1,336,940
shares
816,662
securities/
121,915,824
816,662
121,915,824
shares
124,069,426
1,336,940
124,069,426
1,336,940
121,915,824
816,662
816,662
1,336,940
124,069,426
124,069,426
816,662
124,069,426
A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the year is set out below:
Details
Details
Details
Details
No. of
No. of
securities/
securities/
shares
No. of
shares
No. of
4,746,414
securities/
4,746,414
securities/
(2,384,738)
No. of
shares
(2,384,738)
shares
1,336,940
securities/
4,746,414
1,336,940
4,746,414
(1,378,384)
shares
(2,384,738)
(1,378,384)
(2,384,738)
4,746,414
2,320,232
1,336,940
2,320,232
1,336,940
(2,384,738)
(1,378,384)
(1,378,384)
1,336,940
2,320,232
2,320,232
(1,378,384)
Details
Details
Opening balance
Opening balance
2020 STI Securities vested
Details
2020 STI Securities vested
2023 STI Securities granted
Opening balance
2023 STI Securities granted
Opening balance
2021 STI Securities vested
2020 STI Securities vested
2021 STI Securities vested
2020 STI Securities vested
Opening balance
Treasury securities on issue
2023 STI Securities granted
Treasury securities on issue
2023 STI Securities granted
2020 STI Securities vested
2021 STI Securities vested
2021 STI Securities vested
2023 STI Securities granted
Treasury securities on issue
Contributed equity for the year ended 30 June 2022
Treasury securities on issue
Contributed equity for the year ended 30 June 2022
2021 STI Securities vested
2,320,232
Treasury securities on issue
Contributed equity for the year ended 30 June 2022
Contributed equity for the year ended 30 June 2022
Contributed equity for the year ended 30 June 2022
Date of
Date of
income
income
entitlement
Date of
entitlement
Date of
1 Jul 2022
income
1 Jul 2022
income
Date of
1 Jul 2022
entitlement
1 Jul 2022
entitlement
income
15 Aug 2022
1 Jul 2022
15 Aug 2022
1 Jul 2022
entitlement
18 Dec 2022
1 Jul 2022
18 Dec 2022
1 Jul 2022
1 Jul 2022
30 June 2023
15 Aug 2022
30 June 2023
15 Aug 2022
1 Jul 2022
18 Dec 2022
18 Dec 2022
15 Aug 2022
30 June 2023
30 June 2023
18 Dec 2022
30 June 2023
Details
Details
No. of
No. of
securities/
securities/
shares
No. of
shares
No. of
120,974,515
securities/
120,974,515
securities/
941,309
No. of
shares
941,309
shares
securities/
121,915,824
120,974,515
121,915,824
120,974,515
shares
941,309
941,309
120,974,515
121,915,824
121,915,824
941,309
121,915,824
No. of
No. of
securities/
securities/
shares
No. of
shares
No. of
3,805,105
securities/
3,805,105
securities/
941,309
No. of
shares
941,309
shares
securities/
4,746,414
3,805,105
4,746,414
3,805,105
shares
941,309
941,309
3,805,105
4,746,414
4,746,414
941,309
Details
Details
Opening balance
Opening balance
2022 STI Securities granted
Details
2022 STI Securities granted
Securities on issue
Opening balance
Securities on issue
Opening balance
2022 STI Securities granted
2022 STI Securities granted
Opening balance
Securities on issue
Securities on issue
2022 STI Securities granted
Securities on issue
Details
Details
Details
Details
Opening balance
Opening balance
2022 STI Securities granted
Details
2022 STI Securities granted
Treasury securities on issue
Opening balance
Treasury securities on issue
Opening balance
2022 STI Securities granted
2022 STI Securities granted
Opening balance
Treasury securities on issue
Treasury securities on issue
2022 STI Securities granted
Date of
Date of
income
income
entitlement
Date of
entitlement
Date of
1 Jul 2021
income
1 Jul 2021
income
30 Sep 2021
Date of
entitlement
30 Sep 2021
entitlement
income
30 Jun 2022
1 Jul 2021
30 Jun 2022
1 Jul 2021
entitlement
30 Sep 2021
30 Sep 2021
1 Jul 2021
30 Jun 2022
30 Jun 2022
30 Sep 2021
30 Jun 2022
Date of
Date of
income
income
entitlement
Date of
entitlement
Date of
1 Jul 2021
income
1 Jul 2021
income
30 Sep 2021
Date of
entitlement
30 Sep 2021
entitlement
income
30 Jun 2022
1 Jul 2021
30 Jun 2022
1 Jul 2021
entitlement
30 Sep 2021
30 Sep 2021
1 Jul 2021
30 Jun 2022
30 Jun 2022
30 Sep 2021
30 Jun 2022
85
85
85
85
85
A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:
A reconciliation of treasury securities on issue at the beginning and end of the prior year is set out below:
4,746,414
Treasury securities on issue
6,768
1,682
5,086
Total
Total
Equity
Equity
30 June
Total
30 June
Total
2023
Equity
2023
Equity
$'000
Total
30 June
$'000
30 June
178,342
Equity
2023
178,342
2023
2,367
30 June
$'000
2,367
$'000
939
2023
178,342
939
178,342
$'000
181,648
2,367
181,648
2,367
178,342
939
939
2,367
181,648
181,648
939
181,648
Total
Total
Equity
Equity
30 June
Total
30 June
Total
2023
Equity
2023
Equity
$'000
Total
30 June
$'000
30 June
6,768
Equity
2023
6,768
2023
(3,119)
30 June
$'000
(3,119)
$'000
2,367
2023
6,768
2,367
6,768
(2,647)
$'000
(3,119)
(2,647)
(3,119)
6,768
3,369
2,367
3,369
2,367
(3,119)
(2,647)
(2,647)
2,367
3,369
3,369
(2,647)
3,369
Total
Total
Equity
Equity
30 June
Total
30 June
Total
2022
Equity
2022
Equity
$'000
Total
30 June
$'000
30 June
176,406
Equity
2022
176,406
2022
1,936
30 June
$'000
1,936
$'000
2022
178,342
176,406
178,342
176,406
$'000
1,936
1,936
176,406
178,342
178,342
1,936
178,342
Total
Total
Equity
Equity
30 June
Total
30 June
Total
2022
Equity
2022
Equity
$'000
Total
30 June
$'000
30 June
4,832
Equity
2022
4,832
2022
1,936
30 June
$'000
1,936
$'000
2022
6,768
4,832
6,768
4,832
$'000
1,936
1,936
4,832
6,768
6,768
1,936
Parent
Parent
Entity
Entity
30 June
Parent
30 June
Parent
2023
Entity
2023
Entity
$'000
Parent
30 June
$'000
30 June
72,783
Entity
2023
72,783
2023
538
30 June
$'000
538
$'000
234
2023
72,783
234
72,783
$'000
73,555
538
73,555
538
72,783
234
234
538
73,555
73,555
234
73,555
Parent
Parent
Entity
Entity
30 June
Parent
30 June
Parent
2023
Entity
2023
Entity
$'000
Parent
30 June
$'000
30 June
1,682
Entity
2023
1,682
2023
(823)
30 June
$'000
(823)
$'000
538
2023
1,682
538
1,682
(638)
$'000
(823)
(638)
(823)
1,682
759
538
759
538
(823)
(638)
(638)
538
759
759
(638)
759
Parent
Parent
Entity
Entity
30 June
Parent
30 June
Parent
2022
Entity
2022
Entity
$'000
Parent
30 June
$'000
30 June
72,305
Entity
2022
72,305
2022
478
30 June
$'000
478
$'000
2022
72,783
72,305
72,783
72,305
$'000
478
478
72,305
72,783
72,783
478
72,783
Parent
Parent
Entity
Entity
30 June
Parent
30 June
Parent
2022
Entity
2022
Entity
$'000
Parent
30 June
$'000
30 June
1,204
Entity
2022
1,204
2022
478
30 June
$'000
478
$'000
2022
1,682
1,204
1,682
1,204
$'000
478
478
1,204
1,682
1,682
478
EIF
EIF
30 June
30 June
2023
EIF
2023
EIF
$'000
30 June
$'000
30 June
5,086
EIF
2023
5,086
2023
(2,296)
30 June
$'000
(2,296)
$'000
1,829
2023
5,086
1,829
5,086
(2,009)
$'000
(2,296)
(2,009)
(2,296)
5,086
2,610
1,829
2,610
1,829
(2,296)
(2,009)
(2,009)
1,829
2,610
2,610
(2,009)
2,610
EIF
EIF
30 June
30 June
2022
EIF
2022
EIF
$'000
30 June
$'000
30 June
104,101
EIF
2022
104,101
2022
1,458
30 June
$'000
1,458
$'000
2022
105,559
104,101
105,559
104,101
$'000
1,458
1,458
104,101
105,559
105,559
1,458
105,559
EIF
EIF
30 June
30 June
2022
EIF
2022
EIF
$'000
30 June
$'000
30 June
3,628
EIF
2022
3,628
2022
1,458
30 June
$'000
1,458
$'000
2022
5,086
3,628
5,086
3,628
$'000
1,458
97
1,458
3,628
5,086
5,086
1,458
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 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
14. Contributed equity (continued)
14. Contributed equity (continued)
14. Contributed equity (continued)
ACCOUNTING POLICY
ACCOUNTING POLICY
ACCOUNTING POLICY
Equity-settled security-based payments to employees and others providing similar services are measured at
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 of the equity instruments at the grant date.
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
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
straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will
The fair value determined at the grant date of the equity-settled security-based payments is expensed on a
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises
straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises
estimate, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate,
estimate, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate,
its estimate of the number of equity instruments expected to vest. The impact of the revision of the original
with a corresponding adjustment to the equity-settled employee benefits reserve.
with a corresponding adjustment to the equity-settled employee benefits reserve.
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.
15. Reserves
15. Reserves
15. Reserves
OVERVIEW
OVERVIEW
OVERVIEW
Reserves are balances that form part of equity that record other comprehensive income amounts that are
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
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
note provides information about movements in the other reserves line item of the balance sheet and a
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
description of the nature and purpose of each reserve.
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.
Other reserves
Other reserves
Opening balance
Opening balance
Other reserves
Asset revaluation
Asset revaluation
Opening balance
Share of reserves of equity accounted investments
Share of reserves of equity accounted investments
Asset revaluation
Closing balance
Closing balance
Share of reserves of equity accounted investments
Closing balance
Cash flow hedge reserve
Cash flow hedge reserve
Opening balance
Opening balance
Cash flow hedge reserve
Revaluation
Revaluation
Opening balance
Closing balance
Closing balance
Revaluation
Closing balance
Stapled security-based payment reserve
Stapled security-based payment reserve
Opening balance
Opening balance
Stapled security-based payment reserve
Loan securities and option expense
Loan securities and option expense
Opening balance
Short term incentive scheme expense
Short term incentive scheme expense
Loan securities and option expense
Closing balance
Closing balance
Short term incentive scheme expense
Closing balance
Total reserves
Total reserves
Consolidated Consolidated
Consolidated Consolidated
Group
Group
Consolidated Consolidated
30 June
30 June
Group
2022
2022
30 June
$'000
$'000
2022
$'000
79,499
79,499
16,426
16,426
79,499
68
68
16,426
95,993
95,993
68
95,993
Group
Group
30 June
30 June
Group
2023
2023
30 June
$'000
$'000
2023
$'000
95,993
95,993
28,286
28,286
95,993
(38)
(38)
28,286
124,241
124,241
(38)
124,241
–
–
–
–
–
–
–
–
–
10,475
10,475
1,210
1,210
10,475
(3,052)
(3,052)
1,210
8,633
8,633
(3,052)
8,633
132,874
132,874
(361)
(361)
361
361
(361)
–
–
361
–
6,338
6,338
1,303
1,303
6,338
2,834
2,834
1,303
10,475
10,475
2,834
10,475
106,468
106,468
Total reserves
The other reserves are used to record undistributed and unrealised earnings.
The other reserves are used to record undistributed and unrealised earnings.
The other reserves are used to record undistributed and unrealised earnings.
The cash flow hedge reserve is used to recognise increments and decrements in the fair value of cash flow
The cash flow hedge reserve is used to recognise increments and decrements in the fair value of cash flow
hedges. In FY22 all cash flow hedges were discontinued, and no new hedge relationships have been
hedges. In FY22 all cash flow hedges were discontinued, and no new hedge relationships have been
The cash flow hedge reserve is used to recognise increments and decrements in the fair value of cash flow
recognised.
recognised.
hedges. In FY22 all cash flow hedges were discontinued, and no new hedge relationships have been
98
recognised.
106,468
132,874
86
86
86
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
15. Reserves (continued)
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.
16. 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.
99
87
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
16. Financial Risk Management (continued)
(a)
Market risk (continued)
(i)
Interest rate risk (continued)
As at reporting date, the Consolidated Group had the following interest-bearing assets and liabilities:
Consolidated Group
30 June 2023
Assets
Cash and cash equivalents
Other Financial assets
Derivative financial instruments
Total assets
Weighted average interest rate
Liabilities
Interest bearing loans
Total liabilities
Weighted average interest rate
Consolidated Group
30 June 2022
Assets
Cash and cash equivalents
Other Financial assets
Derivative financial instruments
Total assets
Weighted average interest rate
Liabilities
Interest bearing loans
Total liabilities
Weighted average interest rate
Maturity
< 1 yr
$'000
Maturity
1 - 5 yrs
$'000
Maturity
> 5 yrs
$'000
25,269
4,095
1,353
30,717
–
–
–
–
8,542
8,542
372,159
372,159
–
–
–
–
–
–
Maturity
< 1 yr
$'000
Maturity
1 - 5 yrs
$'000
Maturity
> 5 yrs
$'000
27,774
2,186
1,898
31,858
–
–
723
723
–
–
335,835
335,835
–
–
–
–
–
–
Total
$'000
25,269
4,095
1,353
30,717
1.06%
380,701
380,701
5.51%
Total
$'000
27,774
2,186
2,621
32,581
0.80%
335,835
335,835
4.47%
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 2023 $83.8 million (2022: $83.8 million) of the $318.9 million (2022: $273.6 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.
100
88
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
16. Financial Risk Management (continued)
16. Financial Risk Management (continued)
(ii)
(ii)
Interest Rate Sensitivity
Interest Rate Sensitivity
At reporting date if Australian interest rates had been 1% higher / lower and all other variables were held
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
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:
and the Group's profit and equity would be:
Consolidated Group
Consolidated Group
30 June 2023
30 June 2023
Cash and cash equivalents
Cash and cash equivalents
Derivative financial instruments
Derivative financial instruments
Interest bearing loans
Interest bearing loans
Total increase / (decrease)
Total increase / (decrease)
Consolidated Group
Consolidated Group
30 June 2022
30 June 2022
Cash and cash equivalents
Cash and cash equivalents
Derivative financial instruments
Derivative financial instruments
Interest bearing loans
Interest bearing loans
Total increase / (decrease)
Total increase / (decrease)
(b)
(b)
Credit risk
Credit risk
Amount
Amount
$'000
$'000
25,269
25,269
1,353
1,353
380,701
380,701
407,323
407,323
Amount
Amount
$'000
$'000
27,774
27,774
2,621
2,621
335,835
335,835
366,230
366,230
Increase by 1%
Increase by 1%
Profit/ (loss)
Profit/ (loss)
$'000
$'000
Equity
Equity
$'000
$'000
Decrease by 1%
Decrease by 1%
Profit/ (loss)
Profit/ (loss)
$'000
$'000
Equity
Equity
$'000
$'000
253
253
838
838
(2,402)
(2,402)
(1,311)
(1,311)
–
–
–
–
–
–
–
–
(253)
(253)
(838)
(838)
2,402
2,402
1,311
1,311
–
–
–
–
–
–
–
–
Increase by 1%
Increase by 1%
Profit/ (loss)
Profit/ (loss)
$'000
$'000
Equity
Equity
$'000
$'000
Decrease by 1%
Decrease by 1%
Profit/ (loss)
Profit/ (loss)
$'000
$'000
Equity
Equity
$'000
$'000
278
278
838
838
(1,622)
(1,622)
(506)
(506)
–
–
–
–
–
–
–
–
(278)
(278)
(838)
(838)
1,622
1,622
506
506
–
–
–
–
–
–
–
–
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.
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
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
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.
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
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
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.
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
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
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
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
performed a detailed asset level analysis of the recoverability of the outstanding arrears at balance date for
these assets.
these assets.
For the Group's retail investment property Bluewater Square, the Group applied the AASB 9 simplified
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
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
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
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
balances, tenant payment history, assessment of the tenant's financial position, existing market conditions and
forward-looking estimates.
forward-looking estimates.
At balance date, the Group has recognised an expected credit loss provision of $1.4 million (2022: $0.9 million)
At balance date, the Group has recognised an expected credit loss provision of $1.4 million (2022: $0.9 million)
in respect to the rent receivables of Bluewater Square Syndicate.
in respect to the rent receivables of Bluewater Square Syndicate.
101
89
89
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 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Exposure to credit risk
Exposure to credit risk
Exposure to credit risk
Credit risk (continued)
Credit risk (continued)
Credit risk (continued)
16. Financial Risk Management (continued)
16. Financial Risk Management (continued)
16. Financial Risk Management (continued)
(b)
(b)
(b)
For the Group's Hotels, Tourism and Leisure Managed Funds (HTL Funds), the group applied the AASB 9
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
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-
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.
expected loss allowance (ECL). The lifetime ECL calculation is based on the ageing of the debtors and forward-
looking estimates.
looking estimates.
At balance date, no provisions have been recognised in respect of loans and funds management fees
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 $0.5 million has been recognised in respect of the
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 $0.5 million has been recognised in respect of the
consolidated HTL Funds' trade debtors (2022: $0.3 million).
receivable from the Group's HTL Funds and a provision of $0.5 million has been recognised in respect of the
consolidated HTL Funds' trade debtors (2022: $0.3 million).
consolidated HTL Funds' trade debtors (2022: $0.3 million).
(i)
(i)
(i)
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date is detailed below:
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date is detailed below:
credit risk at the reporting date is detailed below:
Consolidated Consolidated
Consolidated Consolidated
Group
Group
Consolidated Consolidated
30 June
30 June
Group
2022
2022
30 June
$'000
$'000
2022
27,774
Cash and cash equivalents
Cash and cash equivalents
27,774
$'000
2,186
Other Financial assets
2,186
Other Financial assets
27,774
Cash and cash equivalents
17,653
Trade and other receivables
17,653
Trade and other receivables
2,186
Other Financial assets
47,613
Total
17,653
Trade and other receivables
47,613
Total
Total
47,613
Where entities have the right to off-set and intend to settle on a net basis under netting arrangements, this off-
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
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.
set has been recognised in the consolidated financial statements on a net basis. Details of the Group's
commitments are disclosed in Note 23.
commitments are disclosed in Note 23.
Trade and other receivables consist of GST, trade debtors and other receivables.
Trade and other receivables consist of GST, trade debtors and other receivables.
Trade and other receivables consist of GST, trade debtors and other receivables.
At balance date there were no other significant concentrations of credit risk.
At balance date there were no other significant concentrations of credit risk.
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
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
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.
parties respectively. Based on historical experience, there is no evidence of default from these counterparties
which would indicate that an allowance was necessary.
which would indicate that an allowance was necessary.
(ii)
(ii)
(ii)
The ageing of trade and other receivables at reporting date is detailed below:
The ageing of trade and other receivables at reporting date is detailed below:
The ageing of trade and other receivables at reporting date is detailed below:
Group
Group
30 June
30 June
Group
2023
2023
30 June
$'000
$'000
2023
25,269
25,269
$'000
4,095
4,095
25,269
18,157
18,157
4,095
47,521
18,157
47,521
47,521
Impairment losses
Impairment losses
Impairment losses
Current
Current
Past due 31-61 days
Past due 31-61 days
Current
Past due 61+ days
Past due 61+ days
Past due 31-61 days
Total
Past due 61+ days
Total
Provision for expected credit loss
Provision for expected credit loss
Total
Net trade and other receivables
Provision for expected credit loss
Net trade and other receivables
102
Net trade and other receivables
90
90
90
Consolidated Consolidated
Consolidated Consolidated
Group
Group
Consolidated Consolidated
30 June
30 June
Group
2022
2022
30 June
$'000
$'000
2022
14,236
14,236
$'000
998
998
14,236
3,721
3,721
998
18,955
3,721
18,955
(1,302)
(1,302)
18,955
17,653
(1,302)
17,653
17,653
Group
Group
30 June
30 June
Group
2023
2023
30 June
$'000
$'000
2023
11,425
11,425
$'000
1,550
1,550
11,425
7,052
7,052
1,550
20,027
7,052
20,027
(1,870)
(1,870)
20,027
18,157
(1,870)
18,157
18,157
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
16. 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).
Consolidated Group
30 June 2023
Derivatives
Non derivative financial liabilities
Payables
Interest bearing loans
Lease liability
Total
Consolidated Group
30 June 2022
Non derivative financial liabilities
Payables
Interest bearing loans
Lease liability
Total
(d)
Capital risk management
Less than
1 year
$'000
1,353
34,643
2,110
1,887
39,993
Less than
1 year
$'000
1 to 2
years
$'000
–
–
308,068
1,870
309,938
1 to 2
years
$'000
2 to 5 More than Contractual
cash flows
5 years
years
$'000
$'000
$'000
–
–
–
Carrying
amount
$'000
1,353
–
121,995
–
121,995
–
–
–
–
34,643
432,173
3,757
470,573
34,643
380,701
3,757
420,454
2 to 5 More than Contractual
cash flows
5 years
years
$'000
$'000
$'000
Carrying
amount
$'000
25,757
–
1,660
27,417
–
54,824
3,758
58,582
–
332,182
–
332,182
–
–
–
–
25,757
387,006
5,418
418,181
25,757
335,835
5,418
367,010
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 14.
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.
103
91
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Group Structure
Group Structure
This section provides information about the Group's structure including parent entity information,
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
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.
information about controlled entities (subsidiaries) and business combination information relating to the
acquisition of controlled entities.
acquisition of controlled entities.
17. Parent entity
17. Parent entity
17. Parent entity
OVERVIEW
OVERVIEW
OVERVIEW
The financial information below on Elanor Investor Group's parent entity Elanor Investors Limited (the
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
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
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
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.
parent entities of the Group and the EIF Group have been prepared on the same basis as the consolidated
financial statements.
financial statements.
(a)
(a)
(a)
Summarised financial information
Summarised financial information
Summarised financial information
Financial position
Current assets
Financial position
Financial position
Non-current assets
Current assets
Current assets
Total Assets
Non-current assets
Non-current assets
Total Assets
Total Assets
Current liabilities
Non-current liabilities
Current liabilities
Current liabilities
Total Liabilities
Non-current liabilities
Non-current liabilities
Total Liabilities
Total Liabilities
Contributed equity
Reserves
Contributed equity
Contributed equity
Retained profits / (accumulated losses)
Reserves
Reserves
Total Equity
Retained profits / (accumulated losses)
Retained profits / (accumulated losses)
Total Equity
Total Equity
Elanor
Investors
Elanor
Elanor
Limited1
Investors
Investors
30 June
Limited1
Limited1
2023
30 June
30 June
$'000
2023
2023
18,172
$'000
$'000
99,017
18,172
18,172
117,189
99,017
99,017
117,189
117,189
14,207
53,711
14,207
14,207
67,918
53,711
53,711
67,918
67,918
72,639
2,815
72,639
72,639
(26,182)
2,815
2,815
49,272
(26,182)
(26,182)
49,272
49,272
Elanor
Investors
Elanor
Elanor
Limited1
Investors
Investors
30 June
Limited1
Limited1
2023
30 June
30 June
$'000
2023
2023
1,007
$'000
$'000
–
1,007
1,007
1,007
–
–
1,007
1,007
Elanor
Investors
Elanor
Elanor
Limited1
Investors
Investors
30 June
Limited1
Limited1
2022
30 June
30 June
$'000
2022
2022
29,180
$'000
$'000
87,469
29,180
29,180
116,649
87,469
87,469
116,649
116,649
16,146
53,755
16,146
16,146
69,901
53,755
53,755
69,901
69,901
70,877
3,060
70,877
70,877
(27,189)
3,060
3,060
46,748
(27,189)
(27,189)
46,748
46,748
Elanor
Investors
Elanor
Elanor
Limited1
Investors
Investors
30 June
Limited1
Limited1
2022
30 June
30 June
$'000
2022
2022
290
$'000
$'000
(347)
290
290
(57)
(347)
(347)
(57)
(57)
Elanor
Investment
Elanor
Elanor
Fund2
Investment
Investment
30 June
Fund2
Fund2
2023
30 June
30 June
$'000
2023
2023
35,616
$'000
$'000
132,912
35,616
35,616
168,528
132,912
132,912
168,528
168,528
3,330
89,120
3,330
3,330
92,450
89,120
89,120
92,450
92,450
105,065
35,358
105,065
105,065
(64,346)
35,358
35,358
76,077
(64,346)
(64,346)
76,077
76,077
Elanor
Investment
Elanor
Elanor
Fund2
Investment
Investment
30 June
Fund2
Fund2
2023
30 June
30 June
$'000
2023
2023
(7,496)
$'000
$'000
–
(7,496)
(7,496)
(7,496)
–
–
(7,496)
(7,496)
Elanor
Investment
Elanor
Elanor
Fund2
Investment
Investment
30 June
Fund2
Fund2
2022
30 June
30 June
$'000
2022
2022
61,077
$'000
$'000
112,200
61,077
61,077
173,277
112,200
112,200
173,277
173,277
5,601
85,662
5,601
5,601
91,263
85,662
85,662
91,263
91,263
100,103
27,484
100,103
100,103
(45,573)
27,484
27,484
82,014
(45,573)
(45,573)
82,014
82,014
Elanor
Investment
Elanor
Elanor
Fund2
Investment
Investment
30 June
Fund2
Fund2
2022
30 June
30 June
$'000
2022
2022
(12,858)
$'000
$'000
20,417
(12,858)
(12,858)
7,559
20,417
20,417
7,559
7,559
Financial performance
Profit / (loss) for the year
Financial performance
Financial performance
Other comprehensive income for the year
Profit / (loss) for the year
Profit / (loss) for the year
Total comprehensive income for the year
Other comprehensive income for the year
Other comprehensive income for the year
Total comprehensive income for the year
1 Elanor Investors Limited is the parent entity of the Consolidated Group.
Total comprehensive income for the year
2 Elanor Investment Fund is the parent entity of the EIF Group.
1 Elanor Investors Limited is the parent entity of the Consolidated Group.
1 Elanor Investors Limited is the parent entity of the Consolidated Group.
2 Elanor Investment Fund is the parent entity of the EIF Group.
2 Elanor Investment Fund is the parent entity of the EIF Group.
(b)
(b)
(b)
In April 2023, EHAF exchanged a purchase agreement to acquire Leura Gardens Resort (NSW) for $20.0
In April 2023, EHAF exchanged a purchase agreement to acquire Leura Gardens Resort (NSW) for $20.0
million (inclusive of deposits paid). The acquisition completed on 28 July 2023. As at 30 June 2023 EHAF had
In April 2023, EHAF exchanged a purchase agreement to acquire Leura Gardens Resort (NSW) for $20.0
million (inclusive of deposits paid). The acquisition completed on 28 July 2023. As at 30 June 2023 EHAF had
the commitment to purchase this hotel. Also, the Group has capital expenditure commitments related to EHAF,
million (inclusive of deposits paid). The acquisition completed on 28 July 2023. As at 30 June 2023 EHAF had
the commitment to purchase this hotel. Also, the Group has capital expenditure commitments related to EHAF,
but not recognised as liabilities, as at 30 June of $0.7 million (2022: $5.9 million).
the commitment to purchase this hotel. Also, the Group has capital expenditure commitments related to EHAF,
but not recognised as liabilities, as at 30 June of $0.7 million (2022: $5.9 million).
104
but not recognised as liabilities, as at 30 June of $0.7 million (2022: $5.9 million).
Commitments
Commitments
Commitments
92
92
92
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
17. Parent entity (continued)
(c)
Guarantees provided
At balance date Elanor Investors Limited and Elanor Investment Fund had no outstanding guarantees (2022:
nil).
(d)
Contingent liabilities
At balance date Elanor Investors Limited and Elanor Investment Fund had no contingent liabilities (2022: nil).
18. 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:
Elanor Investors Limited
Name of
Subsidiary
Principal activity
Place of
incorporation
and operation
Elanor Asset Services Pty Limited1
Elanor Funds Management Limited1
Elanor Operations Pty Limited1
Elanor Hotel Operations Pty Limited
Elanor Investment Nominees Pty Limited1
Asset services
Responsible entity
Operational services
Operational services
Trustee services
Elanor Waverley Property Nominees Pty Limited1
Trustee services
Elanor Investment Holdings Pty Limited1
Elanor Management Pty Limited1
Cougal Street Property Trust1
Country Place Management Pty Limited1
Albany Hotel Management Pty Limited1
Cradle Mountain Lodge Pty Limited2
Wollongong Hotel Management Pty Limited2
Port Macquarie Hotel Management Pty Limited2
Tall Trees Hotel Management Pty Limited2
Holding company
Holding company
Landholder
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Pavilion Wagga Wagga Hotel Management Pty Limited2
Hotel operator
Parklands Resort Hotel Management Pty Limited2
Hotel operator
EMPR II Management Pty Limited2
Holding company
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Proportion of
ownership interest
and voting power
by the Group
30 June
2023
30 June
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
31%
31%
31%
31%
31%
31%
31%
31%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
35%
35%
35%
35%
35%
35%
35%
35%
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.
105
93
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
18. Subsidiaries and Controlled entities (continued)
Elanor Investors Limited (continued)
Name of
Subsidiary
Principal activity
Place of
incorporation
and operation
Eaglehawk Hotel Management Pty Limited3
Narrabundah Hotel Management Pty Limited3
Byron Bay Hotel Management Pty Limited3
Elanor Hotel Accommodation Limited (formerly EMPR
Management Pty Limited3)
Elanor Hotel Accommodation II Limited (formerly Elanor
Luxury Hotel Fund Pty Limited4)
Mayfair Hotel Management Pty Ltd4
Wakefield Street Hotel Management Pty Ltd4
Cradle Mountain Lodge Management II Pty Ltd4
Barossa Weintal Hotel Management Pty Ltd
Clare Country Club Management Pty Ltd
Estate Tuscany Hotel Management Pty Ltd4
Yering Hotel Management Pty Ltd4
Kangaroo Valley Hotel Management Pty Ltd4
Tamworth Hotel Management Pty Ltd4
Hotel operator
Hotel operator
Hotel operator
Holding company
Australia
Australia
Australia
Australia
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Hotel operator
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Elanor Wildlife Park Management Pty Ltd
Wildlife park operator
Australia
Mogo Zoo Management Pty Ltd
Wildlife park operator
Australia
Hunter Valley Wildlife Park Management Pty Ltd
Wildlife park operator
Australia
Proportion of
ownership interest
and voting power
by the Group
30 June
2023
30 June
2022
31%
31%
31%
31%
35%
35%
35%
35%
31%
31%
31%
31%
31%
31%
31%
31%
31%
43%
43%
43%
35%
35%
35%
35%
35%
35%
0%
0%
0%
43%
43%
43%
Holding company
Australia
31%
35%
3 Elanor Hotel Accommodation Limited (EHAF Company I/ previously named 'EMPR Management Pty Limited') is the head entity of the
EHAF tax-consolidated group.
4 Elanor Hotel Accommodation 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.
106
94
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
18. Subsidiaries and Controlled entities (continued)
Elanor Investment Fund
Name of
Subsidiary
Elanor Investment Trust
Country Place Property Trust
Albany Hotel Syndicate
Wollongong Hotel Syndicate
Elanor Hotel Accommodation Fund II (formerly Elanor
Metro and Prime Regional Hotel Fund II)
Wollongong Hotel Property Trust
Port Macquarie Property Trust
Tall Trees Property Trust
Pavilion Wagga Wagga Property Trust
Parklands Resort Property Trust
Narrabundah Property Trust
Byron Bay Hotel Property Trust
Elanor Hotel Accommodation Fund I (formerly Elanor
Metro and Prime Regional Hotel Fund)
Elanor Hotel Accommodation Fund III (formerly Elanor
Luxury Hotel Fund)
Mayfair Hotel Property Trust
Wakefield Street Hotel Property Trust
Estate Tuscany Property Trust
Cradle Mountain Lodge Property Trust
Barossa Weintal Hotel Property Trust
Clare Country Club Property Trust
Tamworth Hotel Property Trust
Yering Property Trust
Kangaroo Valley Property Trust
Bluewater Square Syndicate
Stirling Street Syndicate
Elanor Wildlife Park Fund
Mogo Zoo Property Trust
Principal activity
Place of
incorporation
and operation
Co-investment in Managed
Funds
Australia
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Proportion of
ownership interest
and voting power
by the Group
30 June
2023
30 June
2022
100%
100%
100%
31%
31%
31%
31%
31%
31%
31%
31%
31%
31%
31%
0%
35%
35%
35%
35%
35%
35%
35%
35%
35%
35%
35%
Hotel landholder
Australia
31%
35%
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Hotel landholder
Shopping centre
Shopping centre
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Wildlife park landholder
Australia
Wildlife park landholder
Australia
Hunter Valley Wildlife Park Property Trust
Wildlife park landholder
Australia
95
31%
31%
31%
31%
31%
31%
31%
31%
31%
42%
43%
43%
43%
43%
35%
35%
35%
35%
35%
35%
0%
0%
0%
42%
43%
43%
43%
43%
107
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
19. Trade and other receivables
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 16(b) for discussion on the Group's management of credit risk,
including that of the Group's trade and other receivables.
Current
Trade receivables
Other receivables
Provision for expected credit loss
Total current
Non-current
Contract assets
Total non-current
Total trade and other receivables
20. Payables and other liabilities
OVERVIEW
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
15,621
4,406
(1,870)
18,157
16,979
1,976
(1,302)
17,653
3,618
3,618
4,545
4,545
21,775
22,198
This note provides further information about liabilities that are incidental to the Group's trading activities, being
payables, other liabilities and provisions.
Consolidated Consolidated
Group
30 June
2022
$'000
5,107
7,581
2,881
15,569
Group
30 June
2023
$'000
5,947
9,874
2,166
17,987
Payables
Trade creditors
Accrued expenses
GST payable
Total payables
108
96
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20. Payables and other liabilities (continued)
Other liabilities
Cash held in trust1
Distribution payable
Distribution payable by consolidated Funds2
Other liabilities3
Total other current liabilities
Consolidated Consolidated
Group
30 June
2022
$'000
–
5,397
4,418
373
Group
30 June
2023
$'000
3,163
2,015
1,246
10,232
16,656
10,188
1 The cash held in trust balance is cash held on behalf of a related entity and was transferred to that entity subsequent to balance date.
2 The distribution payable is related to distributions declared by the consolidated Funds for the financial year ending 30 June 2023 (2022:
included the guaranteed distribution payable by EHAF to the fund's investors).
3 $9.9 million included in Other liabilities represents arrangements with investors to acquire units in Managed Funds.
Provisions
Current
Provision for annual leave
Provision for long service leave
Total current
Non-current
Provision for long service leave
Total non-current
Total provisions
ACCOUNTING POLICY
Consolidated Consolidated
Group
30 June
2022
$'000
Group
30 June
2023
$'000
3,733
1,668
5,401
296
296
3,013
1,354
4,367
196
196
5,697
4,563
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.
109
97
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20. Payables and other liabilities (continued)
ACCOUNTING POLICY (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.
Consolidated Group
At 30 June 2021
Additions
Amortisation charge
At 30 June 2022
Additions
Amortisation charge
At 30 June 2023
Management rights
$'000
450
–
(150)
300
–
(150)
150
Software
$'000
878
564
(294)
1,148
571
(391)
1,328
Total
$'000
1,328
564
(444)
1,448
571
(541)
1,478
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 is amortised using the straight-
line method over its estimated life of 5 years.
110
98
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
22. Government grants
During the year, the Group's Hotels, Tourism and Leisure Managed Funds (consolidated in the Group financial
statements) received or accrued a total of $1.1 million (2022: $0.6 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.
23. Commitments
OVERVIEW
This note sets out the material commitments of the Group.
Contingent liabilities and commitments
In April 2023, EHAF exchanged a purchase agreement to acquire Leura Gardens Resort (NSW) for $20.0
million (inclusive of deposits paid). The acquisition completed on 28 July 2023. Additionally, the Group has
capital expenditure commitments related to EHAF, but not recognised as liabilities, as at 30 June 2023 of $0.7
million (30 June 2022: $5.9 million).
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:
Within one year
Year 2
Year 3
Year 4
Year 5
Later than 5 years
Total lease commitments
Consolidated Consolidated
Group
30 June
2022
$'000
7,057
6,773
2,697
2,214
2,081
5,018
25,840
Group
30 June
2023
$'000
7,056
2,911
2,375
2,054
1,859
2,148
18,403
In the opinion of the Directors, there were no other commitments at the end of the reporting period.
111
99
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
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
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
24. Share-based payments
24. Share-based payments
For the year ended 30 June 2023
24. Share-based payments
24. Share-based payments
24. Share-based payments
OVERVIEW
24. Share-based payments
24. Share-based payments
24. Share-based payments
OVERVIEW
OVERVIEW
24. Share-based payments
24. Share-based payments
OVERVIEW
24. Share-based payments
24. Share-based payments
OVERVIEW
24. Share-based payments
24. Share-based payments
The Group has short term and long-term ownership-based compensation schemes for executives and senior
OVERVIEW
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
OVERVIEW
employees.
The Group has short term and long-term ownership-based compensation schemes for executives and senior
OVERVIEW
OVERVIEW
The Group has short term and long-term ownership-based compensation schemes for executives and senior
employees.
OVERVIEW
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
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
employees.
STI scheme
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
employees.
employees.
STI scheme
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
employees.
employees.
STI scheme
employees.
employees.
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
STI scheme
STI scheme
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
STI scheme
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
STI scheme
STI scheme
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
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
STI scheme
STI scheme
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
for the relevant year.
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
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
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
for the relevant year.
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
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
for the relevant year.
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
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
The Group has implemented an STI scheme (the STI Scheme), based on an annual profit share. The STI
for the relevant year.
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
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
for the relevant year.
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 purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
for the relevant year.
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
The purpose of the STI Scheme is to provide an annual bonus arrangement that incentivises and rewards
for the relevant year.
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
for the relevant year.
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
for the relevant year.
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
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
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
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
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
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
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
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
management for achieving annual pre-tax ROE (Return on Equity) for securityholders in excess of 10% per
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
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
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
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
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
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,
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
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
annum. The profit share pool is based on 20% of ROE above 10%, 22.5% of the ROE above 15%, 25% of the
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
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
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,
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
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
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,
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
ROE above 17.5% and 30% of the ROE above 20%. The STI Scheme provides that 50% of any awards to
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
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
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
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
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.
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
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
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
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,
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.
provided that the employee remains with the Group and maintains minimum performance standards. The
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
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.
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
individuals from the profit share pool may be delivered in deferred securities, which vest two years after award,
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.
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
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
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
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.
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.
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 discretion, taking into consideration the forecast and
holder of the securities is entitled to dividends in the two-year deferral period.
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.
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
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
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
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
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
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
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
The Elanor Investors Group Board monitors the appropriateness of the profit share scheme and any
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
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.
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.
actual financial performance and position of the Group.
LTI scheme
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
LTI scheme
actual financial performance and position of the Group.
actual financial performance and position of the Group.
LTI scheme
actual financial performance and position of the Group.
actual financial performance and position of the Group.
LTI scheme
actual financial performance and position of the Group.
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
LTI scheme
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
LTI scheme
options plan.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
LTI scheme
LTI scheme
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
options plan.
LTI scheme
LTI scheme
options plan.
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
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
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
options plan.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
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.
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
The Group has an LTI scheme (the LTI Scheme), based on an executive loan security plan and an executive
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
options plan.
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
options plan.
options plan.
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.
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.
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
Under the executive loan security plan awards (comprising the loan of funds to eligible Elanor employees to
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.
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.
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.
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
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.
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 abnormal
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.
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
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
acquire securities which are subject to vesting conditions) have been issued to certain employees.
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 abnormal
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
distribution.
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.
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
distribution.
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
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
The limited recourse loan provided by the Group under the loan security plan carries interest of an amount
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
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
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.
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
equal to any cash dividend or distribution but not including any dividend or distribution of capital, or an abnormal
In addition to the loan security plan, the Group has implemented an executive option plan comprising rights to
distribution.
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
distribution.
distribution.
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
distribution.
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
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
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
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
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
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
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
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
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
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
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
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
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
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.
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
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
acquire securities at a specified exercise price, subject to the achievement of vesting conditions, which may
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
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
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.
Executive Officer and other selected key executives) as determined by the Board. Executive Options currently
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
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.
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
be offered to certain eligible employees (including the Chief Executive Officer, direct reports to the Chief
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.
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
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.
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.
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.
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
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.
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
on issue are to the Chief Executive Officer only and equate to over 2.0 million securities.
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
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.
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
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
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
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
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
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
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
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
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
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
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
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
hurdle. The service-based hurdle is 2, 3 and 4 years in the case of the loan security plan. The TSR is 10% per
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
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
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
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
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
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
annum for the first year and 8% per annum thereafter in the case of the loan security plan and 15% per annum
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
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
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
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
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
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
in the case of the options plan.
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
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
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
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
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.
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
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
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
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 FY23 (2022: Nil).
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.
No LTI's were issued to KMP's in FY23 (2022: Nil).
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
No LTI's were issued to KMP's in FY23 (2022: Nil).
in the case of the options plan.
in the case of the options plan.
No LTI's were issued to KMP's in FY23 (2022: Nil).
in the case of the options plan.
in the case of the options plan.
No LTI's were issued to KMP's in FY23 (2022: Nil).
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
No LTI's were issued to KMP's in FY23 (2022: Nil).
No LTI's were issued to KMP's in FY23 (2022: Nil).
No LTI's were issued to KMP's in FY23 (2022: Nil).
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
No LTI's were issued to KMP's in FY23 (2022: Nil).
No LTI's were issued to KMP's in FY23 (2022: Nil).
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 FY23 (2022: Nil).
No LTI's were issued to KMP's in FY23 (2022: Nil).
TSR was selected as the LTI performance measure to ensure an alignment between the securityholder return
and reward for executives.
No LTI's were issued to KMP's in FY23 (2022: Nil).
No LTI's were issued to KMP's in FY23 (2022: Nil).
and reward for executives.
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
112
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.
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
100
and reward for executives.
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.
100
100
and reward for executives.
and reward for executives.
100
and reward for executives.
and reward for executives.
100
100
100
100
100
100
100
100
100
100
Elanor Investors GroupAnnual Report 2023 ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
Award Type
Loan securities
Loan securities
Loan securities
Loan securities
Number
Granted
1,975,000
750,000
11,725,000
5,000,000
Grant Date
9/09/2022
6/08/2021
28/08/2020
21/10/2020
End of
Vesting Period
30/06/2026
30/06/2025
30/06/2024
30/06/2024
Vesting
Conditions1
Service & market
Service & market
Service & market
Service & market
1 Service and market conditions include financial and non-financial targets along with a deferred vesting period.
Options
Security
Price at
Grant
Date
$1.76
$1.92
$1.15
$1.33
Fair
Value at
Grant
Date
$0.22
$0.23
$0.12
$0.19
Award Type
Options Tranche 2
Number
Granted
2,000,000
Grant Date
21/10/2020
End of
Vesting Period
30/06/2023
Vesting
Conditions1
Service & market
Exercise
Price
$1.65
1 Service and market conditions include financial and non-financial targets along with a deferred vesting period.
Fair
Value at
Grant
Date
$0.07
No options were granted in FY23.
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
Award Type
FY19 STI Tranche 2
FY20 STI Tranche 1
FY20 STI Tranche 2
FY22 STI Tranche 1 - CEO
FY22 STI Tranche 1
FY23 STI Tranche 1
Number
Granted
317,165
2,092,764
1,395,176
85,080
856,229
1,336,940
Grant Date
19/12/2019
29/06/2020
18/12/2020
22/11/2021
30/09/2021
15/08/2022
1 Service conditions include a deferred vesting period.
Vesting
Date
19/12/2021
29/06/2022
18/12/2022
30/09/2023
30/09/2023
15/08/2024
Security
Price at
Vesting Allocation
Date
$2.15
$1.19
$1.19
$2.06
$2.06
$1.77
Conditions1
Service
Service
Service
Service
Service
Service
Fair
Value at
Grant
Date
$2.12
$1.17
$1.88
$2.34
$2.06
$1.77
The total expense recognised during the year in relation to the Group's equity settled share-based payments
was $3,440,777 (2022: $3,770,702).
113
101
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023, this amount is $129,996 (2022: $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 2023 was nil (2022: 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.
114
102
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25. Related parties (continued)
A summary of the income earned during the year from these managed investment schemes is provided below:
Riverside Plaza Syndicate
Elanor Commercial Property Fund
Elanor Healthcare Real Estate Fund
Elanor Property Income Fund
Warrawong Plaza Syndicate
Riverton Forum Fund
Tweed Mall Mixed - Use Real Estate Fund
Clifford Gardens Fund
Harris Street Fund
Waverley Gardens Fund
Belconnen Markets Syndicate
Fairfield Centre Syndicate
Hunters Plaza Syndicate
Burke Street Fund
Total
Consolidated Consolidated
Group
30 June
2022
$
1,137,641
5,979,712
3,141,069
5,210,146
4,743,724
–
–
1,636,393
2,327,252
1,382,481
1,127,858
688,193
967,039
364,532
28,706,040
Group
30 June
2023
$
7,721,553
5,236,126
3,906,318
3,160,394
3,054,400
2,114,401
1,865,272
1,768,722
1,748,196
1,187,041
1,081,986
926,960
685,235
587,101
35,043,705
Outstanding receivables balances with related parties
The following balances arising through the normal course of business were due from related parties at balance
date:
Management Fees
Other financial assets
Other receivables
Total
Consolidated Consolidated
Group
30 June
2022
$
2,103,889
2,186,304
1,257,022
5,547,215
Group
30 June
2023
$
5,472,865
4,095,236
2,204,056
11,772,157
115
103
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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:
Short term benefits
Long term benefits
Post-employment benefits
Share-based payment
Total
26. Significant events
Consolidated Consolidated
Group
30 June
2022
$
2,843,551
112,685
135,976
1,625,231
4,717,443
Group
30 June
2023
$
2,994,434
318,295
108,324
1,175,201
4,596,254
The significant funds management initiatives completed during the year included:
the privatisation and delisting of the Elanor Retail Property Fund (ASX: ERF) and launch of the open-
ended, unlisted, multi-sector Elanor Property Income Fund (EPIF) with an initial portfolio value of $117
million;
the acquisition of the Tweed Mall shopping Centre by the newly established Tweed Mall Mixed-use
Real Estate Fund for $87 million;
the recapitalisation of the $289 million Elanor Healthcare Real Estate Fund (EHRE) in December 2022
(providing a full liquidity event for investors) and establishment of a partnership with an Asian-based
institutional real estate investor to grow EHRE’s portfolio of core healthcare real estate assets;
the repositioning and refinancing of the Riverside Plaza shopping centre following execution of the
value-add strategy at the Centre – generating a valuation uplift of $49 million and a capital return to
investors of 52 cents per unit (reflecting an IRR of 45% since the Fund’s inception);
the acquisition of four hotels, Sanctuary Inn Tamworth (NSW), Chateau Yering Hotel (Victoria), Wildes
Boutique Hotel (NSW), and Leura Gardens Resort (NSW) by EHAF for a combined $67.3 million (Leura
Gardens Resort settled on 28 July 2023). Post-acquisition of Leura, EHAF has a diverse portfolio of 19
high investment quality accommodation hotel assets with a portfolio value of approximately $470
million;
•
•
•
•
•
116
104
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
26. Significant events (continued)
•
•
•
the acquisition by the Group of the Country Place conference and events centre located in the
Dandenong Ranges (Victoria) in November 2022, for $6 million. The conference facility is being
converted and repositioned into a significant regional accommodation hotel suitable for EHAF, and has
recently been rebranded as Panorama Retreat and Resort;
acquisition of Riverton Forum shopping centre, a dominant convenience-based shopping centre
situated on a 6.3 hectare Perth metropolitan site by the newly established Riverton Forum Fund for
$98.8 million; and
establishment of the Riverside Mixed Use Development Fund for a mixed-use development on a
strategic Queanbeyan CBD site. The development, expected to comprise 180 residential dwellings as
well as street activated retail, has an estimated total project cost of $67 million.
27. Other accounting policies
Rental income
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.
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.
Cash and cash equivalents
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,
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
overdrafts are shown within borrowings in current liabilities in the balance sheet.
Inventories
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.
117
105
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 2023
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
28. Events occurring after reporting date
28. Events occurring after reporting date
28. Events occurring after reporting date
Distribution
Distribution
Distribution
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
Subsequent to year end, a distribution of 1.62 cents per stapled security (full year distribution 9.13 cents per
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
stapled security) has been declared by the Board of Directors. The total distribution amount of $2.0 million will
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
be paid on 31 August 2023 in respect of the six months ended 30 June 2023.
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
Acquisition of Challenger real estate funds management business
On 7 July 2023, Elanor completed the acquisition of Challenger’s Australian real estate funds management
On 7 July 2023, Elanor completed the acquisition of Challenger’s Australian real estate funds management
On 7 July 2023, Elanor completed the acquisition of Challenger’s Australian real estate funds management
business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger also entered
business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger also entered
business for a consideration of $37.7 million. As part of the transaction, Elanor and Challenger also entered
into a strategic partnership whereby Elanor has become Challenger’s real estate funds management partner
into a strategic partnership whereby Elanor has become Challenger’s real estate funds management partner
into a strategic partnership whereby Elanor has become Challenger’s real estate funds management partner
in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds management business) is now
in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds management business) is now
in Australia and New Zealand and Fidante (Challenger’s multi-affiliate funds management business) is now
Elanor’s exclusive distribution partner for its real estate managed funds.
Elanor’s exclusive distribution partner for its real estate managed funds.
Elanor’s exclusive distribution partner for its real estate managed funds.
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
Elanor issued 24.8 million ENN securities as consideration for the transaction, representing 16.6% of securities
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
on issue at that time, with Challenger holding 20.3 million securities (13.6%) and the Abu Dhabi Investment
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
Council (ADIC) holding the balance of 4.5 million securities (3.0%). The consideration paid is subject to claw-
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
back arrangements from Challenger of up to 63% over three years, based on performance milestones,
including minimum base funds management fee targets.
including minimum base funds management fee targets.
including minimum base funds management fee targets.
In addition, Elanor has also granted ADIC options to acquire up to 7.5 million in additional Elanor securities at
In addition, Elanor has also granted ADIC options to acquire up to 7.5 million in additional Elanor securities at
In addition, Elanor has also granted ADIC options to acquire up to 7.5 million in additional Elanor securities at
exercise prices of between $2.25 to $2.75 per security, with vesting milestones linked to ADIC committing a
exercise prices of between $2.25 to $2.75 per security, with vesting milestones linked to ADIC committing a
exercise prices of between $2.25 to $2.75 per security, with vesting milestones linked to ADIC committing a
further $0.5 billion in AUM.
further $0.5 billion in AUM.
further $0.5 billion in AUM.
As at the signing date of these financial statements, the accounting assessment of the transaction is not yet
As at the signing date of these financial statements, the accounting assessment of the transaction is not yet
As at the signing date of these financial statements, the accounting assessment of the transaction is not yet
complete, and the Group is currently finalising its determination of the nature of the transaction and the fair
complete, and the Group is currently finalising its determination of the nature of the transaction and the fair
complete, and the Group is currently finalising its determination of the nature of the transaction and the fair
values of identifiable assets acquired and liabilities assumed.
values of identifiable assets acquired and liabilities assumed.
values of identifiable assets acquired and liabilities assumed.
The transaction will be accounted for as a business combination under AASB 3 Business Combinations as
The transaction will be accounted for as a business combination under AASB 3 Business Combinations as
The transaction will be accounted for as a business combination under AASB 3 Business Combinations as
follows:
follows:
follows:
•
•
•
Identifiable assets will include intangible assets in relation to key Investment Management Agreements
Identifiable assets will include intangible assets in relation to key Investment Management Agreements
Identifiable assets will include intangible assets in relation to key Investment Management Agreements
acquired. The amount that the consideration paid exceeds the (net) fair value of all identified assets
acquired. The amount that the consideration paid exceeds the (net) fair value of all identified assets
acquired. The amount that the consideration paid exceeds the (net) fair value of all identified assets
and liabilities will be allocated to goodwill.
and liabilities will be allocated to goodwill.
and liabilities will be allocated to goodwill.
In accordance with AASB112 Income Taxes, a deferred tax asset or liability will be recognised when
In accordance with AASB112 Income Taxes, a deferred tax asset or liability will be recognised when
In accordance with AASB112 Income Taxes, a deferred tax asset or liability will be recognised when
a temporary difference arises between the carrying amount of an asset or liability and its tax base. The
a temporary difference arises between the carrying amount of an asset or liability and its tax base. The
a temporary difference arises between the carrying amount of an asset or liability and its tax base. The
existence of a deferred liability on an intangible asset will result in an increase to goodwill.
existence of a deferred liability on an intangible asset will result in an increase to goodwill.
existence of a deferred liability on an intangible asset will result in an increase to goodwill.
•
•
•
• The fair value of the consideration is $39.7 million and based on the fair value of the securities issued
• The fair value of the consideration is $39.7 million and based on the fair value of the securities issued
• The fair value of the consideration is $39.7 million and based on the fair value of the securities issued
with reference to the share price ($1.60) on the day of the transaction completion.
with reference to the share price ($1.60) on the day of the transaction completion.
with reference to the share price ($1.60) on the day of the transaction completion.
• The value of securities subject to claw-back arrangements will be classified as a financial liability based
• The value of securities subject to claw-back arrangements will be classified as a financial liability based
• The value of securities subject to claw-back arrangements will be classified as a financial liability based
on the definitions in AASB 132 Financial Instruments: Presentation.
on the definitions in AASB 132 Financial Instruments: Presentation.
on the definitions in AASB 132 Financial Instruments: Presentation.
The Group will finalise the accounting for the transaction in the ensuing reporting period in which the
The Group will finalise the accounting for the transaction in the ensuing reporting period in which the
The Group will finalise the accounting for the transaction in the ensuing reporting period in which the
transaction completed.
transaction completed.
transaction completed.
Acquisition of Leura Gardens Resort
Acquisition of Leura Gardens Resort
Acquisition of Leura Gardens Resort
On 28 July 2023 EHAF settled the acquisition of the Leura Gardens Resort in the Blue Mountains, NSW for
On 28 July 2023 EHAF settled the acquisition of the Leura Gardens Resort in the Blue Mountains, NSW for
On 28 July 2023 EHAF settled the acquisition of the Leura Gardens Resort in the Blue Mountains, NSW for
$20 million.
$20 million.
$20 million.
118
106
106
106
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
28. Events occurring after reporting date (continued)
Other matters
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 2023.
29. Auditor's remuneration
OVERVIEW
PricewaterhouseCoopers (PwC) are the independent auditors of Elanor Investors Group (2022: PwC) 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.
Below is a summary of fees paid for various services to PwC (2022: PwC) during the year.
Auditors of the Group - PwC
Total audit and review of financial reports
Other services
Sustainability services
Total other non-audit services
Total services provided by PwC
Consolidated Consolidated
Group
30 June
2022
$
Group
30 June
2023
$
858,800
813,044
113,728
113,728
102,410
102,410
972,528
915,454
119
107
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 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
30. Non-Parent disclosure
30. Non-Parent disclosure
30. Non-Parent disclosure
OVERVIEW
OVERVIEW
OVERVIEW
This note provides information relating to the non-parent EIF Group only. The accounting policies are
This note provides information relating to the non-parent EIF Group only. The accounting policies are
consistent with the Group, except as otherwise disclosed.
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.
Segment information
Segment information
Segment information
Chief operating decisions are based on the segment information as reported by the consolidated Group and
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.
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.
Distributions
Distributions
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:
The following distributions were declared by the EIF Group either during the year or post balance date:
Distribution
Distribution
cents per
Distribution
cents per
stapled security stapled security
cents per
stapled security stapled security
30 June
stapled security stapled security
30 June
2022
30 June
2022
9.05
2022
9.05
4.43
9.05
4.43
4.43
Distribution
Distribution
cents per
Distribution
cents per
cents per
30 June
30 June
2023
30 June
2023
7.51
2023
7.51
1.62
7.51
1.62
1.62
Total
Total
Amount
Total
Amount
30 June
Amount
30 June
2023
30 June
2023
$'000
2023
$'000
9,261
$'000
9,261
2,015
9,261
2,015
2,015
Total
Total
Amount
Total
Amount
30 June
Amount
30 June
2022
30 June
2022
$'000
2022
$'000
11,037
$'000
11,037
5,397
11,037
5,397
5,397
Interim distribution (declared before year end) 1
Interim distribution (declared before year end) 1
Final distribution (declared after year end) 2
Interim distribution (declared before year end) 1
Final distribution (declared after year end) 2
1 The interim distribution of 7.51 cents per stapled security was paid on 28 February 2023.
Final distribution (declared after year end) 2
1 The interim distribution of 7.51 cents per stapled security was paid on 28 February 2023.
2 The final distribution of 1.62 cents per stapled security was declared after 30 June 2023, but is recognised in the accounts at balance
1 The interim distribution of 7.51 cents per stapled security was paid on 28 February 2023.
2 The final distribution of 1.62 cents per stapled security was declared after 30 June 2023, but is recognised in the accounts at balance
date. The final distribution will be paid on 31 August 2023.
2 The final distribution of 1.62 cents per stapled security was declared after 30 June 2023, but is recognised in the accounts at balance
date. The final distribution will be paid on 31 August 2023.
date. The final distribution will be paid on 31 August 2023.
Taxation of the Trust
Taxation of the Trust
Taxation of the Trust
Under current Australian income tax legislation, the Trust and its sub-trusts are not liable for income tax on
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
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
entitled to the income of the Trust. Accordingly, the Group only pays tax on Company taxable earnings and
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
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
there is no separate tax disclosure for the Trust.
there is no separate tax disclosure for the Trust.
Investment Properties
Investment Properties
Investment Properties
Movement in investment properties
Movement in 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:
The carrying value of investment properties at the beginning and end of the current year is set out below:
The carrying value of investment properties at the beginning and end of the current year is set out below:
EIF
EIF
Group
EIF
Group
30 June
Group
30 June
2022
30 June
2022
$'000
2022
$'000
384,825
Carrying amount at the beginning of the year
$'000
Carrying amount at the beginning of the year
384,825
44,446
Additions from consolidation of Elanor Wildlife Park Fund
384,825
Carrying amount at the beginning of the year
44,446
Additions from consolidation of Elanor Wildlife Park Fund
34,000
Additions from consolidation of Stirling
44,446
Additions from consolidation of Elanor Wildlife Park Fund
34,000
Additions from consolidation of Stirling
16,073
Additions
34,000
Additions from consolidation of Stirling
16,073
Additions
–
Transfers
16,073
Additions
–
Transfers
19,038
Revaluation (decrements) / increments
–
Transfers
19,038
Revaluation (decrements) / increments
498,382
Carrying amount at the end of the year
19,038
Revaluation (decrements) / increments
498,382
Carrying amount at the end of the year
Carrying amount at the end of the year
498,382
Refer to Note 8 Property, plant and equipment and Note 9 Investment properties for further details of the
Refer to Note 8 Property, plant and equipment and Note 9 Investment properties for further details of the
valuations of the underlying property assets.
Refer to Note 8 Property, plant and equipment and Note 9 Investment properties for further details of the
valuations of the underlying property assets.
120
valuations of the underlying property assets.
EIF
EIF
Group
EIF
Group
30 June
Group
30 June
2023
30 June
2023
$'000
2023
$'000
498,382
$'000
498,382
–
498,382
–
–
–
–
68,668
–
68,668
(10,186)
68,668
(10,186)
35,006
(10,186)
35,006
591,870
35,006
591,870
591,870
108
108
108
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
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:
EIF Group
Assets measured at fair value
Investment properties
30 June
2023
$'000
Discount
Rate
%
Terminal Capitalisation Average Daily
Rate
$
Yield
%
Rate
%
Occupancy
%
591,870 6.5% - 16.5% 5.8% - 14.0%
5.2% - 13.0%
$155 - $506
56% - 81%
121
109
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
Equity accounted investments
The Trust's equity accounted investments are as follows:
30 June 2023
Elanor Commercial Property Fund (ASX: ECF)
Elanor Property Income Fund
Waverley Gardens Fund
Riverton Forum Fund
Elanor Healthcare Real Estate
Harris Street Fund
Hunters Plaza Syndicate
Total equity accounted investments
30 June 2022
Elanor Commercial Property Fund (ASX: ECF)
Elanor Property Income Fund
Waverley Gardens Fund
Harris Street Fund
Hunters Plaza Syndicate
Total equity accounted investments
Principal activity
Percentage
Ownership
Commercial Office Properties
Real Estate Properties
Shopping Centre
Shopping Centre
Healthcare properties
Commercial Office Property
Shopping Centre
12.56%
23.39%
15.00%
15.00%
5.00%
9.41%
5.87%
Principal activity
Percentage
Ownership
Commercial Office Properties
Shopping Centres
Shopping Centre
Commercial Office Property
Shopping Centre
12.56%
18.03%
15.00%
13.88%
5.49%
EIF
Group
30 June
2023
$'000
40,830
16,497
13,171
9,000
6,709
5,853
1,550
93,610
EIF
Group
30 June
2022
$'000
51,459
27,725
14,005
12,305
1,688
107,182
The carrying amount of equity accounted investments at the beginning and end of the year is set out below:
Carrying amount at the beginning of the year
Consolidation of Elanor Wildlife Park Fund and Stirling Street Syndicate
Share of (loss) / profit from equity accounted investments
Distributions received
Share of movement in reserves
Net investment in / (sale of) equity accounted investments
Realised gain on disposal of investments
Impairment of equity accounted investments1
Total carrying value at the end of the year
EIF
Group
30 June
2023
$'000
107,182
–
(7,312)
(14,798)
(781)
10,950
1,200
(2,831)
93,610
EIF
Group
30 June
2022
$'000
88,647
(6,794)
9,871
(8,399)
68
22,307
1,482
–
107,182
1 During the year Elanor’s investment in Elanor Commercial Property Fund was revised to reflect Elanor’s share of Elanor Commercial
Property Fund’s net tangible assets. At 30 June 2023 a value in use calculation was performed to support the carrying value, using a
discount rate of 10.0%.
122
110
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
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 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
Elanor
Elanor
30. Non-Parent disclosure (continued)
30. Non-Parent disclosure (continued)
30. Non-Parent disclosure (continued)
Equity accounted investments (continued)
30. Non-Parent disclosure (continued)
Equity accounted investments (continued)
Equity accounted investments (continued)
The following information represents the aggregated financial position and financial performance of the Elanor
Equity accounted investments (continued)
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.
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund.
The following information represents the aggregated financial position and financial performance of the Elanor
The following information represents the aggregated financial position and financial performance of the Elanor
This summarised financial information represents amounts shown in the associate's financial statements
This summarised financial information represents amounts shown in the associate's financial statements
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund.
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund.
prepared in accordance with Australian Accounting Standards, adjusted by the Trust for equity accounting
prepared in accordance with Australian Accounting Standards, adjusted by the Trust for equity accounting
This summarised financial information represents amounts shown in the associate's financial statements
This summarised financial information represents amounts shown in the associate's financial statements
purposes.
purposes.
prepared in accordance with Australian Accounting Standards, adjusted by the Trust for equity accounting
prepared in accordance with Australian Accounting Standards, adjusted by the Trust for equity accounting
purposes.
purposes.
30 June 2023
30 June 2023
30 June 2023
30 June 2023
Elanor
Elanor
Property
Property
Elanor
Elanor
Property
30 June
Property
30 June
2023
2023
30 June
$'000
30 June
$'000
2023
6,679
2023
6,679
$'000
110,386
$'000
110,386
6,679
117,065
6,679
117,065
110,386
45,654
110,386
45,654
117,065
–
117,065
–
45,654
45,654
45,654
45,654
–
121,462
–
121,462
45,654
–
45,654
–
121,462
(50,051)
121,462
(50,051)
–
71,411
–
71,411
(50,051)
(50,051)
71,411
71,411
Elanor
Elanor
Property
Property
Elanor
Elanor
Property
30 June
Property
30 June
2023
2023
30 June
$'000
30 June
$'000
2023
4,691
2023
4,691
$'000
–
$'000
–
4,691
4,691
4,691
4,691
–
9,682
–
9,682
4,691
4,691
9,682
9,682
Financial position
Financial position
Current assets
Current assets
Financial position
Non-current assets
Financial position
Non-current assets
Current assets
Total Assets
Current assets
Total Assets
Non-current assets
Current liabilities
Non-current assets
Current liabilities
Total Assets
Non-current liabilities
Total Assets
Non-current liabilities
Current liabilities
Total Liabilities
Current liabilities
Total Liabilities
Non-current liabilities
Contributed equity
Non-current liabilities
Contributed equity
Total Liabilities
Reserves
Total Liabilities
Reserves
Contributed equity
Retained profits / (accumulated losses)
Contributed equity
Retained profits / (accumulated losses)
Reserves
Total Equity
Reserves
Total Equity
Retained profits / (accumulated losses)
Retained profits / (accumulated losses)
Total Equity
Total Equity
Elanor
Income Fund Property Fund
Elanor
Income Fund Property Fund
30 June
30 June
Income Fund Property Fund
2023
Income Fund Property Fund
2023
30 June
$'000
30 June
$'000
2023
12,964
2023
12,964
$'000
511,793
$'000
511,793
12,964
524,757
12,964
524,757
511,793
94,995
511,793
94,995
524,757
111,963
524,757
111,963
94,995
206,958
94,995
206,958
111,963
369,493
111,963
369,493
206,958
–
206,958
–
369,493
(51,694)
369,493
(51,694)
–
317,799
–
317,799
(51,694)
(51,694)
317,799
317,799
Elanor
Elanor
Waverley
Waverley
Commercial Gardens Fund
Commercial Gardens Fund
Waverley
Waverley
Commercial Gardens Fund
30 June
Commercial Gardens Fund
30 June
2023
2023
30 June
$'000
30 June
$'000
2023
3,722
2023
3,722
$'000
218,621
$'000
218,621
3,722
222,343
3,722
222,343
218,621
5,913
218,621
5,913
222,343
125,826
222,343
125,826
5,913
131,739
5,913
131,739
125,826
88,001
125,826
88,001
131,739
–
131,739
–
88,001
2,603
88,001
2,603
–
90,604
–
90,604
2,603
2,603
90,604
90,604
Waverley
Waverley
Commercial Gardens Fund
Commercial Gardens Fund
Waverley
Waverley
Commercial Gardens Fund
30 June
Commercial Gardens Fund
30 June
2023
2023
30 June
$'000
Financial performance
30 June
Financial performance
$'000
2023
(687)
Profit / (loss) for the year
2023
(687)
Profit / (loss) for the year
Financial performance
$'000
–
Other comprehensive income for the year
$'000
Financial performance
–
Other comprehensive income for the year
(687)
Profit / (loss) for the year
(687)
Total comprehensive income for the year
(687)
Profit / (loss) for the year
(687)
Total comprehensive income for the year
–
Other comprehensive income for the year
731
Distributions received from the associates during the year
–
Other comprehensive income for the year
731
Distributions received from the associates during the year
(687)
Total comprehensive income for the year
(687)
Total comprehensive income for the year
731
Distributions received from the associates during the year
Distributions received from the associates during the year
731
A reconciliation of the above summarised financial information to the carrying amount of the interest in Elanor
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
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund
A reconciliation of the above summarised financial information to the carrying amount of the interest in Elanor
A reconciliation of the above summarised financial information to the carrying amount of the interest in Elanor
recognised in the consolidated financial statements is provided below:
recognised in the consolidated financial statements is provided below:
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund
Retail Property Fund, Elanor Commercial Property Fund, Waverley Gardens Fund and the Harris Street Fund
recognised in the consolidated financial statements is provided below:
recognised in the consolidated financial statements is provided below:
Waverley
Waverley
Commercial Gardens Fund
Commercial Gardens Fund
Waverley
Waverley
Commercial Gardens Fund
30 June
Commercial Gardens Fund
30 June
2023
2023
30 June
$'000
30 June
$'000
2023
90,604
Net assets of the associate
2023
Net assets of the associate
90,604
$'000
15.00%
Proportion of the Group's ownership interest
$'000
15.00%
Proportion of the Group's ownership interest
Net assets of the associate
90,604
13,591
Group's share of net assets of the associates
Net assets of the associate
90,604
13,591
Group's share of net assets of the associates
Other movements not accounted for under the equity method 1
15.00%
Proportion of the Group's ownership interest
(420)
15.00%
Proportion of the Group's ownership interest
Other movements not accounted for under the equity method 1
(420)
13,591
Group's share of net assets of the associates
13,171
Carrying amount of the Group's interest
13,591
Group's share of net assets of the associates
13,171
Carrying amount of the Group's interest
Other movements not accounted for under the equity method 1
(420)
Other movements not accounted for under the equity method 1
(420)
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
13,171
Carrying amount of the Group's interest
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
Carrying amount of the Group's interest
13,171
the fund, or where the Group has acquired units on-market at a price different to the fund's NTA.
the fund, or where the Group has acquired units on-market at a price different to the fund's NTA.
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
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.
the fund, or where the Group has acquired units on-market at a price different to the fund's NTA.
Elanor
Income Fund Property Fund
Elanor
Income Fund Property Fund
30 June
30 June
Income Fund Property Fund
2023
Income Fund Property Fund
2023
30 June
$'000
30 June
$'000
2023
317,799
2023
317,799
$'000
12.56%
$'000
12.56%
317,799
39,916
317,799
39,916
12.56%
914
12.56%
914
39,916
40,830
39,916
40,830
914
914
40,830
40,830
Elanor
Income Fund Property Fund
Elanor
Income Fund Property Fund
30 June
30 June
Income Fund Property Fund
2023
Income Fund Property Fund
2023
30 June
$'000
30 June
$'000
2023
(32,176)
2023
(32,176)
$'000
–
$'000
–
(32,176)
(32,176)
(32,176)
(32,176)
–
3,737
–
3,737
(32,176)
(32,176)
3,737
3,737
Elanor
Elanor
Property
Property
Elanor
Elanor
Property
30 June
Property
30 June
2023
2023
30 June
$'000
30 June
$'000
2023
71,411
2023
71,411
$'000
23.39%
$'000
23.39%
71,411
16,703
71,411
16,703
23.39%
(206)
23.39%
(206)
16,703
16,497
16,703
16,497
(206)
(206)
16,497
16,497
Elanor
Elanor
123
111
111
111
111
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
Equity accounted investments (continued)
30 June 2022
Elanor
Property
Elanor
Commercial Gardens Fund
Waverley Harris Street
Fund
Financial position
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Contributed equity
Retained profits / (accumulated losses)
Total Equity
Income Fund Property Fund
30 June
2022
$'000
13,136
567,194
580,330
11,727
188,869
200,596
369,496
10,238
379,734
30 June
2022
$'000
98,239
106,300
204,539
11,394
41,689
53,083
155,272
(3,816)
151,456
30 June
2022
$'000
5,447
215,271
220,718
6,537
118,615
125,152
88,001
7,565
95,566
30 June
2022
$'000
2,981
185,000
187,981
1,478
98,300
99,778
87,100
1,103
88,203
Elanor
Property
Elanor
Commercial Gardens Fund
Waverley Harris Street
Fund
Financial performance
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Distributions received from the associates during the year
Income Fund Property Fund
30 June
2022
$'000
43,948
825
44,773
3,414
30 June
2022
$'000
3,528
120
3,648
4,340
30 June
2022
$'000
23,773
–
23,773
350
30 June
2022
$'000
1,559
–
1,559
–
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:
Elanor
Property
Elanor
Commercial Gardens Fund
Waverley Harris Street
Fund
Net assets of the associate
Proportion of the Group's ownership interest
Group's share of net assets of the associates
Other movements not accounted for under the equity method 1
Carrying amount of the Group's interest
Income Fund Property Fund
30 June
2022
$'000
379,734
12.56%
47,691
3,768
51,459
30 June
2022
$'000
151,456
18.03%
27,308
417
27,725
30 June
2022
$'000
95,566
15.00%
14,335
(330)
14,005
30 June
2022
$'000
88,203
13.88%
12,243
62
12,305
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.
124
112
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
30. Non-Parent disclosure (continued)
Aggregate information of associates that are not individually material
30. Non-Parent disclosure (continued)
Aggregate information of associates that are not individually material
30. Non-Parent disclosure (continued)
Aggregate information of associates that are not individually material
Aggregate information of associates that are not individually material
Profit / (loss) for the year
Profit / (loss) for the year
Other comprehensive income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Profit / (loss) for the year
Total comprehensive income for the year
Other comprehensive income for the year
Profit / (loss) for the year
Aggregate carrying amount of the Group's interests in these associates
Total comprehensive income for the year
Other comprehensive income for the year
Aggregate carrying amount of the Group's interests in these associates
Total comprehensive income for the year
Aggregate carrying amount of the Group's interests in these associates
Interest bearing liabilities
Aggregate carrying amount of the Group's interests in these associates
Interest bearing liabilities
Year ended
Year ended
30 June
30 June
2023
Year ended
2023
$'000
30 June
Year ended
$'000
(54,192)
2023
30 June
(54,192)
(761)
$'000
2023
(761)
(54,953)
(54,192)
$'000
(54,953)
(761)
(54,192)
23,111
(54,953)
(761)
23,111
(54,953)
23,111
Year ended
Year ended
30 June
30 June
2022
Year ended
2022
$'000
30 June
Year ended
$'000
6,049
2022
30 June
6,049
(67)
$'000
2022
(67)
5,982
6,049
$'000
5,982
(67)
6,049
1,688
5,982
(67)
1,688
5,982
1,688
23,111
1,688
Interest bearing liabilities
Interest bearing liabilities
EIF
EIF
Group
Group
30 June
EIF
30 June
2022
Group
EIF
2022
$'000
30 June
Group
$'000
Current
2022
30 June
Current
–
Interest bearing liabilities
$'000
2022
Interest bearing liabilities
–
16,302
Loan from the company
Current
$'000
16,302
Loan from the company
16,302
Total current
–
Interest bearing liabilities
Current
16,302
Total current
16,302
Loan from the company
Interest bearing liabilities
–
Non-current
16,302
Total current
16,302
Loan from the company
Non-current
19,591
Corporate notes
16,302
Total current
19,591
Corporate notes
(445)
Corporate notes - borrowing costs less amortisation
Non-current
(445)
Corporate notes - borrowing costs less amortisation
257,775
Bank loan - term debt
19,591
Corporate notes
Non-current
257,775
Bank loan - term debt
(1,529)
Bank loan - borrowing costs less amortisation
(445)
Corporate notes - borrowing costs less amortisation
19,591
Corporate notes
(1,529)
Bank loan - borrowing costs less amortisation
43,950
Loan from the company
257,775
Bank loan - term debt
(445)
Corporate notes - borrowing costs less amortisation
43,950
Loan from the company
319,342
Total non-current
(1,529)
Bank loan - borrowing costs less amortisation
257,775
Bank loan - term debt
319,342
Total non-current
43,950
Loan from the company
(1,529)
Bank loan - borrowing costs less amortisation
335,644
Total interest bearing liabilities
319,342
Total non-current
43,950
Loan from the company
335,644
Total interest bearing liabilities
319,342
Total non-current
As part of the internal funding of the Fund, EIF entered into a long-term interest-bearing loan with EIL at arm's
As part of the internal funding of the Fund, EIF entered into a long-term interest-bearing loan with EIL at arm's
Total interest bearing liabilities
335,644
length terms, maturing in July 2024. As at 30 June 2023, the outstanding payable to the Company was $42.0
length terms, maturing in July 2024. As at 30 June 2023, the outstanding payable to the Company was $42.0
Total interest bearing liabilities
335,644
As part of the internal funding of the Fund, EIF entered into a long-term interest-bearing loan with EIL at arm's
million (2022: $43.9 million).
million (2022: $43.9 million).
length terms, maturing in July 2024. As at 30 June 2023, the outstanding payable to the Company was $42.0
As part of the internal funding of the Fund, EIF entered into a long-term interest-bearing loan with EIL at arm's
Derivative Financial instruments
million (2022: $43.9 million).
length terms, maturing in July 2024. As at 30 June 2023, the outstanding payable to the Company was $42.0
Derivative Financial instruments
million (2022: $43.9 million).
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.
Derivative Financial instruments
The EIF Group enters into derivative financial instruments to manage its exposure to interest rate risk.
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.
EIF
EIF
Group
Group
30 June
EIF
30 June
2023
Group
EIF
2023
$'000
30 June
Group
$'000
2023
30 June
5,982
$'000
2023
5,982
12,592
$'000
12,592
18,574
5,982
18,574
12,592
5,982
18,574
12,592
13,322
18,574
13,322
(445)
(445)
301,338
13,322
301,338
(1,582)
(445)
13,322
(1,582)
42,036
301,338
(445)
42,036
354,669
(1,582)
301,338
354,669
42,036
(1,582)
373,243
354,669
42,036
373,243
354,669
373,243
373,243
Current assets / (liabilities)
Current assets / (liabilities)
Interest rate swaps
Interest rate swaps
Current assets / (liabilities)
Interest rate swaps
Current assets / (liabilities)
Non-current assets / (liabilities)
Interest rate swaps
Non-current assets / (liabilities)
Interest rate swaps
Interest rate swaps
Non-current assets / (liabilities)
Interest rate swaps
Non-current assets / (liabilities)
Total derivative financial instruments assets / (liabilities)
Interest rate swaps
Total derivative financial instruments assets / (liabilities)
Total derivative financial instruments assets / (liabilities)
Total derivative financial instruments assets / (liabilities)
EIF
EIF
Group
Group
30 June
EIF
30 June
2023
Group
EIF
2023
$'000
30 June
Group
$'000
2023
30 June
1,353
$'000
2023
1,353
1,353
$'000
1,353
1,353
1,353
1,353
–
1,353
–
–
–
–
1,353
–
–
1,353
–
1,353
EIF
EIF
Group
Group
30 June
EIF
30 June
2022
Group
EIF
2022
$'000
30 June
Group
$'000
2022
30 June
1,898
$'000
2022
1,898
1,898
$'000
1,898
1,898
1,898
1,898
723
1,898
723
723
723
723
2,621
723
723
2,621
723
125
2,621
113
113
113
113
1,353
2,621
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
Reserves
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.
Other reserves
Opening balance
Share of reserves of equity accounted investments
Closing balance
Cash flow hedge reserve
Opening balance
Revaluation
Closing balance
Stapled security-based payment reserve
Opening balance
Loan securities and option expense
Short term incentive scheme expense
Closing balance
EIF
Group
30 June
2023
$'000
48,772
(782)
47,990
–
–
–
6,650
549
(2,145)
5,054
Restated
EIF
Group
30 June
2022
$'000
48,704
68
48,772
(355)
355
–
3,811
705
2,134
6,650
Total reserves
53,044
55,422
The other reserves are used to record undistributed and unrealised earnings.
The cash flow reserve presented in the comparatives was used to recognise increments and decrements in
the fair value of cash flow hedges. In FY23 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.
126
114
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
Restatement
Comparatives for the year end 30 June 2022 have been restated to reclass $16.3 million revaluation gain on
investment property from the consolidated statement of comprehensive income to the consolidated statement
of profit or loss. The reclass reduces other reserves and increases retained earnings by an equal and offsetting
amount of $16.3 million. The reclass does not impact the opening balances as at 1 July 2021 and the
restatement has no impact on total comprehensive income, net assets or total equity as at 30 June 2022.
EIF
Group
30 June
2022
$'000
(2,824)
2,000
6,557
(4,557)
16,337
16,764
18,764
EIF
Group
30 June
2022
$'000
71,759
(5,915)
311,963
39,809
(13,770)
EIF
Group
Increase/
(Decrease)
$'000
16,337
16,337
6,242
10,095
Restated
EIF
Group
30 June
2022
$'000
13,513
18,337
12,799
5,538
(16,337)
(16,337)
–
427
–
18,764
EIF
Group
Increase/
(Decrease)
$'000
(16,337)
16,337
–
(6,242)
6,242
Restated
EIF
Group
30 June
2022
$'000
55,422
10,422
311,963
33,567
(7,528)
31,950
7,855
(10,095)
10,095
21,855
17,950
127
Consolidated statements of profit or loss (extract)
Fair value gain / (loss) on revaluation of PP&E and investment properties
Net profit / (loss) for the year
Net Profit attributable to security holders of:
- Parent Entity
- External Non-controlling interest
Consolidated statements of comprehensive income (extract)
Gain on revaluation of property, plant and equipment
Other comprehensive income for the year, net of tax
Total comprehensive income / (loss) for the year, net of tax
Consolidated statements of financial position (extract)
Reserves
Retained profits / accumulated (losses)
Total equity
Equity Holders of Parent Entity:
Reserves
Retain profits / accumulated (losses)
Equity Holders of Non Controlling Interest - External
Reserves
Retained profits / accumulated (losses)
115
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
(1)
Market Risk
Interest rate risk
As at reporting date, the EIF Group had the following interest-bearing assets and liabilities:
EIF Group
30 June 2023
Assets
Cash and cash equivalents
Derivative financial instruments
Total assets
Weighted average interest rate
Liabilities
Interest bearing loans
Total liabilities
Weighted average interest rate
EIF Group
30 June 2022
Assets
Cash and cash equivalents
Derivative financial instruments
Total assets
Liabilities
Interest bearing loans
Total liabilities
Weighted average interest rate
Maturity
< 1 yr
$'000
Maturity
1 - 5 yrs
$'000
Maturity
> 5 yrs
$'000
1,182
1,353
2,535
–
–
–
18,574
18,574
312,633
312,633
–
–
–
–
–
Maturity
< 1 yr
$'000
Maturity
1 - 5 yrs
$'000
Maturity
> 5 yrs
$'000
9,008
1,898
10,906
–
723
723
16,302
16,302
275,392
275,392
–
–
–
–
–
Total
$'000
1,182
1,353
2,535
0.57%
331,207
331,207
4.51%
Total
$'000
9,008
2,621
11,629
291,694
291,694
3.99%
Of the $221.3 million floating interest-bearing loans as at 30 June 2023 (2022: $217.7 million), $83.8 million
(2022: $83.8 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.
128
116
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
Interest Rate Sensitivity
EIF Group
30 June 2023
Cash and cash equivalents
Derivative financial instruments
Interest bearing loans
Total increase / (decrease)
EIF Group
30 June 2022
Cash and cash equivalents
Derivative financial instruments
Interest bearing loans
Total increase / (decrease)
(2)
Credit Risk
Exposure to credit risk
Increase by 1%
Decrease by 1%
Amount
$'000
Profit/ (loss)
$'000
Equity
$'000
Profit/ (loss)
$'000
Equity
$'000
1,182
1,353
331,207
333,742
12
838
(2,213)
(1,363)
–
–
–
–
(12)
(838)
2,213
1,363
–
–
–
–
Increase by 1%
Decrease by 1%
Amount
$'000
Profit/ (loss)
$'000
Equity
$'000
Profit/ (loss)
$'000
Equity
$'000
9,008
2,621
291,695
303,324
90
838
(1,643)
(716)
–
–
–
–
(90)
(838)
1,643
716
–
–
–
–
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date is detailed below:
Cash and cash equivalents
Trade and other receivables
Total
Impairment losses
The ageing of trade and other receivables at reporting date is detailed below:
Current
Past due 31-61 days
Past due 61+ days
Total
Provision for expected credit loss
Net trade and other receivables
117
EIF
Group
30 June
2023
$'000
1,182
41,902
43,084
EIF
Group
30 June
2023
$'000
41,853
180
1,266
43,299
(1,397)
41,902
EIF
Group
30 June
2022
$'000
9,008
47,528
56,536
EIF
Group
30 June
2022
$'000
47,490
118
774
48,382
(854)
47,528
129
ELANOR INVESTORS GROUP
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
(3)
Liquidity risk
EIF Group
30 June 2023
Non derivative financial liabilities
Payables
Interest bearing loans
Total
EIF Group
30 June 2022
Non derivative financial liabilities
Payables
Interest bearing loans
Total
Less than
1 year
$'000
1 to 2
years
$'000
2 to 5 More than Contractual
cash flows
5 years
years
$'000
$'000
$'000
Carrying
amount
$'000
22,696
13,596
36,292
–
297,388
297,388
–
54,040
54,040
–
–
–
22,696
365,024
387,720
22,696
331,207
353,903
Less than
1 year
$'000
1 to 2
years
$'000
2 to 5 More than Contractual
cash flows
5 years
years
$'000
$'000
$'000
Carrying
amount
$'000
17,175
17,031
34,206
–
54,824
54,824
–
259,385
259,385
–
–
–
17,175
331,240
348,415
17,175
291,695
308,870
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
Trade receivables
Other receivables
GST receivable
Total trade and other receivables
EIF
Group
30 June
2023
$'000
40,844
613
445
41,902
EIF
Group
30 June
2022
$'000
46,394
1,134
–
47,528
Trade receivables consists primarily of intercompany receivables between the landowning trusts of the Group's
consolidated hotels and wildlife parks (which are held on the EIF Group side of the Group's stapled structure),
and their respective operating entities (which are held on the EIL side of the Group's stapled structure). These
intercompany receivables balances are eliminated upon consolidation into ENN Group balance sheet.
130
118
Elanor Investors GroupAnnual Report 2023
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
ELANOR INVESTORS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ELANOR INVESTORS GROUP
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FOR THE YEAR ENDED 30 JUNE 2023
30. Non-Parent disclosure (continued)
30. Non-Parent disclosure (continued)
Payables
30. Non-Parent disclosure (continued)
Payables
30. Non-Parent disclosure (continued)
Payables
Payables
EIF
Group
EIF
30 June
Group
EIF
2023
30 June
Group
EIF
$'000
2023
30 June
Group
7,323
$'000
2023
30 June
2,243
7,323
$'000
2023
–
2,243
7,323
$'000
9,566
–
2,243
7,323
–
9,566
2,243
–
9,566
9,566
EIF
Group
EIF
30 June
Group
EIF
2022
30 June
Group
EIF
$'000
2022
30 June
Group
5,022
$'000
2022
30 June
2,018
5,022
$'000
2022
309
2,018
5,022
$'000
7,349
309
2,018
5,022
309
7,349
2,018
309
7,349
7,349
Profit for the year
Trade creditors
Accrued expenses
Trade creditors
GST payable
Accrued expenses
Trade creditors
Total payables
GST payable
Accrued expenses
Trade creditors
GST payable
Total payables
Accrued expenses
GST payable
Total payables
Cash flow information
Total payables
Cash flow information
This note provides further information on the consolidated cash flow statements of the Trust. It reconciles profit
Cash flow information
for the year to cash flows from operating activities and information about non-cash transactions.
This note provides further information on the consolidated cash flow statements of the Trust. It reconciles profit
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
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.
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
EIF
Reconciliation of profit after income tax to net cash flows from operating activities
Group
EIF
Reconciliation of profit after income tax to net cash flows from operating activities
30 June
Group
EIF
2023
30 June
Group
EIF
$'000
2023
30 June
Group
17,245
$'000
2023
30 June
$'000
17,245
2023
1,253
17,245
$'000
(35,980)
1,253
17,245
7,312
(35,980)
1,253
(1,200)
7,312
(35,980)
1,253
(708)
(1,200)
7,312
(35,980)
220
(708)
(1,200)
7,312
2,659
220
(708)
(1,200)
(9,199)
2,659
220
(708)
2,659
220
(9,199)
2,659
(9,199)
7,492
(9,199)
46
7,492
1,928
46
7,492
278
1,928
46
7,492
545
278
1,928
46
278
1,928
545
278
545
545
Profit for the year
Amortisation
Profit for the year
Fair value adjustment on revaluation of investment property
Amortisation
Profit for the year
Net unrealised revenue from equity accounted investments
Fair value adjustment on revaluation of investment property
Amortisation
Net realised gain/(loss) on sale of investment
Net unrealised revenue from equity accounted investments
Fair value adjustment on revaluation of investment property
Amortisation
Other non cash items
Net realised gain/(loss) on sale of investment
Net unrealised revenue from equity accounted investments
Fair value adjustment on revaluation of investment property
Straight line lease expense and lease incentive income
Other non cash items
Net realised gain/(loss) on sale of investment
Net unrealised revenue from equity accounted investments
Employee costs funded directly through equity
Straight line lease expense and lease incentive income
Other non cash items
Net realised gain/(loss) on sale of investment
Net cash provided by operating activities before changes in assets and liabilities
Employee costs funded directly through equity
Straight line lease expense and lease incentive income
Other non cash items
Employee costs funded directly through equity
Net cash provided by operating activities before changes in assets and liabilities
Straight line lease expense and lease incentive income
Movement in working capital:
Employee costs funded directly through equity
Net cash provided by operating activities before changes in assets and liabilities
Decrease / (increase) in trade and other receivables
Movement in working capital:
Net cash provided by operating activities before changes in assets and liabilities
Increase / (decrease) in other current assets
Decrease / (increase) in trade and other receivables
Movement in working capital:
Increase / (decrease) in trade and other payables
Increase / (decrease) in other current assets
Decrease / (increase) in trade and other receivables
Movement in working capital:
Increase / (decrease) in other liabilities
Increase / (decrease) in trade and other payables
Increase / (decrease) in other current assets
Decrease / (increase) in trade and other receivables
Net cash from operating activities
Increase / (decrease) in other liabilities
Increase / (decrease) in trade and other payables
Increase / (decrease) in other current assets
Increase / (decrease) in other liabilities
Net cash from operating activities
Increase / (decrease) in trade and other payables
Increase / (decrease) in other liabilities
Net cash from operating activities
Other expenses
Net cash from operating activities
Other expenses
A breakdown of other expenses included in the EIF Group's Consolidated Statement of Profit or Loss is
Other expenses
provided below:
A breakdown of other expenses included in the EIF Group's Consolidated Statement of Profit or Loss is
Other expenses
A breakdown of other expenses included in the EIF Group's Consolidated Statement of Profit or Loss is
provided below:
EIF
A breakdown of other expenses included in the EIF Group's Consolidated Statement of Profit or Loss is
provided below:
Group
EIF
provided below:
30 June
Group
EIF
2022
30 June
Group
EIF
$'000
2022
30 June
Group
4,035
$'000
2022
30 June
11,638
4,035
$'000
2022
15,673
11,638
4,035
$'000
11,638
15,673
4,035
131
11,638
15,673
15,673
EIF
Group
EIF
30 June
Group
EIF
2022
30 June
Group
EIF
$'000
2022
30 June
Group
18,337
$'000
2022
30 June
$'000
18,337
2022
1,924
18,337
$'000
2,824
1,924
18,337
(9,871)
2,824
1,924
(1,634)
(9,871)
2,824
1,924
13,586
(1,634)
(9,871)
2,824
128
13,586
(1,634)
(9,871)
2,841
128
13,586
(1,634)
28,135
2,841
128
13,586
2,841
128
28,135
2,841
28,135
(15,223)
28,135
497
(15,223)
2,920
497
(15,223)
(24)
2,920
497
(15,223)
16,305
(24)
2,920
497
(24)
2,920
16,305
(24)
16,305
16,305
General expenses
Loan forgiveness expense
General expenses
Total other expenses
Loan forgiveness expense
General expenses
Loan forgiveness expense
Total other expenses
General expenses
Loan forgiveness expense
Total other expenses
Total other expenses
EIF
Group
EIF
30 June
Group
EIF
2023
30 June
Group
EIF
$'000
2023
30 June
Group
2,933
$'000
2023
30 June
–
2,933
$'000
2023
2,933
–
2,933
$'000
–
2,933
2,933
–
2,933
2,933
119
119
119
119
ELANOR INVESTORS GROUP
Directors’ Declaration to
Stapled Securityholders
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:
a)
the financial statements and notes set out on pages 50 to 131 are in accordance with the Corporations
Act 2001 (Cth) including:
i.
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 2023 and
of their performance, for the financial year ended on that date; and
b)
c)
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
22 August 2023
132
120
Elanor Investors GroupAnnual Report 2023 133
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 Group Report on the audit of the financial reports Our opinion In our opinion: The accompanying financial reports of: (cid:404) Elanor Investors Limited (the Company) and its controlled entities (the Group or Elanor), and (cid:404) 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 the Group and EIF Group as at 30 June 2023 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 Group and EIF Group financial reports comprise: (cid:120) the consolidated statements of financial position as at 30 June 2023 (cid:120) the consolidated statements of comprehensive income for the year then ended (cid:120) the consolidated statements of profit or loss for the year then ended (cid:120) the consolidated statements of changes in equity for the year then ended (cid:120) the consolidated statements of cash flows for the year then ended (cid:120) the notes to the financial statements, which include significant accounting policies and other explanatory information (cid:120) the director’s 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 the Group 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. 134
Elanor Investors GroupAnnual Report 2023 Our audit approach for the Group An audit is designed to provide reasonable assurance about whether the financial report is 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 report. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls and the industry in which it operates. Group Materiality Group Audit Scope (cid:120) For the purpose of our audit of the Group and EIF Group, we used overall materiality of approximately $686,000 and $675,000 respectively, based on an average profit or loss before tax benchmark. (cid:120) 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. (cid:120) We chose this threshold because in our view, it provides a relevant measure of the performance of the Group and EIF Group over a period of time. (cid:120) Our audit focused on where the Group and EIF Group made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events. (cid:120) 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. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. The key audit matters were addressed in the context of our audit of the financial report 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. We communicated the key audit matters to the Audit and Risk Committee. 135
Key audit matter How our audit addressed the key audit matter Valuation of Property, plant and equipment and Investment property (Refer to notes 8, 9 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 2023. 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 8 and 9. This was a key audit matter because of the: (cid:404)relative size of PPE and investmentproperty to total assets and the relatedvaluation movements,(cid:404)inherent subjectivity in the determination offair value estimates; and(cid:404)the sensitivity of fair values to changes inkey assumptions.We assessed the design and implementation of the Group’s and EIF Group’s relevant controls over the PPE and investment property valuation process. We agreed the adopted fair values of all properties to the independent valuation report or internal valuation model (together, the ‘valuations’) and assessed the competency, capability and objectivity of the relevant independent or internal valuer. We met with management to discuss the specifics of the property portfolio including, amongst other things, property financial performance,(cid:3)capital expenditure occupancy and leasing activities. For a selection of properties, we engaged PwC Valuation experts to assist in assessing the appropriateness of valuation methodologies used and significant assumptions adopted in the valuations. For a sample of the property portfolio, we tested the mathematical accuracy of the valuations and a sample of inputs to underlying data. We considered the reasonableness of the disclosures made in relation to the significant assumptions in light of the requirements of Australian Accounting Standards. 136
Elanor Investors GroupAnnual Report 2023 Other Information The directors of the Company and Elanor Funds Management Limited as the 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 2023, 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 director’s 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 reports does not cover the other information and accordingly we do not express any form of assurance conclusion thereon through our opinion on the financial reports. We have issued a separate opinion on the remuneration report. 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 reports 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 action to take. Responsibilities of the directors for the financial reports 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 the Group 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 the Group or 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 reports 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. 137
A further description of our responsibilities for the audit of the financial report 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 32 to 44 of the directors’ report for the year ended 30 June 2023. In our opinion, the remuneration report of Elanor Investors Limited for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001.Responsibilities The directors 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 SydneyPartner22 August 2023 Corporate Governance
The Board of Directors of Elanor Investors Group (Group) have approved the Group’s Corporate Governance
Statement as at 30 June 2023. 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.
138
Elanor Investors GroupAnnual Report 2023 Securityholder Analysis
As at 18 August 2023
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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HSBC Custody Nominees (Australia) Ltd
Fidante Partners Holdco1 Pty Ltd
Rockworth Investment Holdings Pte Ltd
CPU Share Plans Pty Ltd
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