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Level 6 330 Collins Street Melbourne VIC 3000 Phone: +61 (0)3 7003 7622
Email: info@eildoncapital.com
ASX announcement
2022 Half Year Financial Results ASX announcement
22 February 2022: Eildon Capital Group (EDC) provides the attached 2022 Half Year Financial Results ASX Announcement for the half year ended 31 December 2021
Contact Details
Mark Avery Managing Director Eildon Capital Group 03 7003 7622 info@eildoncapital.com
The release of this announcement was authorised to be released by Laurence Parisi, Joint Company Secretary
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Eildon Capital Group
Appendix 4D - 31 December 2021
Appendix 4D
Half-Yearly Report
Results for announcement to the market
Eildon Capital Group
Half-Year ended | Previous Half-Year ended | |||||
('Reporting Period') | ('Corresponding period') | |||||
31 December 2021 | 31 December 2020 | |||||
Results | ||||||
Income from ordinary activities | Up | 37.1% | to | 5,941,710 | ||
Profit before tax | Up | 18.6% | to | 3,031,990 | ||
Profit after tax attributable to members | Up | 9.3% | to | 2,688,176 | ||
Net profit attributable to members | Up | 9.3% | to | 2,688,176 | ||
The preliminary half-yearly report is based on accounts which have been reviewed.
Dividends (distributions)
Amount per | Franked amount per | |
share/unit | share/unit | |
December 2021 distribution | 2.000 cents | nil |
September 2021 distribution | 2.000 cents | nil |
June 2021 distribution | 2.023 cents | nil |
March 2021 distribution | 2.000 cents | nil |
December 2020 distribution | 2.000 cents | nil |
September 2020 distribution | 1.925 cents | nil |
Information on dividends (distributions):
A distribution in respect of the quarter ended 31 December 2021 of 2 cents per stapled security was paid on 24 January 2022.
The Dividend Reinvestment Plan is in operation in relation to the payment of the dividend. | ||||
Ex-Distribution date for the purpose of receiving the distribution | 04 January 2022 | |||
Record date for determining entitlements to the distribution | 05 January 2022 | |||
Payment Date | 24 January 2022 | |||
Commentary | ||||
Brief explanation of any of the figures reported above: | ||||
Please refer to the attached commentary for a detailed review. | ||||
Net tangible assets | ||||
31 December 2021 | 31 December 2020 | |||
Net tangible assets per ordinary stapled security | $1.04 | $1.02 |
Audit qualification or review
The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.
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Level 6 330 Collins Street Melbourne VIC 3000 Phone: +61 (0)3 7003 7622
Email: info@eildoncapital.com
RESULTS ANNOUNCEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2021
Eildon Capital Group (ASX: EDC) delivered a net profit after tax (NPAT) of $2.7 million or 5.6 cents per stapled security (cps) for the six months ended 31 December 2021, which is higher than the prior comparative period (pcp) result of $2.5 million.
The group generated income of $5.7 million derived by a combination of interest from debt investments, rental income, revaluation of property investments and management fees during the period. Distributions totalling 4.0 cps were declared, representing an annualised yield of approximately 7.6% on the closing security price of $1.05 as at 31 December 2021. Net assets (NAV) per stapled security was $1.12 as at 31 December 2021, up over the 30 June 2021 NAV of $1.11.
Investment Portfolio
Eildon Capital's investment portfolio totalled $45.2 million in addition to a cash balance of $5.3 million. The current portfolio includes 14 investments comprised of 8 debt and 6 equity positions. Debt investments represent 76% of the portfolio and 24% in equity by value. The investments are diversified across Victoria, Queensland and New South Wales. Eildon's Balance Sheet investments continue to generate income supporting quarterly distributions. We outline Eildon's Balance Sheet Investment portfolio key metrics below.
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Email: info@eildoncapital.com
Eildon Funds Management (EFM)
Eildon Funds Management Limited is a leading arranger, investor and manager of real estate
credit and equity investments within Australia's Commercial Real Estate market.
Group Assets Under Management (AUM) totalled $310 million as at 31 December 2021, which included balance sheet and third-party assets. A strong pipeline of opportunities in place should see the AUM of the Group continue to grow through FY2022.
EFM delivered a pre-tax contribution of $0.93 million to the Group's result since completion of
the Internalisation of Eildon Funds Management Limited (EFM) at a cost of $4.0 million, in November 2020. In addition to the $0.93 million pre-tax contribution, an internally generated fee received by EFM totalled $0.9 million for the management of Eildon Capital Trust.
Eildon Funds Management Product Lines
1. Eildon Capital - Property Income Funds
Eildon Asset Management (EAM) (50% owned by EFM in partnership with Strategic Property Partners Investment Pty Limited) successfully closed an additional unlisted property fund in the period, the EAM Caboolture Property Fund, valued at $56 million, $31.4 million of equity was raised. Assets Under Management for the Property Income Funds totalled $108 million as at 31 December 2021.
An identified pipeline for a further $94 million of community essential real estate assets are available for syndication, with a potential launch date in CY22. An unlisted Health and Education wholesale fund is under investigation for potential launch in CY22; seed assets have been identified. Demand for high quality income producing investment products remains strong and EAM is well positioned to capitalise on this investor demand.
2. Eildon Capital - Real Estate Credit
EFM currently manages $150 million across 14 projects which includes the Group's balance sheet co- investment of circa $21 million. EFM continues to review lending opportunities, with in excess of $80 million of loan opportunities currently under due diligence. Loan facilities can
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be funded by a blend of Eildon Capital balance sheet investment as well as third party capital provided by investors in the Eildon Debt Fund. The Group's business model is expected to generate a combination of improved interest returns on invested capital, supplemented with interest margins and fees derived from the Eildon Debt Fund portfolio. Borrower demand for flexible finance solutions remains strong as the real estate lending environment is favourable for non-bank lenders.
3. Eildon Capital - Development Funds
EFM currently manages $23 million across two projects in two development funds. Both projects comprise community essential real estate projects and are located in Caboolture, Queensland and Werribee, Victoria. EFM earns development management fees and has the potential to earn performance fees. There is the opportunity to launch additional development funds in FY2022. Details of the existing funds are outlined below:
Harpley Town Centre - Werribee, VIC
- 4.4Ha site within Lend Lease Harpley Estate.
- Development into corporate medical centre, neighbourhood centre, service station and fast food and other commercial uses.
- Development commencing in FY22 with end value projected to be in excess of $94 million.
Big Fish Retail and Commercial Centre - Caboolture, QLD
- 15Ha site located on Bruce Highway between Brisbane and Sunshine Coast.
- EFM has been transforming the site into a combined retail and commercial precinct.
- Development of a 14,042 sqm Bunnings Warehouse, construction underway.
- Construction of Caboolture Shopping Village is underway, anchored by Coles the projects end value is expected to be in excess of $56 million.
Capital Management
The Group remains fully deployed /committed. A distribution of 2.0 cents per stapled security was paid on 24 January 2022. The anticipated distribution/dividend payment calendar for the next 12 months is outlined below:
Distribution Period | Payment Date | |
March 2022 | 22 | April 2022 |
June 2022 | 22 | July 2022 |
September 2022 | 21 | October 2022 |
December 2022 | January 2023 |
Market Conditions and Outlook
Eildon Capital Group provides exposure to an alternative asset funds management and investment platform which covers both debt and equity investment. Balance Sheet investments that derive income will continue to support quarterly distributions while revenue generated from the funds management platform provide opportunity for earnings growth.
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Eildon Capital Ltd. published this content on 22 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2022 07:20:01 UTC.