Elanor Investors Group (ASX: $ENN) announces significant growth in Funds Under Management and forecast distribution for HY24

Elanor Investors Group (ASX: $ENN) has reported a substantial increase in Funds Under Management (FUM) from $3.0 billion to over $6.2 billion. The company achieved this growth through strategic acquisitions, including the acquisition of the Challenger Real Estate funds management business for $37.7 million and securing the Abu Dhabi Investment Council (ADIC) real estate funds management mandate. Additionally, Elanor completed the acquisition of 55 Elizabeth Street in Brisbane and established a $250 million joint venture with ICON Developments to develop a prime Australian industrial and logistics portfolio. The forecast for the first half of 2024 includes base funds management fees of $20.2 million, Core Earnings of $8.0 million, and a distribution range of 4.6 cents to 4.9 cents per security.

Glenn Willis, Elanor CEO, comments on the company's strategic growth initiatives

We are pleased to have executed one of our key objectives for the Group to grow funds under management through strategic acquisitions. The acquisition of Challenger's $3.2 billion real estate funds management business is materially earnings accretive and delivers significant growth in both recurring funds management income and recurring funds management EBITDA for the Group. Combining Elanor's real estate funds management capability with Challenger's market leading capital raising platform positions us for further strong growth in funds under management. We are seeing an increasing number of high investment quality real estate opportunities in the current market as evidenced by the recently completed 55 Elizabeth Street acquisition, a 'deep value' investment for our managed fund capital partners. We are pleased with the success of the $109 million capital raising with Fidante, Challenger's capital raising platform, generating strong demand from wholesale and sophisticated investors. We are pleased with the Group's pipeline of high quality funds management opportunities emerging from the prevailing investment environment. Furthermore, we continue to focus on strengthening the Group's balance sheet through initiatives to recycle our co-investment positions to grow securityholder value.

Elanor's HY24 Forecast and Growth Strategy

Elanor Investors Group (ASX: $ENN) has demonstrated a significant increase in Funds Under Management, driven by strategic acquisitions and joint ventures. The company's forecast for the first half of 2024 includes base funds management fees of $20.2 million, Core Earnings of $8.0 million, and a distribution range of 4.6 cents to 4.9 cents per security. The successful execution of key objectives, such as the acquisition of Challenger's real estate funds management business and the establishment of joint ventures, has positioned Elanor for further growth in funds under management. The company remains focused on identifying high-quality funds management opportunities and strengthening its balance sheet to enhance securityholder value.