Elanor Investors Group

ASX:ENN

Earnings Call Analysis

Elanor Investors Group Aims for $15B AUM

Elanor Investors Group navigated challenging market conditions, achieving significant growth despite headwinds in several real estate sectors. The healthcare and office funds performed robustly while retail showed improvement, offsetting the slower recovery of hotels and leisure. A pivotal moment was the successful integration of the Challenger real estate acquisition, substantially increasing assets under management (AUM) and boosting recurring funds management income by 37% to $23.7 million. AUM grew to $6.3 billion, and Elanor targets a growth to $15 billion over five years, alongside a recurrent funds management EBITDA margin goal of 35%. This growth is expected from wholesale, institutional, and strategic acquisition synergies, with a 23% EBITDA margin already reflecting scalable growth.

Introductions and Achievements

The Elanor Investors Group half-yearly results presentation, led by CEO Glenn Willis, started with an acknowledgment of the past half's challenges in the real estate asset class. Despite these conditions, the company's Healthcare and Office funds showed resilience and optimum performance, with Retail funds improving as well. However, the Hotels and Leisure funds faced difficulties, particularly in regional assets where recovery to pre-COVID levels was slower.

Acquisitions and Financial Highlights

A critical milestone was the acquisition of Challenger's real estate business, significantly bolstering assets under management (AUM), from under $3 billion in June to $6.3 billion, and spurring growth in recurring funds management income by 37%. Additionally, the completion of the 55 Elizabeth Street office acquisition and a significant equity raising effort highlighted the period. The core earnings of $8.3 million surpassed the initial guidance, and earnings per share of $0.0545 resulted in a generous 90% payout ratio distribution to security holders.

Operational Efficiencies and EBITDA Margin Improvements

Elanor underscored a strong focus on cost management, which, coupled with the scalability of their platform, led to an eightfold increase in recurring funds management EBITDA to $5.5 million. The resultant EBITDA margin reached 23%, reflecting the company's improved operating leverage and strategic positioning for the future, with a 5-year target to grow AUM to $15 billion and a recurring EBITDA margin to 35%.

Strategic Growth Objectives

Management has set the medium-term goal of growing its AUM to $15 billion over the next five years, alongside increasing earnings margins. This growth is expected to come from refinancing debt facilities, downsizing existing positions, and realizing assets in key funds. The company's debt structure, which includes a $65 million revolving secured facility and a $40 million unsecured notes facility, is strategically light and flexible, providing a foundation for these growth initiatives.

Asset Realization and Capital Recycling

Elanor has identified the Mayfair Hotel as a divestment opportunity and is currently engaging with an unsolicited buyer. If sold, this would lead to debt reduction and capital distribution to investors. Moreover, this move aligns with the strategy of asset realization and balance sheet capital recycling to support AUM growth objectives and capital realignment.

Looking Ahead: Challenges and Opportunities

Although market conditions remain challenging and establishing new funds is difficult, the company remains positive about its medium and short-term growth prospects and is actively exploring investments and establishing funds in current and new sectors. The recent Challenger acquisition has empowered Elanor to continue strategic acquisitions, catering to a promising pipeline of investment opportunities and driving operating leverage from its scalable funds management business.

Cost Synergies and Dividend Consistency

Post the acquisition of Challenger, the company has achieved cost synergies from day one, with no significant additional synergies expected for the second half. They aim to maintain the cost structure while driving operational leverage and scale benefits. The payout ratio commitment has been consistent at 90%, demonstrating reliability in returning capital to shareholders over the years.

Earnings Call Transcript 2024-Q2

[Operator]

Thank you for standing by, and welcome to the Elanor Investors Group Investor Conference Call. [Operator Instructions] I would now like to hand the conference over to Mr. Glenn Willis, CEO. Please go ahead.

[Glenn Willis, executive]

Thank you, and good afternoon, and welcome to this half yearly results presentation for Elanor Investors Group. Thank you for joining us in the call today. We certainly appreciate your interest in the group. In today's presentation, I'll provide a brief review of the last half. I'll also be providing in this presentation an overview of our medium-term growth ambitions for Elanor. I'll be after that handing over to Paul Siviour, Elanor's COO, to discuss the results for the half in more detail and finish by providing some comments on our outlook at the end of the call.

Looking back over the half, market conditions continue to be challenging across most sectors of the real estate asset class and indeed across several sectors of our focus. Our Healthcare funds performed well -- continue to perform well over the half, a very resilient sector. Our Office funds performed well as well despite some long run challenges in the broader Office sector. We're seeing improved conditions in the Retail sector and as such, our Retail funds saw improved operations and operating results.

Our Hotels and Leisure funds encountered challenges during the half, especially the regional assets, where they continue to encounter difficult trading conditions with occupancy and visitation levels whilst growing and proven to be slow in returning to pre-COVID levels. However, despite challenging market conditions across most sectors of the real estate asset class, we made significant progress on our growth ambitions for the group over the half.

The key highlight of the half clearly was a successful integration of the Challenger real estate acquisition, an acquisition driving exceptionally strong growth in assets under management for us and delivering immediate and strong recurring funds management income and funds management EBITDA growth. This acquisition has added significant value to Elanor's real estate platform. Again, the Challenger of real estate acquisition and importantly, the successful integration of this business delivered significant funds management earnings growth, particularly pleasing was the immediate growth in the recurring funds management earnings and earnings margin has been achieved from this acquisition, [indiscernible] earnings being key earnings priority and focus for us.

Over the half, recurring funds management income, excluding acquisition fees, increased 37% to $23.7 million on half year '23 and recurring funds management EBITDA increased eightfold half year '23 to $5.5 million to only believe that successful integration of the Challenger real estate acquisition positions us well to execute further strategic growth initiatives. This being a key part of our growth plans for the group.

In that regard, I wanted to provide investors some more detail on just what are our growth ambitions for the medium term. I'd like to direct to Page 6 of the presentation pack that we released this morning. We've achieved strong growth in assets under management in the [ 400 ] years of our business AUM for the group now reaching $6.3 billion.

More importantly, we've built a diversified real estate funds management platform that is to say, capability, and critically, an investment track record. We built sites to the scale and quality. We have the confidence in achieving further significant assets under management growth over the medium term.

In this presentation pack today on Page 6 described what our medium-term growth targets are, that is, growing from our current $6.3 billion for assets under management over the next 5 years to $15 billion, which we believe to be a great target. But more importantly, we believe we will achieve strong growth in our earnings margins going forward. That growth will be a direct reflection of the scalability of our funds management platform.

Indeed, executing scalable growth, growing our funds management EBITDA margin is a prime focus for the group. So where will that growth come from? That growth will come from a combination of wholesale funds management growth, institutional funds management growth and from further strategic acquisitions. And in regards to the sectors, our AUM growth will come from establishing and growing funds across our existing sectors of focus, but also from the establishment of our funds in new real estate sectors.

Specifically, we believe that the major contributor to our medium-term growth in assets under management will be from institutional partnerships or mandates. Institutional investors have been a major contributor to our assets under management growth over the last 2 years, indeed, over the last [ 12 ] months. Over the period, we've executed numerous partnerships, including a health care institutional partnership with PNB, a Malaysian sovereign investor, Challenger Life in the office, retail and industrial partnerships, an industrial mandate with ICON Kajima and a retail mixed-use mandate with ADIC.

We expect to see continued strong growth in institutional assets under management in the coming years. We'll also continue to see growth in assets under management from establishing further funds for our wholesale capital partners, such as, the fund we established in the last quarter for our wholesale investors being the 55 Elizabeth Street office acquisition that [ we do want an ] investment for that sector.

On the back of the successful execution of the strategic growth initiatives that was the acquisition of the Challenger real estate business, we see further such strategic growth opportunities, contributing to our medium-term growth target of $15 -- sorry.

Across the 3 broad sectors of growth -- excuse me, institutional funds management mandates establishing funds for our wholesale capital partners, which has been a traditional source of capital for our investments and funds. And also executing further strategic growth initiatives combining those from those 3 sectors, we believe, we will be able to achieve the growth targets that we set for ourselves over the medium term.

I'll now hand over to Paul Siviour to take us through the results for the last half in detail. Thanks Paul.

[Paul Siviour, executive]

Thanks, Glenn. Turning to Page 9 of the investor presentation released this morning, there is a page about the summary of our results for the half year to 31 December '24. As Glenn has mentioned, very significant increase in our recurring funds management income, excluding acquisition fees for the half of 37% increase on the prior period. And that specifically reflects the successful integration of the Challenger acquisition on the 7th of July 2023. Coupled with that, we've seen a very material increase in our recurring funds management EBITDA or our operating leverage. And that has come specifically from the scalability of our platform and in the context of the significant increase in AUM during the half. Following the Challenger transaction and other managed fund initiatives in the half, our AUM has grown from just under $3 billion at June to $6.3 billion.

Another feature of the half has been a successful new managed fund that acquired 55 Elizabeth Street, Brisbane for $172 million in December. And that -- coupled with that acquisition was raising -- equity raising of $109 million of capital with our capital raising partner, Fidante, linked of course, also with the Challenger transaction.

Our core earnings for the half were $8.3 million, which represented an increase on the guidance we provided to the market in December of $8 million, a reduction on the prior comparative period. But of course, that prior comparative period enjoyed a very significant performance fee of $6.4 million. Our earnings per share -- earnings per security for the half of [ $0.0545 ] translates to a distribution of [ $0.049 ] per security, and 90% payout ratio.

Turning to Page 10. We've referred to recurring funds management income a number of times and just to remind us linking in today what that comprises. It comprises our funds management income streams that are a regular and ongoing feature of our results. That is our management fees, development and leasing fees and hotel operator fees, and it specifically excludes acquisition and transaction fees and performance fees. I mentioned that we've enjoyed a very significant increase in recurring funds management income up from $17 million to $23.7 million.

And indeed, the scalability of our platform is demonstrated in the increase in our funds management EBITDA -- recurring funds management EBITDA of $5.5 million, which reflects and translates to a recurring funds management EBITDA margin of 23%, a very significant increase on the margins for the prior comparative period of 3%. As Glenn has mentioned, we had a target over the next 5 years of $15 billion. And coupled with that target is the target of 35% as a recurring EBITDA margin for the group.

We had a very strong focus on costs, and I'll make some more commentary on that shortly. But again, that goes specifically to evidence the scalability of that platform. Our co-investment income, which is the second component of the drivers of core earnings for the business is down on prior comparative period, and I'll make some particular and specific comments on that a little later in the presentation.

During the half, we enjoyed transactional income of $1.9 million, which a modest contribution, but reflected the successful completion of the sale of Panorama Retreat and Resort to the Elanor Hotel accommodation fund following the repositioning of that asset from a pure conference facility to an accommodation and conference offering and product.

Turning to Page 11. The major driver of our recurring funds management income is, of course, our management fee income stream that we enjoy from our managed funds. That income stream has risen by 71% to $20.3 million for the half, and that income stream reflects 71% of our recurring funds management income. I'll point that out because it just goes to the quality of the earnings profile and stream for the half.

We've mentioned the acquisition of the Challenger transaction, and that was a highly successful acquisition and integration. We enjoy the contribution of EBITDA from that transaction from day 1 on the 7th of July as a result of all the planning that went into and prior to the actual completion date for the transaction. We've had a significant focus on corporate costs and I'll make some commentary on that in a moment. But particularly, we point out that the Challenger transaction did contribute approximately $2 million of incremental costs. It also contributed over $8 million of incremental recurring funds management income. And yet the balance of our corporate costs earning increased by $1.5 million period-on-period. So we've enjoyed, again, the benefits of cost control and the evidence of the scalability of the platform.

Turning to Page 13, just to make a few comments on the contribution to the current core earnings from the hotel accommodation fund. It is significantly down on the prior period. And to -- just to put that into some context, in the first half of FY '23, the prior comparative period, the funds enjoyed quite significant occupation and visitation levels. And that was a result of tourism and travel patterns being attracted to regional assets and regional offerings in the period just shortly after COVID. What we've seen from January '23, but more so towards the middle of that year is a weakening in occupancy. And that reflects certainly the market, the regional market. It's consistent with our peer group. And we would comment that it relates to a change in travel patterns we do where people did take the opportunity to travel overseas.

And then, of course, as we move past the half year, there was an impact from cost of living and interest rates. What we have seen is, some improvement in occupancy in the second quarter of the current financial year, but still behind prior period. We would be cautiously optimistic in the context of the forward-looking drivers of occupancy, and that is because our business on the books, that is, forward bookings at our hotels as at the end of January are showing an improvement on those forward bookings same time last year.

We do expect an improved contribution to core earnings from the hotel accommodation fund in the second half. But I'd point out and Glenn has mentioned, those improvements in occupancy are coming much more slowly than we might have anticipated as we build back towards pre-COVID levels.

Page 15 identifies the components of our funds management platform. And in earlier slides, we -- as part of our target of $15 million, we've just tracked our funds. Our assets under management increased from $1.4 billion in June 2019 to $2.7 billion in June 2022, a CAGR of 25%. In the last 1.5 years from June 22, we've increased our assets under management to $6.3 billion, a 75% CAGR, and [ formally ] what we've been able to achieve in the context of that growth is very significant support from institutional capital partners. But in the context of the AUM, now essentially contribute to 60% of that AUM in the context of the underlying equity capital supporting those assets. It's important to note that our AUM is not subject to redemptions, a very modest amount is the Elanor property, income fund around about $100 million of our total assets under management.

On Page 16, we've given a little more detail of the nature of those institutional capital partners that we've partnered with over the last 12 months, 12 to 18 months that have been instrumental in driving our AUM and our reported results. Challenger Life Company is a company that many will be familiar with. We are the exclusive investment manager of Challenger Life's real estate assets across Australia and New Zealand.

The Abu Dhabi Investment Council is a capital partner of ours, and we enjoy a mandate across both retail and hotels. Importantly, Challenger Life and Abu Dhabi Investment Council are also investors in the Elanor [ Investors ]. Challenger Life is our largest security holder at 13.3% with Challenger, should I say. And Abu Dhabi investment council approximately 3% ownership of Elanor. We've also enjoyed as part of the recapitalization of our health care fund to a fund focused on core investment opportunities, the recapitalization of that fund by an Asian semi-sovereign investment manager, and we see opportunities to further grow that fund with further institutional capital partners.

Late last year, we announced a partnership with ICON Developments, a wholly-owned subsidiary of the Japanese developer Kajima Corporation, and that arrangement is to programmatically build $250 million of prime Australian logistics assets as part of a portfolio.

Turning quickly to Page 17. I won't comment on this page. It really just gives more detail of the componentry of our funds management income for the current half but also in prior periods.

Page 18 identifies the like-for-like valuation movements during the half across each of our investment sectors. And across all of those sectors, our like-for-like valuations, that is ignoring CapEx during the half, just comparing asset value pre-CapEx in the half to the value of those assets at 30 June has shown a relatively modest decrease of 2.9%. That is -- those decreases occurred particularly in retail and commercial and reflected some softening of cap rates up to 40 basis points, 30 basis points in the commercial sector, 40 in retail.

But pleasingly, the valuation impact of that softening of cap rates was mitigated by rental market growth across broadly our retail and commercial assets. We have a strong hedging position as outlined on Page 19 across each of our sectors of focus. That continues to be a focus of the group, where we look to sensibly immunize performance of the funds for interest rate movements.

Turning briefly to our co-investment portfolio on Page 21, $179 million. I'll make some further comments in a moment on our focus in recycling and realizing the current investment capital as part of providing funding to grow the -- grow our assets under management over the next half and year. We've also set out on this page movement in the co-investment portfolio over the half, showing some acquisitions.

And the movement in [ NAV ] of course, primarily reflect both depreciation, fair value adjustments and within that CapEx that may have been expended during the half.

I spoke before of some reduction in the level of distributions from our co-investments and that's set out on Page 22. And essentially, that reduction compared to prior comparative period relates to 2 matters, one, is the hotel accommodation fund, where I've outlined what we've seen as a reduction in occupancy levels for the half compared to the prior comparative period where occupancy was relatively strong immediately post-COVID. The other elements of this that I draw your attention to Stirling Street, Harris Street and Waverley Gardens. These are co-investments that generated $0.7 million of distributions in the prior comparative period. Each of those assets -- the assets in each of those funds are performing well. What we have determined to do, though, is to hold distributions for those funds for the moment to preserve cash for leasing and other value-add CapEx.

Just one point I'd like to make in respect of environmental, social and governance, ESG. Those on the call know as well now we have a very deep commitment to this area and particularly in respect of social, and we have a very significant partnership with both The Smith Family and FSHD. But I would like to point out that we've made significant progress in a GS 007 project for GS 007 compliance, which goes hand-in-hand with not only the increase in our capital -- institutional capital partners over the last 12 months but by putting us on an excellent footing to be able to continue to grow those partners -- partnerships going forward. From an environmental point of view, we completed during the year for assessment of our Scope 1 and 2 carbon emissions, which establishes the base case for us to then target and implement initiatives to achieve reductions.

Our profit and loss, our core earnings is set out on Page 26, and we've talked to many elements of this already. We just point out, borrowing costs certainly have increased period-on-period, which has reflected it's a $1.1 million increase, reflecting our base variable management -- base variable interest rate increase. Our borrowings as at 31 December, $105 million, slightly below our indebtedness at June of $107 million.

In respect of the balance sheet on Page 27, I just would point out the elements in the -- of the challenger transaction on the balance sheet. Challenger transaction resulted in recording approximately $40 million of management rights on the balance sheet. And that is from an accounting point of view because what we've acquired is the right to provide investment management services. As a result of that and the issue of additional securities during the half in respect of the Challenger transaction, our net asset value per security is 113 -- $1.13, excuse me, slightly down on the previous 30 June balance $1.25. However, what we have done for investors is identify the net tangible asset backing per security of $0.86. This is an important number when one is thinking about the sum of the parts valuation of Elanor because the $0.86 is absolutely tangible assets that reflect no value for our funds management platform.

On Page 28, we've identified our particular initiatives and plans in respect of capital release for -- throughout the balance of calendar year '24 from a series of managed fund initiatives and planned realizations. We've set out each of the funds where we expect this release come from. And we've identified our investment in each of those funds across the [ row of ] co-investment, but also receivables balances and financial assets which demonstrate for certain funds the commitment of the manager to provide those funds support during the more difficult times of COVID.

This capital release is expected to come from really 3 main initiatives depending on the fund, one, is refinancing of the debt facilities; secondly, is slowdown of our existing positions. And thirdly, and most importantly, asset realizations in key funds. This capital release will provide us capital to assist us with our growth initiatives.

Page 29, people are very familiar. I know with the construct of our debt facilities, we enjoy $65 million revolving secured facility, which we have significant covenant headroom. And we also have a $40 million unsecured notes facility, very, very capital light, which provides us with, in some ways, equity replacement and an effective cost of debt given the nature of that facility.

I'll now pass back to Glenn to discuss our outlook and provide some closing commentaries.

[Glenn Willis, executive]

Thanks, Paul. As I said earlier, we feel positive about our medium term and indeed our short- to medium-term growth prospects and delivering on that target of $15 billion AUM over the medium term. In the short term, we do have a good pipeline of prospects across a number of our sectors that we participate in. Having said that, market conditions remain challenging, establishing new funds remains challenging, making investments at prices and values that we believe represent value is also a -- is always challenging to be perfectly honest. Finding assets that represent growth value is always challenging whatever market conditions but particularly in the current market conditions.

We demonstrated the last half that we're able to continue to make deep value investments with the completion of the Elizabeth Street acquisition in the last quarter. Again, we believe the -- we'll make further investments in establishing new funds in our existing sectors of focus. We will also -- we're also looking at new sectors of focus, which present very -- more than interesting investment opportunities. And as we said to many of you over the past, we are always looking at strategic growth opportunities for the group. These market conditions could, well, present opportunities to us given the challenging marketplace it is in the real estate asset class. Having completed -- successfully completed the Challenger acquisition, I believe, that positions us well to make further strategic acquisitions.

But -- to summarize, 3 key areas of focus for the half, clearly continuing to grow our assets under management towards the medium-term target that we've stated and that believe leveraging our investment track record and our capital partnerships position us well to continue growing assets under management.

Very importantly, realizing and recycling balance sheet capital to support our AUM growth objectives is a prime focus. This is an area that I've been disappointed with the success we've had in executing this initiative over the last couple of years, but suffice to say, it's a key focus and one that we will make progress in. And indeed, we'll make progress because it also supports the growth opportunities we have across the group.

And finally, driving operating leverage from our funds management business -- from our scalable funds management business is a key focus. It drives earnings growth to drive ROA growth and to drive security holding. At this juncture, we'll be pleased to take questions.

[Operator]

[Operator Instructions] your first question comes from Edward Day with Moelis.

[Edward Day, analyst]

Glenn and Paul, just one for me. In the accounts, you've got the Mayfair Hotel as held for sale. Could you perhaps just talk about that process and what successful outcome it might mean for the half in terms of reduction in leverage or possible capital return?

[Glenn Willis, executive]

Yes, despite the challenging operating conditions that we spoke about in the broader accommodation and leisure space. Obviously, you have seen valuations being supported -- independent valuations being supported in that sector. Obviously, the buyers and [indiscernible] are looking through the cycle and looking toward normalizing trading conditions to resume back to pre-COVID levels of visitation and occupancy.

As such, we received expressions of interest in our assets across the portfolio on an ongoing basis. So we have received an unsolicited approach in regard to the Mayfair Hotel. And that, as such, we've decided to look at that hotel as being a divestment opportunity for the group, and we are in the process and are engaged with the party for the divestment of that asset. If you don't achieve the divestment of that asset, our intention will be to look at realization of options for that asset as a natural sort of portfolio sort of recycling switching opportunities that presents for other investment opportunities that we believe are right at disposal. So that's one sort of essentially portfolio switching opportunity that we are looking at.

In terms of the proceeds, yes, if we sold that asset and achieved the price that we require that would involve reduction in debt and capital distribution to the investors in that fund of which we're the biggest investor.

[Operator]

[Operator Instructions] Your next question comes from Gerard Ahhot with Holt Asia Investment.

[Gerard Ahhot, analyst]

My first one is regarding the balance sheet. So do we have some significant facilities or loans to refinance during the calendar year '24.

[Paul Siviour, executive]

No, we don't. The debt facilities for the head stock are -- have at least 1.8 year duration on them. No, none of those facilities require any sort of refinancing for the next 1.5 years.

[Gerard Ahhot, analyst]

And my second question is regarding the recurring fund management income. So we have a number of $20 million for the first half. But if I'm correct, last year, you gave us a forecast of something like $48 million for the recurring base management fees. So just to understand if we are below our expectations? Or do you think we can catch up with this forecast during the second half?

[Paul Siviour, executive]

Yes, that recurring funds management income was not a forecast, just a bit of a run rate that did include a significantly higher level of hotel operator fees than we've achieved for the half, and that is essentially the delta.

[Gerard Ahhot, analyst]

Okay. So the delta comes from the hospitality segment?

[Paul Siviour, executive]

Yes, that $48 million, I just don't have that page from our prior presentation in front of me, but it is a combination of management fees and hotel operator fees.

[Gerard Ahhot, analyst]

Okay. Okay. I see. Okay. And my last question. So for the second half, do we have some cost synergies after the acquisition of Challenger in terms of cost base? What should we expect for the second half?

[Paul Siviour, executive]

Well, pleasingly all of the synergies, if that's the right way to call -- - right way to describe them, have all been achieved in the first half. Indeed, they've been achieved from day 1 where as part of the transaction. We had the opportunity to hand select Challenger people where we had the opportunity for them to join our platform. So the incremental Challenger cost of $2 million reflects all the benefits, if you will, all the scale benefits of the transaction, and we'd expect that to continue. I mentioned that our total costs, excluding the Challenger contribution of $2 million when compared to the prior period were that showed a reduction. Ongoing cost control is a key focus of the business in terms of taking advantage of and demonstrating the operating leverage and scalability we have in our platform. But no particular or further synergies to be realized in the second half.

[Gerard Ahhot, analyst]

Okay. So we should expect more or less the same level of cost structure second half compared to first half?

[Paul Siviour, executive]

Yes, there's always cost pressure to the business, but we expect to be able to control that relatively well. We would say no increase, but...

[Glenn Willis, executive]

But having said that, as we said, the key focus of ours is to drive the operating leverage of the business. And we know that the platform and the investment that group has made, shareholders made in establishing this platform is very scalable. It's up to us now to achieve those scale efficiencies and scale benefits.

[Gerard Ahhot, analyst]

Okay. And then maybe the last one. In terms of dividend payouts, I've noted it's quite consistent over the years, but can you share with us if there is a sort of payout number that you would like to apply every year in the future.

[Glenn Willis, executive]

We've had a payout ratio of 90% since we listed. So it's maintained total consistency there over the years.

[Operator]

Thank you. There are no further questions at this time. I'll now hand back to Mr. Willis for closing remarks.

[Glenn Willis, executive]

Thank you and thank you for attending our presentation today. As I said at the start, we do appreciate your interest in the group. And I'd like to close by taking the opportunity to thank all the securityholders for their ongoing support of the group, but also my executive colleagues and the Board of Elanor Investors Group. We will look forward to our next presentation. Thank you very much. Have a good day.

[Operator]

That does conclude our conference for today. Thank you for participating. You may now disconnect.