Core Property has initiated coverage on the Elanor Commercial Property Fund (ASX: ECF) with a BUY recommendation.
ECF invests in a portfolio of metropolitan and well-established office properties with value-add potential.
Earnings are supported by a strong tenancy profile with 87% of income derived from government and blue chip tenants. The portfolio provides relatively low risk, with 15% of income falling due over FY21-FY23 and the next major lease expiry not until March 2024.
ECF is currently trading on an attractive distribution yield of 9.6% for FY21, with a conservative payout ratio of 80% providing a strong buffer against earnings.
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