New Moelis note - $1.96 price target, NAV of $2+, page-3

http://www.fool.com.au/2016/08/17/3-bargain-small-caps-with-huge-dividends-to-buy-today/


Elanor Investors Group (ASX: ENN) is also a fund manager but operates in the property sector, with a particular emphasis on tourism and retail. The group invests its own capital as well as that of others, usually in its managed funds alongside its clients.

Elanor expects to deliver core EPS of 16.2 cents in 2016, up 14.8% on 2015 and a total distribution of 14.6 cents, up 22.7% from a year earlier. This implies a PER of 13.1 and a terrific dividend yield of 6.9% at current prices.

The company recently raised $30 million of equity and will use the proceeds to launch an ASX listed real estate investment trust (REIT) and a private commercial property fund. It intends to retain a holding of 15% in both funds and hopes to earn at least double-digit returns for shareholders from management fees and its share of distributions.

Elanor owns a valuable property in Merrylands Sydney, with planning permission for 540 apartments and a substantial area of retail space which it has recently put up for sale. It was acquired in July 2014 as part of the John Cootes furniture chain and is valued at $16.3 million in Elanor’s accounts. However, the sale price is likely to be much higher than its book value and so the company expects to realise an “outstanding profit” on the property.