Highlights

  • Kyron Capital reported $1.8 billion in funds under management at June-end, compared with $5.5 billion one year earlier.
  • The group completed a $125 million Rockworth recapitalisation comprising secured loan notes and perpetual subordinated notes in April 2026.
  • Kyron reduced corporate overheads to $25 million, while recurring management income and funds management EBITDA declined during FY26.
  • Management plans asset recycling and targeted capital-led growth before the first recapitalisation covenant tests fall due in June 2027.

A smaller property platform and a new financing structure define Kyron Capital Group’s (ASX:KYN) rebuilding task. Its FY26 results presentation records funds under management of $1.8 billion, down from $5.5 billion a year earlier. Following a $125 million recapitalisation, the former Elanor Investors is pursuing cost reductions, asset recycling and renewed capital relationships while ordinary equity remains behind perpetual noteholders.

Recapitalisation Changes the Balance Sheet

The Rockworth transaction completed on 17 April 2026. It includes a $70 million senior secured loan note facility, with $66 million drawn at 7% annual interest and an expiry date of 16 April 2028.

A further $55 million comprises perpetual subordinated notes paying 9% annually for three years and 11% thereafter. These rank ahead of ordinary securityholders. Rockworth also received 30 million warrants exercisable at one cent from 17 October 2026.

A 70% gearing covenant and 1.1-times interest cover test first apply on 30 June 2027. At the FY26 balance date, reported gearing was 54.2%, compared with 72.4% previously. Interest-bearing liabilities fell from $112.7 million to $62.8 million, and cash stood at $11.4 million.

Lower Managed Assets Reduce Recurring Income

Approximately $1.1 billion was transacted during FY26, with capital returned to investors. Retail remains the largest portfolio segment at $879 million, followed by office at $325 million, healthcare at $274 million, hotels and leisure at $271 million and industrial at $81 million.

Core retail assets reported 97.8% occupancy, while $225 million of non-core assets were sold. Like-for-like core hotel operating performance rose 15%, and the Hotel Accommodation Fund was refinanced in August 2026.

Recurring funds management income excluding transaction fees declined to $26.1 million from $46.1 million in FY25. Funds management EBITDA fell to $2.1 million from $7.4 million.

Corporate overheads reduced from $37.1 million to $25 million. Receivable provisions and impairments totalled $17.5 million, with borrowing costs of $17.6 million.

Ordinary Equity and Recovery Remain Under Pressure

Core earnings showed a $30.3 million loss, compared with an $8.9 million loss in FY25. Total net tangible assets were 26 cents per security, but ordinary equity NTA was negative 17 cents after allowing for the perpetual notes.

Core earnings and other non-IFRS measures are unaudited, and FY25 comparatives were restated.

The group was reinstated to ASX quotation on 11 June and adopted its current ticker on 29 July. Its reset includes new chief executive David McNamara, a new financial services licence and an independent trustee board.

Management prioritises recycling co-investments and receivables, reducing costs and pursuing growth backed by domestic institutional and Pan-Asian capital. Receivable recovery remains dependent on asset sales and fund performance, while the June 2027 covenant tests provide a dated financial milestone.