EfTEN Real Estate Fund AS Reports October Performance and NAV

EfTEN Real Estate Fund AS Financial Overview

In the month of October, EfTEN Real Estate Fund AS reported a consolidated rental income of 2,570 thousand euros, demonstrating a modest increase of 19 thousand euros from September. This upward trend was largely driven by the inaugural month of earnings from the newly acquired Härgmäe logistics center. However, the fund faced a slight dip in its consolidated EBITDA for October, which stood at 2,155 thousand euros, representing a decrease of 36 thousand euros compared to the prior month. This decline can be primarily attributed to increased marketing expenses related to autumn campaigns across shopping centers and necessary evaluations of the investment portfolio as the year draws to a close.

Investment and Acquisition Highlights

During this period, EfTEN’s subsidiary, EfTEN Härgmäe OÜ, solidified its investment strategy by sealing a contract to purchase the logistics center, investing 8,314 thousand euros along with a previous advance payment of 515 thousand euros made in September. To facilitate this acquisition, the fund secured financial backing through a bank loan amounting to 7,300 thousand euros, complemented by its own financial resources. The anticipated initial rental yield from this acquisition is projected at 7.6%, contributing positively to the fund's overall performance.

Interest Rates and Financial Position

As of the end of October, the weighted average interest rate applicable to the bank loans of the fund's subsidiaries was recorded at 5.26%. This reflects a slight decrease of 0.09 percentage points over the month, and a more significant reduction of 0.63 percentage points from the peak observed at the beginning of the year, indicating improved borrowing conditions for the fund.

Year-to-Date Performance

Evaluating the performance year-to-date, EfTEN Real Estate Fund AS reported a total consolidated rental income of 25,615 thousand euros over the first ten months, which represents a 1.2% growth relative to the same timeframe last year. The net rental income, calculated based on the fund's investment properties, reached 24,717 thousand euros, reflecting a modest increase of 0.3% over the previous year. However, the overall EBITDA throughout this ten-month period was slightly lower at 21,808 thousand euros, showing a decline of 0.1% compared with last year’s figures.

Cash Flow and Dividend Prospects

In terms of cash flow, the fund recorded consolidated free cash flow (EBITDA minus loan repayments and interest expenses) of 8,924 thousand euros during the first ten months, which is 709 thousand euros less than the same period last year. This dip can largely be attributed to the rising EURIBOR rates. On a promising note for investors, the potential gross dividend is currently estimated at 65.99 cents per share, although this marks a decrease of 7.2% compared to last year. The management is enthusiastic about suggesting a dividend payment of 1 euro per share derived from the profit for the year in spring of the following year. However, this will necessitate some refinancing of loans related to certain low-leverage subsidiaries, and talks regarding these arrangements have already commenced.

Net Asset Value Calculation

As of the end of October, EfTEN Real Estate Fund AS reported a net asset value per share of 20.2779 euros, with an EPRA NRV of 21.0996 euros. Notably, the net asset value experienced a slight increase of 0.7% throughout October, showcasing resilience in the fund's valuation.

Contact Information

Marilin Hein
CFO
Phone: +372 6559 515
E-mail: marilin.hein@eften.ee

Frequently Asked Questions

What was the rental income for EfTEN Real Estate Fund AS in October?

The consolidated rental income for October was reported at 2,570 thousand euros.

How has the fund’s EBITDA changed from September to October?

In October, the fund's EBITDA was 2,155 thousand euros, which is 36 thousand euros lower than September.

What is the expected initial rental yield from the new logistics center?

The anticipated initial rental yield from the new investment in the Härgmäe logistics center is 7.6%.

What is the potential dividend for shareholders?

Shareholders could expect a gross dividend of 65.99 cents per share, with plans for a 1 euro per share dividend from the fund’s 2024 profit.

What is the current net asset value per share for the fund?

As of 31.10.2024, the net asset value per share is 20.2779 euros.

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