EfTEN Real Estate Fund Displays Strong November Performance

Remarkable Performance of EfTEN Real Estate Fund in November

In a noteworthy development during November, EfTEN Real Estate Fund AS reported consolidated rental income reaching EUR 2,602 thousand. This figure represents an increase of EUR 32 thousand compared to October. The boost in rental income is largely due to a significant milestone—the first full-month rental contribution from the new Härgmäe logistics center. Additionally, a drop in vacancy rates at the Evolution office building in Vilnius also contributed to this positive growth, leading to a reduction in the fund's overall vacancy rate to 3.0% from 3.2% in October.

Financial Highlights Reflect Stability and Growth

The fund's consolidated EBITDA, a key indicator of operational performance, totaled EUR 2,198 thousand for the month, marking an increase of EUR 43 thousand over the prior month. This uptick can be attributed to stable administrative expenses and a reduction in marketing costs associated with shopping centers, showcasing the fund's commitment to efficient financial management.

Interest Rates and Financial Management

As of the end of November, the average interest rate on the fund’s bank loans stood at 5.15%. This marks a decrease of 0.11 percentage points from October and a noticeable 0.73 percentage points drop from earlier in the year when rates peaked. Such efficient management of interest rates is crucial in maximizing the fund's profitability.

Year-to-Date Performance Exceeds Expectations

Looking at the broader picture, EfTEN Real Estate Fund AS generated a total consolidated rental income of EUR 28,217 thousand during the first eleven months of 2024, signifying a 1.4% rise compared to the same period in the previous year. Impressively, the fund’s net rental income (NOI) from real estate investments hit EUR 27,227 thousand, which reflects a modest yet significant 0.6% increase compared to last year. Additionally, the fund’s EBITDA for the same timeframe reached EUR 24,006 thousand, showing a slight improvement of 0.2% from the previous year.

Cash Flow Analysis

In terms of cash flow, EfTEN Real Estate Fund AS reported EUR 9,966 thousand in consolidated free cash flow for the first eleven months of the year. While this amount is EUR 494 thousand lower than the previous year, the effects of the EURIBOR rate have disrupted financial performance, contributing approximately EUR 766 thousand more in interest expenses over the past year. Despite these challenges, the fund's growing EBITDA and the extension of bank loan repayment schedules have mitigated the negative impacts somewhat, generating an offset of around EUR 340 thousand.

Net Asset Value Illustrates Positive Growth Trend

As of November 30, 2024, the net asset value (NAV) per share for EfTEN Real Estate Fund AS stood at EUR 20.411, with the EPRA net reinstatement value (NRV) calculated at EUR 21.2391. This represents a commendable increase of 0.7% for the month, demonstrating the fund’s overall growth trajectory and increasing asset value.

Conclusion and Contact Information

In summary, EfTEN Real Estate Fund AS has demonstrated resilience in the face of challenging economic conditions, reporting solid growth in rental income and an increase in net asset value. The proactive management of interest rates and expenses further underscores the fund's commitment to enhancing shareholder value.

For more detailed inquiries, please contact:

Marilin Hein
Chief Financial Officer
Tel. 6559 515
E-mail: marilin.hein@eften.ee

Frequently Asked Questions

What is the main reason for the increase in rental income for EfTEN Real Estate Fund AS?

The increase is primarily due to the first full-month rental income from the new Härgmäe logistics center and a reduction in vacancy rates at the Evolution office building.

How much did EfTEN Real Estate Fund AS report in EBITDA for November?

For November, the fund reported an EBITDA of EUR 2,198 thousand, which is an increase compared to the previous month.

What is the current vacancy rate for EfTEN's investment portfolio?

The vacancy rate for the fund's investment portfolio was recorded at 3.0% in November.

How has the EURIBOR impacted the EfTEN Real Estate Fund AS?

The EURIBOR has negatively affected interest expenses, contributing EUR 766 thousand more in costs compared to the previous year.

What is the net asset value per share as of November 30, 2024?

The net asset value (NAV) per share is EUR 20.411, reflecting a 0.7% growth from the prior month.

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