EfTEN Real Estate Fund's June 2025 Financial Highlights
In June 2025, EfTEN Real Estate Fund AS reported a consolidated rental income of EUR 2,650 thousand, reflecting a modest increase from the previous month. This growth was primarily driven by higher turnover-based rent across shopping centers and a reduction in the vacancy rate of office spaces. Additionally, the Fund successfully lowered property management and marketing expenses by EUR 77 thousand in comparison to May. The consolidated EBITDA for the month reached EUR 2,310 thousand, marking an increase of EUR 81 thousand month-on-month.
Mid-Year Financial Performance
Throughout the first half of 2025, the Fund realized EUR 15.58 million in rental income, representing a 1.6% increase over the same period last year. However, consolidated EBITDA showed a slight decline to EUR 12.9 million, down by 1.3% compared to the prior year. This decrease was largely attributed to the sale of the Tähesaju Hortes gardening center and heightened vacancy rates in the office sector, particularly in the Menulio office building in Vilnius and the office facility at Pärnu mnt 102 in Tallinn. Conversely, the growth in EBITDA was supported by the recent addition of the Härgmäe and Paemurru logistics centers, as well as newly acquired elderly care homes.
Declining Vacancy Rates
As of June, the total vacancy rate for office spaces decreased from 17.0% to 16.2%, translating to a reduction from 10.2 thousand m² to 9.7 thousand m². There are plans for further reduction in vacancy rates, with additional office spaces expected to be handed over to tenants in July and August.
Property Revaluation and Financial Instruments
The semi-annual property revaluation conducted by Colliers International showed minimal significant changes, resulting in a modest gain of EUR 546 thousand and increasing the fair value of the property portfolio by 0.15%. In the valuation models, discount rates fell slightly, influenced by the reduction in EURIBOR rates, while exit yields remained stable when compared to the end of the previous year. Forecasts concerning office cash flows were revised to reflect a more cautious perspective than at year-end 2024, while predictions for other property segments showed a slightly more optimistic outlook.
Interest Rate Swap Agreement
Just prior to the Midsummer holidays, the Fund's subsidiary, EfTEN SPV12 OÜ, signed an interest rate swap agreement with Swedbank regarding the Rautakesko property and another logistics center. The 1-month EURIBOR was fixed at 1.995% under this agreement, which follows the repayment schedule of the underlying loan and has a term of three years. At the end of June, the fair value of this derivative stood at a negative EUR 41 thousand, with a notional value of EUR 11.6 million, which constitutes 7.4% of the Fund’s overall loan portfolio.
Loan Interest Rates and Net Asset Value
As of June 30, 2025, the Fund displayed a weighted average loan interest rate of 3.95%, a significant decline from 5.65% a year earlier. The consolidated interest expenses for the first half of the year amounted to EUR 3.5 million, which represents a reduction of EUR 973 thousand compared to the same period in the prior year.
At the closure of June 2025, the net asset value (NAV) per share for the Fund was recorded at EUR 19.979, while the EPRA NRV stood at EUR 20.8523 per share, with both figures reflecting an increase of 1.0% for the month.
For any inquiries, you can reach Marilin Hein, the CFO, at Phone: +372 6559 515 or Email: marilin.hein@eften.ee.
Frequently Asked Questions
What was the rental income for EfTEN Real Estate Fund in June 2025?
The Fund earned EUR 2,650 thousand in rental income in June 2025.
How does the YTD performance compare to the previous year?
YTD rental income is EUR 15.58 million, up 1.6% compared to the same period last year.
What factors influenced EBITDA changes?
EBITDA was influenced by the sale of properties and an increase in vacancies during the year.
What is the current vacancy rate for office spaces?
As of June, the overall vacancy rate decreased to 16.2% for office spaces.
What is the weighted average loan interest rate as of June 2025?
The Fund reported a weighted average loan interest rate of 3.95% as of the end of June 2025.
