EfTEN Real Estate Fund Sees Changes in Asset Valuation this Year

Recent Developments for EfTEN Real Estate Fund AS

EfTEN Real Estate Fund AS has made significant moves earlier this month with its subsidiary, EfTEN Tähesaju tee OÜ, selling a property at Tähesaju road 5 in Tallinn. The transaction, which took place in September, amounted to 4,675 thousand euros, reflecting a shortfall of 452 thousand euros from its book value. However, the sale ultimately resulted in 1.9 million euros in cash inflows after accounting for loan repayments. These funds are being strategically reinvested into advance payments for various logistics centers located at Härgmäe Str. 8 / Piimamehe Str. 7 and Paemurru road 3 in Tallinn, highlighting the fund's commitment to expanding its portfolio.

Rental Income and Financial Performance

In terms of financial performance, EfTEN Real Estate Fund AS recorded consolidated rental income of 2,551 thousand euros for September. This marks a 26 thousand euro decline from August, primarily attributed to the sale of the Tähesaju property. Nonetheless, the fund's consolidated EBITDA for the month rose to 2,191 thousand euros, showing a positive trend with an increase of 26 thousand euros compared to the previous month.

Long-Term Growth and Dividend Insights

For the first three quarters of the year, EfTEN Real Estate Fund's consolidated rental income reached 23,045 thousand euros, reflecting an impressive 1.2% increase in comparison to the previous year. The investment properties have generated a net operating income (NOI) of 22,252 thousand euros, slightly rising by 0.2% over the same timeframe. The fund reported an EBITDA of 19,653 thousand euros, which is a marginal decline of 0.2% from the previous year.

Cash Flow and Dividend Outlook

During this nine-month period, the fund achieved a consolidated free cash flow of 8,006 thousand euros. This figure, which accounts for EBITDA minus loan repayments and interest expenses, represents a decrease of 897 thousand euros compared to last year’s performance. Significant factors influencing this cash flow downturn include the rising EURIBOR. Despite this situation, the fund is projecting a potential gross dividend of 59.19 cents per share, indicating a reduction of 9.9% from the previous year. However, the management is optimistic about the possibility of enhancing dividend payouts in the spring of 2025, thanks to favorable refinancing opportunities arising from an active banking market.

Interest Rates and Asset Valuation

As of the end of September, the weighted average interest rate for the fund's subsidiaries' bank loans stood at 5.35%, showing a decrease by 0.18 percentage points from the preceding month and a reduction of 0.56 percentage points from the EURIBOR peak observed earlier this year. This trend suggests a more manageable financial environment for the fund moving forward.

Net Asset Value Per Share

EfTEN Real Estate Fund AS reported a net asset value (NAV) per share of 20.1467 euros as of September 30, 2024. The EPRA NRV stood at 20.9623 euros. Impressively, the NAV per share saw a 0.5% increase in September. If we exclude the extraordinary loss incurred from the sale of the Tähesaju property, the NAV per share would have increased by a more robust 0.7%. This reflects the fund's underlying strength and potential for recovery post-transaction.

Contact Information

For further inquiries, please reach out to:

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

Frequently Asked Questions

What is the recent property sale of EfTEN Real Estate Fund AS?

EfTEN Real Estate Fund AS sold its property at Tähesaju road 5 for 4,675 thousand euros, generating cash proceeds for investment.

How much was the rental income for September?

The consolidated rental income for September was 2,551 thousand euros, slightly down from August.

What is the projected gross dividend for this year?

The potential gross dividend is estimated at 59.19 cents per share, representing a decrease from the previous year.

What was the NAV per share as of September 30, 2024?

The net asset value per share was reported at 20.1467 euros, reflecting a 0.5% increase in September.

Who can I contact for more information on the fund's performance?

You can contact Marilin Hein, the CFO, at +372 6559 515 or via email at marilin.hein@eften.ee.

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