EfTEN Real Estate Fund's Impressive April Financial Results
In April, EfTEN Real Estate Fund AS achieved remarkable financial performance, marking another successful month in their operational journey. The consolidated rental income reached a robust 2,611 thousand euros, reflecting an increase of 55 thousand euros from March. This positive trend in rental income was primarily fueled by the initiation of rental payments from the newly established ICONFIT logistics centre and the recently acquired Hiiu elderly care home, which is currently undergoing renovations.
Decrease in Vacancy Rates and Rising EBITDA
The fund managed to reduce its overall vacancy rate from 4.4% in March to 4.1% in April. Improved occupancy was noted particularly in the L3 and Evolution office buildings in Vilnius, alongside the Jurkalne and Piepilsetas logistics properties in Riga. This strategic focus on enhancing property performance has translated into financial benefits for the fund.
Additionally, the Fund's EBITDA rose to 2,183 thousand euros in April, marking an increase of 193 thousand euros month-over-month. This growth is attributed to higher rental income coupled with decreased expenses, reflecting the fund's effective management strategies. The adjusted cash flow also experienced an uptick, reaching 1,010 thousand euros, which is an increase of 170 thousand euros when compared to the previous month.
Record Dividend Payment and Financing Strategies
One of the most notable highlights of April was the unprecedented dividend payment of 12.7 million euros, translating to 1.11 euros per share, making it the largest in the fund's history. To facilitate this significant dividend, the fund refinanced bank loans on five properties, amounting to 6.3 million euros. As a result of this refinancing strategy, the income tax expense related to the dividend payments was recorded at 1.4 million euros, contributing to a net profit of 106 thousand euros for the month, which was lower than usual.
Interest Rate and Year-to-Date Overview
The weighted average interest rate for the fund saw a decline to 4.21% in April, down from 4.37% in March. Impressively, consolidated interest expenses have decreased by 586 thousand euros compared to the same period last year, highlighting the fund's robust financial health and effective cost management.
In the first four months of the year, EfTEN Real Estate Fund has generated consolidated rental income totaling 10.3 million euros, showing a 1% year-over-year growth. The consolidated EBITDA stood at 8.4 million euros, a slight decrease from 8.6 million euros compared to the same period last year, primarily due to higher vacancy rates in the office segment and the sale of the Tähesaju Hortes property in the summer of the previous year.
Net Asset Value Analysis
As of the end of April, the Fund’s net asset value (NAV) per share reached 19.64 euros, while the EPRA NRV was recorded at 20.50 euros. It's noteworthy that due to the dividend distribution in April, the NAV experienced a 5.3% decrease. Interestingly, had it not been for this dividend payment, the NAV would have shown a modest increase of 0.6%.
Contact Information
If you have any questions or need further information, feel free to reach out to:
Marilin Hein
CFO
Phone: +372 6559 515
Email: marilin.hein@eften.ee
Frequently Asked Questions
What are the major highlights from EfTEN's April performance?
EfTEN Real Estate Fund reported a consolidated rental income of 2,611 thousand euros and a record dividend payment of 12.7 million euros in April.
How did refinancing impact the fund's financial results?
The refinancing of bank loans facilitated a substantial dividend payout and contributed to a lower-than-usual net profit due to related income tax expenses.
What was the fund's EBITDA for April?
The EBITDA for April was 2,183 thousand euros, driven by higher rental income and reduced expenses.
How does the vacancy rate influence EfTEN's financials?
A decrease in the vacancy rate from 4.4% to 4.1% positively impacts rental income and overall fund performance.
What is the current net asset value per share of the fund?
The net asset value per share as of April is 19.64 euros, down 5.3% due to dividend distributions.
