Exploring EfTEN United Property Fund's Half-Year Financial Growth
EfTEN United Property Fund Reports Strong H1 Performance
EfTEN United Property Fund has demonstrated a remarkable financial trajectory in the first half of 2025, backed by a fully invested portfolio. The fund's active subsidiary, Invego Uus-Järveküla OÜ, is advancing in its property development sector, with terraced and semi-detached houses now being delivered to eager customers. This growth has been magnified through the establishment of real-right agreements at the Uus-Järveküla development, which has led to a remarkable increase in the fund's half-year profit, soaring over four times compared to the previous year. In addition, the fund has made significant cash distributions to its investors, reaching around 7% of the market price - the highest in its history.
Second Quarter Financial Highlights
In the second quarter of 2025, EfTEN United Property Fund reported a net profit of EUR 976 thousand, a significant jump from EUR 307 thousand in Q2 2024. The fund’s revenue surged from EUR 355 thousand to an impressive EUR 1,022 thousand year-on-year. Meanwhile, expenses remained relatively stable, only decreasing by EUR 2 thousand compared to the prior year. By June 30, 2025, the assets of the fund totaled EUR 27,742 thousand, an increase from EUR 27,478 thousand at the end of 2024.
Residential Development Progress
Within the Uus-Järveküla residential area, the completion of the second phase—which comprises 30 houses—and the third phase, featuring 17 houses, stand as testaments to the fund's advancing projects. Construction has also commenced on the final phase with 32 terraced houses expected to be finished by the first quarter of 2026. By mid-year, the fund had successfully sold or reserved 82% of the total residential district volume, which includes 165 units of terraced houses and semi-detached models. Currently, only five units remain unsold, indicating a healthy demand.
Interest Costs and Profitability Enhance Fund Performance
The growing profitability of EfTEN United Property Fund can also be attributed to a consistent reduction in interest costs. The weighted average loan interest rate across its subsidiaries and related funds has fallen to 4.0% as of June, marking a decrease of 140 basis points since the end of 2024. This decline in interest expenses can be traced back to both a decrease in EURIBOR rates and favorable bank loan agreements established during the Uus-Järveküla project.
Future Outlook and Cash Distribution Plans
Looking ahead to the second half of 2025, the fund is poised to initiate additional cash distributions. This forthcoming distribution will derive from interest earnings connected to the owner loan from the Kristiine shopping center, a key investment site for the fund through EfTEN Real Estate Fund 5. Foot traffic at Kristiine has remained stable in the initial six months, while tenant turnover has remarkably improved by 4% year-on-year. Compared to earlier expectations, rental income has also grown by 3%, with EBITDA rising by 5% in the first half of the year.
Continued Growth Through Additional Investment Opportunities
Furthermore, in addition to the distributions from EfTEN Real Estate Fund 5, the EfTEN United Property Fund is actively exploring further distributions sourced from the interest of the owner loan extended to Invego Uus-Järveküla OÜ. As of June's end, this development company has fully repaid its bank loan, boasting a cash balance that exceeds EUR 2 million, positioning itself favorably for future projects.
Frequently Asked Questions
What were the financial highlights of EfTEN United Property Fund for H1 2025?
For H1 2025, the fund reported a net profit of EUR 976 thousand, a substantial increase from EUR 307 thousand in the same timeframe last year, alongside revenue growth to EUR 1,022 thousand.
How is the residential development progressing in Uus-Järveküla?
The second and third stages of residential development are complete. A total of 82% of the units in this area have been sold or reserved.
What factors contributed to the fund's profitability in H1 2025?
The fund’s profitability benefited from a decline in interest costs, falling to an average of 4.0%, and favorable loan agreements enhancing earnings.
Is the fund planning future cash distributions?
Yes, the fund plans to make further cash distributions based on earnings from interest on owner loans associated with key projects like the Kristiine shopping center.
Who can be contacted for more information about the fund?
Kristjan Tamla, the Managing Director, can be reached for inquiries at Phone: 655 9515 or via email.
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