EfTEN Real Estate Fund Analyzes January Performance & Future
EfTEN Real Estate Fund AS: January Financial Overview
In January, EfTEN Real Estate Fund AS reported a consolidated rental income of €2,556 thousand. This was a decrease compared to December's income of €2,861 thousand, influenced by a significant turnover-based rent from shopping centers adding €238 thousand at the close of last year. An agreement for rent discounts in Lithuania contributed to the dip, as a tenant invested €135 thousand in enhancing the rented space.
Vacancy and Market Response
January witnessed the conclusion of a lease for an office building space located at Pärnu mnt 102, which resulted in 2,500 square meters of unoccupied rental space. The fund is responding proactively to market needs by breaking this space into smaller units for gradual leasing. Design preparations for renovating the rental premises are complete, with construction work slated to commence soon.
Tenant Negotiations
At the Menulio 11 office building, which carries the highest vacancy within the fund’s portfolio, discussions with a prospective tenant interested in 9% of the leasable area have advanced to redesigning the rental premises and sourcing technical solutions. This highlights the fund's ongoing effort to fill vacancies and adapt to tenant needs.
Opportunities and Challenges
Following the announcement of bankruptcy proceedings concerning a tenant at the Laagri Hortes gardening center, the fund attracted interest from various prospective tenants and buyers. The management team is optimistic about these developments, identifying multiple promising opportunities for future actions.
Financial Indicators
The fund recorded a consolidated EBITDA of €2,043 thousand for January, a decrease from €2,448 thousand in December. Despite this dip in EBITDA, the fund has managed to increase its consolidated cash balance by €1,119 thousand to a total of €21,626 thousand, which includes short-term deposits as of the end of January.
Interest Rate Developments
By the end of January, the average interest rate on loans taken by the fund’s subsidiaries fell to 4.78%, down by 0.11 percentage points from December. This decline represents a total decrease of 1.13 percentage points since interest rates peaked in December of the previous year, showcasing a positive trend for the fund’s financial health.
Net Asset Value Insights
As of January 31, 2025, the net asset value for the fund per share stood at €20.4905, while the EPRA Net Reinstatement Value (NRV) was €21.3432. This marked a regular increase of 0.6% for the month, reflecting the fund's stable performance despite the challenges faced.
Contact Information
For further inquiries, please contact:
Marilin Hein
CFO
Phone: +372 6559 515
E-mail: marilin.hein@eften.ee
Frequently Asked Questions
What were EfTEN Real Estate Fund AS's rental income figures for January?
The fund generated €2,556 thousand in rental income for January, down from €2,861 thousand in December 2024.
What are the future plans for the vacant office spaces?
Vacant spaces will be segmented into smaller units to meet market demand, with design work completed and construction set to commence soon.
How did interest rates impact the fund's finances?
The weighted average interest rate on loans decreased to 4.78%, showing a downward trend that enhances the fund's financial position.
What is the current net asset value per share?
The net asset value per share as of January 31, 2025, was €20.4905, with an EPRA NRV of €21.3432.
Who should I contact for more information about the fund?
You can reach out to CFO Marilin Hein at +372 6559 515 or via email at marilin.hein@eften.ee.
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