EfTEN Real Estate Fund III AS earned 844 thousand euros sales revenue in December, which is 12% more than a month earlier. Higher rent was related to the annual turnover rent at Saules Miestas Shopping Center in Lithuania. The total EBITDA of the Fund in December was 579 thousand euros (in November: 568 thousand euros).
In December, EBITDA included a management company's success fee of 46 thousand euros, calculated on the basis of a management contract between closing prices of the last trading days of the last two years of the stock exchange, which is corrected by the minimum hurdle rate (10%) and the impact of dividend payments. The Management Company's performance fee is 20% of the price increases of the last trading days, calculated as described previously.
An independent property appraiser of the fund, Colliers International, carried out it’s usual (performed twice a year) investment property valuation in December, resulting in a 0.6% (EUR 600 thousand) increase in the value of the Fund's real estate portfolio. As a result of the revaluation profit, the Fund's Net Profit was also higher than usual, amounting to 951 thousand euros (in November, the Fund's Net Profit was 363 thousand euros).
During the 12 months 2018, EfTEN Real Estate Fund III has, based on unaudited results, earned 8.7 million euros (2017: 7.3 MEUR) of sales revenue and 6.7 million euros (2017: 5.6 MEUR) of EBITDA. EBITDA margin is 77% in both years, i.e. the Fund's sales and general expenses account for 23% of sales revenue.
The Net Profit of the Fund for the 12 months of 2018 is 6.3 million euros (2017: 6.6 MEUR). The lower Net Profit was as a result of lower investment properties revaluation profits, which totaled EUR 1.6 million in 2018 and EUR 2.8 million in 2017.
Based on the Fund's dividend policy, which stipulates that a minimum of 80% of the free cash flow will be paid to shareholders, the Fund could pay a dividend of MEUR 2.4, which is 74 cents per share (net). From the 2017 profit, the Fund paid dividends of 68 cents per share.
As of 31.12.2018, the consolidated assets of EfTEN Real Estate Fund III amounted to 108.5 million euros (31.12.2017: 97.3 million euros) and equity to 50.5 million euros (31.12.2017: 46.4 million euros). The Fund's 12-month return on average paid-in capital is 17.6% at the end of December.
As of 31.12.2018, EfTEN Real Estate Fund III AS NAV was EUR 15.67. NAV grew by 1.9% in December.
Marilin Hein
CFO
Phone: 655 9515
E-mail: marilin.hein@eften.ee
