EfTEN: EfTEN Real Estate Fund AS unaudited results for 1st quarter 2023

On the balance sheet date of 01.01.2023, EfTEN Real Estate Fund AS as the acquiring Fund (formerly EfTEN Real Estate Fund III AS) merged with EfTEN Kinnisvarafond AS. After the merger, consolidated assets of the fund increased by 211 million euros, i.e. from 182 million euros to 393 million euros, and the equity capital of the fund increased by 126 million euros, i.e. from 104 million euros to 230 million euros. The merger was registered in the business register on 28.02.2023.

As a result of the merger, the investment portfolio of EfTEN Real Estate Fund AS was added to the EfTEN Kinnisvarafond AS subsidiaries. 17 new investment properties in Estonia, Latvia and Lithuania with a fair value of 196.3 million euros and one investment property owned by a 50% joint venture with a fair value of 10 million euros were added. After the merger, the fund’s investment portfolio is more diversified across sectors and tenants.

EfTEN Real Estate Fund AS’i consolidated sales income for the first quarter of 2023 was 7.788 million euros (2022 I quarter: 3.458 million euros). The Group’s net rental income in the first quarter of 2023 was 7.298 million euros (2022: 3.324 million euros). The Group’s net profit for the same period was 4.634 million euros (2022: 2.278 million euros).

Consolidated net rental income margin for the first quarter of 2023 was 94% (2022: 96%), so costs directly related to property management (incl. land tax, insurance, maintenance and improvement costs) and marketing costs accounted for 6% (2022: 4%) of sales.

The Group’s total assets as of 31.03.2023 amounted to 395.993 million euros (31.12.2022: 181.956 million euros), of which the fair value of investment properties formed 92% (31.12.2022: 93%) of the total assets.

Investment portfolio

As of the end of March 2023 the Group has 35 (31.12.2022: 18) commercial investment properties with a fair value of 365.977 million euros (31.12.2022: 168.875 million euros) and the acquisition cost is 325.583 million euros (31.12.2022: 151.426 million euros). In addition, the Group’s joint venture owns the Palace hotel in Tallinn with the fair value of 10.075 million euros as of 31.03.2023.

In the first quarter of 2023 the Group’s rental income amounted to 7.499 millions euros. Rental income calculated on a comparable basis in the first quarter of 2023 totaled 3.427 million euros, which is 4% more as compared to the same period in 2022.


Within the next 12 months, the loan agreements of eight subsidiaries of the group will expire, the balance of which as of 31.03.2023 is 45,666 thousand euros. The LTV of the expiring loan agreements is 34%-52%, and investment properties have a stable, strong rental cash flow, therefore, according to the Group’s management, there are no obstacles in extending the loan agreements. In the subsidiaries where rental cash flow allows to service higher debt level, the Group’s management considers increasing the leverage and dividend payments.

The weighted average interest rate of the group’s loan agreements rose to 4.8% by the end of March (31.12.2022: 3.7%) due to the change in EURIBOR, and the LTV (Loan to Value) was 41% (31.12.2022: 40%). All loan agreements of the fund’s subsidiaries are linked to a floating interest rate. In order to mitigate the risk of an increase in the interest rate of one loan agreement (balance as of 31.03.2023: 12,332 thousand euros), an interest rate swap agreement has been concluded, where the EURIBOR is fixed at the level of 0.35%. The swap agreement expires in 2023, and its fair value is 53 thousand euros as of 31.12.2022.

Information on shares

The net asset value of the share of EfTEN Real Estate Fund AS (EPRA NDV) as of 31.03.2023 was 21.7 euros (31.03.2021: 19.55 euros). The net asset value of EfTEN Real Estate Fund AS increased by 11.0% in the first quarter of 2023 (first quarter of 2022: 12.7%).



  1st quarter
€ thousands 2023 2022
Sales income 7,788 3,458
Cost of services sold -394 -60
Gross profit 7,394 3,398
Marketing costs -96 -74
General and administrative expenses -867 -455
Other operating income and expense 10 26
Operating profit 6,441 2,895
Profit / loss from joint ventures -9 0
Interest income 6 0
Other finance income and expense -1,550 -362
Profit before income tax 4,888 2,533
Income tax expense -254 -255
Net profit for the reporting period 4,634 2,278
Consolidated profit for the reporting period 4,634 2,278
Earnings per share
   – basic 0.43 0.45
   – diluted 0.43 0.45



31.03.2023 31.12.2022
€ thousands
Cash and cash equivalents 25,166 11,331
Receivables and accrued income 1,811 1,522
Prepaid expenses 136 49
Inventory 1 0
Total current assets 27,114 12,902
Long-term receivables 51 61
Shares in joint ventures 2,568 0
Investment property 365,977 168,875
Property, plant, and equipment 282 116
Intangible assets 1 2
Total non-current assets 368,879 169,054
TOTAL ASSETS 395,993 181,956
Borrowings 49,964 22,058
Payables and prepayments 1,963 1,461
Total current liabilities 51,927 23,519
Borrowings 98,854 45,917
Other long-term liabilities 1,865 1,008
Deferred income tax liability 8,543 7,248
Total non-current liabilities 109,262 54,173
Total liabilities 161,189 77,692
Share capital 108,198 50,725
Share premium 84,721 16,288
Statutory reserve capital 2,149 2,149
Retained earnings 39,736 35,102
Total equity 234,804 104,264


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