EfTEN United Property Fund earned a net loss of 34 thousand euros in the first quarter of 2023 (2022 first quarter: 121 thousand euros of net profit). The loss results from a change in investment valuation principles – following the merger of EfTEN Kinnisvarafond AS with the listed fund EfTEN Real Estate Fund III AS, the value of the shares of the joint fund EfTEN Real Estate Fund AS is recorded according to the stock market price (previously, the value was recorded according to the net asset value of the share). If the previous valuation method was used, EfTEN United Property Fund would have made a profit of 270 thousand euros in the 1st quarter.
As of the end of the first quarter of 2023, the volume of assets of EfTEN United Property Fund was 26,855 thousand euros (31.12.2022: 27,472 thousand euros), of which 72% are long-term investments as of the end of March (31.12.2022: 67%).
In the first quarter of 2023, EfTEN United Property Fund made a distribution to investors in the amount of 584 thousand euros, or 23.495 cents per unit. The distribution was based on the return of capital paid by the limited partnership fund of EfTEN Real Estate Fund 5 to EfTEN United Property Fund in connection with the refinancing of the loan of the former Danske office building in Vilnius. After the balance sheet date, the fund announced the second income distribution for 2023 in the amount of 452 thousand euros or 18.179 cents per unit. Thus, in the first half of 2023, the fund will pay out to investors a total of approximately 4.5% of the market price of the fund’s unit.
In the first quarter of 2023, EfTEN United Property Fund did not make any new investments. The fund increased the loan granted to finance the residential development at Uus-Järveküla by approximately one million euros. This was related to infrastructure construction works at Uus-Järveküla development which are being carried out earlier than previously planned. Together with the bank loan taken by Uus-Järveküla OÜ after the balance sheet date, the development of the homes and infrastructure of the first stage of the development, and partially also the infrastructure of the subsequent stages, has been fully financed.
Statement of the comprehensive income
| q1 | ||
| 2023 | 2022 | |
| € thousand | ||
| Income | ||
| Interest income | 106 | 61 |
| Dividend income | 23 | 0 |
| Net profit / loss from assets recognised in fair value through profit or loss | -73 | 95 |
| Investments in subsidiaries | 28 | -21 |
| Underlying Funds | -101 | 115 |
| Total income | 56 | 156 |
| Costs | ||
| Operating expenses | ||
| Management fee | -27 | -17 |
| Costs of administering the Fund | -63 | -8 |
| Other operating expenses | 0 | -11 |
| Total operating expenses | -90 | -35 |
| Operating profit | -34 | 121 |
| TOTAL CONSOLIDATED PROFIT FOR THE REPORTING YEAR | -34 | 121 |
| Ordinary and diluted profit / loss per share (EUR) | -0,01 | 0,07 |
Statement of financial position
| 31.03.2023 | 31.03.2022 | |
| € thousand | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 5 306 | 8 769 |
| Other receivables and accrued income | 489 | 385 |
| Total current assets | 5 795 | 9 154 |
| Non- current assets | ||
| Financial assets at fair value through profit or loss | 12 870 | 12 942 |
| Investments in subsidiaries | 1 180 | 1 152 |
| Investment Funds | 11 690 | 11 790 |
| Loans granted | 6 395 | 5 376 |
| Long-term receivable | 1 795 | 0 |
| Total non-current assets | 21 060 | 18 318 |
| TOTAL ASSETS | 26 855 | 27 472 |
| LIABILITIES | ||
| Current liabilities | 2 | 586 |
| Total liabilities, excluding net asset value of the Fund attributable to shareholders | 2 | 586 |
| NET ASSET VALUE OF THE FUND | ||
| Net asset value of the Fund attributable to shareholders | 26 853 | 26 886 |
| Total liabilities and net asset value of the Fund attributable to shareholders | 26 855 | 27 472 |
The unaudited 1st quarter 2023 report of the EfTEN United Property Fund can be found on the fund’s website: https://eftenunitedpropertyfund.ee/en/reports-documents/
