EfTEN United Property Fund (hereinafter the Fund) earned 134 thousand euros in net profit in the third quarter of 2024 (2023 third quarter: 16 thousand euros in net loss). The fund’s revenues increased from 38 thousand euros to 176 thousand euros during the year. During the 9 months of 2024 the Fund earned 535 thousand euros in net profit (2023 9 months: 87 thousand euros net loss).
The Fund’s assets amounted to 26,545 thousand euros as of 30.09.2024 (31.12.2023: 26,259 thousand euros), of which long-term investments make up 74.5% as of the end of September 2024 (31.12.2023: 68.6%).
With the support of declining Euro interest rates, the outlook for the European and Baltic real estate markets is improving. The shares value of real estate companies listed on stock exchanges in many European countries (including the Nordic countries) began to increase at the end of last year. This has been followed by a decrease in the risk premiums of bonds listed by these companies, and the transaction activity in the real estate market is showing the first signs of recovery.
The central objective of the EfTEN United Property Fund has been the active deployment of uninvested capital in the recovering economic conditions. In August, the fund made its largest historical investment – investing 4.78 million euros into the EfTEN Real Estate Fund 5. This investment enabled the acquisition of the newly completed UNA shopping center in Vilnius, with Kesko Senukai and Rimi as anchor tenants. Following the transaction, more than 90% of the assets of the EfTEN United Property Fund have been invested.
Construction works at the Uus-Järveküla residential area, financed by the Fund, continued on the second phase (16 semi-detached houses and 14 terraced houses) and were started in June on the third phase (18 terraced houses). As of the end of the third quarter, only 2 terraced houses from the second phase, which will be completed at the beginning of next year, remain unreserved. Out of the planned 165 terraced and semi-detached houses in the residential area, 133 have been completed or are under construction, and 102 have been purchased or reserved by clients.
In the last quarter of the year, EfTEN United Property Fund will make its second distribution of the year from the income received from the EfTEN Real Estate Fund 5. The uninvested capital of the Fund is planned to be allocated in the coming months to a cash-flow-generating commercial real estate project and, to a smaller extent, to various real estate development projects in need of capital through the EfTEN Special Opportunities Fund.
Statement of the comprehensive income
| 3rd quarter | 9 months | |||
| 2024 | 2023 | 2024 | 2023 | |
| € thousand | ||||
| INCOME | ||||
| Interest income | 137 | 143 | 447 | 384 |
| Dividend income | 0 | 0 | 260 | 352 |
| Other financial income | 0 | 0 | 5 | 0 |
| Net profit / loss from assets recognised in fair value through profit or loss | 39 | -105 | -26 | -634 |
| Investments in subsidiaries | 26 | 46 | -114 | -30 |
| Investments in funds | 13 | -151 | 88 | -604 |
| Total income | 176 | 38 | 686 | 102 |
| COSTS | ||||
| Operating expenses | ||||
| Management fee | -28 | -31 | -84 | -85 |
| Costs of administering the Fund | -5 | -11 | -21 | -29 |
| Other operating expenses | -9 | -12 | -46 | -75 |
| Total operating expenses | -42 | -54 | -151 | -189 |
| Profit / loss for the period | 134 | -16 | 535 | -87 |
| Total profit / loss for the period | 134 | -16 | 535 | -87 |
| Ordinary and diluted earnings / loss per share (EUR) | 0,05 | -0,01 | 0,22 | -0,04 |
Statement of financial position
| 30.09.2024 | 31.12.2023 | |
| € thousand | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 709 | 5 731 |
| Short-term deposits | 1 563 | 1 795 |
| Loans granted | 3 519 | 0 |
| Other receivables and accrued income | 970 | 711 |
| Total current assets | 6 761 | 8 237 |
| Non-current assets | ||
| Financial assets at fair value through profit or loss | 17 635 | 12 354 |
| Investments in subsidiaries | 940 | 1 054 |
| Real estate funds | 16 695 | 11 300 |
| Loans granted | 2 149 | 5 668 |
| Total non-current assets | 19 784 | 18 022 |
| TOTAL ASSETS | 26 545 | 26 259 |
| LIABILITIES | ||
| Current liabilities | 13 | 3 |
| Total liabilities, excluding net asset value of the fund attributable to shareholders | 13 | 3 |
| NET ASSET VALUE OF THE FUND | ||
| Net asset value of the fund attributable to shareholders | 26 532 | 26 256 |
| Total liabilities and net asset value of the fund attributable to shareholders | 26 545 | 26 259 |
