EfTEN United Property Fund earned 60 thousand euros of revenue in 2023 (1.67 million in 2022). While interest income increased by 228 thousand euros and dividend income by 150 thousand, the decrease in total income was related to the non-monetary revaluation of investments. From the revaluation of investments, the fund earned a loss of 828 thousand euros in 2023 (1.15 million euros profit in 2022).
The downward valuation on investments was primarily related to the increase in the discount rate due to higher market interest rates and the fund’s investment in the shares of EfTEN Real Estate Fund AS, which price on the Tallinn Stock Exchange fell by 4% over the year. As a result of the revaluation, the fund earned a loss of 179 thousand euros in 2023 (1.44 million euros profit in 2022), of which 620 thousand euros resulted from the change in the stock market price of EfTEN Real Estate Fund AS. If the shares of EfTEN Real Estate Fund AS were reflected in its net asset value (NAV), the fund would have earned 97 thousand euros in profit in 2023.
The fund’s commercial real estate investments maintained a positive cash flow in 2023, which allows the fund to continue distributing regular income in 2024. As of now, the fund management company plans to make two distributions to investors from the EfTEN United Property Fund in the coming year. The first in the late spring, when the dividends from the underlying funds have been received, and the second in the fall, when the interest earned from the investments made in the form of loan capital is received and the additional funds will be released by the possible refinancing of the loans.
Statement of the comprehensive income
| 4th quarter | 12 months | |||
| 2023 | 2022 | 2023 | 2022 | |
| € thousand | ||||
| INCOME | ||||
| Interest income | 152 | 88 | 536 | 308 |
| Dividend income | 0 | 0 | 352 | 212 |
| Net profit / loss from assets recognised in fair value through profit or loss | -194 | 239 | -828 | 1 148 |
| Investments in subsidiaries | -68 | -381 | -98 | -199 |
| Investments in funds | -126 | 620 | -730 | 1 346 |
| Total income | -42 | 327 | 60 | 1 668 |
| COSTS | ||||
| Operating expenses | ||||
| Management fee | -30 | -28 | -115 | -96 |
| Costs of administering the Fund | -5 | -2 | -34 | -90 |
| Other operating expenses | -15 | -13 | -90 | -44 |
| Total operating expenses | -50 | -43 | -239 | -229 |
| Profit / loss for the period | -92 | 284 | -179 | 1 439 |
| Total profit / loss for the period | -92 | 284 | -179 | 1 439 |
| Ordinary and diluted earnings / loss per share (EUR) | -0,04 | 0,11 | -0,07 | 0,66 |
Statement of financial position
| 31.12.2023 | 31.12.2022 | |
| € thousand | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 5 731 | 8 769 |
| Short-term deposits | 1 795 | 0 |
| Other receivables and accrued income | 711 | 385 |
| Total current assets | 8 237 | 9 154 |
| Non-current assets | ||
| Financial assets at fair value through profit or loss | 12 354 | 12 942 |
| Investments in subsidiaries | 1 054 | 1 152 |
| Real estate funds | 11 300 | 11 790 |
| Loans granted | 5 668 | 5 376 |
| Total non-current assets | 18 022 | 18 318 |
| TOTAL ASSETS | 26 259 | 27 472 |
| LIABILITIES | ||
| Current liabilities | 3 | 586 |
| Total liabilities, excluding net asset value of the fund attributable to shareholders | 3 | 586 |
| NET ASSET VALUE OF THE FUND | ||
| Net asset value of the fund attributable to shareholders | 26 256 | 26 886 |
| Total liabilities and net asset value of the fund attributable to shareholders | 26 259 | 27 472 |
