The net asset value (NAV) of the EfTEN United Property Fund was 10.99 euros as of October 31, 2022, increasing by 0,4% over the month. Since the start of the fund in late June 2021 the total return has been 10,8% and the return on invested capital 12,3%. The fund has 1/3 of it’s capital as uninvested.
The behaviour of tenants in the fund’s larger objects has not been affected by the recent business cycle slowdown in the Baltic countries. The former Danske office building in Vilnius (the fund is invested through the EfTEN Real Estate Fund 5) has a vacancy rate at only 2%, and the Menulio 7 office building at 5%. In October and November, two new lease agreements were signed in the Menulio 7 office building, and the lease agreements with two existing tenants were extended.
In November the fund increased its position in EfTEN Kinnisvarafond by acquiring 354 thousand shares from the secondary market at a price of 2.8152 EUR per share (10% below the October NAV of the EfTEN Kinnisvarafond). With this, the share of the EfTEN Kinnisvarafond in EfTEN United Property Fund portfolio increased from 13% to 17%.
At the end of November, the EfTEN Real Estate Fund 5 increased the existing relatively low leverage (45% of the object’s value) of the former Danske Vilnius office building. During this year we have leased out over 6 000 sqm of space and through the change of tenant mix, the building’s annual rental income has increased by almost 15%. This allows to comfortably service a higher debt level. Upon receival, the EfTEN United Property Fund will pass it on to investors. It will be the second pay out to investors since the foundation of the fund.
A more detailed overview of EfTEN United Property Fund’s portfolio can be found on the fund’s website: https://eftenunitedpropertyfund.ee/en/fund-results-2/
