Net asset value of the real estate fund EfTEN III AS at 12.31.2021
The net asset value (NAV) of EfTEN Real Estate Fund III AS amounted to 19,1057 euros as of December 31, 2021, up 4.2% in December. The net assets of the EPRA share (net book value excluding deferred tax liabilities and fair value of interest rate derivatives) amounted to 20.25 euros at 12.31.2021. EPRA NAV rose 4.5% in December.
Comment from Fund Manager Viljar Arakas
2021 has been a more successful year than expected for EfTEN Real Estate Fund III AS. Despite the two waves of the coronavirus, we were able to increase both rental income and EBITDA in each segment of commercial real estate, even without considering income from new investments. The vacancy rate for commercial premises in the portfolio remained at a historically low level, below 1%. The revaluation of the valuation of investment properties generated a one-off additional profit of 6.4 million euros during the year 2021, and the initial non-leveraged return on the portfolio was 7.1%. In 2021, the fund generated a total of 4.55 million euros of free cash flow, of which, according to the dividend policy of the Fund, the gross dividends would be 3.64 million euros. Given the obligation to maintain a minimum cash balance resulting from the specific borrowing conditions of the fund’s subsidiaries and short-term liquidity needs, the Fund’s Management Board proposes to pay more dividends than required by policy. dividend – a total of 4.06 million euros (80 cents per share). Dividend payments in spring 2022 require both bank approval and general assembly approval.
As of 12.31.2021, the fund had € 5.9 million in uninvested equity, the safeguarding of which is a priority for the management of the fund. In view of the fact that the level of returns from transactions on the Baltic commercial real estate market has steadily declined in recent years, the fund management does not plan to organize a new issue of shares in the course of the year. the current year, taking into account the current situation. For investors who wish to continue investing in the real estate market to hedge against inflation, the management company may suggest considering EfTEN United Porperty Fund, which invests not only in commercial real estate but also in more real estate. widely and is open to all retail investors.
In December, the consolidated turnover of EfTEN Real Estate Fund III AS reached a total of € 1,233 thousand, or 7.7% more than in November. The increase in turnover is mainly due to rents on turnover of the Saules Miestas shopping center. The fund’s consolidated EBITDA amounted to 418 thousand euros in December, or 527 thousand euros less than in November, mainly due to the success fee calculated for the management company based on the price of market close in 2021.
In December, Colliers International, independent real estate expert of the Fund, carried out a valuation of investment properties, which increased the value of the Fund’s property portfolio by 2.8% (4,423 thousand euros). Due to the revaluation gain on investment properties, the net result of the fund was also higher than usual in December, reaching 3,924 thousand euros (the net result of the fund was 707 thousand euros). ‘euros in November). The value of the fund’s real estate portfolio increased both due to a variation in the average exit yield from 7.6% to 7.3% and more optimistic expectations for NOI (net operating income of rental operations).
During the 12 months of this year, the fund achieved an EBITDA of 10.14 million euros (18.5% more than last year) with a turnover of 12.9 million euros (20.9% more than last year). The unaudited consolidated net profit of the Fund for 2021 is € 13.1 million (2020: € 3.3 million).
The consolidated equity of EFTEN Real Estate Fund III AS amounted to € 96.914 million as of 12.31.2021 (12.31.2020: € 71.483 million).
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