EfTEN Real Estate Fund AS unaudited results for 1st quarter 2024
25 Abril 2024 - 12:00AM
EfTEN Real Estate Fund AS unaudited results for 1st quarter 2024
Signs of stabilization in the Eurozone interest
markets and Baltic economies were reflected in the consolidated
results of EfTEN Real Estate Fund AS for the first quarter of 2024.
The fund's net rental income increased by 0.6% on an annual basis,
and the vacancy rate in the real estate portfolio remained low at
2.9%. Interest expenses in the first quarter were higher compared
to the same period last year but slightly lower than the fourth
quarter of 2023. Construction continued on the elderly home being
built next to the Estonian National Museum in Tartu. Completion of
the works is scheduled for the upcoming summer, and the new elderly
home is set to open to clients in the fall.
The consolidated sales income of EfTEN Real
Estate Fund AS for the first quarter of 2024 was 7.961 million
euros (2023 I quarter: 7.788 million euros). Sales revenue
increased mainly in the retail sector.
The Fund's net rental income (NOI) totalled
7.343 million euros in 2024 I quarter (2023 I quarter: 7.298
million euros). The consolidated net rental income margin was 92%
(2023: 94%), so costs directly related to property management
(including land tax, insurance, maintenance and improvement costs)
and distribution costs were 8% (2023: 6%) of sales income.
The Fund's consolidated net profit was 3.808
million euros in the I quarter of 2024 (2023 I quarter: 4.634
million euros). The decrease in net profit compared to the previous
year is due to the increase in EURIBOR.
The volume of the Group's assets as of
31.03.2024 was 384.846 million euros (31.12.2023: 380.944 million
euros), including the fair value of investment properties made up
94% of the volume of assets (31.12.2023: the same).
Investment portfolio
As of the end of March 2024, the Group has 35
(31.12.2023: 35) commercial investment properties, the fair value
of which on the balance sheet date is 360.327 million euros
(31.12.2023: 357.916 million euros) and the acquisition cost was
356.819 million euros (31.12.2023: 354.408 million euros). In
addition, the group's joint venture owns the Palace hotel in
Tallinn, the fair value of which as of 31.03.2024 was 9.0 million
euros (31.12.2023: same).
In the first 3 months of 2024, the Group earned
a total of 7.637 million euros in rental income, which is 2% more
than at the same time in 2023. As of 31.03.2024 the vacancy of
investment properties belonging to the Group per portfolio was 2.9%
(31.12.2023: 2.6%). The largest vacancy is in the office buildings
segment (12%), where it takes longer than before to fill vacant
rental premises.
Financing
The increase in Eurozone interest rates has had
a significant impact on the Group's cash flows, bringing the
interest coverage ratio (ICR) to a 2,9 instead of 4,2 last year
same time.
During the first 3 months of 2024, the fund's
subsidiaries EfTEN Autokeskus OÜ and EfTEN Jurkalne SIA extended
their loan agreements. Within the next 12 months, the loan
agreement of one of the Group's subsidiaries will expire, the
balance of which is 2,240 thousand euros as of 31.03.2024. The LTV
of the expiring loan agreement is 33%, and the investment
properties a stable, strong rental cash flow, so according to the
Group's management, there are no obstacles to extending the loan
agreement.
The weighted average interest rate of the
Group's loan agreements is 5.9% as of 31.03.2024 (31.12.2023: the
same) and the LTV (Loan to Value) is 42% (31.12.2023: the same).
All loan agreements of the Fund's subsidiaries are linked to a
floating interest rate.
Share information
The net value of the share of EfTEN Real Estate
Fund AS as of 31.03.2024 was 20.56 euros (31.12.2023: 20.21 euros).
The net value of EfTEN Real Estate Fund AS shares increased by 1.7%
in the first three months of 2024.
CONSOLIDATED STATEMEMT OF COMPREHENSIVE
INCOME
|
I quarter |
|
2024 |
2023 |
€ thousands |
|
|
Sales income |
7,961 |
7,788 |
Cost of services sold |
-418 |
-394 |
Gross profit |
7,543 |
7,394 |
|
|
|
Marketing costs |
-200 |
-96 |
General and administrative expenses |
-939 |
-867 |
Other operating income and expense |
42 |
10 |
Operating profit |
6,446 |
6,441 |
|
|
|
Profit / loss from joint ventures |
-50 |
-9 |
Interest income |
101 |
6 |
Other finance income and expense |
-2,235 |
-1,550 |
Profit before income tax |
4,262 |
4,888 |
|
|
|
Income tax expense |
-454 |
-254 |
Net profit for the financial year |
3,808 |
4,634 |
Total comprehensive income for the period |
3,808 |
4,634 |
Earnings per share |
|
|
- basic |
0.35 |
0.43 |
- diluted |
0.35 |
0.43 |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
31.03.2024 |
31.12.2023 |
€ thousands |
|
|
ASSETS |
|
|
Cash and cash equivalents |
16,868 |
14,712 |
Short-term deposits |
3,400 |
3,400 |
Receivables and accrued income |
1,741 |
2,360 |
Prepaid expenses |
139 |
106 |
Total current assets |
22,148 |
20,578 |
|
|
|
Long-term receivables |
199 |
214 |
Shares in joint ventures |
2,028 |
2,078 |
Investment property |
360,327 |
357,916 |
Property. plant and equipment |
144 |
158 |
Total non-current assets |
362,698 |
360,366 |
TOTAL ASSETS |
384,846 |
380,944 |
|
|
|
LIABILITIES AND EQUITY |
|
|
Borrowings |
8,604 |
16,907 |
Liabilities and prepayments |
2,529 |
3,417 |
Total current liabilities |
11,133 |
20,324 |
|
|
|
Borrowings |
139,644 |
130,849 |
Other long-term liabilities |
1,834 |
1,790 |
Deferred income tax liability |
9,729 |
9,283 |
Total non-current liabilities |
151,207 |
141,922 |
TOTAL LIABILITIES |
162,340 |
162,246 |
|
|
|
Share capital |
108,198 |
108,198 |
Share premium |
84,721 |
84,721 |
Statutory reserve capital |
2,749 |
2,749 |
Retained earnings |
26,838 |
23,030 |
TOTAL EQUITY |
222,506 |
218,698 |
TOTAL LIABILITIES AND EQUITY |
384,846 |
380,944 |
Marilin Hein CFO Phone +372 6559 515 E-mail:
marilin.hein@eften.ee
- EREF_1st quarter_2024_ENG