Earnings Release • Apr 30, 2025
Earnings Release
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EfTEN Real Estate Fund AS unaudited results for 1st quarter 2025
In the first quarter of 2025, EfTEN Real Estate Fund AS invested a significant
part of the capital raised in the previous quarter, primarily in the elderly
care home segment. In February, the Fund's 100% subsidiary EfTEN Hiiu OÜ signed
a binding agreement to acquire the property at Hiiu 42 in Tallinn, with the aim
to developing a general care home in cooperation with Südamekodud AS. The
acquisition price of the property was EUR4 million, with up to an additional EUR2.5
million for the reconstruction of the building. The expected return on the
investment is 8% per annum. At the end of March, the real rights contract was
concluded and the transaction finalized. As part of the transaction, EfTEN Hiiu
OÜ signed a long-term (10+10 years) lease agreement with Hiiu Südamekodu OÜ.
Part of the property continues to be used by the North Estonia Medical Centre
Foundation. The building will be partially reconstructed into the "Nõmme
Südamekodu" general care home, with future capacity for up to 170 clients.
In January 2025, the Fund's subsidiary EfTEN Ermi OÜ commenced construction of
the second phase of Tartu Südamekodu, which will add 60 beds and a solar park to
the existing care home. The total project cost is approximately EUR1.3 million,
with construction expected to be completed by July 2025. The expected return on
this investment is 8.1% per annum.
Upon completion of these projects, EfTEN Real Estate Fund AS will own four
elderly care homes with a combined capacity of nearly 800 beds.
On 31 March 2025, the Fund's subsidiary EfTEN Seljaku OÜ terminated the lease
agreement with AS Hortes (in bankruptcy) concerning the Laagri Hortes
properties. A new lease agreement has been signed with Rikets Aianduskeskus OÜ,
which will commence operations on the premises as of 1 April 2025.
In April 2025, the ICONFIT logistics building owned by the fund's subsidiary
EfTEN Paemurru OÜ was completed. The fund began earning rental income from the
property starting from April 15.
Financial Overview
The consolidated sales revenue of EfTEN Real Estate Fund AS for Q1 2025 amounted
to EUR7.858 million (Q1 2024: EUR7.961 million), and the consolidated net rental
income (NOI) totaled EUR7.211 million (Q1 2024: EUR7.343 million). The net rental
income margin remained stable at 92% (2024: 92%), indicating that costs directly
related to property management (including land tax, insurance, maintenance and
improvement expenses) and marketing accounted for 8% (2024: 8%) of revenue.
The Fund's consolidated net profit for Q1 2025 was EUR4.167 million (Q1 2024:
EUR3.808 million). A key contributor to the profit growth was the decrease in
interest expenses due to the decline in EURIBOR-interest costs fell by EUR432
thousand, or 19%, compared to Q1 2024.
Real Estate Portfolio
As of 31 March 2025, the Group held 37 (31 December 2024: 36) investment
properties with a total fair value of EUR380.160 million (31 December 2024:
EUR373.815 million) and an acquisition cost of EUR376.906 million (31 December
2024: EUR370.561 million). In addition to properties held by subsidiaries, the
Group owns a 50% stake in the joint venture operating the Palace Hotel in
Tallinn, with a fair value of EUR8.632 million as of 31 March 2025 (31 December
2024: EUR8.630 million).
In Q1 2025, the Group made new and follow-on investments totalling EUR6.345
million.
In March 2025, EfTEN Hiiu OÜ acquired the property at Hiiu 42, Tallinn, for EUR4
million. The North Estonia Medical Centre Foundation continues to use part of
the property under an existing lease. A long-term (10+10 years) lease was signed
with Hiiu Südamekodu OÜ, a subsidiary of Südamekodud AS, which will develop the
premises into the "Nõmme Südamekodu" general care home with capacity for up to
170 clients.
Construction of the C-building at Valkla Care Home continued in Q1 2025, with a
total investment of EUR343 thousand. Construction of the second phase of Ermi Care
Home in Tartu began, with works totalling EUR192 thousand during the quarter. In
addition, construction at the Paemurru Logistics Centre progressed, with Q1
investment totalling EUR1.515 million.
In Q1 2025, the Group earned EUR7.673 million in rental income, remaining on par
with the previous year.
As of 31 March 2025, the vacancy rate of the Group's real estate portfolio was
4.4% (31 December 2024: 2.6%). The highest vacancy was in the office segment at
17.7%, where filling vacant spaces has taken longer than previously.
Financing
In Q1 2025, the Fund's subsidiary EfTEN Riga Airport SIA extended its loan
agreement with the bank. Over the next 12 months, six of the Group's
subsidiaries have loan agreements maturing, with a total outstanding balance of
EUR20.38 million as of 31 March 2025. These maturing loans have LTVs between 29%
and 48%. Given the stable rental cash flows of the properties, the Group's
management does not foresee obstacles in refinancing these loans.
As of 31 March 2025, the Group's weighted average interest rate on loans was
4.37% (31 December 2024: 4.89%) and the loan-to-value (LTV) ratio stood at 40%
(31 December 2024: 40%). All loan agreements of the subsidiaries are based on
floating interest rates. The Fund's interest coverage ratio (ICR) was 3.4 as of
31 March 2025 (31 March 2024: 2.9).
Share Information
As of 31 March 2025, the registered share capital of EfTEN Real Estate Fund AS
was EUR114.403 million (unchanged from 31 December 2024), consisting of
11,440,340 shares with a nominal value of EUR10 each.
The net asset value (NAV) per share as of 31 March 2025 was EUR20.74 (31 December
2024: EUR20.37), representing an increase of 1.8% over the first three months of
2025.
CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME
I quarter
2025 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31.03.2025 31.12.2024
Marilin Hein
CFO
Phone +372 6559 515
E-mail: [email protected] (mailto:[email protected])
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