The EfTEN United Property Fund earned 1,34 million euros in revenue and 1,16 million euros in net profit in the nine months of 2022. In the 3rd quarter of 2022 revenues amounted to 361k euros and net profit to 308k euros. The fund's equity capital was 27,2 million euros as of the end of September.
In the fund’s investment portfolio the biggest changes during the III quarter took place in the development project of the Uus-Järveküla residential district. At the beginning of September, the Rae municipality issued a building permit for the construction of the roads and infrastructure of the first stage of the development. At the end of the quarter respective construction activities were started. In addition, 10 new terraced houses in Uus-Järveküla residential development were put on sale during September. Out of the 52 terraced houses that have been on sale so far, 50 have been booked by customers. During the quarter, EfTEN United Property Fund made one investment - increased investment in the EfTEN Residential Fund by 366 thousand euros. This will be used towards the completion of the development of rental houses in Kaunas and the continuation of the development of rental houses in Vilnius. Upon completion of these investments, EfTEN United Property Fund's portfolio will be diversified across 29 different properties in the three Baltic countries. With this the EfTEN United Property Fund has the most diversified portfolio among the Baltics property funds.
The EfTEN United Property Fund's total return for the nine months of 2022 was 4,6%, of which 3,9%points was the increase in the NAV and 0,7%points was profit distribution for investors. The fund holds a third of capital as uninvested as of the end of Q3. The manager believes that better buying opportunities in Blatic real estate market are ahead.
Statement of the comprehensive income
| 3rd quarter | 9 months | |||
| 2022 | 2021 | 2022 | 2021 | |
| € thousand | ||||
| Income | ||||
| Interest income | 80 | 27 | 220 | 27 |
| Dividend income | 0 | 0 | 212 | 0 |
| Net profit / loss from assets recognised in fair value through profit or loss | 281 | 18 | 909 | 18 |
| Investments in subsidiaries | 23 | -2 | 182 | -2 |
| Underlying funds | 258 | 20 | 726 | 20 |
| Total income | 361 | 45 | 1 341 | 45 |
| Costs | ||||
| Operating expenses | ||||
| Management fee | -25 | -3 | -68 | -3 |
| Costs of administering the Fund | -22 | -2 | -88 | -2 |
| Other operating expenses | -6 | -1 | -31 | -1 |
| Total operating expenses | -53 | -6 | -186 | -6 |
| Operating profit | 308 | 39 | 1 155 | 39 |
| INCREASE IN THE NET ASSET VALUE OF THE FUND ATTRIBUTABLE TO THE SHAREHOLDERS | 308 | 39 | 1 155 | 39 |
| Ordinary and diluted earnings / loss per share (EUR) | 0,12 | 0,10 | 0,56 | 0,10 |
Statement of financial position
| 30.09.2022 | 31.12.2021 | |
| € thousand | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 9 227 | 2 743 |
| Other receivables and accrued income | 297 | 3 216 |
| Total current assets | 9 524 | 5 959 |
| Non-current assets | ||
| Financial assets at fair value through profit or loss | 12 290 | 7 924 |
| Investments in subsidiaries | 1 533 | 628 |
| Real estate funds | 10 757 | 7 296 |
| Loans given | 5 376 | 2 500 |
| Total non-current assets | 17 666 | 10 424 |
| TOTAL ASSETS | 27 190 | 16 383 |
| LIABILITIES | ||
| Current liabilities | 4 | 4 |
| Total liabilities, excluding net asset value of the fund attributable to shareholders | 4 | 4 |
| NET ASSET VALUE OF THE FUND | ||
| Net asset value of the fund attributable to shareholders | 27 186 | 16 379 |
| Total liabilities and net asset value of the fund attributable to shareholders | 27 190 | 16 383 |
The unaudited 9 months and 3rd quarter report of the EfTEN United Property Fund can be found on the fund's website: https://eftenunitedpropertyfund.ee/en/reports-documents/
Net asset value of the EfTEN United Property Fund as of 30.09.2022
The net asset value (NAV) of the EfTEN United Property Fund was 10.95 euros as of September 30, 2022, increasing by 0,5% over the month. Since the start of the fund in late June 2021 the total return has been 10,3% and the return on invested capital 12%.
In September, the biggest contribution to the fund's performance came from the Danske office building in Vilnius (the fund owns through the EfTEN Real Estate Fund 5). The value of the investment increased by 1,1% due to higher rental income. Since purchasing the building at the end of last year, we have replaced most of the tenants. With this, the average rental level of the building has increased by almost 15%. A higher rental income allows in the future to increase the object's current relatively low debt level (45% of the object's value) and to make an additional distribution to the investors.
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/
Kristjan Tamla
Head of Retail
Phone: 655 9515
E-mail: kristjan.tamla@eften.ee
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