The net asset value (NAV) of the shares of EfTEN Real Estate Fund III AS as of 31.05.2019 was 15.34 euros. NAV increased by 0,7% in May. The EPRA NAV per share (net book value excluding deferred income tax liability and fair value of interest derivatives) as of 31.05.2019 was 16.60 euros (30.04.2019: 16.46 euros). EPRA NAV increased by 0,9% during May.
In May, EfTEN Real Estate Fund III AS earned 776 thousand euros sales income, which is at the same level as in the previous month, but includes the decrease in rental income (-21 thousand) and increase in maintenance income (+20 thousand). The rental income decreased due to the end of a material tenant agreement, which left 2319 m2 rental spaces unoccupied. From the vacant space, new tenant agreements are already signed for 549 m2 and according to those agreements, the rental income will be received starting from July this year. The expiration of this lease was known to the management of the Fund at the time of the acquisition of the investment property last year. We are planning to fill vacant space with lease agreements by the end of the year.
The EBITDA of the Fund in May was 568 thousand euros (594 thousand euros in April). EBITDA decreased due to the increase in the vacancy of the Evolution office building.
In May 2019, the Fund's net profit was 367 thousand euros (in April: 251 thousand euros). Compared to the previous month, the increase in net profit is related to lower income tax expense, which was higher in April due to the announcement of the Fund's dividends.
During the first five months of this year, EfTEN Real Estate Fund III AS has earned 3.9 million euros in sales revenue (16% and 507 thousand more than in the same period last year), which has come from new investments (Evolution office building, sales and service premises of ABC Motors) and the increase in rental income on the DSV Latvia after the extension. The Fund's EBITDA for the first five months of this year totaled 3,037 thousand, which is 15% (391 thousand euros) higher than last year same time.
Based on the Fund's dividend policy, which stipulates that at least 80% of the free cash flow will be distributed to the shareholders, the Fund could pay dividends based on the first four months of 2019 in the amount of 1.007 thousand euros (31 cents per share).
The volume of consolidated assets of EfTEN Real Estate Fund III as of 31.05.2019 was 111.5 million euros (31.12.2018: 108.5 million euros) and equity was 49.4 million euros (31.12.2018: 50.5 million euros).
Marilin Hein
CFO
Phone 655 9515
E-mail: marilin.hein@eften.ee