EfTEN United Property Fund (hereinafter the Fund) earned 307 thousand euros in
net profit in the second quarter of 2024 (2023 second quarter: 37 thousand euros
in net loss). The fund's revenues increased from 8 thousand euros to 355
thousand euros during the year. During the I half of 2024 the Fund earned 401
thousand euros in net profit (2023 I half: 71 thousand euros net loss).
The Fund's assets amounted to 26,411 thousand euros as of 30.06.2024
(31.12.2023: 26,259 thousand euros), of which long-term investments make up
70.0% as of the end of June 2024 (31.12.2023: 68.6%).
In the II quarter of 2024, the Baltics' real estate market continued to
stabilize and the first signs of an increase in transaction activity appeared.
Above all, this is due to the decrease in euro interest rates (the 6-month
EURIBOR fell by almost 20 basis points in half a year), which has after many
years started to reduce again the cost of debt in the sector.
The increasing activity is most clearly visible in the residential real estate
sector, where in the second quarter a record number of new sales contracts were
signed at the Uus-Järveküla development project financed by EfTEN United
Property Fund. As of the end of June, almost 60% of the final development volume
of the residential area has been purchased or booked by customers. At the same
time, the construction market is still fairly quiet, and there is currently
little pressure on construction costs. This made enabled under favorable
conditions to start the development of the third stage in the residential
district of Uus-Järveküla at the end of the first half of the year. Altogether
18 terraced houses will be built during the third stage.
Although transaction activity in the commercial real estate segment remains
relatively low, some signs of recovery can be seen there as well. Owners have
started to adjust their sales price expectations downwards compared to the
period of a few years ago, which should increase the market activity further. In
such an environment, EfTEN United Property Fund aims to invest the majority of
the portfolio in commercial cash-flow generating real estate in the second half
of 2024. In addition, the fund plans to make a second distribution this year
from the income received from underlying funds and interest.
Statement of the comprehensive income
+----------+----------+
| 2nd | |
| quarter | 6 months |
+----+-----+----+-----+
|2024|2023 |2024|2023 |
+--------------------------------------------------------+----+-----+----+-----+
|EUR thousand | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|INCOME | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|Interest income | 159| 135| 310| 241|
+--------------------------------------------------------+----+-----+----+-----+
|Dividend income | 238| 329| 260| 352|
+--------------------------------------------------------+----+-----+----+-----+
|Other financial income | 0| 0| 5| 0|
+--------------------------------------------------------+----+-----+----+-----+
|Net profit / loss from assets recognised in fair value | | | | |
|through profit or loss | -42| -456| -65| -529|
+--------------------------------------------------------+----+-----+----+-----+
| Investments in subsidiaries | 8| -104|-140| -76|
+--------------------------------------------------------+----+-----+----+-----+
| Investments in funds | -50| -352| 75| -453|
+--------------------------------------------------------+----+-----+----+-----+
|Total income | 355| 8| 510| 64|
+--------------------------------------------------------+----+-----+----+-----+
| | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|COSTS | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|Operating expenses | | | | |
+--------------------------------------------------------+----+-----+----+-----+
| Management fee | -28| -27| -56| -54|
+--------------------------------------------------------+----+-----+----+-----+
| Costs of administering the Fund | -10| -6| -16| -18|
+--------------------------------------------------------+----+-----+----+-----+
| Other operating expenses | -10| -12| -37| -63|
+--------------------------------------------------------+----+-----+----+-----+
|Total operating expenses | -48| -45|-109| -135|
+--------------------------------------------------------+----+-----+----+-----+
| | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|Profit / loss for the period | 307| -37| 401| -71|
+--------------------------------------------------------+----+-----+----+-----+
|Total profit / loss for the period | 307| -37| 401| -71|
+--------------------------------------------------------+----+-----+----+-----+
| | | | | |
+--------------------------------------------------------+----+-----+----+-----+
|Ordinary and diluted earnings / loss per share (EUR) |0,12|-0,01|0,16|-0,03|
+--------------------------------------------------------+----+-----+----+-----+
Statement of financial position
+----------+----------+
|30.06.2024|31.12.2023|
+--------------------------------------------------------+----------+----------+
|EUR thousand | | |
+--------------------------------------------------------+----------+----------+
|ASSETS | | |
+--------------------------------------------------------+----------+----------+
|Current assets | | |
+--------------------------------------------------------+----------+----------+
|Cash and cash equivalents | 5 500| 5 731|
+--------------------------------------------------------+----------+----------+
|Short-term deposits | 1 563| 1 795|
+--------------------------------------------------------+----------+----------+
|Other receivables and accrued income | 862| 711|
+--------------------------------------------------------+----------+----------+
|Total current assets | 7 925| 8 237|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|Non-current assets | | |
+--------------------------------------------------------+----------+----------+
|Financial assets at fair value through profit or loss | 12 818| 12 354|
+--------------------------------------------------------+----------+----------+
| Investments in subsidiaries | 914| 1 054|
+--------------------------------------------------------+----------+----------+
| Real estate funds | 11 904| 11 300|
+--------------------------------------------------------+----------+----------+
|Loans granted | 5 668| 5 668|
+--------------------------------------------------------+----------+----------+
|Total non-current assets | 18 486 18 022
+--------------------------------------------------------+----------+----------+
|TOTAL ASSETS | 26 411| 26 259|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|LIABILITIES | | |
+--------------------------------------------------------+----------+----------+
|Current liabilities | 13| 3|
+--------------------------------------------------------+----------+----------+
|Total liabilities, excluding net asset value of the fund| | |
|attributable to shareholders | 13| 3|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|NET ASSET VALUE OF THE FUND | | |
+--------------------------------------------------------+----------+----------+
|Net asset value of the fund attributable to shareholders| 26 398| 26 256|
+--------------------------------------------------------+----------+----------+
|Total liabilities and net asset value of the fund | | |
|attributable to shareholders | 26 411| 26 259|
+--------------------------------------------------------+----------+----------+
The unaudited 2(nd) quarter and I half-year 2024 report of the EfTEN United
Property Fund is attached to the release and can be found on the Fund's website:
https://eftenunitedpropertyfund.ee/en/reports-documents/
Kristjan Tamla
Managing Director
Phone 655 9515
E-mail: kristjan.tamla@eften.ee (mailto:kristjan.tamla@eften.ee)
|