EfTEN Real Estate Fund III AS earned 947 thousand euros sales revenue in
December, which is 21% more than a month earlier. Higher rent was related to the
extraordinary high annual turnover rent at Saules Miestas Shopping Center in
Lithuania. The performance of Saules Miestas during 2019 has exceeded management
expectations, which is particularly gratifying given that Saules Miestas is
still the Fund's largest and also the first investment. The yearly turnover of
Saules Miestas tenants grew in year 2019 by 11,5%, reaching 42,3 million euros,
compared with year earlier results.
The total EBITDA of the Fund in December was 228 thousand euros (in November:
648 thousand euros).
In December, EBITDA included a management company's success fee of 479 thousand
euros, calculated on the basis of a management contract between closing prices
of the last trading days of the last two years of the stock exchange, which is
corrected by the minimum hurdle rate (10%) and the impact of dividend payments.
The Management Company's performance fee is 20% of the price increases of the
last trading days, calculated as described previously.
An independent property appraiser of the fund, Colliers International, carried
out it's usual (performed twice a year) investment property valuation in
December, resulting in a 1.5% (EUR 1 642 thousand euros) increase in the value
of the Fund's real estate portfolio. As a result of the revaluation profit, the
Fund's Net Profit was also higher than usual, amounting to 1 600 thousand euros
(in November, the Fund's Net Profit was 512 thousand euros).
During the 12 months 2019, EfTEN Real Estate Fund III has, based on unaudited
results, earned 9.5 million euros (2018: 8.7 MEUR) of sales revenue and 7
million euros (2018: 6.7 MEUR) of EBITDA.
The Net Profit of the Fund for the 12 months of 2019 is 7.7 million euros (2018:
6.3 MEUR). The higher Net Profit was as a result of an increased value of
investment properties portfolio, which totaled EUR 3.1 million in 2019 and EUR
1.6 million in 2018.
Based on the Fund's dividend policy, which stipulates that a minimum of 80% of
the free cash flow will be paid to shareholders, the Fund could pay a dividend
of MEUR 2.6. At the same time, the free cash flow from investment properties
allows the Fund to pay more dividends the Fund's Management Board will propose
to the Council to pay dividends of EUR 3.4 million (82 cents per share) in
spring 2020.
As of 31.12.2019, the consolidated assets of EfTEN Real Estate Fund III amounted
to 132.8 million euros (31.12.2018: 108.5 million euros) and equity to 71.2
million euros (31.12.2018: 50.5 million euros).
As of 31.12.2019, EfTEN Real Estate Fund III AS NAV was EUR 16.85 and EPRA NAV
EUR 17.93. Both NAV and EPRA NAV grew by 2,3% in December.
Marilin Hein
CFO
Phone 655 9515
E-mail: marilin.hein@eften.ee (mailto:marilin.hein@eften.ee)
|