The net asset value (NAV) of EfTEN Real Estate Fund III AS as of 30.09.2020 was
16.38 euros, increasing by 1% in September. The net asset value of the EPRA
share (net book value excluding deferred income tax liability and fair value of
interest rate derivatives) as of 30.09.2020 was 17.46 euros. EPRA NAV also
increased by 1% during September.
In September, EfTEN Real Estate Fund III AS earned the highest sales revenue in
the fund's history in the amount of 1,019 thousand euros (69 thousand euros more
than a month earlier), including the first full month's rent of the ATEA office
building acquired in August and the usual rental income from the rest of the
investment property portfolio after temporary discounts due to the Covid-19
effect. The fund's consolidated EBITDA in September was also the highest in
history - 842 thousand euros (75 thousand euros more than in August). As the
total capital raised by the fund has been earning full rental income since
September, it is important to note that the September net operating income (NOI)
totaled 974 thousand euros, which would make a total of 11,688 thousand euros on
an annual basis. Considering the fair value of the fund's investment properties
in the amount of 137,354 thousand euros, this would make the actual return on
property investments 8.5% (actual NOI / fair value of investment properties).
In the first 9 months of this year, EfTEN Real Estate Fund III AS has earned a
total of 7.2 million euros in rental income, which is 26% more than in the same
period last year. The fund's consolidated EBITDA is also 26% higher than last
year (a total of 6.1 MEUR). Adjusted cash flow (EBITDA minus interest expense
minus principal payments on loans) has been 2.8 MEUR this year, compared to 2.3
MEUR in 9 months last year. This year, the fund has repaid scheduled loan
principle payments on bank loans in the total amount of 2.4 million euros (9
months last year: 1.8 million euros), the fund's LTV is 51% and the weighted
average interest rate on loan liabilities is 2.2%. As of 30.09.2020, the
consolidated cash balance of the fund was 4.3 million euros.
At the beginning of October, UAB "Saules Miestas", a subsidiary of EfTEN Real
Estate Fund III AS, entered into a construction agreement with "?ZhVALGA" UAB for
the construction of a KFC restaurant building on the company's property. The
cost of the construction contract is 603 thousand euros and the deadline for
completion of the construction works is May next year. Earlier (03.12.2019), the
fund has informed the stock exchange that a lease agreement has been signed with
APL FRESH FOOD UAB, which operates under the KFC franchise of the fast food
restaurant chain and leases 100% of the building under construction. The KFC
restaurant building is scheduled to open in June 2021 at the latest.
As of 30.09.2020, the consolidated assets of EfTEN Real Estate Fund III AS
amounted to 142.9 million euros (31.12.2019: 132.8 million euros) and equity to
69.17 million euros (31.12.2019: 71.17 million euros).
Marilin Hein
CFO
Tel. 6559 515
E-mail: marilin.hein@eften.ee
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