EfTEN Real Estate Fund III AS earned 950 thousand euros in sales income in
December, which is 8 thousand euros more than in November. In connection with
the reduction of marketing activities in shopping centers, the fund earned a net
rental income of 21 thousand euros more in December than a month earlier, a
total of 954 thousand euros.
In December, Colliers International, an independent real estate appraiser of the
Fund, performed a regular twice-yearly valuation of investment properties, as a
result of which the value of the Fund's real estate portfolio increased by 0.4%
(611 thousand euros). Due to the revaluation gain on investment properties, the
fund's net profit was also higher than usual in December, reaching 1,347
thousand euros (in November, the fund's net profit was 616 thousand euros). The
actual net yield on assets of the fund was 8.0% pa. on the basis of net rental
income in the 4th quarter of 2020, excluding financial leverage.
In the 12 months of 2020, EfTEN Real Estate Fund III AS has earned 10.7 million
euros (2019: 9.5 million euros) in sales revenue and 8.5 million euros (2019:
7.0 million euros) in EBITDA according to unaudited data. The fund's
consolidated net rental income in 2020 is 10.1 million euros, which is 16% more
than last year. Taking into account the 12-month interest expense and loan
annuity payments, the Fund has earned 3.7 million euros of free cash flow during
the year (last year: 3.4 million euros). It is estimated that the negative
impact of Covid-19 on the fund's cash flow in 2020 was 0.5 million euros, i.e.
under normal circumstances the fund would have earned 14% more cash flow,
resulting a potentially higher dividend payments. Despite the negative impact of
Covid-19 on the Group's cash flows, the fund's management is satisfied with the
2020 result. All in all, we expected an even larger decline in rental income in
the spring, which, however, remained relatively modest given the good
diversification of this portfolio. In addition, the fund acquired four new
investment properties in 2020 with a total value of 33.6 million euros, which
further diluted the impact of the decline in rental income on the fund's cash
flows.
As of 31.12.2020, the accounts of the Fund and the Fund's subsidiaries have a
total of 5.1 million euros. Taking into account the fund's dividend policy,
income tax expense related to the payment of dividends, the obligation to
maintain a minimum cash balance arising from the covenants of the bank loan and
short-term liquidity needs, the fund could pay 2.8 million euros net dividends
(66.3 cents per share) based on 2020 results. In 2020, EfTEN Real Estate Fund
III AS paid a total of 2.7 million euros (65 cents per share) in dividends for
the previous year. The fund could make a dividend payment after the planned
share issue in spring 2021, with which the fund is primarily obliged to
refinance the parent company loan in the amount of 3.1 million euros taken for
the acquisition of Pirita elderly home in December. Both the amount and timing
of the dividend payment and the commercial conditions of the planned additional
share issue require the approval of the general meeting of the fund. The annual
general meeting of the Fund is scheduled for April 15, 2021.
The fund's net profit for the 12 months of 2020 totals 3.3 million euros (2019
*: 7.5 MEUR). The lower net profit is related to the downward revaluation of the
fund's real estate portfolio, which totals 3.4 million euros for the year (in
2019, the fund received a revaluation gain of 3.1 million euros for the real
estate portfolio).
The consolidated assets of EfTEN Real Estate Fund III AS as of 31.12.2020 were
150.4 million euros (31.12.2019: 132.8 million euros) and the equity was 71.5
million euros (31.12.2019: 70.9 million euros).
The net asset value (NAV) of EfTEN Real Estate Fund III AS as of 31.12.2020 was
16.93 euros, increasing by 1.5% in December. As of 31.12.2020, EPRA NAV was
18.07 euros and EPRA NAV increased by 1.4% in December.
* The net profit for 2019 has been adjusted downwards by 260 thousand euros due
to the change in the accounting principle of deferred income tax.
Marilin Hein
CFO
Phone: 6559 515
E-mail: marilin.hein@eften.ee (mailto:marilin.hein@eften.ee)
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