Market announcement
EfTEN Real Estate Fund AS
Category
Other corporate action
Attachments
Date
01.02.2024 08:00:00
Title
EfTEN Real Estate Fund AS 2023. aasta IV kvartali ja 12 kuu auditeerimata majandustulemused
Message
Fondijuhi kommentaar 2023. aasta peamiseks märksõnaks kujunes kiireim intressitõus eurotsooni 25- aastases ajaloos. EfTEN Real Estate Fund AS-i konsolideeritud intressikulu kasvas aastatagusega võrreldes EBITDA suhtes peaaegu kaks korda, omades otsest mõju ka fondi vabale rahavoole. Samas ei survestanud EURIBORi kasv tänu fondi konservatiivsele finantseerimispoliitikale, investeeringute stabiilsele rahavoole, püsivalt madalale vakantsusele ning klientide heale maksekäitumisele ühegi alusvara rahavooge üle kriitilise piiri. Arvestades fondi tütarettevõtete likviidsuspuhvrit, plaanib juhatus 2024. aasta kevadisel üldkoosolekul teha aktsionäridele ettepaneku tasuda möödunud majandusaasta eest netodividendi rohkem kui fondi dividendipoliitika ette näeb - 1,0 eurot aktsia kohta, mulluse 1,15 euro asemel. Arvestades EfTEN Real Estate Fund AS-i aktsia hinda börsil, tähendab see jätkuvalt rohkem kui 5% dividenditootlust. EfTEN Real Estate Fund AS teenis auditeerimata andmetel 2023. aastal 1,0 miljon eurot puhaskasumit (2022: 11,4 miljonit eurot). Fondi puhaskasumi vähenemine tuleneb peamiselt kinnisvarainvesteeringute õiglase väärtuse ümberhindluse kahjumist kogusummas 13,9 miljonit eurot (2022. aastal sai fond kinnisvarainvesteeringute ümberhindlusest kasumit 3,1 miljon eurot). Oluline on rõhutada, et fondi varade allahindlus on mitterahaline bilansilise väärtuse muutus, mis ei mõjuta kuidagi fondi tegelikke rahavooge ega dividendi maksmise võimet. Käesolevad hindamised on tehtud 2023. aasta lõpu seisuga ning seega kajastavad endas rekordkõrget EURIBORi taset. Võib eeldada, et EURIBOR'i oodatava languse tulemusel kinnisvarainvesteeringute õiglane väärtus osaliselt taastub. 2024. aastal võib oodata ärikinnisvara turutrendide muutust. Kiire intressitõus on tõenäoliselt minevik ning ees ootab intressimäärade lauge langus. Kuna Balti majanduste makrokeskkond on jätkuvalt habras ning kaks aastat kestnud majanduslangus on jätkumas, pöörab fondi juhtkond tähelepanu eelkõige üüritulude juhtimisele ja hoidmisele ning heale koostööle klientidega. Tänaseks võib öelda, et kinnisvaraturu osapooled on harjunud uue intressikeskkonnaga, mis on omakorda eelduseks tehinguteturu aktiviseerumiseks. Juhul kui sellised eeldused rakenduvad, teeb juhatus käesoleva aasta teises pooles aktsionäridele ettepaneku uue aktsiaemissiooni korraldamiseks, et jätkata fondi kasvustrateegiat. Majandustulemuste ülevaade EfTEN Real Estate Fund AS teenis 2023. aasta IV kvartalis konsolideeritud müügitulu kokku 8,103 miljonit eurot (2022 IV kvartal: 3,699 miljonit eurot). Fondi 2023. aasta konsolideeritud müügitulu oli 31,817 miljonit eurot (2022: 14,299 miljonit eurot), sisaldades EfTEN Kinnisvarafond AS-ga ühinemisest lisandunud kinnisvarainvesteeringute müügitulu summas 16,918 miljonit eurot. Like-for-like põhimõttel arvestatud müügitulu kasvas aastatagusega võrreldes 4,2%. Fondi konsolideeritud 2023. aasta neto üüritulu (NOI) oli kokku 29,608 miljonit eurot (2022: 13,665 miljonit eurot). Selle aasta neto üüritulu sisaldas EfTEN Kinnisvarafond AS-ga ühinemisest lisandunud kinnisvarainvesteeringute neto üüritulu kogusummas 15,484 miljonit eurot. Seega on Like-for-like põhimõttel arvestatud NOI kasvanud aastatagusega võrreldes 3,4%. Konsolideeritud neto üüritulu marginaal oli sellel aastal 93% (2022: 96%), seega moodustasid kinnistute haldamisega otseselt seotud kulud (s.h maamaks, kindlustus, hooldus- ja parenduskulud) ning turustuskulud 7% (2022: 4%) müügitulust. Kontserni varade maht seisuga 31.12.2023 oli 380,944 miljonit eurot (31.12.2022: 181,956 miljonit eurot), s.h kinnisvarainvesteeringute õiglane väärtus moodustas varade mahust 94% (31.12.2022: 93%). Kinnisvaraportfell 2023. aasta lõpu seisuga oli kontsernil 35 (31.12.2022: 18) ärikinnisvarainvesteeringut, mille õiglane väärtus bilansipäeval oli 357,916 miljonit eurot (31.12.2022: 168,875 miljonit eurot) ning soetusmaksumus 354,408 miljonit eurot (31.12.2022: 151,426 miljonit eurot). Lisaks kuulub kontserni ühisettevõttele hotell Palace Tallinnas, mille õiglane väärtus 31.12.2023 seisuga oli 9,0 miljonit eurot. Ühinemise järgselt on kontserni kinnisvaraportfell riikide lõikes paremini hajutatud. Kui 2022. aasta lõpus moodustas Leedu investeeringute osakaal 60%, Eesti 25% ja Läti 15% kõikidest kinnisvarainvesteeringutest, siis 2023. aasta lõpus oli Leedu osakaal 30%, Eesti investeeringute osakaal 52% ning Läti osakaal 18% kõikidest investeeringutest. Mahukaimad investeeringud on tehtud kaubanduse sektorisse (38%), millele järgnevad logistikasektor (30%), büroode sektor (25%), hooldekodude sektor (3%) ning riiklik sektor ja hotellid (mõlemad 2%). Kontsern lõpetas 2023. aasta suvel Valkla hooldekodu II etapi ehituse[MT1] . Hooldekodusse investeeriti kokku 3,860 miljonit eurot ning investeeringult saadakse 7,5% üüritootlust. 2023. aasta sügisel alustati kontsernile kuuluva kolmanda hooldekodu - Tartu Südamekodu ehitustegevust. 120-le kliendile rajatav Tartu hooldekodu valmib 2024. aastal. Tartu hooldekodu projekteerimiseks ning ehituseks investeeris kontsern 2023. aastal kokku 2,674 miljonit eurot. Valmis üüritulu teenivatesse kinnisvaraprojektidesse investeeris kontsern 2023. aastal kokku 3,083 miljonit eurot. Investeeringud olid peamiselt seotud Betooni 6 logistikahoone laiendusega kogusummas 1,044 miljonit eurot. Investeeringust saab kontserni tütarettevõte üüritootlust 8,5% aastas. Suuremaid investeeringuid tehti 2023. aastal veel Saules Miestas kaubanduskeskuse üldalade renoveerimiseks (800 tuhat eurot) ning Jurkalne logistikapargi parendustöödeks (561 tuhat eurot). Üüritulu 2023. aastal teenis kontsern kokku 30,606 miljonit eurot üüritulu, sisaldades EfTEN Kinnisvarafond AS-ga ühinemisest saadud üüritulu kogusummas 16,441 miljonit eurot. Võrreldavatel alustel arvestatud üüritulu oli 2023. aastal kokku 13,927 miljonit eurot, mis on 4% rohkem kui 2022. aastal. 2023. aastal ei teinud kontserni tütarettevõtted üürnikele olulistes summades üüri allahindluseid. Allahindluste konsolideeritud kulu oli kokku 36 tuhat eurot (0,1% konsolideeritud üüritulust) ning allahindlused olid peamiselt seotud kokkulepetega RAF Centrs kaubanduskeskuse ning Terbata büroohoone üürnikega. Kontsernile kuuluvate kinnisvarainvesteeringute vakantsus portfelli kohta oli 31.12.2023 seisuga madal - 2,6%. Veidi suurenenud vakantsust oli märgata büroohoonete segmendis (7,8%), kus vakantsete üüripindade täitmine on võtnud varasemast rohkem aega. 31.12.2023 seisuga oli peale ühe üürilepingu lõppemist 2023. aasta suvel tavapärasest suurem vakantsus ka Piepilsetase logistikakeskuses (19,1%, s.o 2554m2), kus aruande koostamise hetkel on uue üürnikuga läbirääkimised pooleli. Kinnisvarainvesteeringute õiglane väärtus EfTEN Real Estate Fund AS hindab korraliselt kinnisvarainvesteeringuid kaks korda aastas - 30. juuni ja 31. detsembri seisuga. Seoses kinnisvaratehingute aktiivsuse languse, konservatiivsema üüri puhastulu (NOI) prognooside ning kõrgenenud EURIBOR'ga olid 31.12.2023 seisuga Colliers International poolt läbi viidud kinnisvarainvesteeringute turuväärtused madalamad kui need olid aasta tagasi. Kinnisvarainvesteeringute väärtus langes 2023. aastal portfelli peale kokku 3,9%, sh vähenes enim büroosegmendi kinnisvarainvesteeringute väärtus (9%). Finantseerimine 2023. aastal tõstsid suuremad keskpangad teist aastat järjest intresse rohkem kui turud prognoosisid. Euroalal oodati 2023. aasta alguses, et EURIBOR saavutab tipu 3,5% tasemel juunis. Tegelikult tõusid intressid septembris-oktoobris 4% tasemele. Sellega seoses hinnati alla enamike Euroopa kinnisvaraettevõtete ja -fondide varade väärtused ning paljud neist olid sunnitud vähendama või sootuks peatama dividendimaksed. Kõrgeima finantsvõimenduse tasemega Skandinaavias esines kinnisvarasektoris isegi ebasoodsatel tingimustel sundmüüke ning laenukohustuste mittetäitmist. Oktoobris tipu saavutanud euroala intressid avaldasid mõju ka kontserni 2023. aasta rahavoogudele, viies intresside kattekordaja (ICR) peaaegu poole madalamaks kui see oli 2022. aastal. Hoolimata suuremast intressikulust säilitasid kontserni kõik kinnisvaraobjektid tänu madalale vakantsusele ning konservatiivsele finantseerimispoliitikale positiivse rahavoo ning mitte ühegi laenu eritingimusi 2023. aastal ei rikutud. Esmakordselt viimase kahe aasta jooksul on 2024. aastal oodata intressikulude alanemist. Turgudel hinnatakse, et Euroopa Keskpank (EKP) langetab intresse enam kui 100 baaspunkti võrra, mille tulemusel langeb kontserni kinnisvarainvesteeringute soetamiseks võetud pangalaenude intressikulu ning paraneb rahavoog. Järgmise 12 kuu jooksul lõppevad kontserni kahe tütarettevõtte - EfTEN Autokeskus OÜ ning SIA "EfTEN J?rkalne" laenulepingud, mille jääk 31.12.2023 seisuga oli 10 825 tuhat eurot. Lõppevate laenulepingute LTV on vastavalt 48% ja 40% ning kinnisvarainvesteeringud omavad stabiilselt tugevat üürirahavoogu, mistõttu kontserni juhtkonna hinnangul ei teki laenulepingute pikendamisel takistusi. Kontserni laenulepingute kaalutud keskmine intressimäär (s.h arvestades intressiswapi lepinguid) EURIBOR´i tõusu mõjul oli detsembri lõpu seisuga 5,9% (31.12.2022: 3,7%) ning LTV (Loan to Value) 42% (31.12.2022: 40%). Kõik fondi tütarettevõtete laenulepingud on seotud ujuva intressimääraga. Aktsiainfo Bilansipäevaga 01.01.2023 ühines EfTEN Real Estate Fund AS (endise nimega EfTEN Real Estate Fund III AS) EfTEN Kinnisvarafond AS-ga. Ühinemise läbiviimiseks suurendati EfTEN Real Estate Fund AS-i aktsiakapitali 57 472 tuhande euro võrra ning emiteeriti 5 747 261 uut aktsiat nimiväärtusega 10 eurot. Aktsiakapitali suurendamisel tasuti aktsiate eest täies ulatuses mitterahalise sissemaksega EfTEN Real Estate Fund AS-le üleantava EfTEN Kinnisvarafond AS-i kogu vara arvel, mille väärtuseks oli EfTEN Kinnisvarafond AS-i EPRA vara puhasväärtus seisuga 31.12.2022 (125 905 tuhat eurot). Uued aktsiad emiteeriti EfTEN Kinnisvarafond AS-i kui ühendatava fondi aktsionäridele, kes olid kantud aktsionäride nimekirja seisuga 31.01.2023. EfTEN Real Estate Fund AS-i registreeritud aktsiakapitali suurus seisuga 31.12.2023 on 108 198 tuhat eurot (31.12.2022: 50 725 tuhat eurot). Aktsiakapital koosnes 10 819 796 aktsiast (31.12.2022: 5 072 535) nimiväärtusega 10 eurot (31.12.2022: sama). EfTEN Real Estate Fund AS-i aktsia puhasväärtus seisuga 31.12.2023 oli 20,21 eurot (31.12.2022: 20,55 eurot). EfTEN Real Estate Fund AS-i aktsia puhasväärtus langes 2023. aasta jooksul 1,7%. Fondi aktsia puhasväärtus langes peamiselt kinnisvarainvesteeringute õiglase väärtuse muutuse tulemusel. 2023. aasta mais maksis fond 2022. aasta kasumist dividende kogusummas 12,471 miljonit eurot (2022 aasta mais: 4,058 miljonit eurot). Ilma dividendide maksmiseta oleks fondi aktsia puhasväärtus 2023. aasta jooksul kasvanud 4,1%. 2023. aasta jooksul on kontsern teeninud vaba rahavoogu 11,314 miljonit eurot (2022: 6,182 miljonit eurot), millest vastavalt fondi dividendipoliitikale oleks võimalik brutodividendideks arvestada 9,051 miljonit eurot (2022: 4,946 miljonit eurot). Arvestades fondi tütarettevõtete laenu eritingimustest tulenevat minimaalse raha jäägi hoidmise kohustust ning lühiajalist likviidsusvajadust, samuti aga ka fondi tütarettevõtete SIA "EfTEN J?rkalne", EfTEN SPV15 OÜ ja Saules Miestas UAB laenulepingutest tulenevalt laenusumma suurendamise võimalust 2,166 miljoni euro võrra, teeb fondi juhatus nõukogule ettepaneku maksta 2023. aasta eest dividende rohkem kui dividendipoliitika ette näeb - kokku 10,820 miljonit eurot (1 euro aktsia kohta). KONSOLIDEERITUD KOONDKASUMIARUANNE ------------------------------------------------------------------------------- IV kvartal 12 kuud ------------------------------------------------------------------------------- 2023 2022 2023 2022 ------------------------------------------------------------------------------- EUR tuhandetes ------------------------------------------------------------------------------- Müügitulu 8 103 3 699 31 817 14 299 ------------------------------------------------------------------------------- Müüdud teenuste kulu -506 -56 -1 626 -267 ------------------------------------------------------------------------------- Brutokasum 7 597 3 643 30 191 14 032 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Turustuskulud -190 -113 -583 -367 ------------------------------------------------------------------------------- Üldhalduskulud -978 -525 -3 546 -1 916 ------------------------------------------------------------------------------- Kasum / kahjum kinnisvarainvesteeringute õiglase väärtuse muutusest -7 759 -582 -13 941 3 119 ------------------------------------------------------------------------------- Muud äritulud ja -kulud -2 -25 21 23 ------------------------------------------------------------------------------- Ärikasum -1 332 2 398 12 142 14 891 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Kasum / kahjum ühisettevõtetest -474 0 -499 0 ------------------------------------------------------------------------------- Intressitulud 87 0 184 0 ------------------------------------------------------------------------------- Muud finantstulud ja -kulud -2 277 -582 -7 970 -1 680 ------------------------------------------------------------------------------- Kasum enne tulumaksu -3 996 1 816 3 857 13 211 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Tulumaksukulu -1 884 -617 -2 857 -1 803 ------------------------------------------------------------------------------- Aruandeperioodi koondkasum kokku -5 880 1 199 1 000 11 408 ------------------------------------------------------------------------------- Kasum aktsia kohta ------------------------------------------------------------------------------- - tava -0,54 0,24 0,09 2,25 ------------------------------------------------------------------------------- - lahustatud -0,54 0,24 0,09 2,25 ------------------------------------------------------------------------------- KONSOLIDEERITUD FINANTSSEISUNDI ARUANNE 31.12.2023 31.12.2022 ------------------------------------------------------------ EUR tuhandetes ------------------------------------------------------------ VARAD ------------------------------------------------------------ Raha ja raha ekvivalendid 14 712 11 331 ------------------------------------------------------------ Lühiajalised hoiused 3 400 0 ------------------------------------------------------------ Nõuded ja viitlaekumised 2 360 1 522 ------------------------------------------------------------ Ettemakstud kulud 106 49 ------------------------------------------------------------ Käibevara kokku 20 578 12 902 ------------------------------------------------------------ ------------------------------------------------------------ Pikaajalised nõuded 214 61 ------------------------------------------------------------ Ühisettevõtete osad 2 078 0 ------------------------------------------------------------ Kinnisvarainvesteeringud 357 916 168 875 ------------------------------------------------------------ Materiaalne põhivara 158 116 ------------------------------------------------------------ Immateriaalne põhivara 0 2 ------------------------------------------------------------ Põhivara kokku 360 366 169 054 ------------------------------------------------------------ VARAD KOKKU 380 944 181 956 ------------------------------------------------------------ ------------------------------------------------------------ KOHUSTUSED JA OMAKAPITAL ------------------------------------------------------------ Laenukohustused 16 907 22 058 ------------------------------------------------------------ Võlad ja ettemaksed 3 417 1 461 ------------------------------------------------------------ Lühiajalised kohustused kokku 20 324 23 519 ------------------------------------------------------------ ------------------------------------------------------------ Laenukohustused 130 849 45 917 ------------------------------------------------------------ Muud pikaajalised võlad 1 790 1 008 ------------------------------------------------------------ Edasilükkunud tulumaksukohustus 9 283 7 248 ------------------------------------------------------------ Pikaajalised kohustused kokku 141 922 54 173 ------------------------------------------------------------ Kohustused kokku 162 246 77 692 ------------------------------------------------------------ ------------------------------------------------------------ Aktsiakapital 108 198 50 725 ------------------------------------------------------------ Ülekurss 84 721 16 288 ------------------------------------------------------------ Kohustuslik reservkapital 2 749 2 149 ------------------------------------------------------------ Jaotamata kasum 23 030 35 102 ------------------------------------------------------------ Omakapital kokku 218 698 104 264 ------------------------------------------------------------ KOHUSTUSED JA OMAKAPITAL KOKKU 380 944 181 956 ------------------------------------------------------------ Marilin Hein Finantsjuht Tel. 6559 515 E-mail: marilin.hein@eften.ee (mailto:marilin.hein@eften.ee)
Title
EfTEN Real Estate Fund AS unaudited results for 4th quarter and 12 months 2023
Message
The main keyword for 2023 was the fastest interest rate increase in the 25-year history of the Eurozone. The consolidated interest expense of EfTEN Real Estate Fund AS increased almost twice compared to a year ago in relation to EBITDA, having a direct impact on the Fund's free cash flow as well. At the same time, thanks to the conservative financing policy of the Fund, the stable cash flow of investments, the permanently low vacancy rate and the good payment behavior of customers, the growth of EURIBOR did not pressure the cash flows of any of the underlying assets above the critical limit. Considering the liquidity buffer of the Fund's subsidiaries, the Management Board plans to propose to the shareholders at the 2024 spring general meeting to pay a net dividend for the past financial year more than the Fund's dividend policy stipulates - 1.0 euros per share, instead of 1.15 euros last year. Considering the share price of EfTEN Real Estate Fund AS on the stock exchange, this still means a dividend yield of more than 5%. According to unaudited data, EfTEN Real Estate Fund AS earned a net profit of 1.0 million euros in 2023 (2022: 11.4 million euros). The decrease in the Fund's net profit is mainly due to the loss of the fair value revaluation of investment properties in the total amount of 13.9 million euros (in 2022, the Fund received a profit of 3.1 million euros from the revaluation of investment properties). It is important to emphasize that the write-down of the Fund's assets is a non- monetary change in the balance sheet value, which in no way affects the Fund's actual cash flows or ability to pay dividends. These evaluations have been made as of the end of 2023 and thus reflect a record high EURIBOR level. It can be assumed that the fair value of investment property will partially recover because of the expected drop in EURIBOR. In 2024, a change in commercial real estate market trends can be expected. Rapid interest rate hikes are likely to be a thing of the past, and a gentle decline in interest rates is ahead. As the macro environment of the Baltic economies continues to be fragile and the two-year economic recession continues, the Fund's management pays attention primarily to the management and maintenance of rental income and good cooperation with clients. Today, it can be said that the parties in the real estate market are used to the new interest environment, which in turn is a prerequisite for the activation of the transaction market. If such assumptions are implemented, the board will propose to shareholders in the second half of this year to organize a new share issue in order to continue the Fund's growth strategy. Financial overview In the fourth quarter of 2023, EfTEN Real Estate Fund AS earned a total of 8.103 million euros in consolidated sales revenue (2022 fourth quarter: 3.699 million euros). The consolidated sales revenue of the fund in 2023 was 31.817 million euros (2022: 14.299 million euros), including the sales revenue of real estate investments added from the merger with EfTEN Kinnisvarafond AS in the amount of 16.918 million euros. Sales revenue calculated on a like-for-like basis increased by 4.2% compared to a year ago. The consolidated net rental income (NOI) of the Fund for the year 2023 is 29.608 million euros (2022: 13.665 million euros). This year's net rental income includes the net rental income from investment properties added by the merger with EfTEN Kinnisvarafond AS in the total amount of 15.484 million euros. Therefore, NOI calculated on the like-for-like basis has also increased by 3.4% compared to a year ago. The consolidated net rental income margin was 93% (2022: 96%) this year, so costs directly related to property management (including land tax, insurance, maintenance and improvement costs) and distribution costs constituted 7% (2022: 4%) of sales income. The volume of the group's assets as of 31.12.2023 was 380.944 million euros (31.12.2022: 181.956 million euros), incl. the fair value of investment property made up 94% of the volume of assets (31.12.2022: 93%) Investment portfolio At the end of the year, the Group has 35 (31.12.2022: 18) commercial property investments with a fair value at the balance sheet date of 357.916 million euros (31.12.2022: 168.875 million euros) and an acquisition cost of 354.408 million euros (31.12.2022: 151.426 million euros). In addition, the Group's joint venture owns the Palace hotel in Tallinn, the fair value of which as of 31.12.2023 was 9.0 million euros. After the merger, the group's investment portfolio is better spread across countries - if at the end of 2022 the share of investments in Lithuania was 60%, Estonia 25% and Latvia 15% of all investment properties, then at the end of 2023 the share of Lithuania will be 30%, the share of investments in Estonia 52% and Latvia share of 18% of all investments. The largest investments have been made in the trade sector (38%), followed by the logistics sector (30%), the office sector (25%), the nursing home sector (3%) and the National sector and hotels (both 2%). The Group completed the construction of the Valkla care home in the summer of 2023. A total of 3.860 million euros were invested in the care home, and the investment yields a rental yield of 7.5%. In the fall of 2023, the construction of the third care home belonging to the Group - Tartu Südamekodu - began. The Tartu care home for 120 clients will be completed in 2024. In 2023, the Group invested a total of 2.674 million euros for the design and construction of the Tartu care home. In 2023, the Group invested a total of 3.083 million euros in real estate projects generating rental income. The investments were mainly related to the expansion of the Betoon 6 logistics building in the total amount of 1.044 million euros. The subsidiary of the group receives a rental yield of 8.5% per year from the investment. Larger investments were made in 2023 also for the renovation of the general areas of the Saules Miestas shopping center (800 thousand euros) and for the improvement of the Jurkalne logistics park (561 thousand euros). Rental income In 2023, the Group earned a total rental income of 30.606 million euros, including rental income from the merger with EfTEN Kinnisvarafond AS in the total amount of 16.441 million euros. The rental income calculated on a comparable basis was a total 13.927 million euros in 2023, which is a 4% increase compared to 2022. In 2023, the Group's subsidiaries did not offer significant rent discounts to tenants. The consolidated cost of discounts was a total of 36 thousand euros (0.1% of the consolidated rental income), and the discounts were mainly related to the tenants of the RAF Centrs shopping center and Terbata office building agreements. As of 31.12.2023, the vacancy of investment property belonging to the Group per portfolio was low - 2.6%. A slightly increased vacancy can be seen in the office buildings segment (7.8%), where it takes longer than before to fill vacant rental premises. As of 31.12.2023, after the expiration of one lease in the summer of 2023, the Piepilsetas logistics center also has a larger vacancy than usual (19.1%, i.e. 2554m2), where negotiations with a new tenant are ongoing at the time of writing the report. Fair value of investment properties EfTEN Real Estate Fund AS regularly evaluates investment properties twice a year - in June and December. Due to the decrease in the activity of real estate transactions, more conservative net rental income (NOI) forecasts and the increased EURIBOR, the market values of investment properties carried out by Colliers International as of 31.12.2023 are lower than they were a year ago. In 2023, the value of investment properties fell by a total of 3.9% on the portfolio, including the value of investment property in the office segment (9%). Financing In 2023, for the second year in a row, the major central banks raised interest rates more than the markets had forecast. In the euro area, at the beginning of 2023, EURIBOR was expected to peak at 3.5% in June. In fact, interest rates rose to 4% in September-October. As a result, the asset values of most European real estate companies and funds were devalued, and many of them were forced to reduce or stop dividend payments altogether. In Scandinavia, with the highest level of financial leverage, forced sales and non-fulfillment of loan obligations occurred in the real estate sector even under unfavorable conditions. Eurozone interest rates, which peaked in October, also had an impact on the group's cash flows in 2023, bringing the interest coverage ratio (ICR) to almost half of what it was in 2022. Despite the higher interest expense, all real estate objects of the group maintained a positive cash flow due to low vacancy and conservative financing policy, and the special conditions of no loan were violated in 2023. For the first time in the two years, interest costs are expected to decrease in 2024. The markets estimate that the European Central Bank (ECB) will lower interest rates by more than 100 basis points, because of which the interest cost of bank loans taken for the acquisition of investment property of the Group will decrease and the cash flow will improve. Within the next 12 months, the loan agreements of the group's two subsidiaries - ABC Motors Autokeskus and Jurkalne logistics park, whose balance as of 31.12.2023 is 10,825 thousand euros, will expire. The LTV of the expiring loan agreements is 48% and 40%, respectively, and the investment property have a stable and strong rental cash flow, therefore, according to the Group's management, there are no obstacles in the extension of the loan agreements. As of the end of December, the weighted average interest rate of the Group's loan agreements (including interest rate swap agreements) due to the increase in EURIBOR is 5.9% (31.12.2022: 3.7%) and the LTV (Loan to Value) is 42% (31.12.2022: 40%). All loan agreements of the fund's subsidiaries are linked to a floating interest rate. Information on shares On the balance sheet date of 01.01.2023, EfTEN Real Estate Fund AS (formerly EfTEN Real Estate Fund III AS) merged with EfTEN Kinnisvarafond AS. To carry out the merger, the share capital of EfTEN Real Estate Fund AS was increased by 57,472 thousand euros and 5,747,261 new shares with a nominal value of 10 euros were issued. When increasing the share capital, the shares were paid for in full with a non-monetary contribution at the expense of the entire assets of EfTEN Kinnisvarafond AS, which were transferred to EfTEN Real Estate Fund AS, the value of which was the net value of the EPRA assets of EfTEN Kinnisvarafond AS as of 31.12.2022 (125,905 thousand euros). According to the merger agreement, the new shares were issued to the shareholders of EfTEN Kinnisvarafond AS as the merging fund, who were entered in the list of shareholders as of 31.01.2023. The registered share capital of EfTEN Real Estate Fund AS as of 31.12.2023 is 108,198 thousand euros (31.12.2022: 50,725 thousand euros). The share capital consisted of 10,819,796 shares (31.12.2022: 5,072,535) with a nominal value of 10 euros (31.12.2022: the same). The net value of the share of EfTEN Real Estate Fund AS as of 31.12.2023 was 20.21 euros (31.12.2022: 20.55 euros). The net value of EfTEN Real Estate Fund AS shares fell by 1.7% during 2023. The net value of the Fund's share decreased mainly as a result of the change in the fair value of investment property. In May 2023, the Fund paid dividends from the 2022 profit in the total amount of 12.471 million euros (May 2022: 4.058 million euros). Without the payment of dividends, the net value of the Fund's shares would have increased by 4.1% during 2023. During 2023, the Group has earned a free cash flow of 11.314 million euros (2022: 6.182 million euros), of which, according to the Fund's dividend policy, 9.051 million euros (2022: 4.946 million euros) could be considered as gross dividends. Taking into account the obligation to keep a minimum cash balance and the short-term need for liquidity arising from the special loan conditions of the Fund's subsidiaries, as well as the possibility of increasing the loan amount by 2.166 million euros due to the loan agreement of the Fund's subsidiaries EfTEN Jurkalnes SIA, EfTEN SPV15 OÜ and Saules Miestas UAB, the Management Board of the Fund proposes to the Supervisory Board to pay for the year 2023 dividends more than the dividend policy stipulates - a total of 10.820 million euros (1 euro per share). CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME ------------------------------------------------------------------------------- 4th quarter 12 months ------------------------------------------------------------------------------- 2023 2022 2023 2022 ------------------------------------------------------------------------------- EUR thousands ------------------------------------------------------------------------------- Revenue 8,103 3,699 31,817 14,299 ------------------------------------------------------------------------------- Cost of services sold -506 -56 -1,626 -267 ------------------------------------------------------------------------------- Gross profit 7,597 3,643 30,191 14,032 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Marketing costs -190 -113 -583 -367 ------------------------------------------------------------------------------- General and administrative expenses -978 -525 -3,546 -1,916 ------------------------------------------------------------------------------- Gain / loss from valuation of investment properties -7,759 -582 -13,941 3,119 ------------------------------------------------------------------------------- Other operating income and expense -2 -25 21 23 ------------------------------------------------------------------------------- Operating profit/loss -1,332 2,398 12,142 14,891 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Profit / loss from joint ventures -474 0 -499 0 ------------------------------------------------------------------------------- Interest income 87 0 184 0 ------------------------------------------------------------------------------- Other finance income and expense -2,277 -582 -7,970 -1,680 ------------------------------------------------------------------------------- Profit/loss before income tax -3,996 1,816 3,857 13,211 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Income tax expense -1,884 -617 -2,857 -1,803 ------------------------------------------------------------------------------- Net comprehensive profit/loss for the reporting period -5,880 1,199 1,000 11,408 ------------------------------------------------------------------------------- Earnings per share ------------------------------------------------------------------------------- - basic -0.54 0.24 0.09 2.25 ------------------------------------------------------------------------------- - diluted -0.54 0.24 0.09 2.25 ------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31.12.2023 31.12.2022 ----------------------------------------------------------- EUR thousands ----------------------------------------------------------- ASSETS ----------------------------------------------------------- Cash and cash equivalents 14,712 11,331 ----------------------------------------------------------- Short-term deposits 3,400 0 ----------------------------------------------------------- Receivables and accrued income 2,360 1,522 ----------------------------------------------------------- Prepaid expenses 106 49 ----------------------------------------------------------- Total current assets 20,578 12,902 ----------------------------------------------------------- ----------------------------------------------------------- Long-term receivables 214 61 ----------------------------------------------------------- Shares in joint ventures 2,078 0 ----------------------------------------------------------- Investment property 357,916 168,875 ----------------------------------------------------------- Property. plant and equipment 158 116 ----------------------------------------------------------- Intangible assets 0 2 ----------------------------------------------------------- Total non-current assets 360,366 169,054 ----------------------------------------------------------- TOTAL ASSETS 380,944 181,956 ----------------------------------------------------------- ----------------------------------------------------------- LIABILITIES AND EQUITY ----------------------------------------------------------- Borrowings 16,907 22,058 ----------------------------------------------------------- Liabilities and prepayments 3,417 1,461 ----------------------------------------------------------- Total current liabilities 20,324 23,519 ----------------------------------------------------------- ----------------------------------------------------------- Borrowings 130,849 45,917 ----------------------------------------------------------- Other long-term liabilities 1,790 1,008 ----------------------------------------------------------- Deferred income tax liability 9,283 7,248 ----------------------------------------------------------- Total non-current liabilities 141,922 54,173 ----------------------------------------------------------- Total liabilities 162,246 77,692 ----------------------------------------------------------- ----------------------------------------------------------- Share capital 108,198 50,725 ----------------------------------------------------------- Share premium 84,721 16,288 ----------------------------------------------------------- Statutory reserve capital 2,749 2,149 ----------------------------------------------------------- Retained earnings 23,030 35,102 ----------------------------------------------------------- Total equity 218,698 104,264 ----------------------------------------------------------- TOTAL LIABILITIES AND EQUITY 380,944 181,956 ----------------------------------------------------------- Marilin Hein CFO Phone +372 6559 515 E-mail: marilin.hein@eften.ee (mailto:marilin.hein@eften.ee)