Market announcement

Title

The net asset value of EfTEN Real Estate Fund AS shares as of 30.06.2024

Message

Comment from the fund manager, Viljar Arakas: "The fund's overall results of the
first  half of  2024 meet the  expectations of  the management  company. Vacancy
remains  below 3% at a portfolio level, which  is a very good result considering
the  general  business  environment.  If  we  exclude  the tenant's rent payment
difficulties  related to Hortes properties, the  payment behaviour of tenants is
good and the level of arrears remains low. According to the fund manager, Hortes
properties can be treated as customer-specific case and does not reflect a wider
deterioration  of the tenants' financial situation. The fund manager has already
started  looking  for  new  solutions  for  both  Hortes properties. The largest
vacancy is currently in the office sector, accounting for 76% of the portfolio's
total vacancy. However, it is divided between 10 different office buildings, and
new  tenants are  constantly being  added. Weaker  demand for  office space is a
clear  trend both globally as well as in  every capital of the Baltic states. In
general, the downward trend in interest rates will lead to increased transaction
activity  in the second half of 2024, which will help to increase the fair value
of the conservatively priced portfolio of EfTEN Real Estate Fund AS."

EfTEN Real Estate Fund AS consolidated rental income was 2,572 thousand euros in
June, which is 17 thousand euros less than in May. The slight decrease in rental
income  was due  to reduced  foot traffic  in shopping  centers due to the first
summer  month, lower turnover rent, and  slightly increased vacancy rates in the
office space segment. The fund's consolidated EBITDA for June was 2,188 thousand
euros,  65 thousand  euros  less  than  in  May.  June's expenses included costs
associated  with  investment  property  valuations  and  the  comparison  period
included  a one-time  income of  29 thousand euros  from the establishment of an
easement on a logistics center property in Tallinn.

Colliers   International  conducted  a  regular  valuation  process  for  Fund's
investment properties in June, resulting in a 0.4% decrease in the fair value of
the fund's real estate portfolio and a consolidated loss of 1,454 thousand euros
from  the revaluation. The  loss from the  revaluation was mainly  due to a more
conservative  cash flow forecast for office  segment buildings in Tallinn and in
the Saules Miestas shopping centre. The discount rates used for discounting cash
flows  and capitalization rates  remained unchanged compared  to the end of last
year  in most of the calculations. Although EURIBOR has slightly decreased since
the  end of  2023 and the  market expects  even lower  interest rates by autumn,
these  changes had not yet affected actual  market transactions as of the end of
June.

The  consolidated rental  income for  the first  six months  of this year totals
15,343 thousand  euros, 1.3% higher than  the same period  last year. The fund's
investment  properties generated  14,803 thousand euros  in net operating income
(NOI)  in the first half of the year,  a 0.6% increase from the same period last
year. The fund's EBITDA for the first six months of this year is 13,077 thousand
euros, a 0.5% increase compared to the same period last year.

The  vacancy rate of the fund's real estate  portfolio was 2.9% as of the end of
June.  The fund has 9,780 square meters  of vacant space, including 7,477 square
meters in the office space segment.

During  the first six months of 2024, EfTEN Real Estate Fund AS generated 5,329
thousand  euros in  free cash  flow (EBITDA  minus loan  payments minus interest
expenses),  which is 621 thousand euros less than the same period last year. The
decrease  in cash flow is primarily due to the increase in EURIBOR. Based on the
fund's  results for  the first  five months  of this  year, the  potential gross
dividend is at 39.4 cents per share, 10.2% less than the same period last year.

The  weighted average interest rate on the bank loans of the fund's subsidiaries
was  5.65% at the end of June. Compared to the end of 2023, the weighted average
interest  rate has decreased by 0.26 percentage points  and is at the same level
as in August 2023.

As  of June 30, 2024, the net  asset value (NAV) per  share of EfTEN Real Estate
Fund AS was 19.7904 euros, and the EPRA NRV was 20.5862 euros. The NAV per share
decreased  by 0.1% in June.  Without the revaluations  of investment properties,
the fund's NAV would have increased by 0.6% in June.

Marilin Hein
CFO
Phone +372 6559 515
E-mail: marilin.hein@eften.ee