Market announcement

Title

Net Asset Value of EfTEN Real Estate Fund AS share as of December 31, 2024, and Preliminary Financial Results for 2025

Message

Comment from Fund Manager Viljar Arakas

Excluding  revaluations  of  investment  properties,  EfTEN  Real Estate Fund AS
achieved  the strongest  operating results  in its  history in  2025. The Fund's
consolidated  rental  income  increased  by  3.1% compared to the previous year,
driven  primarily  by  the  addition  of  new logistics centres and elderly care
facilities  to  the  investment  portfolio.  Overall  vacancy  across the Fund's
property portfolio remained at a low level.

In  addition to revenue growth, the Fund's results were positively affected by a
decrease  in interest expenses resulting from the decline in EURIBOR. At the end
of 2025, the weighted average interest rate on the Fund's bank loans amounted to
3.99%, which is 0.9 percentage points lower than a year earlier.

As  a result  of higher  rental income  and lower  interest expenses, EfTEN Real
Estate  Fund AS generated a  record level of free  cash flow. In accordance with
the  Fund's  dividend  policy,  this  would  allow for the distribution of gross
dividends of 91 cents per share, representing an increase of 17% compared to the
previous  year. The cash balance held  by the Fund's subsidiaries, together with
refinancing  opportunities,  enables  the  Fund's  management  to propose to the
General  Meeting  of  Shareholders  the  payment  of an even 8% higher dividend,
compared  to last year  - EUR 1.2 per share. At the same time, the share of bank
loan  refinancing  planned  to  finance  dividend  payments is lower than in the
previous year.

Financial overview

Based on unaudited results, EfTEN Real Estate Fund AS generated consolidated
rental income of EUR 32.036 million in 2025 (2024: EUR 31.079 million) and
EBITDA of EUR 26.805 million (2024: EUR 26.454 million). Compared to the
previous year, rental income increased by 3.1% and EBITDA by 1.3%.

In 2025, the Fund's consolidated EBITDA exceeded interest expenses by 4.0 times
(2024: 3.0 times). By year-end, the weighted average interest rate on bank loans
decreased to 3.99%, which is 0.9 percentage points lower than as at 31 December
2024. The debt service coverage ratio (DSCR) of the investment portfolio
amounted to 2.01 in 2025 (2024: 1.7).

During 2025, the Fund invested EUR 11.3 million in real estate projects,
including EUR 6.5 million in care homes, EUR 2.5 million in the Paemurru
logistics centre and EUR 0.567 million in the reconstruction of office premises
at Pärnu mnt 102 in Tallinn. The remaining EUR 1.7 million was invested in the
Fund's existing investment properties.

As at the end of 2025, the Fund's consolidated vacancy rate was 3.2% (31
December 2024: 2.6%). The highest vacancy was in the office segment (14.4%),
while vacancy in the logistics segment was 1.4% and in the retail segment 0.4%.

In 2025, EfTEN Real Estate Fund AS generated adjusted cash flow (EBITDA less
interest expenses and loan principal repayments) of EUR 13.1 million,
representing an increase of 18% compared to the previous year. According to
management's assessment, the free cash held by the Fund's subsidiaries and
available refinancing options allow for an increase in the dividend payment of
up to EUR 1.2 per share (net), which is 8.1% higher than in the previous year.

In December 2025, EfTEN Real Estate Fund AS earned consolidated rental income of
EUR 2.956 million, which is EUR 253 thousand higher than in November. EBITDA for
December amounted to EUR 2.355 million, increasing by EUR 79 thousand month-on-
month. The increase in rental income was mainly driven by turnover-based rents
in shopping centres.

In December, an independent valuer, Colliers International, carried out the
regular valuation of the investment properties, as a result of which the fair
value of the Fund's real estate portfolio decreased by EUR 4.005 million (1%).
The decrease in value was mainly related to DSV Estonia logistics center, where
the departure of the anchor tenant in the fourth quarter of 2026 is likely to
require future reconstruction of warehouse premises.

As at 31 December 2025, the net asset value (NAV) per share of EfTEN Real Estate
Fund AS was EUR 20.3217 and EPRA NRV EUR 21.2676. In December, the NAV per share
was negatively impacted by the loss from the non-monetary revaluation of
investment properties and by the recognition of deferred income tax expense
related to the planned dividend distribution. As a result, NAV and EPRA NAV
decreased by 1.9% and 1.6%, respectively, during December. Excluding the
aforementioned exceptional impacts, the Fund's NAV per share would have
increased by 0.8% in December.

Marilin Hein
Chief Financial Officer
Tel. +372 6559 515
E-mail: [email protected]