Market announcement

EfTEN Real Estate Fund AS

LEI code

4851000008JBI71L7643

Size of the entity

Medium group

Economic activities

Financial and Insurance Activities

Industry sector(s)

Management company

Country of registered office

Estonia

General information

Categories

Other price sensitive information

Unique data record identifier

7779

Submission date and time

14.02.2020 08:00:00

Content of announcement in Estonian

Title

EfTEN Real Estate Fund III AS 2019. aasta IV kvartali ja 12 kuu auditeerimata majandustulemused

Message

Fondijuhi kommentaar

EfTEN  Real Estate Fund  III ASi 2019. aasta  olulisemaid majandussündmused olid
ABC   Motorsi  esinduskaupluse  ostmine-tagasiüüri  tehing,  edukalt  läbiviidud
aktsiaemissioon  kogumahus  16 miljonit  eurot  ning  aasta  neljandas kvartalis
Hortese  Tähesaju aianduskeskuse avamine. Peale bilansipäeva teatasime, et EfTEN
Real  Estate  Fund  III  omandab  2020. aasta  esimeses  kvartalis Läti riikliku
lennufirma,  airBalticu peakontori Riia  lennujaama territooriumil ning tootmis-
ja  laohoone Riia lähistel Kekava asulas, investeerides seeläbi suure osa 2019.
aastal  kaasatud  omakapitalist  rahavoogu  tootvasse kinnisvarasse. Lisaks teeb
fondi  juhtkond 2020. aasta  aktsionäride üldkoosolekule  ettepaneku kiita heaks
ühinemine  EfTEN Kinnisvarafond  AS'iga, mille  tulemusena tekib  ca 350 miljoni
eurose varade mahuga kinnisvarafond.

Kontserni  tütarettevõtete raha  jääk lubab  2019. kasumist maksta investoritele
dividende  kokku 3,465 miljonit eurot  (82 senti aktsia  kohta), mis on üle 35%
rohkem  kui  seda  näeb  ette  EfTEN  Real  Estate  Fund III dividendipoliitika.
Dividendide   väljamakse   2019. aasta   kasumilt  toimub  2020. aasta  kevadise
aktsionäride üldkoosoleku järel.


Finantsülevaade

EfTEN Real Estate Fund III AS'i konsolideeritud 2019. aasta 12 kuu müügitulu oli
9,512 miljonit  eurot  (2018  12 kuud:  8,672 miljonit  eurot), kasvades aastaga
10%. Kontserni  neto üüritulu miinus finantskulud  oli 2019. aastal kokku 7,571
miljonit  eurot  (2018:  6,822 miljonit  eurot), kasvades aastaga 11%. Kontserni
puhaskasum  samal  perioodil  oli  7,737 miljonit  eurot  (2018  12 kuud: 6,299
miljonit   eurot).   Kõrgem   puhaskasum   2019. aastal  on  tingitud  nii  uute
kinnisvarainvesteeringute  lisandunud kasumist  kui ka kinnisvarainvesteeringute
õiglase    väärtuse    muutuse    kõrgemast    kasumist    2019. aastal    (2019
kinnisvarainvesteeringute õiglase väärtuse muutus: 3,101 miljonit eurot vs 2018
kinnisvarainvesteeringute õiglase väärtuse muutus: 1,562 miljonit eurot).

Konsolideeritud brutokasumi marginaal oli 2019. aasta 12 kuu tulemusel 97% (2018
12 kuud:  96%), seega moodustasid  kinnistute haldamisega  otseselt seotud kulud
(s.h  maamaks, kindlustus, hooldus- ja parenduskulud) 3% (2018: 4%) müügitulust.
Kontserni  kinnistutega seotud kulud, turustuskulud, üldkulud ning muud tulud ja
-kulud moodustasid 2019. aasta jooksul müügitulust kokku 22%. 2018. aasta 12 kuu
jooksul jäi sama näitaja 22,3 % tasemele.

Kontserni varade maht 31.12.2019 seisuga oli 132,829 miljonit eurot (31.12.2018:
108,503 miljonit eurot), s.h kinnisvarainvesteeringute õiglane väärtus moodustas
varade mahust 85%  (31.12.2018: 95%).

EfTEN  Real Estate Fund III AS-i  aktsia puhasväärtus kasvas 2019. aasta jooksul
7,6%. 2019. aasta  mais  maksis  fond  2018. aasta kasumist dividende kogusummas
3,061 miljonit   eurot   (2018   aasta   kevadel:  2,191 miljonit  eurot).  Ilma
dividendide  maksmiseta  oleks  fondi  NAV  2019. aasta  jooksul  kasvanud 12%.
Investeeritud  kapitali aastane tootlus (ROIC) oli 2019. majandusaasta tulemusel
17,1% (2018 12 kuud: 17,6%).

Kontserni     konkurentsivõimet    aitab    kasvatada    ligipääs    paindlikele
finantseerimistingimustele.  2019. aasta  jooksul  laekus Kontsernile pangalaene
seoses  uute  kinnisvarainvesteeringute  soetamise  ning  arendusega  kogusummas
6,768 miljonit  eurot. Kontserni  laenulepingute kaalutud  keskmine intressimäär
(s.h  arvestades  intressiswapi  lepinguid)  on  detsembri  lõpu  seisuga  1,8%
(31.12.2018: sama) ning LTV (Loan to Value) 52% (31.12.2018: sama).

2019. aasta  jooksul on  Kontsern teeninud  vaba rahavoogu  3,381 miljonit eurot
(2018  12 kuud:  3,197 miljonit  eurot).  Pärast  Leedu ettevõtete tulumaksukulu
mahaarvamist  ning  arvestusliku  dividendide  tulumaksukulu arvutamist Eesti ja
Läti  ettevõtetes  saaks  EfTEN  Real  Estate  Fund  III  vastavalt  kehtestatud
dividendipoliitikale  maksta aktsionäridele  netodividende selle  aasta kasumist
2,545 miljonit   eurot   (60   senti   aktsia   kohta).  Samas  lubab  Kontserni
tütarettevõtete  raha jääk  2019. aasta lõpul  maksta dividendi  rohkem kui seda
kehtestab  dividendipoliitika, mistõttu  teeb Fondi  juhatus 2020. aasta kevadel
nõukogule  ettepaneku  maksta  dividendi  kokku  3,465 miljonit  eurot (82 senti
aktsia kohta).

Kinnisvaraportfell

Kontsern  investeerib ärikinnisvarasse,  millel on  tugev ja pikaajaline üürnike
baas.    2019. aasta   lõpu   seisuga   on   Kontsernil   11 (31.12.2018:   10)
ärikinnisvarainvesteeringut,  mille  õiglane  väärtus  bilansipäeval on 113,011
miljonit eurot (31.12.2018: 102,787 miljonit eurot) ning soetusmaksumus 101,746
miljonit eurot (31.12.2018: 94,627 miljonit eurot).

6. veebruaril  2019 soetas Kontserni tütarettevõte EfTEN Autokeskus OÜ Tallinnas
Paldiski  maanteel ABC Motorsi müügi-  ja teeninduskeskuse kinnistud. Kinnistute
soetusmaksumus  oli 3,018 miljonit eurot ning  soetuseks võeti laenu summas 1,8
miljonit  eurot. Laenu lõpptähtaeg on 25.02.2024 ning intressimäär 2,95% + 6 kuu
Euribor. Euriborile on seatud 0% floor. Kinnisvarainvesteeringu oodatav üüritulu
aastas on 258 tuhat eurot.

2019. aasta  novembris  lõpetas  Kontserni  tütarettevõte  EfTEN Tähesaju tee OÜ
Tallinnas  asuva Tähesaju  Hortese ehituse.  Tähesaju Hortes avati külastajatele
novembri   alguses.  Aianduskeskuse  soetusmaksumumuseks  kujunes  kokku  5,458
miljonit  eurot  ning  kinnisvarainvesteeringu  õiglane  väärtus oli 31.12.2019
seisuga   6,180 tuhat   eurot.   Tähesaju  Hortese  ehituseks  võttis  Kontserni
tütarettevõtte pangalaenu kogusummas 3,29 miljonit eurot intressimääraga 1,95% +
1 kuu EURIBOR. Laenu lõpptähtaeg on 11.01.2024.

Bilansipäevajärgselt,     13.01.2020 allkirjastas     Kontserni    tütarettevõte
võlaõiguslikud ostulepingud kahe ärihoone omandamiseks Lätis, millega soetatakse
Riia  lennujaama territooriumil asuv airBalticu  peakorteri büroohoone ning Riia
külje  all ?ekavas  asuv tootmis-  ja laohoone.  AirBalticu peahoone renoveeriti
täielikult  2016. aastal ning  praegune üürileping  kestab aastani 2026. ?ekavas
oleva  tootmis- ja laohoone suurimad rentnikud on Fristads Kansas Production SIA
ning Forans SIA. Kahe hoone omandamise kogusumma on 15,8 miljonit eurot, millest
7,2 miljonit eurot finantseerivad Swedbank ja Luminor.

KONSOLIDEERITUD KOONDKASUMIARUANNE

                                                      IV kvartal     12 kuud
                                                     --------------------------
                                                       2019  2018   2019   2018
-------------------------------------------------------------------------------
 EUR tuhandetes
                                                     -------     --------
 Müügitulu                                            2 512 2 329  9 512  8 672
                                                     -------     --------
 Müüdud teenuste kulu                                  -100  -135   -329   -319
                                                     --------------------------
 Brutokasum                                           2 412 2 194  9 183  8 353
                                                     -------     --------

                                                     -------     --------
 Turustuskulud                                         -126  -103   -429   -435
                                                     -------     --------
 Üldhalduskulud                                        -870  -389 -1 847 -1 225
                                                     -------     --------
 Kasum / kahjum kinnisvarainvesteeringute õiglase
 väärtuse muutusest                                   1 641   600  3 101  1 562
                                                     -------     --------
 Muud äritulud ja -kulud                                 38    -4     37      3
                                                     --------------------------
 Ärikasum                                             3 095 2 298 10 045  8 258
                                                     -------     --------

                                                     -------     --------
 Intressitulud                                            0     0     14      0
                                                     -------     --------
 Finantskulud                                          -161  -380 -1 197 -1 096
                                                     --------------------------
 Kasum enne tulumaksu                                 2 934 1 918  8 862  7 162
                                                     -------     --------

                                                     -------     --------
 Tulumaksukulu                                         -333  -167 -1 125   -863
                                                     --------------------------
 Aruandeperioodi koondkasum kokku                     2 601 1 751  7 737  6 299
-------------------------------------------------------------------------------
 Kasum aktsia kohta
                                                     -------     --------
   - tava                                              0,62  0,54   2,05   1,96
                                                     -------     --------
   - lahustatud                                        0,62  0,54   2,05   1,96
-------------------------------------------------------------------------------

KONSOLIDEERITUD FINANTSSEISUNDI ARUANNE

                                    31.12.2019   31.12.2018
                                  --------------------------
  EUR tuhandetes
                                  --------------
  VARAD
                                  --------------
  Raha ja raha ekvivalendid             12 986        4 859
                                  --------------
  Lühiajalised hoiused                   6 000            0
                                  --------------
  Nõuded ja viitlaekumised                 667          673
                                  --------------
  Ettemakstud kulud                         51           46
                                  --------------
  Käibevara kokku                       19 704        5 578
                                  --------------

                                  --------------
  Pikaajalised nõuded                        0           24
                                  --------------
  Kinnisvarainvesteeringud             113 011      102 787
                                  --------------
  Materiaalne põhivara                     114          114
                                  --------------
  Põhivara kokku                       113 125      102 925
                                  --------------------------
  VARAD KOKKU                          132 829      108 503
------------------------------------------------------------

                                  --------------
  KOHUSTUSED JA OMAKAPITAL
                                  --------------
  Laenukohustused                       21 147        8 105
                                  --------------
  Tuletisinstrumendid                      271          189
                                  --------------
  Võlad ja ettemaksed                    1 132        1 019
                                  --------------------------
  Lühiajalised kohustused kokku         22 550        9 313
                                  --------------

                                  --------------
  Laenukohustused                       34 225       44 743
                                  --------------
  Muud pikaajalised võlad                  609          457
                                  --------------
  Edasilükkunud tulumaksukohustus        4 274        3 496
                                  --------------------------
  Pikaajalised kohustused kokku         39 108       48 696
                                  --------------------------
  Kohustused kokku                      61 658       58 009
                                  --------------

                                  --------------
  Aktsiakapital                         42 225       32 225
                                  --------------
  Ülekurss                               9 658        3 658
                                  --------------
  Kohustuslik reservkapital                936          621
                                  --------------
  Jaotamata kasum                       18 352       13 990
                                  --------------------------
  Omakapital kokku                      71 171       50 494
                                  --------------------------
  KOHUSTUSED JA OMAKAPITAL KOKKU       132 829      108 503
------------------------------------------------------------

Marilin Hein
Finantsjuht
Tel 655 9515
E-post: [email protected] (mailto:[email protected])

Content of announcement in English

Title

EfTEN Real Estate Fund III AS unaudited consolidated interim accounts for the 4th quarter and 12 months of 2019

Message

Comment of the fund manager

The most important economic events of EfTEN Real Estate Fund III AS in 2019 were
the  ABC Motors  dealership purchase-leaseback  transaction, successful issue of
shares  in volume  of EUR  16 million and  opening of  Hortes Tähesaju Gardening
Center in the fourth quarter. After the balance sheet date, we announced that in
the  first  quarter  of  2020 EfTEN  Real  Estate  Fund III will acquire Latvian
national  airline, airBaltic's headquarters in Riga Airport and a production and
warehouse  facility in  the Kekava  near Riga,  thereby investing  a significant
amount  of  its  equity  raised  in  2019 into  cash-generating  real estate. In
addition,  the  fund's  management  proposes  to  the  2020 general  meeting  of
shareholders  to approve  the merger  with EfTEN  Kinnisvarafond AS,  which will
result in a real estate fund of approximately EUR 350 million.

The  Group's cash balance  allows dividends to  be paid from  the 2019 profit to
investors  in a total amount of EUR 3,465 million (82 cents per share), which is
35% more  than determined by the dividend policy  of EfTEN Real Estate Fund III.
The  dividend pay-out from  the year 2019 profit  will proceed after the general
shareholders' meeting in spring 2020.

Financial overview

The consolidated sales revenue of EfTEN Real Estate Fund III AS for 12 months of
2019 was  EUR  9,512 million  (12  months  of  2018: EUR  8,672 million),  which
increased  by 10% in a year. The Group's profit before revaluation of investment
properties,  cost of  performance fee,  depreciation and financial income/-costs
and  income tax expense in  2019 totalled EUR 7,571 million (2018: 6,822 million
euros),  which increased by 11% in  a year. The Group's  net profit for the same
period amounted to EUR 7,737 million (12 months of 2018: EUR 6,299 million). The
higher  net  profit  in  2019 is  due  to  additional property profit and higher
investment property revaluation profit, which in the current year was EUR 3,101
million, but EUR 1,562 million last year.

The consolidated gross profit margin in the 12 months of 2019 was 97% (12 months
of  2018: 96%). Therefore, expenses directly related to management of properties
(incl. land tax, insurance, maintenance and improvement costs) accounted for 3%
(12  months  of  2018: 4%) of  the  revenue.  The  Group's  expenses  related to
properties,  marketing  costs,  general  expenses,  other  income  and  expenses
accounted  for 22% of the revenue in 2019. The respective indicator was 22.3% in
the 12 months of 2018.

 As  at 31.12.2019, the Group's total assets were  in the amount of EUR 132,829
million  (31.12.2018:  108,503 million),  including  fair  value  of  investment
property, which accounted for 85% (31.12.2018: 95%) of the total assets.

During  2019, the net asset value of the share  of EfTEN Real Estate Fund III AS
increased  by 7.6%. From the 2018 profit, EUR 3,061 million (in spring 2018: EUR
2.191 million)  was  paid  out  in  dividends  in May 2019. Without the dividend
payment,  the Fund's NAV would have increased by 12% in 2019. Return on invested
capital (ROIC) was 17.1% in the 2019 financial year (12 months of 2018: 17.6%).

Access  to  flexible  financing  conditions  will  help  to increase the Group's
competitiveness. In 2019, the Group entered into new loan contracts in the total
amount of EUR 6,768 million in connection with the acquisition of new investment
properties.  As at the end  December, the average interest  rate on Group's loan
agreements  (including interest swap contracts)  was 1.8% (31.12.2018: the same)
and the LTV (Loan to Value) ratio was 52% (31.12.2018: the same).

During  2019, the Group earned a free cash  flow of EUR 3,381 million (12 months
of  2018: EUR 3,197 million). Following  the deduction of  Lithuanian income tax
expense  and the calculation of the dividend  income tax expense in Estonian and
Latvian companies, EfTEN Real Estate Fund III would be able to pay net dividends
to  the shareholders  in the  total amount  of EUR  2,545 million (60  cents per
share) from the profit earned in this year. However, the Group's cash balance at
the  end  of  2018 allows  to  pay  more  dividends  than  the  dividend  policy
establishes,  which is  why the  Management Board  of the  Fund proposes  to the
Council  in the spring of 2019 to pay  a dividend of EUR 3,465 million (82 cents
per  share). For the entire previous year,  the fund paid the shareholders a net
dividend of 95 cents per share.

Real estate portfolio

The  Group invests in commercial real estate  with a strong and long-term tenant
base.   At  the  end  of  2019, the  Group  had  11 (31.12.2018:  10) commercial
investment  properties with  a fair  value as  at the  balance sheet date of EUR
113.011 million  (31.12.2018: EUR  102.787 million) and  acquisition cost of EUR
101.746 million (31.12.2018: EUR 94.627 million).

On the 6th of February 2019, the Group's subsidiary EfTEN Autokeskus OÜ acquired
the  properties of ABC Motor's sales and service center on Paldiski highway. The
acquisition  cost of the  properties was EUR  3,018 million and a loan agreement
was  entered into  in the  amount of  EUR 1.8 million  for the  acquisition. The
maturity  of the  loan is  25.02.2024 and the  interest rate  is 2.95% + 6 month
Euribor.  A 0% floor  is set  for the  Euribor rate.  The expected annual rental
income from the investment property is EUR 258 thousand.

In  november  of  2019 the  subsidiary  of  the  Group,  EfTEN  Tähesaju tee OÜ,
completed  the construction of Tähesaju Hortses  in Tallinn. Tähesaju Hortes was
opened  to visitors in early November. The acquisition cost of the horticultural
center  totaled EUR 5,458 million and the  fair value of the investment property
as  at  31.12.2019 was  EUR  6,180 thousand.  For  the  construction of Tähesaju
Hortes,  the Group subsidiary took a bank  loan in amount of of EUR 3.29 million
at  an interest  rate of  1.95% + 1 month  EURIBOR. The  maturity of the loan is
11.01.2024.

After  the balance  sheet date,  on January  13, 2020, a subsidiary of the Group
signed  debt-purchase agreements for the acquisition of two commercial buildings
in  Latvia to acquire the airBaltic headquarters office building at Riga Airport
and  a  production  and  warehouse  facility  in  ?ekava, Riga. AirBaltic's main
building  was  completely  renovated  in  2016 and  the  current lease agreement
expires  in 2026. The major tenants of  the production and warehouse building in
?ekava are Fristads Kansas Production SIA and Forans SIA. The acquisition of the
two  buildings totals to EUR 15.8 million,  of which EUR 7.2 million is financed
by Swedbank and Luminor.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                     4th quarter    12 months
                                                    ---------------------------
                                                       2019  2018   2019   2018
-------------------------------------------------------------------------------
 EUR thousands
                                                    --------     --------
 Revenue                                              2,512 2,329  9,512  8,672
                                                    --------     --------
 Cost of services sold                                 -100  -135   -329   -319
                                                    ---------------------------
 Gross profit                                         2,412 2,194  9,183  8,353
                                                    --------     --------

                                                    --------     --------
 Marketing costs                                       -126  -103   -429   -435
                                                    --------     --------
 General and administrative expenses                   -870  -389 -1,847 -1,225
                                                    --------     --------
 Gain / loss from revaluation of investment
 properties                                          1, 641   600  3,101  1,562
                                                    --------     --------
 Other operating income and expense                      38    -4     37      3
                                                    ---------------------------
 Operating profit                                     3,095 2,298 10,045  8,258
                                                    --------     --------

                                                    --------     --------
 Interest income                                          0     0     14      0
                                                    --------     --------
 Finance costs                                         -161  -380 -1,197 -1,096
                                                    ---------------------------
 Profit before income tax                             2,934 1,918  8,862  7,162
                                                    --------     --------

                                                    --------     --------
 Income tax expense                                    -333  -167 -1,125   -863
                                                    ---------------------------
 Total comprehensive income for the financial period  2,601 1,751  7,737  6,299
-------------------------------------------------------------------------------

 Earnings per share
                                                    --------     --------
 - Basic                                               0.62  0.54   2.05   1.96
                                                    --------     --------
 - Diluted                                             0.62  0.54   2.05   1.96
-------------------------------------------------------------------------------



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                   31.12.2019   31.12.2018
                                 --------------------------
  EUR, thousands
                                 --------------
  ASSETS
                                 --------------
  Cash and cash equivalents            12,986        4,859
                                 --------------
  Short - term deposits                 6,000            0
                                 --------------
  Receivables and accrued income          667          673
                                 --------------
  Prepaid expenses                         51           46
                                 --------------
  Total current assets                 19,704        5,578
                                 --------------

                                 --------------
  Long-term receivables                     0           24
                                 --------------
  Investment property                 113,011      102,787
                                 --------------
  Property, plant and equipment           114          114
                                 --------------
  Total non-current assets            113,125      102,925
                                 --------------------------
  TOTAL ASSETS                        132,829      108,503
-----------------------------------------------------------

                                 --------------
  LIABILITIES AND EQUITY
                                 --------------
  Borrowings                           21,147        8,105
                                 --------------
  Derivative instruments                  271          189
                                 --------------
  Payables and prepayments              1,132        1,019
                                 --------------------------
  Total current liabilities            22,550        9,313
                                 --------------

                                 --------------
  Borrowings                           34,225       44,743
                                 --------------
  Other long-term liabilities             609          457
                                 --------------
  Deferred income tax liability         4,274        3,496
                                 --------------------------
  Total non-current liabilities        39,108       48,696
                                 --------------------------
  Total liabilities                    61,658       58,009
                                 --------------

                                 --------------
  Share capital                        42,225       32,225
                                 --------------
  Share premium                         9,658        3,658
                                 --------------
  Statutory reserve capital               936          621
                                 --------------
  Retained earnings                    18,352       13,990
                                 --------------------------
  Total equity                         71,171       50,494
                                 --------------------------
  TOTAL LIABILITIES AND EQUITY        132,829      108,503
-----------------------------------------------------------

Marilin Hein
CFO
Phone 655 9515
E-mail: [email protected] (mailto:[email protected])