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The net value of EfTEN Real Estate Fund III AS shares as of 31.01.2023

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In  December 2022, the  general meetings  of EfTEN  Real Estate  Fund III AS and
EfTEN  Kinnisvarafond  AS  decided  to  approve  the  merger of the funds with a
balance sheet date of 01.01.2023. Although the final legal merger is expected to
take place in March 2023, the consolidated reports of EfTEN Real Estate Fund III
AS   starting   from  01.01.2023 also  include  the  income,  expenses,  assets,
liabilities  and  equity  of  EfTEN  Kinnisvarafond  AS,  it's  subsidiaries and
affiliate,  due  to  the  balance  sheet  date  of  the merger and international
financial reporting standards (IFRS).

In  order to  correctly calculate  the net  asset value  per share of EfTEN Real
Estate  Fund III AS as of 31.01.2023, the  number of shares of EfTEN Real Estate
Fund  III  AS  has  been  for  reporting  purposes  increased,  which presumably
corresponds  to the number of  shares to be issued  to the shareholders of EfTEN
Kinnisvarafond  AS  in  order  to  carry  out the merger. According to unaudited
reports,  a total of 5,747,261 shares will  be issued to EfTEN Kinnisvarafond AS
in connection with the merger, and the number of shares of EfTEN Real Estate III
AS after the merger is a total of 10,819,796 shares.

Financial results of EfTEN Real Estate Fund III AS, January 2023

The  consolidated rental  income of  EfTEN Real  Estate Fund  III AS  was 2,495
thousand  euros in January, i.e. 1.93 times  (1,201 thousand euros) more than in
December.  From this increase,  1,335 thousand euros is  the consolidated rental
income  from EfTEN Kinnisvarafond AS properties, and -169 thousand is related to
the  December turnover rent of the Saules  Miestas shopping center, which is not
included  in the January results.  The rest of the  increase in rental income is
mainly related to rent indexations.

In  January, the consolidated property  management expenses totaled 125 thousand
euros,  including  82 thousand  euros  of  the  consolidated  expenses  of EfTEN
Kinnisvarafond  AS properties. The general expenses of both funds were below the
usual  January level.  General expenses  totaled 295 thousand  euros in January,
i.e. 73 thousand euros more than in December.

The  fund's  consolidated  EBITDA  was  2,136 thousand  euros  in January (1,044
thousand  euros more  than in  December). For  properties that  have been on the
fund's  balance sheet for at least  two consecutive years (Like-for-like) EBITDA
has increased by 4.1% as compared to January last year.

The  consolidated adjusted cash  flow of EfTEN  Real Estate Fund  III AS totaled
954 thousand  euros in January,  i.e. 316 thousand euros  more than in December.
The  relatively small  increase, considering  the proportions  of the two funds'
finances,  is related to  December loan amortization  payments, which in several
Lithuanian  subsidiaries fell to January 2, i.e.  in January, the fund paid loan
amortization  of approx.  100 thousand euros  more than  usual. Additionally, as
mentioned  above, the December results of EfTEN Real Estate Fund III AS included
the  turnover rent  of the  Saules Miestas  shopping center. Without taking into
account  the turnover rent and larger loan  payments, the adjusted cash flow for
January  would be 1,054 thousand  euros and the  adjusted cash flow for December
would  be 502 thousand euros, i.e. in a  usual situation, the adjusted cash flow
would increase by 2.1 times.

The   fund's   consolidated   cash  balance  was  23,893 thousand  euros  as  of
31.01.2023, and  the cash  balance increased  by 12,563 thousand  euros. Of this
11,621 thousand  is the consolidated cash balance  of EfTEN Kinnisvarafond AS as
of 31.12.2022.

The  weighted average interest rate of the two  funds was 4.07% as of the end of
January (31.12.22: 3.69%). LTV increased from 40% to 41% after the balance sheet
date of the merger.

Considering  the dividend policy and dividend capacity of EfTEN Real Estate Fund
III  AS  (including  the  share  of  EfTEN  Kinnisvarafond  AS),  the fund could
distribute  a total of  12,471 thousand euros in  net dividends from last year's
results.  Considering the number of shares to be increased during the merger, it
is  1.15 euros per share. Last year, EfTEN Real Estate Fund III AS distributed a
total of 4,058 thousand euros in net dividends (80 cents per share).

The  net  asset  value  per  share  (NAV)  of  EfTEN Real Estate Fund III AS was
21.4187 euros  as of  31.01.2023, and the  NAV increased  by 4.2% as compared to
December.  Such an extraordinary  increase in NAV  comes from the  fact that the
targeted  issue related to merger is based  on EPRA's NRV. EPRA NRV was 22.0596
euros as of 31.01.2023, and it increased by the "usual" of 0.7% in January.

Marilin Hein
CFO
Phone +372 6559 515
E-mail: [email protected] (mailto:[email protected])