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EfTEN Real Estate Fund AS unaudited results for 4th quarter and 12 months 2025

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Fund Manager's Commentary

Despite  a challenging economic environment, EfTEN Real Estate Fund AS succeeded
in  2025 in increasing both total consolidated rental income (+3%) and portfolio
EBITDA  (+1.3%).  During  2025, the  Fund's  subsidiaries  made  new investments
amounting  to EUR6.6 million in  the elderly care segment  and EUR5.3 million in the
logistics  segment. In  the remainder  of the  real estate  portfolio, the Group
invested a total of EUR2.3 million.

The  share of EfTEN Real Estate Fund AS is primarily a dividend share. In 2025,
the  Fund generated free cash flow of  EUR13.088 million, which is 18% higher than
in  the previous year.  Based on the  free cash flow  earned, the Fund could, in
accordance  with  its  dividend  policy,  distribute  gross  dividends  of EUR10.5
million.  Taking into account  the Fund's conservative  financing policy and the
annuity-based  loan  repayments,  the  Fund's  subsidiaries are able to increase
their dividend capacity by refinancing loans where the loan-to-value (LTV) ratio
has  fallen below the limits set in the Fund's capital management principles and
where  operating cash flows exceed loan  principal and interest payments by more
than  two times. Considering  the additional funds  potentially received through
loan refinancing, the Management Board proposes to the Supervisory Board and the
General  Meeting to distribute net dividends from retained earnings in the total
amount of EUR13.8 million (EUR1.2 per share) in spring 2026, which is 8.1% more than
in the previous year.

In  a prolonged period of low economic  activity, the Group pays close attention
to maintaining a high occupancy level across its buildings. At the end of 2025,
the  occupancy rate of the Group's entire  real estate portfolio stood at 96.8%
(31  December  2024: 97.4%). Occupancy  remains  lowest  in  the  office segment
(85.6%),  where the Fund continues to invest  in order to meet market demand for
smaller office units.

In the summer of 2025, the second stage of the ERMI elderly care home located in
Tartu municipality was completed, with rental income gradually increasing to the
contractual  level by August. Together with the  Hiiu elderly care home added in
April  and the completion of a new stage of the Valkla elderly care home, rental
income  from the elderly care segment increased to EUR1.4 million in 2025, i.e. by
74%.

Excluding  non-cash gains and losses and income tax expense, the Group generated
the  highest  operating  profit  in  its  history  in  2025, amounting to EUR20.24
million,  which is 12.5% higher than in  2024. A significant contribution to the
higher  profit was primarily made by the decrease in interest expenses resulting
from  the decreased EURIBOR. While in 2024 the weighted average interest rate of
the  Fund's loan portfolio was 5.82%, in 2025 it was 4.35%. At the end of 2025,
the weighted average interest rate on the Fund's loans stood at 3.99%.


Overview of Financial Results

EfTEN  Real Estate Fund AS's consolidated sales income for the fourth quarter of
2025 amounted  to EUR8.656 million  (Q4 2024: EUR8.314 million),  while sales income
for  the last  12 months totalled  EUR33. 083 million  (12 months of 2024: EUR32.238
million).  Compared to  the same  period last  year, fourth-quarter sales income
increased  by  4.1% and  12-month  sales  income  by 2.6%. The increase in sales
income  was primarily supported by new  investments in the logistics and elderly
care segments.

The  Fund's  consolidated  net  rental  income  (NOI) for the 12 months of 2025
amounted  to EUR30.685 million (12  months of 2024: EUR29.977 million), representing
an  increase of 2.4%. The 12-month NOI margin remained at 93% (2024: unchanged),
meaning  that costs directly related to property management (including land tax,
insurance,  maintenance  and  improvement  works)  as well as marketing expenses
accounted for 7% of the Fund's sales income.

In  the  fourth  quarter  of  2025, the  Fund's consolidated net loss was EUR1.208
million  (Q4 2024: net  profit of  EUR3.460 million),  of which EUR4.005 million was
attributable  to a loss from changes in  the fair value of investment properties
(Q4 2024: gain of EUR0.831 million).

For  the  12 months  of  2025, the  Fund's  consolidated  net profit amounted to
EUR12.235 million (12 months of 2024: EUR13.564 million). In 2025, the Fund earned a
total  loss  of  EUR3.459  million  from  changes  in the fair value of investment
properties (2024: loss of EUR1.080 million). Interest expenses decreased by EUR1.996
million, or 23%, compared to the same period last year.

As  of 31 December 2025, the  Group's total assets  amounted to EUR405.851 million
(31  December 2024: EUR398.763  million), of  which the  fair value  of investment
properties accounted for 93.9% of total assets (31 December 2024: 93.7%).


Real Estate Portfolio

As of 31 December 2025, the Group held 37 commercial real estate investments (31
December  2024: 36), with a  fair value  of EUR381.032  million as  at the balance
sheet  date  (31  December  2024: EUR373.815  million)  and an acquisition cost of
EUR381.235  million (31 December 2024: EUR370.561 million).  In addition to the real
estate investments owned by the Fund's subsidiaries, the Group also holds a 50%
interest in the joint venture owning the Palace Hotel in Tallinn, the fair value
of  which amounted to EUR8.680 million  as at 31 December 2025 (31 December 2024:
EUR8.630 million).


Investments in 2025

Over  the 12 months of  2025, the Group invested  a total of  EUR10.676 million in
both  new investment properties and the  development of the existing real estate
portfolio.

In  March, the Group's subsidiary  EfTEN Hiiu OÜ acquired  a property located at
Hiiu  42, Tallinn,  for  EUR4.0  million.  Under  an existing lease agreement, the
property  continues to  be partially  used by  the North  Estonia Medical Centre
Foundation,  while the  remaining premises  were leased  under a long-term lease
agreement  (10  +  10 years)  to  Hiiu  Südamekodu  OÜ,  which  belongs  to  the
Südamekodud  AS group.  In cooperation  with the  tenant and Südamekodud AS, the
building  is being  partially redeveloped  into a  general nursing  home, "Nõmme
Südamekodu",  which will  accommodate up  to 170 elderly  care residents  in the
future.

In  the  first  half  of  2025, construction  works  of the C-wing of the Valkla
elderly  care home were completed, and in the third quarter, the second stage of
the ERMi elderly care home in Tartu was finalised.

In April 2025, the Paemurru logistics centre, acquired in autumn of the previous
year,  was  completed.  Total  investments  in  the  logistics centre during the
reporting year amounted to EUR1.746 million.


Rental income

Over  the 12 months  of 2025, the  Group earned  total rental  income of EUR32.013
million, which is 3% higher than in the same period of 2024.

As at 31 December 2025, the vacancy rate of the real estate investments owned by
the  Group stood  at 3.2% (31  December 2024: 2.6%). Vacancy  was highest in the
office  segment (14.4%), where  the letting of  vacant premises has taken longer
than in previous periods.


Financing

Due  to improved financial capacity, the  subsidiaries of EfTEN Real Estate Fund
AS  increased the  total amount  of their  bank loans  by EUR7.32 million in April
2025. In addition, in 2025 the construction works of the Valkla and ERMi elderly
care  homes and the Paemurru  logistics centre were financed  with bank loans in
the  total amount of EUR3.184 million. The Fund's subsidiary EfTEN Hiiu OÜ entered
into  a  loan  agreement  in  the  amount  of  EUR3.650  million  to  finance  the
reconstruction  works of the building located  at Hiiu 42, of which EUR0.7 million
had been drawn down as at 31 December 2025.

Over  the next 12 months, loan agreements of ten Group subsidiaries will mature,
with an outstanding balance of EUR37.057 million as at 31 December 2025. The loan-
to-value  (LTV) ratios  of the  maturing loan  agreements range  between 34% and
60%, and   the   investment   properties  generate  stable  rental  cash  flows.
Accordingly,  the Group's  management does  not anticipate  any obstacles to the
extension of these loan agreements.

As  at 31 December 2025, the weighted average  interest rate of the Group's loan
agreements  was  3.99% (31  December  2024: 4.89%), and  the LTV (Loan-to-Value)
ratio  was  41% (31  December  2024: 40%). All  loan  agreements  of  the Fund's
subsidiaries are linked to floating interest rates. To hedge interest rate risk,
two  Group subsidiaries entered into interest  rate swap agreements with a total
notional  amount of EUR22.6 million, thereby fixing the floating interest rate (1-
month EURIBOR) at levels of 1.995% and 2.2%.

The  interest coverage  ratio (ICR)  of the  Fund's loans was 4.0 in 2025 (2024:
3.0). The increase in the ICR was mainly caused by the decrease in EURIBOR.

Due  to  the  scheduled  repayments  of  loans secured by the Group's investment
properties  and the low level of financial leverage, the Fund's management plans
to refinance loans also in early 2026, thereby increasing the Fund's capacity to
distribute dividends.


Share information

In  November 2025, the Fund issued 84,506 new shares at an issue price of EUR19.11
per share, consisting of a nominal value of EUR10.00 and a share premium of EUR9.11.
As  a result of the  issue, the Fund's share  capital increased by EUR845 thousand
and  the share  premium by  EUR770 thousand  (total increase  of EUR1,615 thousand).
Direct  costs related to the share issue  amounted to EUR20 thousand. The increase
in share capital was registered in the Commercial Register on 27 November 2025.

As  at 31 December 2025, the registered share  capital of EfTEN Real Estate Fund
AS  amounted  to  EUR115,248  thousand  (31 December 2024: EUR114,403 thousand). The
share  capital  consisted  of  11,524,846 shares  (31 December 2024: 11,440,340
shares) with a nominal value of EUR10 per share (31 December 2024: unchanged).

As at 31 December 2025, the net asset value (NAV) per share of EfTEN Real Estate
Fund  AS was EUR20.32 (31  December 2024: EUR20.37). The NAV  per share decreased by
0.25% in  2025. Without  dividend  distributions,  the  Fund's  NAV  would  have
increased by 4.7% over the year.

In 2025, the trading turnover of EfTEN Real Estate Fund AS shares on the Tallinn
Stock  Exchange amounted  to EUR6.16  million, doubling  compared to  the previous
year.

During 2025, the Group generated adjusted cash flow (EBITDA minus loan principal
repayments  minus interest expenses) of EUR13.088 million (2024: EUR11.109 million),
increasing  by 18% compared  to the  same period  last year.  This was primarily
driven  by additional cash flows from new acquisitions and development projects,
as well as lower interest expenses resulting from the decrease in EURIBOR. Based
on  the cash  flow generated,  the Fund  could, in  accordance with its dividend
policy, distribute gross dividends of EUR10.5 million.

Due   to  the  Fund's  conservative  financing  policy  and  annuity-based  loan
repayments,  the Fund's subsidiaries are able to increase their dividend payment
by  refinancing loans where  the loan-to-value (LTV)  ratio has fallen below the
limits  set out in the Fund's  capital management principles and where operating
cash  flows exceed loan principal and interest  payments by more than two times.
Taking  into account the additional funds released through loan refinancing, the
Management  Board proposes to  the Supervisory Board  and the General Meeting to
distribute  net dividends  from retained  earnings in  spring 2026 in  the total
amount  of EUR13.8 million (EUR1.2  per share), i.e. 8.1% more  than in the previous
year.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


-------------------------------------------------------------------------------

                                                     IV quarter     12 months
-------------------------------------------------------------------------------
                                                      2025   2024   2025   2024
-------------------------------------------------------------------------------
 EUR thousands
-------------------------------------------------------------------------------
 Revenue                                             8,656  8,314 33,083 32,238
-------------------------------------------------------------------------------
 Cost of services sold                                -399   -337 -1,677 -1,569
-------------------------------------------------------------------------------
 Gross profit                                        8,257  7,977 31,406 30,669
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Marketing costs                                      -250   -203   -721   -692
-------------------------------------------------------------------------------
 General and administrative expenses                -1,138   -987 -3,982 -3,666
-------------------------------------------------------------------------------
 Profit / loss from valuation of investment
 properties                                         -4,005    831 -3,459 -1,080
-------------------------------------------------------------------------------
 Other operating income and expense                     31      1     50     88
-------------------------------------------------------------------------------
 Operating profit/loss                               2,895  7,619 23,294 25,319
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Profit / loss from joint ventures                      55     53    222   -118
-------------------------------------------------------------------------------
 Interest income                                        45     62    185    278
-------------------------------------------------------------------------------
 Other finance income and expense                   -1,521 -2,052 -6,693 -8,696
-------------------------------------------------------------------------------
 Profit before income tax                            1,474  5,682 17,008 16,783
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Income tax expense                                 -2,682 -2,222 -4,773 -3,219
-------------------------------------------------------------------------------
 Net profit for the reporting period                -1,208  3,460 12,235 13,564
-------------------------------------------------------------------------------
 Net comprehensive profit for the reporting period  -1,208  3,460 12,235 13,564
-------------------------------------------------------------------------------
 Earnings per share
-------------------------------------------------------------------------------
 - basic                                             -0.11   0.32   1.07   1.25
-------------------------------------------------------------------------------
 - diluted                                           -0.11   0.32   1.07   1.25
-------------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF FINANCIAL POSITION


                                   31.12.2025   31.12.2024
-----------------------------------------------------------
  EUR thousands
-----------------------------------------------------------
  ASSETS
-----------------------------------------------------------
  Cash and cash equivalents            19,957       18,415
-----------------------------------------------------------
  Short-term deposits                     320        2,092
-----------------------------------------------------------
  Derivatives                              13            0
-----------------------------------------------------------
  Receivables and accrued income        1,697        2,055
-----------------------------------------------------------
  Prepaid expenses                        293          138
-----------------------------------------------------------
  Total current assets                 22,280       22,700
-----------------------------------------------------------

-----------------------------------------------------------
  Long-term receivables                   164          154
-----------------------------------------------------------
  Shares in joint ventures              2,182        1,960
-----------------------------------------------------------
  Investment property                 381,032      373,815
-----------------------------------------------------------
  Property. plant and equipment           193          134
-----------------------------------------------------------
  Total non-current assets            383,571      376,063
-----------------------------------------------------------
  TOTAL ASSETS                        405,851      398,763
-----------------------------------------------------------

-----------------------------------------------------------
  LIABILITIES AND EQUITY
-----------------------------------------------------------
  Borrowings                           42,261       30,300
-----------------------------------------------------------
  Derivatives                               6            0
-----------------------------------------------------------
  Liabilities and prepayments           2,913        3,245
-----------------------------------------------------------
  Total current liabilities            45,180       33,545
-----------------------------------------------------------

-----------------------------------------------------------
  Borrowings                          111,727      119,120
-----------------------------------------------------------
  Other long-term liabilities           1,992        1,928
-----------------------------------------------------------
  Deferred income tax liability        12,748       11,097
-----------------------------------------------------------
  Total non-current liabilities       126,467      132,145
-----------------------------------------------------------
  Total liabilities                   171,647      165,690
-----------------------------------------------------------

-----------------------------------------------------------
  Share capital                       115,248      114,403
-----------------------------------------------------------
  Share premium                        91,076       90,306
-----------------------------------------------------------
  Statutory reserve capital             4,156        2,799
-----------------------------------------------------------
  Retained earnings                    23,724       25,565
-----------------------------------------------------------
  TOTAL EQUITY                        234,204      233,073
-----------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY        405,851      398,763
-----------------------------------------------------------

Marilin Hein
CFO
Phone +372 6559 515
E-mail: [email protected] (https://www.globenewswire.com/Tracker?data=o00-E-
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