Börsiteade

Fund manager's commentary

In Q3 2026, EfTEN Real Estate Fund AS focused on integrating the Magistral shopping centre, acquired in June, completing the reconstruction of Nõmme Südamekodu and maintaining the occupancy of its existing real estate portfolio. In August, the Fund carried out a directed share issue in which 197,463 new shares were issued at €19.26 per share, i.e. at the 60-day average closing price of the share preceding the decision to increase the share capital. The issue raised €3.8 million, which the Fund used to repay the €4 million fund-level loan taken out to acquire Magistral Kaubanduskeskuse OÜ.

The Fund's consolidated EBITDA for 9 months was €21.4 million, 7.5% higher than a year earlier. More than half of the increase, i.e. €786 thousand, came from the Magistral shopping centre. Like-for-like EBITDA increased by €788 thousand, or 4.2%.

In Q3, the Lidl lease at the Piepilsetas logistics centre was terminated early and several leases at the Betooni 6 logistics centre also expired, as a result of which portfolio vacancy temporarily increased to 3.0% in August. Following new lease agreements, vacancy fell to 2.2% by the end of September, its lowest level in the last three years. In the care home segment, rental income from Nõmme and Tartu Südamekodu increased as a result of investments made in Q3.

Due to the increase in EURIBOR, the weighted average interest rate of the Group's borrowings increased to 4.36% by the end of September (31.12.2025: 3.99%). Interest expense for Q3 was 14% higher than a year earlier, mainly due to the addition of the Magistral centre and Nõmme Südamekodu loan agreements, but also as a result of loan refinancing. For the 9-month period, however, interest expense remained 2.1% below the previous year's level, and the interest coverage ratio (ICR) was 4.3 (9 months of 2025: 3.9). The Fund's two interest rate swaps, which fix 1-month EURIBOR at 1.995% and 2.2%, had a positive fair value totalling €484 thousand at the end of September.

The Fund's adjusted cash flow for 9 months was €11.0 million, 15.6% higher than in the same period of the previous year, and the Fund has generated a potential gross dividend of 75.20 cents per share for investors (9 months of 2025: 66.66 cents).

The Fund's net asset value (NAV) per share was €20.41 and EPRA NRV €21.29 as at 30.09.2026.

Overview of financial results

The consolidated sales income of EfTEN Real Estate Fund AS for Q3 2026 was €9.117 million (Q3 2025: €8.359 million) and consolidated sales income for 9 months was €26.083 million (9 months of 2025: €24.427 million). Sales income for Q3 increased by 9.1% and sales income for 9 months by 6.8% compared with the same period of the previous year. The increase in sales income was supported by new investments in the logistics, retail and care home sectors.

The Fund's consolidated net operating income (NOI) for 9 months of 2026 totalled €24.278 million (2025: €22.678 million), an increase of 7.1% compared with the same period of the previous year. The 9-month NOI margin was 96% in 2026 (2025: 96%), meaning that costs directly related to property management (incl. land tax, insurance, maintenance and improvement works) and marketing costs accounted for 4% (2025: 4%) of the Fund's consolidated rental income.

In 9 months of 2026, the Fund earned a consolidated net profit of €15.018 million, 11.7% more than in the same period of the previous year. In 9 months of 2026, the Group generated adjusted cash flow (EBITDA less interest expense, loan principal repayments and income tax expense) totalling approximately €11.0 million, an increase of 15.6% compared with the same period of the previous year due to the higher level of EBITDA and lower interest expense. The Group's total assets amounted to €424.544 million as at 30.09.2026 (31.12.2025: €405.851 million), of which the fair value of investment property accounted for 94% (31.12.2025: 94%). 

Real estate portfolio

As at 30.09.2026, the Group held 36 (31.12.2025: 37) commercial investment properties with a fair value of €400.351 million at the reporting date (31.12.2025: €381.032 million) and an acquisition cost of €399.844 million (31.12.2025: €381.235 million). In addition to the above investment properties, the Group's 50% joint venture EfTEN SPV11 OÜ owns Hotel Palace in Tallinn, the fair value of which was €8.565 million as at 30.09.2026 (31.12.2025: €8.680 million).

In 9 months of 2026, investment property in the logistics segment decreased by €9.000 million due to the sale of the DSV logistics centre in Riga, and investment property in the office segment decreased by €8.100 million due to the sale of the Menulio 11 building in Vilnius. Investment property in the retail segment increased by €31.690 million due to the acquisition of the Magistral shopping centre in Tallinn.

Investments in 9 months of 2026

In June 2026, the Group acquired a 100% interest in Magistral Kaubanduskeskuse OÜ for €12.9 million. The company owns the Magistral shopping centre at Sõpruse pst 201/203, Tallinn, the fair value of which was €31.7 million on acquisition.

In 9 months of 2026, the Group invested a total of €4.781 million in its existing real estate portfolio, including the completion of the reconstruction of the Nõmme care home, in which €2.4 million was invested in 9 months.

Sales in 9 months of 2026

In March 2026, the Group sold its 100% interest in the subsidiary EfTEN Krustpils SIA, which owned the DSV logistics centre in Riga. The Group acquired the DSV logistics centre in June 2016 and the Fund earned an internal rate of return (IRR) of approximately 10% on the project. In April 2026, the Fund's subsidiary EfTEN Menulio UAB sold the office building it owned at Menulio 11, Vilnius. The sale price of the investment property was €571 thousand higher than its carrying amount. After repayment of the borrowings taken out to acquire Menulio 11 and settlement of other liabilities, the Fund received €5.3 million.

In April 2026, the Fund's subsidiary EfTEN SPV7 OÜ sold the property located at A.H. Tammsaare tee 116a, Tallinn, to Ignitis Eesti OÜ. EfTEN SPV7 OÜ earned a profit of €225 thousand on the transaction.

Rental income

In 9 months of 2026, the Group earned a total of €25.175 million in rental income, 6% more than in the same period of 2025.

The vacancy rate of the Group's investment property portfolio was 2.2% as at 30.09.2026 (31.12.2025: 3.2%). Vacancy in the office segment decreased over 9 months – from 14.4% at the end of 2025 to 7.5% at the end of September 2026. The sale of the Menulio 11 office building, where vacant premises accounted for 46%, contributed significantly to the decrease in office segment vacancy.

Financing

In 9 months of 2026, eight subsidiaries of EfTEN Real Estate Fund AS extended their bank loan agreements in a total amount of €31.6 million. The loan agreements of twelve of the Group's subsidiaries, with a total outstanding balance of €61.236 million as at 30.09.2026, will mature within the next 12 months. The LTV (loan-to-value) of the maturing loan agreements is 28%–59% and the investment properties generate stable rental cash flow; therefore, management believes there will be no obstacles to extending the loan agreements.

Owing to their improved financial capacity, the subsidiaries of EfTEN Real Estate Fund AS increased their bank loans by a total of €3.7 million in April 2026. In addition, construction works at the Nõmme care home were financed with bank loans totalling €2.9 million in 9 months of 2026.

In June 2026, EfTEN Real Estate Fund AS entered into a loan agreement of €4 million maturing on 01.06.2027 to finance the acquisition of Magistral Kaubanduskeskuse OÜ. The loan was repaid to the bank ahead of schedule on 25.09.2026 from the proceeds of the directed share issue carried out in August.

The weighted average interest rate of the Group's loan agreements (taking into account the interest rate swaps) was 4.36% as at 30.09.2026 (31.12.2025: 3.99%) and the LTV (loan-to-value) was 41% (31.12.2025: 41%). All of the Fund's loan agreements carry floating interest rates. To hedge interest rate risk, two of the Group's subsidiaries have entered into interest rate swaps with a total notional amount of €22.6 million, fixing the floating interest rate (1-month EURIBOR) at 1.995% and 2.2%.

The interest coverage ratio (ICR) of the Fund's loans was 4.3 as at 30.09.2026 (9 months of 2025: 3.9).

Share information

The registered share capital of EfTEN Real Estate Fund AS as at 30.09.2026 was €117,223 thousand (31.12.2025: €115,248 thousand). The share capital consisted of 11,722,309 shares (31.12.2025: 11,524,846 shares) with a nominal value of €10 (31.12.2025: the same).

In August 2026, the Fund carried out a directed share issue in which 197,463 new shares were issued at €19.26 per share, comprising a nominal value of €10 and a share premium of €9.26. The issue raised a total of €3,803 thousand, increasing the Fund's share capital by €1,975 thousand and share premium by €1,828 thousand.

After the reporting date, in October 2026, the Fund carried out a new share issue in which 26,797 new shares with a nominal value of €10 were issued. Following the registration of the share capital increase in the Commercial Register, the Fund's share capital will be €117,491 thousand and the number of shares 11,749,106.

The net asset value (NAV) per share of EfTEN Real Estate Fund AS was €20.41 as at 30.09.2026 (31.12.2025: €20.32). The NAV per share of EfTEN Real Estate Fund AS increased by 0.4% in 9 months of 2026. In April 2026, the Fund paid net dividends of €1.20 per share, totalling €13.8 million. Without the dividend distribution, the Fund's NAV would have increased by 6.3%.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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