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EfTEN Real Estate Fund III AS management decisions during the crisis and the net asset value as of 31.03.2020

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Comments by fund manager, Viljar Arakas:

March  was the month of  the transition from the  normal economic environment to
the  crisis management  phase. Significant  restrictions by  Baltic governments,
incl.  restrictions on the freedom of movement  in shopping centers, was made in
mid-March,  which divided the month  into two - the  business as usual first two
weeks,  followed by two weeks of crisis. April  will be the central month of the
crisis,  and  May  will  hopefully  be  the  month  of  lifting  the  previously
established restrictions during the crisis and ending the state of an emergency.
It  will however  take several  months after  the end  of the  medical crisis to
restore the consumer confidence.

Cash  flow management is  the main objective  in portfolio management during the
crisis.  We  have  started  negotiations  with  the banks to apply the temporary
(minimum  3 months, rather  6 months) grace  periods. As  EfTEN Real Estate Fund
III's  usual summarized repayment  of principal part  on bank loans has averaged
230 thousand  euros  per  month  (30%  of  the Fund's monthly rental income), it
provides  us with the necessary  additional cash flow buffer  to help us provide
temporary  rent  discounts  to  our  tenants  during the crisis. In March, grace
periods began on two loan agreements of the Fund, which had a positive effect on
cash flows of 80 thousand euros.

The  primary task of the fund manager is always to take care of the interests of
investors, but at the same time help our dozens of tenants to survive the crisis
economically.  We have not  implemented uniform temporary  discount policies for
all  tenants, as  each customer  needs to  find a  solution that considers their
business vulnerabilities in times of current crisis. The rent reductions offered
are  also temporary, lasting for couple of months, and in no case permanent - in
most cases we have agreed with the tenants to extend the term of the contract in
normal  rent level for the same period as the rent reduction currently lasts. We
have  followed this principle for all  segments - offices, retail and logistics.
It  is important to ensure a positive monthly cash flow on every property, which
takes into account both temporary rent reductions and grace periods.

EfTEN  Real Estate Fund  III is well-capitalized,  and the grace  periods of the
loan principals help the Fund's tenants during the crisis. We believe that April
is the most difficult month, and observing the trends in the spread of the virus
in the rest of the world, we can expect that in May the restrictions on movement
will decrease and gradual normal economic life can start again.

Financial results and net asset value per share

The  net asset value (NAV) of EfTEN Real Estate Fund III AS as of 31.03.2020 was
17.18 euros.  NAV increased by  0.6% in March. The  net asset value  of the EPRA
share  (net book value excluding deferred income tax liability and fair value of
interest  rate derivatives) as of 31.03.2020 was 18.28 euros. EPRA NAV increased
by 0.5% during March.

The  March results include for the first time the revenues, expenses, assets and
liabilities of the two newly purchased properties - Piepilsetas logistics center
and  airBaltic headquarters  at Riga  Airport, which  resulted in an increase in
March sales revenue of 103 thousand euros, increased Fund assets by 16.4 million
euros and liabilities by 7.3 million.

The Fund's sales revenue has decreased by a total of 103 thousand euros in March
due  to temporary agreements with tenants (approximately 13% of the fund's usual
level).  At the same time,  according to the agreement  with the banks, the fund
has  received a grace period since March  for two loan principal payments in the
total  amount  of  80 thousand  euros.  As  of  the  end  of March, the Fund has
receivables  from customers  totaling 504 thousand  euros, of which 305 thousand
euros  have  exceeded  their  maturity  mainly  due to ongoing negotiations with
customers.  Receivables from customers include both rental and utility services,
ie  receivables  that  are  not  recognized  in  the  Fund's  sales according to
accounting  rules. In March, the Fund has  made a provision for rental income in
the  amount  of  90 thousand  euros.  Previously  provisioned  but received debt
receivables are recognized in income in the month in which they are received.

EfTEN  Real Estate Fund III AS earned a total of 556 thousand euros in EBITDA in
March, which is 105 thousand euros less than in February. The decrease in EBITDA
was  mainly related to the due diligence costs related to the acquisition of two
new  subsidiaries. Repayments of  principal and interest  payments on the Fund's
loans  totaled 429 thousand euros in March, incl. the February loan and interest
payments  that banks debited from the  accounts of several subsidiaries in early
March  in the total amount of 132 thousand  euros. Thus, the Fund earned a total
positive  cash flow of  127 thousand euros in  March, including partial February
loan payments.

The  net  profit  of  the  Fund  was  422 thousand euros in March 2020 (February
2020: 477 thousand euros).

As of 31.03.2020, the consolidated cash balance of EfTEN Real Estate Fund III AS
was  10.4 million euros, of which 4.7 million euros is the balance of uninvested
capital received from the last share issue.

As  of 31.03.2020, the consolidated assets of EfTEN Real Estate Fund III AS were
140.6 million  euros  (31.12.2019:  132.8 million  euros)  and  equity was 72.5
million euros (31.12.2019: 71.17 million euros).

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