EfTEN Real Estate Fund III AS Net Asset Value per share as of 31.05.2018

In May 2018, EfTEN Real Estate Fund III AS made its fifth property investment in Lithuania by acquiring an office building ‘Evolution’ in Vilnius. The acquisition cost of the office building was EUR 9 million, including concurrent costs. At the moment of the transaction, Colliers International Advisors estimated the fair value of the investment property at EUR 10 million. For the acquisition of an investment property, Fund’s Lithuanian subsidiary concluded a loan agreement with SEB bank in the amount of 5.850 thousand euros. The loan maturity date will be 2023 and the interest rate will be 2% per annum. Rents from the Evolution office building will start from June 2018.

In May, the Group also started investing in the construction of the second ‘Hortes’ garden center by acquiring a property at Tähesaju 5, Tallinn. Investments totaled 900 thousand euros in May, including the first planning expenses.

Saules Miestas UAB and EfTEN Krustpils SIA, the subsidiaries of EfTEN Real Estate Fund III AS, increased their bank loans for the repayment of owner loans totaling 3.1 million euros in May. The funds received from the return of owner loans were invested in the projects described above.

The fund's ordinary business was stable in May. The rental income was 624 thousand euros (625 thousand euros in April) and EBITDA 533 thousand euros (in April, 520 thousand euros). Net profit amounted to 1,185 thousand euros, including the revaluation of ‘Evolution’ project. 

Within the five months of this year, EfTEN Real Estate Fund III has earned sales of 3 360 thousand euros (an increase compared to last year's + 14%). The EBITDA for the same period is 2.646 thousand euros (also 14% more than last year). The basis for the calculation of dividends (EBITDA minus corporate income tax expense minus loan and interest payments) would allow 1,018 thousand euros (32 cents per share) net dividends to be paid out on the basis of the results of the five months of the fund in total 1 018 thousand euros. EfTEN Real Estate Fund III AS paid 68 cents dividends per share for the net profit of the previous year.

EfTEN Real Estate Fund III consolidated assets as at 31.05.2018 amounted to 105.8 million euros (31.12.2017: 97.3 million euros) and equity 46.9 million euros (31.12.2017: 46.4 million euros). The Fund's 12-month return on average paid-in capital is 22.2% at the end of May.

EfTEN Real Estate Fund III AS NAV was EUR 14.57 as at 31.05.2018. NAV grew by 2.6% in May. Without the profit from the Evolution project revaluation, NAV would have grown by 0.8%, compared to April 2018.

Marilin Hein
CFO
Phone: 655 9515
E-mail: marilin.hein@eften.ee