November 3, 2024
Financial Assets

EfTEN United Property Fund unaudited financial results for 2nd quarter and I half-year of 2024


EFTEN UNITED PROPERTY FUND

EFTEN UNITED PROPERTY FUND

EfTEN United Property Fund (hereinafter the Fund) earned 307 thousand euros in net profit in the second quarter of 2024 (2023 second quarter: 37 thousand euros in net loss). The fund’s revenues increased from 8 thousand euros to 355 thousand euros during the year. During the I half of 2024 the Fund earned 401 thousand euros in net profit (2023 I half: 71 thousand euros net loss).

The Fund’s assets amounted to 26,411 thousand euros as of 30.06.2024 (31.12.2023: 26,259 thousand euros), of which long-term investments make up 70.0% as of the end of June 2024 (31.12.2023: 68.6%).

In the II quarter of 2024, the Baltics’ real estate market continued to stabilize and the first signs of an increase in transaction activity appeared. Above all, this is due to the decrease in euro interest rates (the 6-month EURIBOR fell by almost 20 basis points in half a year), which has after many years started to reduce again the cost of debt in the sector.

The increasing activity is most clearly visible in the residential real estate sector, where in the second quarter a record number of new sales contracts were signed at the Uus-Järveküla development project financed by EfTEN United Property Fund. As of the end of June, almost 60% of the final development volume of the residential area has been purchased or booked by customers. At the same time, the construction market is still fairly quiet, and there is currently little pressure on construction costs. This made enabled under favorable conditions to start the development of the third stage in the residential district of Uus-Järveküla at the end of the first half of the year. Altogether 18 terraced houses will be built during the third stage.

Although transaction activity in the commercial real estate segment remains relatively low, some signs of recovery can be seen there as well. Owners have started to adjust their sales price expectations downwards compared to the period of a few years ago, which should increase the market activity further. In such an environment, EfTEN United Property Fund aims to invest the majority of the portfolio in commercial cash-flow generating real estate in the second half of 2024. In addition, the fund plans to make a second distribution this year from the income received from underlying funds and interest.

Statement of the comprehensive income

 

2nd quarter

6 months

 

2024

2023

2024

2023

€ thousand

 

 

 

 

INCOME

 

 

 

 

Interest income

159

135

310

241

Dividend income

238

329

260

352

Other financial income

0

0

5

0

Net profit / loss from assets recognised in fair value through profit or loss

-42

-456

-65

-529

Investments in subsidiaries

8

-104

-140

-76

Investments in funds

-50

-352

75

-453

Total income

355

8

510

64

 

 

 

 

 

COSTS

 

 

 

 

Operating expenses

 

 

 

 

Management fee

-28

-27

-56

-54

Costs of administering the Fund

-10

-6

-16

-18

Other operating expenses

-10

-12

-37

-63

Total operating expenses

-48

-45

-109

-135

 

 

 

 

 

Profit / loss for the period

307

-37

401

-71

Total profit / loss for the period

307

-37

401

-71

 

 

 

 

 

Ordinary and diluted earnings / loss per share (EUR)

0,12

-0,01

0,16

-0,03

Statement of financial position

 

30.06.2024

31.12.2023

€ thousand

 

 

ASSETS

 

 

Current assets

 

 

Cash and cash equivalents

5 500

5 731

Short-term deposits

1 563

1 795

Other receivables and accrued income

862

711

Total current assets

7 925

8 237

 

 

 

Non-current assets

 

 

Financial assets at fair value through profit or loss

12 818

12 354

Investments in subsidiaries

914

1 054

Real estate funds

11 904

11 300

Loans granted

5 668

5 668

Total non-current assets

18 486

18 022

TOTAL ASSETS

26 411

26 259

 

 

 

LIABILITIES

 

 

Current liabilities

13

3

Total liabilities, excluding net asset value of the fund attributable to shareholders

13

3

 

 

 

NET ASSET VALUE OF THE FUND

 

 

Net asset value of the fund attributable to shareholders

26 398

26 256

Total liabilities and net asset value of the fund attributable to shareholders

26 411

26 259

The unaudited 2nd quarter and I half-year 2024 report of the EfTEN United Property Fund is attached to the release and can be found on the Fund’s website: https://eftenunitedpropertyfund.ee/en/reports-documents/

Kristjan Tamla
Managing Director
Phone 655 9515
E-mail: kristjan.tamla@eften.ee

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