EfTEN Actual Property Fund III AS unaudited monetary outcomes for 2nd quarter and 1st half-year 2022

EfTEN Actual Property Fund III

The fund supervisor’s feedback on the monetary outcomes of the primary half-year of 2022

The primary half-year of 2022 turned out to achieve success for EfTEN Actual Property Fund III AS. The fund’s income elevated to EUR 6.988 million, i.e. 17.3% in comparison with the final 12 months’s first half-year. In June, the fund’s impartial appraiser Colliers Worldwide valued the fund’s actual property portfolio, because of that the worth of the fund’s funding properties elevated by 2.2% and the fund earned revenue within the quantity of EUR 3.702 from the revaluation.

Within the first half-year. The fund bought two new funding properties – land plots for Valkla and Ermi care properties that are deliberate to accommodate as much as 370 clients when completed. To buy the care properties and preliminary investments whole of EUR 2.343 million has been spent as of June 30, 2022.

In June, 2022, the fund’s subsidiary EfTEN Laagri OÜ prolonged its financial institution mortgage on present situations (curiosity with the margin of 1.4%) for the following 5 years. Within the following 12 months, the fund’s three loans which have mortgage on Laagri Hortes, Evolution workplace constructing and Piepilsetas logistics centre will meet its’ maturity dates. All funding properties which are set as collateral have robust rental money movement and LTV is between 31% and 41%, attributable to which the administration doesn’t see danger associated to extending the mortgage contracts when the maturity date arrives. Somewhat, given the low degree of LTV, Group managers see a possibility to extend mortgage quantities and pay buyers the next dividend from the funds obtained.

As of June 30, 2022, the fund has EUR 3.5 million uninvested capital that’s deliberate to make use of for growth of bought care residence land plots.

Monetary overview

The consolidated income of EfTEN Actual Property Fund III AS for the second quarter of 2022 was EUR 3.530 million (2021 second quarter: EUR 3.088 million), rising by 14% through the 12 months.

The consolidated income of EfTEN Actual Property Fund III AS for the primary half-year of 2022 was EUR 6.988 million (2021 first half-year: EUR 5.955 million), rising by 17% in comparison with final 12 months (EUR 1.033 million). The Group’s internet rental revenue of the primary half-year of 2022 was EUR 6.666 million (2021: EUR 5.726 million), rising by 17%. The Group’s internet revenue for a similar interval was EUR 7.882 million (2021: EUR 5.470 million).

Within the first half-year of 2022, the consolidated internet rental revenue margin was 95% (2021: 96%), thus, the bills immediately associated to the administration of actual property (incl. land tax, insurance coverage, upkeep, and enchancment prices) and advertising bills accounted for five% (2021: 4%) of income.

As of June 30, 2022, the amount of the Group’s whole property was EUR 178.422 million (31.12.2021: EUR 176.401 million), incl. the honest worth of the funding properties that accounted for 95% of the entire property (31.12.2021: 92%).

Actual property portfolio

As of the on June, 2022, the Group had 18 (31.12.2021: 16) business actual property investments with a good worth as of steadiness sheet date within the quantity of EUR 168.604 million (31.12.2021: EUR 161.961 million) and acquisition value of EUR 150.575 million (31.12.2021: EUR 147.633 million).

In April, the fund’s subsidiary EfTEN Valkla OÜ acquired actual property situated in Valklaranna tee 36, Valkla. The fund plans to rework the constructing from care residence to basic care residence that would accommodate as much as 250 clients sooner or later. Renovation work is carried out in phases. The acquisition value of the true property plot was EUR 2,005 thousand and as well as, the fund’s subsidiary is required to hold out investments on the quantity of EUR 2,000 thousand. Buy of the true property plot and investments are financed by the fund’s personal property.

In April, the fund’s subsidiary EfTEN Ermi OÜ acquired constructing rights situated in Ermi tn 13, Tila village, Tartu parish in Tartu county. The fund plans to develop a care residence for minimal of 120 clients on the land plot used based mostly on the constructing rights. The constructing rights’ maturity date is 50 years, which is feasible to increase as much as 99 years in settlement with the landowner. After creating a care residence within the land plot, it will likely be leased to Südamekodud AS based mostly on a long-term lease contract. The acquisition value of the constructing rights was EUR 233 thousand- Buy of the constructing rights and investments are financed by the fund’s personal property.

Within the first half-year of 2022, the Group earned rental income of EUR 6.610 million. Rental revenue calculated in comparative phrases was EUR 6.184 million within the first half-year on 2022, which is 11% (EUR 619 thousand) greater than in 2021 on the similar time. Within the first half-year of 2022 the Group gave reductions associated to Covid-19 disaster within the quantity of EUR 9 thousand (2021 first half-year: EUR 317 thousand), i.e. the rise in rental revenue from indexation and reduce in emptiness is EUR 311 thousand (5%, in comparison with 2021) within the first half-year of 2022.

Financing

Within the following 12 months, the Group’s three subsidiaries’ – Evolution workplace constructing, Laagri Hortes and Piepilsetas logistics centre – mortgage contracts will finish, the steadiness of the loans as of 30 June, 2022, is EUR 8,916 thousand euros. The LTV of maturing mortgage contracts is 31%-41% and funding properties have stabile robust rental money movement, attributable to which the Group’s administration doesn’t see danger associated to extending the contracts.

The weighted common rate of interest of the Group’s mortgage agreements (incl. bearing in mind rate of interest swap agreements) as of on the finish of June is 2.2% (2021: the identical) and LTV (Mortgage to Worth) is 42% (31.12.2021: 44%). A lot of the mortgage agreements of the fund’s subsidiaries are linked to a floating rate of interest and just one mortgage (accounting for two% of the mortgage portfolio) has a set base rate of interest. As a way to hedge the chance of a rise within the rate of interest of 1 mortgage settlement, an rate of interest swap settlement has been entered into, which expires in 2023.

Info on shares

As of 30 June, 2022, the online asset worth per share (ERPA NDV) of EfTEN Actual Property Fund III AS was 19.86 euros (31.12.2021: 19.11 euros). The web asset worth per share of EfTEN Actual Property Fund III AS elevated by 4.0% within the first half-year of 2022.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

2nd quarter

First half-year

€ hundreds

2022

2021

2022

2021

Income

3,530

3,088

6,988

5,955

Price of gross sales

-71

-73

-131

-139

Gross revenue

3,459

3,015

6,857

5,816

 

 

 

 

 

Advertising and marketing prices

-117

-59

-191

-90

Basic and administrative bills

-448

-492

-903

-876

Achieve / loss from revaluation of funding properties

3,702

2,020

3,702

2,020

Different working revenue and expense

17

3

43

6

Working revenue

6,613

4,487

9,508

6,876

 

 

 

 

 

Different finance revenue and expense

-360

-418

-722

-839

Revenue earlier than revenue tax

6,253

4,069

8,786

6,037

 

 

 

 

 

Earnings tax expense

-649

-394

-904

-567

Web revenue for the monetary 12 months

5,604

3,675

7,882

5,470

Earnings per share

 

 

 

 

– Fundamental

1.10

0.83

1.55

1.27

– Diluted

1.10

0.83

1.55

1.27

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

30.06.2022

31.12.2021

€ hundreds

 

 

ASSETS

 

 

Money and money equivalents

8,489

13,074

Receivables and accrued revenue

1,113

876

Pay as you go bills

53

314

Stock

0

29

Whole present property

9,655

14,293

 

 

 

Lengthy-term receivables

3

4

Funding property

168,604

161,961

Property. plant and gear

158

140

Intangible property

2

3

Whole non-current property

168,767

162,108

TOTAL ASSETS

178,422

176,401

 

 

 

LIABILITIES AND EQUITY

 

 

Borrowings

11,873

7,645

By-product devices

0

121

Payables and prepayments

923

1,349

Whole present liabilities

12,796

9,115

 

 

 

Borrowings

57,410

63,440

Different long-term debt

962

987

Deferred revenue tax legal responsibility

6,516

5,945

Whole non-current liabilities

64,888

70,372

Whole liabilities

77,684

79,487

 

 

 

Share capital

50,725

50,725

Share premium

16,288

16,288

Statutory reserve capital

2,149

1,489

Retained earnings

31,576

28,412

Whole fairness

100,738

96,914

TOTAL LIABILITIES AND EQUITY

178,422

176,401

Marilin Hein

CFO
Telephone +372 6559 515
E-mail: [email protected]

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