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

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 quarter6 months
 2024202320242023
€ thousand    
INCOME    
Interest income159135310241
Dividend income238329260352
Other financial income0050
Net profit / loss from assets recognised in fair value through profit or loss-42-456-65-529
   Investments in subsidiaries8-104-140-76
   Investments in funds-50-35275-453
Total income355851064
     
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 period307-37401-71
Total profit / loss for the period307-37401-71
     
Ordinary and diluted earnings / loss per share (EUR)0,12-0,010,16-0,03

Statement of financial position

 30.06.202431.12.2023
€ thousand  
ASSETS  
Current assets  
Cash and cash equivalents5 5005 731
Short-term deposits1 5631 795
Other receivables and accrued income862711
Total current assets7 9258 237
   
Non-current assets  
Financial assets at fair value through profit or loss12 81812 354
  Investments in subsidiaries9141 054
  Real estate funds11 90411 300
Loans granted5 6685 668
Total non-current assets18 48618 022
TOTAL ASSETS26 41126 259
   
LIABILITIES  
Current liabilities133
Total liabilities, excluding net asset value of the fund attributable to shareholders133
   
NET ASSET VALUE OF THE FUND  
Net asset value of the fund attributable to shareholders26 39826 256
Total liabilities and net asset value of the fund attributable to shareholders26 41126 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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