EfTEN Real Estate Fund (EFT1T) Q2 2024 earnings summary

Executive summary

• First half 2024 results met expectations, with portfolio-wide vacancy below 3% and low arrears, except for isolated tenant issues with Hortes properties.

• Office segment accounts for 76% of total vacancy, reflecting global trends of weaker demand; new tenants are being added.

• Anticipated interest rate declines in H2 2024 expected to boost transaction activity and fair value of the conservatively priced portfolio.

Financial highlights

• H1 2024 consolidated sales revenue was €15.92m, up 1% year-over-year; Q2 revenue was €7.96m, flat year-over-year.

• Net rental income for H1 2024 was €14.78m (2023: €14.70m); net profit rose to €6.25m from €2.45m year-over-year.

• Net rental income margin remained at 93%; costs related to property management and distribution were 7% of sales.

• EBITDA for H1 2024 was €13.08m (2023: €13.03m), with an EBITDA margin of 82%.

• Net asset value (NAV) per share was €19.79 at 30.06.2024, down from €20.21 at year-end 2023, mainly due to dividend payout.

Outlook and guidance

• Management expects lower interest rates in H2 2024 to increase transaction activity and support portfolio value growth.

• Issues with Hortes tenants are considered isolated, with new solutions being sought for affected properties.