EfTEN Real Estate Fund (EFT1T) Q3 2024 earnings summary

Executive summary

• Net profit for 9M 2024 reached €10.1m, up 47% year-over-year; revenue grew 1% to €23.9m.

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

• The fund completed the sale of Tähesaju Hortes and acquired two logistics centers, with €15m total investment upon completion.

• Announced a new share issue to raise up to €30m in equity, authorized by shareholders in October 2024.

• Construction of the ERM nursing home was completed and opened near Tartu.

Financial highlights

• 9M 2024 revenue: €23.9m (2023: €23.7m); net profit: €10.1m (2023: €6.9m).

• Q3 2024 revenue: €8.0m; net profit: €3.85m; EPS for 9M: €0.93 (2023: €0.64).

• EBITDA for 9M: €19.7m; EBITDA margin: 82%; EBIT: €17.7m.

• NAV per share: €20.15; EPRA NAV per share: €20.96.

• Dividend of €1.00 per share paid in April 2024, totaling €10.82m.

Outlook and guidance

• Management expects further declines in euro interest rates, supporting real estate sector recovery.

• Market remains a buyer's market; recovery is expected to be gradual due to limited local and foreign investor capital.

• Banks are showing renewed interest in financing Baltic real estate.