Published: 2019-07-30 15:05:00 CEST
EfTEN Real Estate Fund III
Company Announcement

EfTEN Real Estate Fund III AS unaudited financial results, 1st half-year 2019



Comment of the Management Bord

The most important economic event of EfTEN Real Estate Fund III AS in the second quarter of 2019 was a successful additional share offering, in which the fund issued 1 million new shares at a price of EUR 16 per share. The new shares offered were  oversubscribed three times. A total of 2,094 subscription orders were issued with a total value of EUR 49 million. The pre-emptive subscription rights of existing shareholders were used to subscribe 818,000 shares. The new capital will be used to continue the investment activities of the fund. The economic indicators of the assets of the fund's portfolio were in line with management expectations. The fund has at the moment one development project in progress, Hortes Gardening Center, in the Tähesaju commercial centre in Tallinn. The new Hortes Gardening Center is planned to be opened in the fourth quarter of this year.

 

Financial overview

EfTEN Real Estate Fund III AS consolidated revenue for Q2 2019 was EUR 2.321 million (Q2 2018: EUR 2.104 million), showing an increase of 10.3% over the year. The Group's net profit for the same period was EUR 2.329 million (Q2 2018: EUR 1.896 million). The higher net profit in 2019 is due to higher investment property revaluation gains, which totaled EUR 1.460 million in the first half of this year compared to EUR 0.962 million in the second quarter of last year.

EfTEN Real Estate Fund III AS consolidated revenue for the first half of 2019 was EUR 4.636 million (first half of 2018: EUR 4.105 million), an increase of 12.9% over the year. The Group's profit before revaluation of investment property, depreciation charge and finance income/-expense and income tax expense for the first half of 2019 totaled EUR 3.624 million (first half of 2018: EUR 3.262 million), an increase of 11.1% over the year. The Group's net profit for the same period was EUR 3.698 million (first half of 2018: EUR 3.149 million).

In January 2019, the Group acquired ABC Motors Car Center property in Tallinn for EUR 3 million. In addition, the Group continued the construction of Tähesaju tee Hortes, where EUR 2.4 million was invested during the first half of 2019. The completion of Tähesaju Hortes is scheduled for October 2019.

In June 2019, an independent valuer of the Group's investment properties conducted a periodic valuation process. The value of investment property increased by EUR 1.46 million (1.3%) as a result of revaluations and was mainly related to the improved cash flow forecast.

On June  2019, EfTEN Real Estate Fund III AS increased it’s  the share capital by issuing 1,000,000 new ordinary shares. The new shares were issued at a price of EUR 16 per share, ie EUR 16 million was received by the Group for the increase of share capital.

The net book value of EfTEN Real Estate Fund III share as at 30.06.2019 was 15.90 euros (31.12.2018: 15.67 euros). The net asset value of EfTEN Real Estate Fund III AS increased by 1.5% during the first half of 2019. In May 2019, the Fund paid dividends out of 2018 profit in the total amount of 3,061 thousand euros (spring 2018: 2,191 thousand euros). Without the payment of dividends, the NAV of the Fund would have increased 7.5% during the first half of 2019. The ROIC was 18.4% as at June 30, 2019 (June 30, 2018: 16.6%).

In addition to the aforementioned share net asset value calculated according to IFRS (EUR 15.90 as at 30.06.2019), EfTEN Real Estate Fund III AS also calculates the net asset value of the share recommended by EPRA. EfTEN Real Estate Fund III AS EPRA NAV as at 30.06.2019 was EUR 16.92 (31.12.2018: EUR 16.81).

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 2nd quarter1st half year
EUR thousand2019201820192018
Revenue2,3212,1044,6364,105
Cost of services sold-71-37-147-85
Gross profit2,2502,0674,4894,020
     
Marketing costs-134-122-220-224
General and administrative expenses-376-305-664-567
Gain / loss from revaluation of investment properties1,4609621,460962
Other operating income and expense07-17
Operating profit3,2002,6095,0644,198
     
Interest income0003
Finance costs-392-310-730-520
Profit before income tax2,8082,2994,3343,681
     
Income tax expense-479-403-636-532
Total comprehensive income for the financial period2,3291,8963,6983,149
Earnings per share    
  - Basic0.680.591.110.98
  - Diluted0.680.591.110.98


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 30.06.201931.12.2018
EUR thousand  
ASSETS  
Cash and cash equivalents8,5974,859
Short-term deposits9,0000
Receivables and accrued income669673
Prepaid expenses4546
Total current assets18,3115,578
   
Long-term receivables5324
Investment property109,730102,787
Property, plant and equipment123114
Total non-current assets109,906102,925
TOTAL ASSETS128,217108,503
   
LIABILITIES AND EQUITY  
Borrowings2,8078,105
Derivative instruments365189
Payables and prepayments1,3011,019
Total current liabilities4,4739,313
   
Borrowings52,12144,743
Other long-term liabilities553457
Deferred income tax liability3,9393,496
Total non-current liabilities56,61348,696
Total liabilities61,08658,009
   
Share capital42,22532,225
Share premium9,6583,658
Statutory reserve capital936621
Retained earnings14,31213,990
Total equity67,13150,494
TOTAL LIABILITIES AND EQUITY128,217108,503

 

 

Marilin Hein
CFO
Phone 655 9515
E-mail: marilin.hein@eften.ee

 

 

 

Attachment


EfTEN Real Estate Fund III_6_kuud_2019_ENG.pdf