EfTEN Real Estate Fund III AS Net Asset Value per share as of 30.06.2018
The fund's ordinary business was stable in June, including first-time rental income from the Evolution office building. The rental income was 684 thousand euros in total (624 thousand euros in May) and EBITDA was 593 thousand euros (in May, 533 thousand euros).
In June, Colliers International Advisors carried out the usual half-year valuation process. This time, the fair value of investment properties didn’t change significantly, amounting to -22 thousand euros (-0,02% from the value of investments property). However, Group accounted revaluation profit from purchasing the Evolution office building in May, achieving a profit of 982 thousand euros on the transaction date. Therefore, the investment properties value during the first 6 months of 2018 is increased by 962 thousand euros as total.
The consolidated sales revenue of EfTEN Real Estate Fund III AS for 1st half year of 2018 was EUR 4.105 million (2017 same period: EUR 3.537 million), which increased by 16% in a year. The Group's profit before revaluation of investment properties (including change in the success fee reserve), depreciation and financial income/ -costs and income tax expense (EBITDA) totalled EUR 2.719 million (2017 1st HY: EUR 2.517 million). The Group's net profit for the same period amounted to EUR 3.149 million (2017 1st HY: EUR 4,030 million). The decrease of net profit is due to the lower profit from investment properties revaluation, totalling to 962 thousand euros this year, compared to 2,316 thousand euros during first 6 months last year.
The consolidated gross profit margin during the first 6 months of 2018 was 98% (2018: the same), therefore, expenses directly related to the management of properties (incl. land tax, insurance, maintenance and improvement costs) accounted for only 2% of the revenue. The Group's expenses related to properties, marketing costs, general expenses, other income and expenses accounted for 21,2% of the revenue in 1st HY 2018. The respective indicator was 21,5% in 1st HY 2017.
As of 30.06.2018, the Group’s total assets amounted to EUR 106.048 million (31.12.2017: 97.291 million), including fair value of investment property, which accounted for 95% (31.12.2017: 91%) of the total assets.
During the first half of 2018, the Group earned a free cash flow of 1.703 million euros (1st half-year of 2017: 1.399 million euros). Following the deduction of Lithuanian income tax expense and the calculation of the potential dividend income tax expense in Estonian and Latvian companies, EfTEN Real Estate Fund III would be able to distribute net dividends to shareholders of 1,200 million euros (37 cents per share) for the first six months of the year. For the entire previous year, the Fund paid to the shareholders a net dividend of 68 cents per share.
EfTEN Real Estate Fund III AS NAV was EUR 14.69 as at 30.06.2018. NAV grew by 0,8% in June.
Marilin Hein
CFO
Phone: 655 9515
E-mail:
