EfTEN Real Estate Fund AS: NAV and Preliminary Financial Results for 2024

EfTEN Real Estate Fund AS (EfTEN) has released its net asset value (NAV) per share as of December 31, 2024, and preliminary financial results for the year. The fund's NAV per share decreased by 0.2% in December, closing at EUR 20.3729, while the EPRA NRV was EUR 21.2213. This change was influenced by several factors, including a share issue at a price below NAV, costs related to the share issue, accounting of deferred income tax expenses, and regular revaluation of investment properties.

Despite the decrease in NAV per share, EfTEN's financial performance in 2024 was robust. The fund generated a total consolidated rental income of EUR 28,217 thousand, representing a 1.4% increase compared to the same period last year. The fund's net rental income (NOI) from real estate investments amounted to EUR 27,227 thousand, reflecting a 0.6% increase compared to the same period last year. The fund's EBITDA for the first eleven months of 2024 totalled EUR 24,006 thousand, which is 0.2% higher than in the same period last year.

EfTEN's investment strategy, focusing on expanding its portfolio with new logistics properties and growing in the care home segment, contributed to its positive financial performance in 2024. The fund's consolidated vacancy rate remained unchanged at 2.6% compared to 2023, with the highest vacancy rate in the office segment (11.3%). The logistics segment had a vacancy rate of just 1.0%, and the retail segment 0.5%. This low vacancy rate indicates strong demand for the fund's properties and contributes to stable rental income.

The fund's dividend policy aimed to distribute dividends to shareholders while maintaining its financial stability. In 2024, the fund set a goal to distribute dividends of €1.10 per share, which corresponds to 5.7% of yesterday’s closing share price. The fund's management planned to propose to shareholders to pay dividends of 1 euro per share from the fund’s 2024 profit in the spring of 2025. This dividend payment required the refinancing of certain low-leverage subsidiaries' loans, for which the management had already initiated negotiations.

In conclusion, EfTEN Real Estate Fund AS's NAV per share decreased by 0.2% in December 2024, influenced by various factors. However, the fund's financial performance in 2024 was strong, driven by its investment strategy and dividend policy. As the fund continues to grow and expand its portfolio, investors can expect a stable and attractive return on their investment.