EfTEN Real Estate Fund AS: A Strong 2024 Performance and Promising Dividend Outlook

EfTEN Real Estate Fund AS (EfTEN) has released its audited annual report for 2024, highlighting a robust financial performance and a promising dividend outlook. The fund's consolidated sales income for 2024 amounted to 32.238 million euros, an increase of 421 thousand euros (1%) compared to the previous year. The Group's net profit for 2024 stood at 13.564 million euros, a significant improvement from the 1.0 million euros reported in 2023. The Management Board of EfTEN Real Estate Fund AS has proposed to distribute (net) dividends of 1.11 euros per share, reflecting the fund's strong financial performance and commitment to returning value to shareholders.



Investment Strategy and Financial Performance
EfTEN's investment strategy, focusing on expanding its portfolio with new logistics properties and growing in the care home segment, has contributed positively to its financial performance in 2024. The fund's consolidated rental income for 2024 totaled 28,217 thousand euros, 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 27,227 thousand euros, reflecting a 0.6% increase compared to the same period last year. The fund's EBITDA for the first eleven months of 2024 totalled 24,006 thousand euros, which is 0.2% higher than in the same period last year.

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%, indicating strong demand for the fund's properties and stable rental income.

Dividend Policy and Outlook
EfTEN's dividend policy aims 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 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. The proposed dividend of 1.11 euros per share reflects the fund's commitment to returning value to shareholders and maintaining its financial stability.