EfTEN United Property Fund unaudited financial results for the 4th quarter and 12 months of 2022

EFTEN UNITED PROPERTY FUND

The EfTEN United Property Fund earned 1,68 million euros in revenue (0,8 million euros in 2021) and 1,44 million euros in net profit (0,78 million euros in 2021) in 2022. In the 4^th quarter of 2022 revenues amounted to 0,33 million euros and net profit to 0,28 million euros. The fund's equity capital was 26,9 million euros as of the end of 2022, increasing by 10,5 million euros in 2022.

"Big changes in the real estate sector took place last year. The end of the zero-interest policy that lasted for years led to an increase in the cost of leverage and brought transaction activity in the Baltic commercial real estate sector almost to a halt from summer onwards. The price expectations of buyers and sellers diverged - sellers were not yet willing to lower price expectations that existed at the beginning of the year, while the buy side was ready to make transactions already at lower price levels. At the same time, the vacancy level across the commercial property market remained unchanged, and no deterioration in payment behavior was observed for among most tenants", commented Kristjan Tamla, EfTEN Capital head of retail.

As of 31.12.2022, the majority of EfTEN United Property Fund's investments (43%) have been placed in funds managed by EfTEN Capital AS, and 24% has been invested in real estate through subsidiaries. The rest is uninvested is in the fund's bank account, awaiting new investments.

EfTEN United Property Fund's investments are diversified across 30 different properties through funds and subsidiaries. This makes EfTEN United Property Fund with the most diversified real estate portfolio in the Baltics. In 2022, the fund made its first direct investment in cash-flow-generating commercial real estate – established in February the Lithuanian subsidiary EfTEN Menulio 7 UAB, which acquired the office building at Menulio 7 in Vilnius. During the year the fund invested 4 million euros to EfTEN Kinnisvarafond AS.

“As of the end of 2022, EfTEN United Property Fund has over 8 million euros of uninvested equity. All the existing investments are performing as expected and it is not seen at the moment that they need unexpected capital injections. Since commercial real estate prices in the Baltics have not reached the new so-called “equilibrium level”, we are unlikely to make sizable new investments in the first months of 2023. As a result, uninvested capital is likely to remain high for several months. There are no plans to raise new capital before the existing one is invested”, noted Kristjan Tamla.

The units of EfTEN United Property Fund are traded on the fund list of Nasdaq Tallinn Stock Market starting from 31.05.2022. The fund made the first distribution to investors (212 thousand euros, approx. 0.9% of the fund's market capitalization) in July 2022 and announced the second distribution in December (584 thousand euros, approx. 2.5% of the fund's market capitalization), which was made in January 2023.

Statement of the comprehensive income

	q4		12 months
	2022	2021	2022	2021
€ thousand
Income
Interest income	88	51	308	78
Dividend income	0	0	212	0
Net profit / loss from assets recognised in fair value through profit or loss	239	707	1,148	725
Investments in subsidiaries	-381	628	-199	626
Underlying assets	620	79	1,346	99
Total income	327	758	1,668	803
Costs
Operating expenses
Management fee	-28	-10	-96	-13
Costs of administering the Fund	-2	-9	-90	-11
Other operating expenses	-13	-2	-44	-3
Total operating expenses	-43	-21	-229	-27
Operating profit	284	737	1,439	776
INCREASE IN THE NET ASSET VALUE OF THE FUND ATTRIBUTABLE TO THE SHAREHOLDERS	284	737	1,439	776
Ordinary and diluted profit / loss per share (EUR)	0.11	0.68	0.66	0,84

Statement of financial position

	31.12.2022	31.12.2021
€ thousand
ASSETS
Current assets
Cash and cash equivalents	8,769	2,743
Other receivables and accrued income	385	3,216
Total current assets	9,154	5,959
Non- current assets
Financial assets at fair value through profit or loss	12,942	7,924
Investments in subsidiaries	1,152	628
Investment Funds	11,79	7,296
Loans granted	5,376	2,5
Total non-current assets	18,318	10,424
TOTAL ASSETS	27,472	16,383
LIABILITIES
Current liabilities	586	4
Total liabilities, excluding net asset value of the Fund attributable to shareholders	586	4
NET ASSET VALUE OF THE FUND
Net asset value of the Fund attributable to shareholders	26,886	16,379
Total liabilities and net asset value of the Fund attributable to shareholders	27,472	16,383

The unaudited 4^th quarter and 12 months report of the EfTEN United Property Fund can be found on the fund's website: https://eftenunitedpropertyfund.ee/en/reports-documents/

EfTEN Capital AS will hold an online presentation (webinar) in English on 15.02.2023, starting at 13:00 (EET), to introduce the results and outlook of the EfTEN United Property Fund. Questions can be asked during the webinar as well as by sending them in advance by e-mail at: united@eften.ee no later than February 14 at 17:00 (EET). To participate in the webinar, please register at: https://nasdaq.zoom.us/webinar/register/WN_4OT7KU-9T7SqQqmOtLHSfw.  Participants will be sent a reminder email one hour before the start of the webinar. The webinar will be recorded and made public on the fund's website https://eftenunitedpropertyfund.ee and on the YouTube channel.

Kristjan Tamla
Head of Retail
Phone 655 9515
E-mail: kristjan.tamla@eften.ee

Attachment

• EUPF_12_months_2022_ENG