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EfTEN Kinnisvarafond news

EfTEN Kinnisvarafond decided to pay dividend

The Annual General Meeting (AGM) of EfTEN Kinnisvarafond AS approved the 2011 Annual Report and took the decision to pay dividends of EUR 395 000 to shareholders, which constitutes 5% of the average invested capital in 2011.

The 2011 turnover of EfTEN Kinnisvarafond AS was EUR 2.5 million, increasing last year by 61% (2010: EUR 1.6 million). The net profit was EUR 3 million, increasing last year by 155% (2010: EUR 1.2 million).

The AGM also confirmed the value of fund’s assets. The profits earned from the revaluation of the real estate investments in 2011 constituted in total of 2.2 EUR million (2010: EUR 47 thousand). As at the end of 2011 the fund portfolio held 11 objects with total area over 50 thousand square meters and total value of EUR 46.9 million. All rent cash flow generating real estate investments are valued based on discounted cash flow analysis, using 10.8% discount rate and 8.3% to 9.5% exit yield. Commercial real estate developments are valued more conservatively, said Viljar Arakas, the CEO of EfTEN Capital AS, company managing the fund. Over 50% of the portfolio constitutes of office spaces and the rest is divided between service, retail and storage space and real estate belonging to the public sector.

“Decision to pay dividends to shareholders is a clear signal that the growth of the portfolio value is not and will not stay just as value growth”, said Arakas. “At the same time there are enough reserves in the fund to continue investing.”

In current year EfTEN has decided to finish the development of Uku commercial center in Viljandi (7000 m2 retail centre. 50% of gross leasable are is leased by RIMI) and also make new investments, said Arakas.

EfTEN Kinnisvarafond AS, founded by EfTEN Capital in 2008, is a real estate fund, which invests in commercial real estate and the current portfolio consists of 11 cash-flow generating objects in Estonia. EfTEN Capital AS is an asset management company founded in the same year by a group of Estonian entrepreneurs, specialising mainly in managing commercial real estate and investment funds

Additional info:
Viljar Arakas
CEO of EfTEN Capital AS
[email protected]

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