EfTEN Real Estate Fund, a Baltic commercial real estate fund, recorded 14,4 million euros in sales revenue in 2014 based on preliminary unaudited financial results, showing a 43% increase compared to the previous year. Net profits in the previous year were 15,1 million euros, showing a 49% increase.<\/p>\n
Last year EfTEN Real Estate Fund made four successful exits from current investments and invested in four new commercial real estate projects, two in Estonia and two in Latvia. According to fund manager Viljar Arakas, for the fund year 2014 was most successful financial year to date. \u201eLow interest rates in eurozone and improved liquidity in the commercial real estate in the Baltic States significantly contributed to the good financial results of the fund,\u201c Arakas said.<\/p>\n
Arakas confirms that this year the fund intends to exit smaller investments and continue its current investment activities in the Baltic States. \u201eUnder current focus are investments to Latvia and to Lithuania, who starting from 2015 is the member of eurozone,\u201c fund manager Viljar Arakas said.<\/p>\n
The value of the fund\u2019s share increased by 16% in the year. During last year the share capital was reduced by 2,1 million euros and the fund\u2019s shareholders were paid net dividends of 2,44 million euros. Without these two events, the value of fund\u2019s share would have increased by 22,5%. The share value has increased a total of 3.9 times since the launch of the fund in 2008.<\/p>\n
After the success fee reserve deduction, the reevaluation of property contributed in total about 6 million euros to net profit. Income tax of the company was in total 1,1 million euros. Fund\u2019s real estate investments are valued by Colliers International and the net yield of the portfolio is 8,1% according to current net cash flow. The fund’s net cash flow from operations together with real estate investment sales profits was 12,7 million euros.<\/p>\n
The value of fund\u2019s assets, as at the end of 2014, was 205 million euros, including 92 million euros of equity. The volume of fund\u2019s assets increased 24% compared to the previous year. These volumes make EfTEN Real Estate Fund the largest commercial real estate fund in the Baltics.<\/p>\n
The fund will keep its conservative policy for financing. Short- and long-term loans account for 59% of the market value of the fund’s investments; debt service coverage ratio is 1.9. Vacant commercial spaces of the fund make in total 1,7% of rental revenue.<\/p>\n
The most important events for the fund in 2014 were successful exits from four current investments, bringing 11,1 million euros of proceeds to the fund. After deduction of success fee reserve the return on these investments was over 28% per annum on the equity invested.<\/p>\n
During the year, the fund made four new investments \u2013 warehouse complex of DHL on Betooni street, acquisition of logistics center of Betooni 6 in Tallinn; Nordic Technology Park and A-class office building on L\u0101\u010dpl\u0113\u0161a iela 20A in Riga.<\/p>\n
From the development side, the high point was the completion of reconstruction of RAF Centrs in Jelgava, Latvia and the successful reopening of renewed Hotell Palace, located in Tallinn\u2019s Freedom square.<\/p>\n
In previous year the fund invested altogether 49 million euros. In 2013 the fund issued new shares with the value of 28,3 million euros, but in 2014 new shares were not emitted.<\/p>\n","protected":false},"excerpt":{"rendered":"
EfTEN Real Estate Fund, a Baltic commercial real estate fund, recorded 14,4 million euros in sales revenue in 2014 based on preliminary unaudited financial results, showing a 43% increase compared to the previous year. Net profits in the previous year were 15,1 million euros, showing a 49% increase. Last year EfTEN Real Estate Fund made […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-1030","post","type-post","status-publish","format-standard","hentry","category-eften-kinnisvarafond-news"],"yoast_head":"\n