EfTEN Real Estate Fund AS unaudited results for 2nd quarter and 1st half-year 2025

Core Insights - The Baltic commercial real estate market in Q2 2025 showed low transaction activity due to a lack of equity capital and modest economic growth, although declining EURIBOR rates reduced borrowing costs [1] Financial Performance Overview - EfTEN Real Estate Fund AS reported consolidated sales revenue of €8.210 million for Q2 2025, a 3.1% increase year-on-year, and €16.068 million for H1 2025, reflecting a 1.0% increase [4] - The fund's consolidated net operating income (NOI) for H1 2025 was €14.845 million, a 0.4% increase from H1 2024, with an NOI margin of 92% [5] - The consolidated net profit for Q2 2025 was €4.025 million, significantly up from €2.442 million in Q2 2024, driven by a positive change in the fair value of investment properties [6] - For H1 2025, the consolidated net profit was €8.192 million, an increase from €6.250 million in H1 2024, with interest expenses decreasing by €973 thousand, or 22% [7] Real Estate Portfolio - As of 30 June 2025, the fund held 37 commercial real estate investments with a fair value of €382.018 million, up from €373.815 million at the end of 2024 [8] - The vacancy rate for the fund's investment properties was 3.7%, with the highest vacancy in the office segment at 16.2% [12] Investment and Development Activities - In H1 2025, the fund invested €7.657 million in new properties and development, including the acquisition of a property in Tallinn for €4 million [9][10] - The Paemurru logistics center was completed in Q2 2025, contributing to the fund's revenue growth [11] Financing and Interest Rates - The fund's subsidiaries have floating interest rate bank loans, and with the decline in EURIBOR, interest expenses have decreased significantly [3] - As of 30 June 2025, the weighted average interest rate on loan agreements was 3.95%, down from 4.89% at the end of 2024 [16] - The fund's interest coverage ratio improved to 3.7 as of 30 June 2025, compared to 2.9 a year earlier [17] Share Information - The net asset value (NAV) per share of EfTEN Real Estate Fund AS was €19.98 as of 30 June 2025, reflecting a 1.9% decrease during the first half of 2025 [19]