The net asset value (NAV) of the EfTEN United Property Fund stood at 10.82 euros as of June 30, 2022, up 1.8% over the month. Since the fund’s launch in June 2021, the fund’s net asset value has increased by 8.2%.
In June, the fund conducted a regular semi-annual asset review, during which the value of the fund’s two investments in Vilnius increased the most (the office building of Danske Bank, where the fund invested through EfTEN Real Estate Fund 5, and the Menulio 7 office building). Independent valuer Colliers predicts higher rental income for both properties compared to previous forecasts. In the case of the Danske Bank office building, this is mainly linked to the new long-term lease contracts concluded in recent months with a higher level of rent. In the case of the Menulio 7 office building, the increase in rental income is due to faster than expected inflation (21% YoY in June) in Lithuania – most of the building’s leases are indexed to l Lithuanian consumer price index. In accordance with the fund’s income distribution policy, most of the increase in free cash flow will be distributed to investors.
In June, the fund made no new investments and the fund currently has uninvested capital of almost 10 million euros. In the current market situation, we are in no rush to invest it. In recently received sales offers, property sellers still assume that the level of interest will remain close to zero and that economic activity will not deteriorate in the fall. At EfTEN, we are less optimistic about the future. In the first year of operation, EfTEN United Property Fund achieved a return on invested capital of 10.9%. Our goal is to maintain at least this level also in the future.
A more detailed overview of EfTEN United Property Fund’s portfolio is available on the fund’s website: https://eftenunitedpropertyfund.ee/en/fund-results-2/
Head of Retail
Telephone 655 9515
E-mail: [email protected]