I
n the first quarter, EfTEN Real Estate Fund AS saw a modest 0.5% increase in consolidated rental income to EUR 7.678 million, outpacing last year's same-period earnings. However, EBITDA took a 4.3% hit, totaling EUR 6.181 million, as interest expenses weighed heavily on the Fund.

    A closer look at the numbers reveals that adjusted cash flow, which factors in interest expenses, loan repayments, and income tax, rose by EUR 139 thousand to EUR 2.758 million. This uptick was largely driven by lower interest rates, with the weighted average interest rate on loans dipping to 4.37% by March's end – a 0.527 percentage point decrease from the previous year.

    Interest expenses for the quarter came in at EUR 1.675 million, a EUR 486 thousand (22%) drop compared to last year. Rental income remained steady in February but took a slight hit in March, falling by EUR 10 thousand to EUR 2.556 thousand. Expenses related to rental income surged in March due to a one-time provision for receivables from the bankrupt company Aktsiaselts Hortes.

    The Fund's consolidated EBITDA for March was EUR 1.990 thousand, down EUR 159 thousand from February. Vacancy rates remained relatively low at 4.4% as of March 31. The Fund's cash balance took a hit due to new property investments, decreasing by EUR 3.350 thousand to EUR 19.038 thousand.

    March saw significant investment activity, with the acquisition of the Hiiu care home property in Tallinn for EUR 4.016 thousand and additional investments in ongoing development projects at Paemurru logistics center (EUR 619 thousand) and Valkla elderly home (EUR 118 thousand). The Paemurru project is on track to be completed by mid-April, adding new rental income streams.

    As of March 31, the Fund's net asset value per share stood at EUR 20.7371, with EPRA NRV reaching EUR 21.5985 – a modest 0.6% increase from February.