D
espite a challenging economic environment, EfTEN Real Estate Fund AS has achieved growth in both total rental income and EBITDA for the year 2024. The fund's portfolio expanded with two new logistics properties, and it plans to grow in the care home segment. As a primarily dividend-focused share, the fund aims to distribute €1.10 per share in dividends for 2024, equivalent to 5.7% of the previous day's closing share price.
The fund's management intends to increase leverage on investment properties where the loan-to-value (LTV) ratio has decreased below the financing policy guidelines. With a portfolio-wide LTV of 40%, EfTEN Real Estate Fund AS is positioned more conservatively than the European average of around 50%.
Financial highlights for 2024 include:
* Consolidated rental income increased by 1.5% year-over-year to €31.079 million (2023: €30.6 million)
* EBITDA rose by 1.2% to €26.454 million (2023: €26.143 million)
* The fund's consolidated EBITDA exceeded interest expenses by 3.0 times, down from 3.3 times in 2023
* The weighted average interest rate on bank loans decreased to 4.89%, a decrease of 1.01 percentage points compared to December 31, 2023
In 2024, the fund invested €12.050 million in new properties and €9.398 million in other projects within its real estate portfolio. The consolidated vacancy rate remained at 2.6% as of year-end, with the highest vacancy rate in the office segment (11.3%) and the lowest in retail (0.5%).
The fund generated adjusted cash flow of €11.108 million, allowing for a gross dividend of €0.7768 per share based on its dividend policy. Management plans to refinance several bank loans in spring 2025, which could enable an increase in the dividend payment to as much as €1.10 per share (net).
In December 2024, EfTEN Real Estate Fund AS earned €2.861 million in consolidated rental income and €2.448 million in EBITDA, with growth driven by turnover-based rents from shopping centers. The fund's independent appraiser, Colliers International, conducted its annual valuation, resulting in a €831 thousand increase in the fair value of investment properties.
In December 2024, the fund issued 620,544 new shares at a price of €19 per share, raising €11.790 million. As of December 31, 2024, the net asset value (NAV) per share was €20.3729, and the EPRA NRV was €21.2213 per share.
