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n Q2 2025, the Baltic commercial real estate market continued to experience a low transaction activity due to limited equity capital and modest economic growth. However, EfTEN Real Estate Fund AS managed to decrease its portfolio's vacancy rate by 0.7 percentage points to 3.7%. New tenants were added in the retail segment, and there were faintly positive signs in the Estonian office market.
The fund's sales revenue increased by 4.5% compared to Q1 and by 3.1% year-on-year. The decrease in EURIBOR led to a significant reduction in interest expenses, but euro interest rates have now reached a level where further substantial decreases are unlikely. As a result, the fund has started fixing interest rates for up to half of its loan portfolio.
The fund earned consolidated sales revenue of €8.210 million for Q2 2025 and €16.068 million for H1 2025, representing a 3.1% year-on-year increase for Q2 and a 1.0% increase for H1. The revenue increase was primarily driven by new investments in the logistics and elderly care sectors.
The fund's consolidated net operating income (NOI) for H1 2025 was €14.845 million, reflecting a 0.4% increase. The NOI margin was 92%, indicating that direct property-related costs accounted for 8% of the fund's revenue. In Q2 2025, the fund earned a consolidated net profit of €4.025 million.
The Group held 37 commercial real estate investments with a fair value of €382.018 million as of 30 June 2025. The vacancy rate for the Group's investment properties stood at 3.7%, with the highest vacancy in the office segment at 16.2%. EfTEN Real Estate Fund AS conducts regular valuations of its investment properties twice a year.
The fund's subsidiaries increased their total bank loan commitments by €7.32 million in April 2025, reflecting improved financial capacity. The Group's weighted average interest rate on loan agreements was 3.95% as of 30 June 2025, and the overall LTV stood at 41%. To mitigate interest rate risk, one of the Group's subsidiaries entered into an interest rate swap agreement in June 2025.
As of 30 June 2025, the registered share capital of EfTEN Real Estate Fund AS was €114.403 thousand, and the net asset value (NAV) per share was €19.98. Excluding dividend distributions, the fund's NAV would have increased by 4.1% over the same period.
The consolidated statement of comprehensive income for Q2 2025 showed a profit before income tax of €5.637 million and a net profit of €4.025 million. The earnings per share were €0.35. The consolidated statement of financial position as of 30 June 2025 showed total assets of €399.517 million, total liabilities of €170.951 million, and total equity of €228.566 million.
