The net asset value of EfTEN Real Estate Fund III AS as of 31.05.2020
The net asset value (NAV) of EfTEN Real Estate Fund III AS as of 31.05.2020 was 17.42 euros. The net asset value of the EPRA share (net book value excluding deferred income tax liability and fair value of interest rate derivatives) was 18.53 euros as of 31.0452020. Both NAV and EPRA NAV increased by 0.7% during May.
The fund's financial results in May were good. Consolidated rental income totaled 772 thousand euros, which is 35 thousand euros more than in April. In May, temporary agreements to reduce rental income in both the logistics and retail segments continued, but rental income at the Saules Miestas shopping center recovered significantly and remained only 9% lower than normal. Compared to the usual level of rental income, due to the emergency situation caused by Covid-19, the fund's consolidated rental income has also temporarily decreased by 9% (in April, the decrease was 15% compared to the usual rental income).
Due to the dividend payment planned by EfTEN Real Estate Fund III AS in the total amount of 2.7 MEUR (65 cents per share), the fund's subsidiaries have terminated loan grace periods and most companies will repay both the usual monthly principal and the unpaid loan amounts provided during the grace periods in June. The liquidity of the fund is still strong despite the temporary decline in rental income, which is why the fund manager proposed to reduce the dividend payment by 21%, but not to postpone it any further and enter into agreements with lenders to terminate temporary grace periods.
As of 31.05.2020, the consolidated cash balance of EfTEN Real Estate Fund III AS was 10.9 million euros, of which 4.7 million euros is the balance of uninvested capital received from the last share issue. Due to the economic uncertainty caused by the impact of Covid-19, the fund manager suspended negotiations on the planned investments in March. Investing the fund’s capital is a clear priority for the fund manager, but it is also necessary to be as conservative as possible to find secure investment opportunity in those turbulent times.
The volume of consolidated assets of EfTEN Real Estate Fund III AS as of 31.05.2020 was 141.6 million euros (31.12.2019: 132.8 million euros) and equity 73.5 million euros (31.12.2019: 71.17 million euros).
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