In the third quarter of 2026, EfTEN United Property Fund earned a net profit of 68 thousand euros (Q3 2025: 426 thousand euros). The decrease in profit is mainly related to the fund's investment in the development company Invego Uus-Järveküla OÜ, where the majority of the sales of completed terraced houses, and the resulting profit, fell in the previous year. Despite the decrease in profit, EfTEN United Property Fund received record income from its investments, which enabled the fund to make the largest distributions in its history – a total of 85 cents per unit in 2026, or approximately 9% of the fund's market capitalisation.

In Q3 2026, the fund manager completed the restructuring of the investment portfolio of EfTEN United Property Fund, which had been prepared in Q2. During the quarter, the fund sold its subsidiary EfTEN M7 UAB, which owns the Menulio 7 office building in Vilnius, invested in the Domina shopping centre in Riga and started financing the expansion of the Uus-Järveküla residential area. As a result of these transactions, the share of the office sector in the fund’s portfolio decreased by 11 percentage points (to 27%) and the share of retail increased by 7 percentage points (to 47%). Following the investments, the fund’s portfolio is substantially fully invested in real estate.

Sale of EfTEN M7 UAB

The fund manager is of the opinion that the office segment (especially older, so-called B- and C-class buildings) will remain under pressure in the Baltic commercial real estate market for a prolonged period. Demand for office space is held back by the entrenched remote working culture and by companies’ modest expansion of their operations due to low economic growth. Accordingly, at the beginning of July (the transaction was completed on 08.07.2026), the fund sold its subsidiary EfTEN M7 UAB, which owns the Menulio 7 office building in Vilnius. EfTEN United Property Fund invested EUR 3.598 million in the acquisition of the Menulio 7 office building at the beginning of 2022. Together with the dividends received from the investment and the interest accrued on the loans, the fund’s profit on the sale transaction is EUR 760 thousand.

The fund received EUR 414 thousand from the sale of the shares. In the course of the sale transaction, the fund increased the loan granted to EfTEN M7 UAB by EUR 418 thousand, and accrued interest of EUR 332 thousand was added to the loan principal. Under the share purchase agreement, the buyer will repay the shareholder loan of EUR 2.899 million to the fund within 17 months, i.e. by 07.12.2027 at the latest. The loan bears interest at 9% per annum for the first 12 months and 12% per annum thereafter, and is secured by a first-ranking mortgage on the Menulio 7 property established in favour of the fund.

Investment in the Domina shopping centre

In the Baltic commercial real estate market, the fund manager sees the strongest prospects in the retail segment. Despite low economic growth, wage growth has remained relatively strong in all three Baltic countries, and consumers’ willingness to spend is supported by slowing inflation. In view of the positive outlook for retail, EfTEN United Property Fund increased its investment in the Domina shopping centre in Riga at the beginning of August. Previously, the fund held an indirect position of approximately EUR 380 thousand in the Domina centre through EfTEN Kinnisvarafond II AS; it has now invested in the centre directly. In August, the fund paid EUR 2.478 million for the transaction. Following the post-closing purchase price adjustment, the final acquisition cost amounted to EUR 2.472 million, of which the investment in the shares of EfTEN Domina SIA (5.9%) accounted for EUR 2.329 million and the loan receivable acquired from EfTEN Kinnisvarafond II AS for EUR 0.143 million. In Q3, the fund earned a gain of EUR 59 thousand from the change in the fair value of the holding.

Underlying funds

The financial results of the fund’s largest investment, the  EfTEN Real Estate Fund 5, are driven by its investments in the Kristiine shopping centre in Tallinn and the UNA retail park in Vilnius, both of which were 100% occupied at the end of September. The fund’s investment in the shares of EfTEN Real Estate Fund AS is measured on the basis of the closing price on the Nasdaq Tallinn Stock Exchange; therefore, the fund’s results are also affected by short-term fluctuations in the share price. 

Uus-Järveküla development projects

In Q3, Invego Uus-Järveküla OÜ, a development company in which the fund holds an 80% interest, handed over one completed terraced house unit to a customer. As at the end of the quarter, three terraced house units and two plots remained unsold in the development project. In July, Invego Uus-Järveküla OÜ paid net dividends of EUR 1 million to the fund, which were used to partially and temporarily finance the Q3 investments. The fund plans to cover these investments at the beginning of next year with the proceeds from the sale of the assets of EfTEN Kinnisvarafond II AS.

At the end of July, the fund signed an agreement for the expansion of the Uus-Järveküla development project. The plan is to build 11 semi-detached houses (22 semi-detached house units). The fund will invest a total of approximately EUR 1.5 million in the expansion in stages in the form of a shareholder loan bearing interest at 10% per annum. In addition, the fund acquired an 80% interest in Invego Uus-Järveküla 2 OÜ, the company developing the expansion of the Uus-Järveküla residential area, and granted the company a shareholder loan of EUR 700 thousand in Q3. The detailed spatial plan for the expansion was adopted in September. The next step is to start the design work, and construction is expected to begin in the first half of 2027. The development project is planned to be completed in 2029.

Distributions to investors

At the beginning of 2026, EfTEN United Property Fund received record income distributions from the underlying funds. In June 2026, the fund made its first distribution of the year to investors in the amount of EUR 1,060 thousand, or 42.676 cents per unit. The distribution was based on the dividends and income distributions received from all underlying funds and the interest on the shareholder loans granted to Invego Uus-Järveküla OÜ and EfTEN M7 UAB (Menulio 7 office building). 

In September, the fund received EUR 72 thousand in connection with the reduction of the share capital of EfTEN Kinnisvarafond II AS. In October, the fund received income and capital distributions from its investments in the  EfTEN Real Estate Fund 5, EfTEN Special Opportunities Fund and EfTEN Residential Fund. In November, the fund will make a distribution to investors in the amount of EUR 1,050 thousand, or 42 cents per unit, of which approximately EUR 600 thousand is the dividend received from Invego Uus-Järveküla OÜ. Together with the spring distribution, the fund has thus, for the first time, made distributions to investors of more than EUR 2 million in a year and, for the second year in a row, distributions of approximately 9% of the fund’s market capitalisation.

Statement of the comprehensive income

 3rd quarter9 months
 2026202520262025
€ thousand    
INCOME    
Interest income89 116 198 413 
Income from underlying funds- - 651 420 
Income from subsidiaries 1 000 - 1 125 - 
Other financial income- - - 4
Net gain / (loss) on financial assets at fair value through profit or loss -983 352 -1 036 1 427 
  On investments in subsidiaries -1 396 47 -1 619 784 
  On investments in underlying funds 354 305 524 643 
  On investments in other holdings 59 - 59 - 
Total income1064689382 264
     
COSTS    
Operating expenses    
   Management fees-22 -26 -68 -82 
   Fund administration expenses-5 -5 -23 -22 
   Other operating expenses-11 -11 -70 -49 
Total operating expenses-38 -42 -161 -153 
 Interest expenses- - - -6 
Operating profit68 426 777 2 105 
Profit before income tax68 426 777 2 105 
Income tax expenses- - - - 
     
Net profit for the period68 426 777 2 105 
Other comprehensive income- - - - 
Total comprehensive income / increase in the net asset value of the fund attributable to shareholders68 426 777 2 105 
     
Ordinary and diluted earnings per share (EUR)0,03 0,17 0,31 0,85 


Statement of financial position

 30.09.202631.12.2025
€ thousand  
ASSETS  
Current assets  
Cash and cash equivalents863 1 774
Loans granted- 1 516
Other receivables and accrued income80 300
Total current assets943 3 590
   
Non-current assets  
Financial assets at fair value through profit or loss24 244 23 474
  Investments in subsidiaries1 079 3 111
  Investments in underlying funds20 777 20 363
  Investments in other holdings 2 388 - 
Loans granted3 742 2 149
Total non-current assets27 986 25 623
TOTAL ASSETS28 929 29 213
   
LIABILITIES  
Current liabilities22
Total liabilities, excluding net asset value of the fund attributable to shareholders22
   
NET ASSET VALUE OF THE FUND  
Net asset value of the fund attributable to shareholders28 92729 211
Total liabilities and net asset value of the fund attributable to shareholders28 92929 213


The unaudited 3rd quarter 2026 report of the EfTEN United Property Fund is attached to the release and can be found on the Fund's website: https://eftenunitedpropertyfund.ee/en/reports-documents/


Kristjan Tamla
Managing Director
Phone 655 9515
E-mail: kristjan.tamla@eften.ee