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EfTEN Real Estate Fund III plans additional new share offering, will pay €3.1m of dividends

At an annual general meeting in April, the shareholders of EfTEN Real Estate Fund III AS will be approving annual accounts of the previous financial year, as well as discuss an increase of the equity capital and listing new shares in the main list of Tallinn stock exchange.

 “Approximate volume of the new share issue to be decided in the annual general meeting is €16m and existing shareholders will be pre-emptive right in the subscription on the shares. With the share issue, we plan to finance further growth of EfTEN Real Estate Fund III in the Baltic commercial real estate market where we continue to see good opportunities”, said Viljar Arakas, Member of the Management Board of EfTEN Real Estate Fund III.

According to Arakas, the fund’s investment portfolio is well balanced, bearing in mind that Baltic real estate markets do not act by one template. “Currently of the fund’s portfolio retail properties constitute 42%, logistics and production spaces 30% and office buildings 28%. Across the countries, 68% of the fund’s portfolio is in Lithuania, followed by Estonia (24%) and Latvia (8%)”, said Arakas.

In addition to the share issue, the agenda of the annual general meeting on April 17 in Tallinn encompasses an overview of the fund’s activities, approval of the annual report 2018 and distribution of profit. According to the notice of convening annual general meeting, the shareholders are proposed to pay out dividends in amount of €3.1m with a net dividend of €0.95 per share. Transfers to the legal reserve will be €315,000 and after the allocations, retained earnings will amount to €10.6m.