EfTEN Fund's Strong Growth Signals Baltic Real Estate Recovery

TALLINN, ESTONIA – December 15, 2025 – EfTEN United Property Fund has reported robust financial results, showcasing significant profit growth that outpaces previous years and points to both a successful investment strategy and a broader recovery in the Baltic real estate sector. The fund announced a net profit of 236 thousand euros for November 2025, bringing its total earnings for the first 11 months of the year to an impressive 2.45 million euros—a threefold increase from the 808 thousand euros reported for the same period in 2024.

This performance has translated directly into value for its unitholders. The net asset value (NAV) of a fund unit climbed to 11.31 euros by the end of November, an increase of 0.8% for the month. These figures underscore a period of dynamic growth for the fund, which appears to be capitalizing on favorable market shifts, particularly within the residential property segment.

The Uus-Järveküla Engine of Growth

A significant driver of EfTEN's recent success is its majority-owned Uus-Järveküla residential development project in Järveküla, a suburb of Tallinn. The fund, which holds an 80% stake in the project's development company, has seen substantial returns as the project nears completion. The development, comprising 165 terraced and semi-detached homes, has proven highly popular with buyers, with only 12 units remaining unsold or unbooked as of early December.

The project's appeal lies in its strategic positioning. The developer, Invego, has offered A-class energy-efficient homes with a five-year construction warranty at a price point comparable to larger family apartments in the city. This value proposition has resonated strongly in a market where buyers are increasingly conscious of both quality and long-term running costs.

The financial impact on the fund has been direct and substantial. In December alone, the Uus-Järveküla project distributed 500 thousand euros to the fund. For 2025, total distributions from the development have reached 3.2 million euros, nearly recouping the fund's entire initial investment of 3.52 million euros made in 2021 and 2022. With the final phase of construction underway and the entire project slated for completion in the first half of 2026, the fund is poised to realize further profits from the remaining sales and distribute proceeds to its investors.

A Resilient and Recovering Baltic Market

EfTEN's performance is not happening in a vacuum. It is set against the backdrop of a recovering Baltic residential market that has shown remarkable resilience. After a period of stagnation, housing markets across Estonia, Latvia, and Lithuania are regaining momentum, buoyed by improving economic fundamentals.

A key factor is the shift in the interest rate environment. The European Central Bank's rate cuts in 2025 have led to a decline in the EURIBOR, making mortgages more affordable. In Estonia, average housing loan interest rates fell to 3.71% by mid-2025, down from peaks of around 4.4% in late 2024. This, combined with wage growth that is outpacing property price increases, has significantly improved housing affordability and boosted buyer confidence.

While nationwide dwelling prices in Estonia saw a modest 4.6% year-on-year rise in the first quarter of 2025, the market for single-family houses has been particularly strong, with prices climbing nearly 9% in the same period. This trend aligns perfectly with the type of properties offered at the Uus-Järveküla development. Although some analysts point to risks of oversupply in certain segments, the strong demand for quality, energy-efficient family homes in desirable suburban locations appears to be a durable trend.

Diversification and Strategy Beyond a Single Project

While the Uus-Järveküla project is currently a star performer, EfTEN United Property Fund's strength also lies in its diversified investment strategy. The fund was established to provide retail investors with access to a portfolio of institutional-grade real estate that would otherwise be out of reach, including commercial and residential assets across the Baltic States.

The fund's portfolio is spread across 26 different properties, mitigating the risks associated with any single asset or market segment. Approximately 20% of its portfolio consists of a stake in the publicly traded EfTEN Real Estate Fund AS, which pursues value-add and opportunistic strategies. This provides an additional layer of diversification and liquidity.

Looking ahead, the fund is actively deploying capital into new ventures. It has made contributions to the EfTEN Residential Fund for a new rental apartment development in Vilnius, Lithuania, which was completed in mid-2024. Furthermore, it has invested in the EfTEN Special Opportunities Fund, which targets core and core-plus commercial real estate. These moves demonstrate a forward-looking strategy aimed at capturing growth across different property types and geographies within the Baltics, ensuring the fund is not solely reliant on the success of its current development projects.

Unlocking Value for Retail Investors

A cornerstone of EfTEN's model is its accessibility to the public. With a minimum investment of just 10 euros and units traded on the Nasdaq Tallinn Stock Exchange, the fund has democratized access to the real estate market for over 4,500 individual investors. This structure provides liquidity not typically found in direct property investments.

The fund's management emphasizes transparency, with a clear fee structure and a stated ambition to pay regular quarterly dividends. This commitment was demonstrated by a planned distribution in May 2025, which represented approximately 7% of the fund unit's recent closing price, largely funded by profits from the Uus-Järveküla project.

As the Baltic real estate market continues its recovery, driven by favorable economic conditions and renewed investor confidence, EfTEN United Property Fund appears well-positioned. Its blend of successful residential development, a diversified portfolio of income-generating assets, and a retail-friendly structure offers a compelling model for navigating the evolving property landscape.