EfTEN's Property Playbook: Strategic Exits Drive Investor Returns

TALLINN, ESTONIA – March 16, 2026 – EfTEN United Property Fund has demonstrated a masterful execution of its real estate investment strategy, reporting steady net asset value growth driven by a highly profitable residential project exit and the robust performance of its core commercial assets. The fund's net asset value (NAV) per unit climbed by 0.4% to 11.9 euros during February, underscoring its resilience in a nuanced market.

While the fund posted a net profit of 131 thousand euros for February, contributing to 354 thousand euros for the first two months of 2026, the story behind the numbers reveals a strategic balancing act between generating long-term value and delivering immediate returns to its investors.

A Profitable Blueprint: The Uus-Järveküla Success

A cornerstone of the fund's recent success is the lucrative conclusion of its investment in the Uus-Järveküla residential development project. In early March, the development company, Invego Uus-Järveküla OÜ, in which EfTEN holds an 80% stake, repaid its entire bank loan and returned a 1.51 million euro owner loan, plus 56 thousand euros in accrued interest, to the fund.

This repayment marks the culmination of a highly successful venture. EfTEN United Property Fund invested a total of 3.52 million euros into the project across 2021 and 2023. To date, it has received 4.8 million euros back, crystallizing a significant profit and showcasing the fund's ability to identify, finance, and exit development projects effectively. The Uus-Järveküla development itself, a modern 165-home community of townhouses and semi-detached homes near Tallinn, was met with strong market demand, with over 80% of homes sold before the final stage of construction was even completed.

In a direct translation of this success into shareholder value, EfTEN announced it will distribute 100 thousand euros from the received loan interest to its investors this spring. This move highlights the fund’s commitment to channeling profits from strategic capital gains directly back to its stakeholders.

Resilience in Retail: The Strength of Core Assets

While the Uus-Järveküla exit provided a significant capital boost, the fund's stability is anchored by its diversified portfolio of income-generating commercial properties. The largest of these investments, a 36.5% stake in EfTEN Real Estate Fund 5, continues to be a powerful engine of growth.

EfTEN Real Estate Fund 5 reported a profit of 483 thousand euros for the first two months of 2026, a notable increase from the 431 thousand euros earned during the same period last year. This strong performance was significantly bolstered by its prime retail holdings. Notably, EfTEN Kristiine OÜ, the company owning the popular Kristiine shopping centre in Tallinn, saw its equity value increase by 1.2% in January and reported zero vacancies at the end of February—a clear indicator of a high-quality, well-managed asset thriving despite broader economic pressures.

The strength of EfTEN Real Estate Fund 5 is not solely reliant on one asset. Its portfolio is strategically diversified across the Baltic states, including key office and logistics properties, such as the Saltoniskiu office building in Vilnius and the DSV logistics center in Tallinn. This diversification mitigates risk and ensures a steady stream of rental income, providing a reliable foundation for the United Property Fund's overall performance.

Navigating a Complex Market

EfTEN's positive results are particularly noteworthy when viewed against the backdrop of the broader Estonian real estate market, which presents a mixed picture. The residential sector has seen continued price growth, yet transaction volumes have cooled from their recent peaks. Meanwhile, the commercial sector is bifurcated, with prime, well-located assets performing strongly while other segments face headwinds from economic uncertainty and evolving work patterns.

In this environment, the slight year-over-year decrease in EfTEN United Property Fund's cumulative two-month net profit (down from 525 thousand euros in 2025) is less a sign of weakness and more a reflection of the cyclical nature of real estate development profits. The fund’s strategy is not solely reliant on month-to-month operational income but is also designed to capture significant value through the multi-year lifecycle of development projects.

The consistent monthly growth in NAV, a key metric of underlying value, demonstrates that the fund's portfolio is appreciating in value. This, combined with the successful capital realization from the Uus-Järveküla project, paints a picture of a management team skillfully navigating market complexities, balancing income generation with strategic, value-add development plays.

Delivering Tangible Value to Investors

Ultimately, the success of an investment fund is measured by the value it delivers to its unitholders. EfTEN United Property Fund's recent performance underscores a dual approach to creating this value: steady appreciation of assets and tangible cash returns.

The upcoming interest distribution is not an isolated event but part of a consistent strategy. Since its listing, the fund has established a track record of making regular distributions to investors, funded by income from its underlying fund investments and profits from development loans. This creates a reliable income stream for investors, complementing the long-term capital growth reflected in the rising NAV.

By successfully executing its strategy—from identifying a promising residential development and seeing it through to a profitable exit, to managing a portfolio of prime commercial assets that generate steady income—EfTEN United Property Fund continues to build a compelling case for its investors. It proves that even in a shifting market, a disciplined and strategic approach can yield impressive results and tangible rewards.