EfTEN Real Estate Fund Posts 6.5% Rental Income Growth in Q1 2026, Sells Latvian Logistics Asset
Event summary
- Q1 2026 rental income rose 6.5% YoY to €8.18M, with EBITDA up 10.3% YoY to €6.817M.
- Sold Latvian logistics subsidiary EfTEN Krustpils SIA for €5.374M, achieving 10% IRR since 2016.
- Adjusted cash flow increased 31% YoY to €3.5M, driven by higher EBITDA and lower interest expenses.
- NAV per share rose 0.7% in March to €20.749, with EPRA NRV up 0.6% to €21.6897.
The big picture
EfTEN's Q1 2026 results reflect strategic asset rotation, with proceeds from non-core disposals funding new opportunities. The 10% IRR on the Latvian logistics sale underscores disciplined capital recycling, while segment EBITDA trends highlight shifting demand dynamics. With €5.374M in fresh capital, the Fund's ability to deploy into higher-growth assets will be critical amid evolving real estate market conditions.
What we're watching
- Deployment Strategy
- How the Fund will allocate proceeds from asset sales, particularly the €5.374M from EfTEN Krustpils SIA, into new investments like Magistrali Kaubanduskeskuse OÜ.
- Segment Performance
- Whether the 63% EBITDA growth in elderly care can be sustained amid broader market conditions, while office segment stagnation persists.
- Interest Rate Dynamics
- The pace at which the weighted average loan interest rate (4.0% in Q1) may shift, impacting future adjusted cash flow growth.
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