In the second quarter of 2026, EfTEN United Property Fund earned a net profit of EUR 248 thousand (Q2 2025: EUR 976 thousand). The decrease in profit is primarily related to the regular valuation of property investments carried out at the end of the half-year, as well as to the fund’s investment in the development company Invego Uus-Järveküla OÜ, where the majority of the terraced houses’ sales and the recorded profit took place in the first half of last year.
Despite the decrease in profit, EfTEN United Property Fund received record distributions from its underlying funds at the beginning of 2026. 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 dividends and income received from all underlying funds, as well as interest from the owner loans to Invego Uus-Järveküla OÜ and on the Menulio 7 office building.
In the second quarter of 2026, the fund manager was actively working on restructuring the investment portfolio of EfTEN United Property Fund. Although the closing of the related transactions fell into the beginning of the third quarter, the main preparatory activities took place in the second quarter.
The fund manager is of the opinion that the office segment — particularly older, so-called Class B and C buildings — will remain under pressure in the Baltic commercial real estate market for some time to come. Demand for office space is being held back by the increasingly entrenched work-from-home culture and by the modest expansion of business activity resulting from low economic growth. Accordingly, after the balance sheet date, at the beginning of July, the fund sold 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 to date and the interest accrued on the loans, the fund will earn a profit of EUR 760 thousand upon completion of the sale transaction.
In the Baltic commercial real estate market, the fund manager sees the strongest outlook in the retail segment. Despite subdued economic growth, wage growth has remained relatively strong in all three Baltic countries. In addition, consumer willingness to spend is being supported by the slowdown in inflation. Given the positive outlook for retail, the EfTEN United Property Fund increased its holding in Domina retail centre in Riga. Whereas previously the fund held an indirect position of EUR 380 thousand in the Domina centre through EfTEN Kinnisvarafond II AS, the fund invests now 2.478 million euros directly to the centre. The transaction is expected to be closed by the end of August
As a result of these two transactions the share of office segment decreased by 11 percentage points (to 27%) and the share of retail increased by 7 percentage points (to 47%) in the fund’s portfolio.
In the fund’s 80%-owned development company Invego Uus-Järveküla OÜ, five completed terraced houses were handed over to customers during the second quarter, with real right agreements concluded. As of the end of the quarter, four terraced houses and two plots remain unsold in the development project. Following the balance sheet date, the fund entered into an agreement to expand the Uus-Järveküla development project. Under the plan, 22 semi-detached house units are to be built at the site. The fund will invest in the expansion of the development project in stages, contributing a total of approximately EUR 1.5 million through a shareholder loan bearing interest of 10% per annum. In addition, the fund acquired an 80% stake in Invego Uus-Järveküla 2 OÜ, the company developing the Uus-Järveküla residential district expansion. Completion of the development project is planned for 2029.
In the second half of 2026, EfTEN United Property Fund plans to make the second cash distribution of the year to investors.
Statement of the comprehensive income
| 2nd quarter | 6 months | |||
| 2026 | 2025 | 2026 | 2025 | |
| € thousand | ||||
| INCOME | ||||
| Interest income | 36 | 143 | 109 | 297 |
| Income from underlying funds | 718 | 420 | 775 | 420 |
| Other financial income | 0 | 0 | 0 | 4 |
| Net profit / loss from assets recognised in fair value through profit or loss | -455 | 460 | -53 | 1 075 |
| Investments in subsidiaries | -259 | 647 | -223 | 737 |
| Investments in underlying funds | -196 | -187 | 170 | 338 |
| Total income | 298 | 1 023 | 832 | 1 796 |
| COSTS | ||||
| Operating expenses | ||||
| Management fees | -20 | -27 | -46 | -56 |
| Costs of administering the Fund | -10 | -10 | -18 | -17 |
| Other operating expenses | -20 | -9 | -58 | -38 |
| Total operating expenses | -50 | -46 | -123 | -111 |
| Interest expenses | 0 | -1 | 0 | -6 |
| Operating profit | 248 | 976 | 709 | 1 679 |
| Profit before income tax | 248 | 976 | 709 | 1 679 |
| Net profit for the period | 248 | 976 | 709 | 1 679 |
| Total comprehensive profit for the reporting period | 248 | 976 | 709 | 1 679 |
| Increase in the net asset value of the fund attributable to shareholders | 248 | 976 | 709 | 1 679 |
| Ordinary and diluted earnings per share (EUR) | 0,1 | 0,39 | 0,29 | 0,68 |
Statement of financial position
| 30.06.2026 | 31.12.2025 | |
| € thousand | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 3 079 | 1 774 |
| Loans granted | 2 149 | 1 516 |
| Other receivables and accrued income | 403 | 300 |
| Total current assets | 5 631 | 3 590 |
| Non-current assets | ||
| Financial assets at fair value through profit or loss | 23 302 | 23 474 |
| Investments in subsidiaries | 2 888 | 3 111 |
| Investments in underlying funds | 20 415 | 20 363 |
| Loans granted | 0 | 2 149 |
| Total non-current assets | 23 302 | 25 623 |
| TOTAL ASSETS | 28 933 | 29 213 |
| LIABILITIES | ||
| Current liabilities | 74 | 2 |
| Total liabilities, excluding net asset value of the fund attributable to shareholders | 74 | 2 |
| NET ASSET VALUE OF THE FUND | ||
| Net asset value of the fund attributable to shareholders | 28 859 | 29 211 |
| Total liabilities and net asset value of the fund attributable to shareholders | 28 933 | 29 213 |
The unaudited 2nd 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
