Key Takeaways
- • EfTEN Real Estate Fund AS completed a EUR 31.69 million acquisition of Magistral shopping centre on 1 June 2026, with expected net yield of 8.1% and immediate 100% occupancy upon completion.
- • The Fund divested two properties in H1 2026—the DSV logistics centre in Latvia (achieving approximately 10% IRR over a 10-year hold) and Menulio 11 office building in Vilnius (sold at EUR 0.6 million above carrying value)—to redeploy capital toward higher-yielding opportunities.
- • Q2 2026 consolidated revenue reached EUR 8.545 million, representing 4.1% year-on-year growth, while portfolio vacancy decreased to 2.3%, the lowest level in three years, demonstrating improved operational performance across existing assets.
- • Magistral shopping centre generated EUR 213 thousand in rental income in June 2026 alone, with 165.5 m² of vacant space already leased as of the reporting date, indicating strong demand in the acquired asset.
- • The Fund's existing real estate portfolio continues to perform steadily with strong tenant payment behaviour, supporting the Fund's dividend-paying capacity while management actively pursues portfolio optimization across Baltic States properties.
Summary
EfTEN Real Estate Fund AS executed a significant portfolio rebalancing strategy during the first half of 2026, focused on capital efficiency and repositioning toward higher-yielding assets. The Fund completed the sale of its Latvian subsidiary EfTEN Krustpils SIA, which owned the DSV logistics centre acquired in June 2016. This divestment realized an internal rate of return of approximately 10% over the holding period. Additionally, in April 2026, the Fund's subsidiary EfTEN Menulio UAB sold the Menulio 11 office building in Vilnius, achieving a sale price approximately EUR 0.6 million above the property's carrying value. These strategic dispositions generated capital for new investment opportunities.
On 1 June 2026, the Fund deployed proceeds toward a EUR 31.69 million acquisition of a 100% stake in Magistral Kaubanduskeskuse OÜ, a shopping centre investment. The transaction was structured with an expected net yield of 8.1%, positioning the asset as a core income-generating component of the Fund's portfolio. The Magistral centre demonstrated immediate operational strength, generating EUR 213 thousand in rental income during June 2026 alone. By the reporting date, 165.5 m² of vacant space had lease agreements in place, resulting in 100% occupancy—a significant achievement for a newly acquired property.
The Fund's broader portfolio performance improved substantially during H1 2026. Q2 consolidated revenue totalled EUR 8.545 million, reflecting a 4.1% increase year-on-year. Portfolio vacancy rates compressed to 2.3%, marking the lowest level in three years, while tenant payment behaviour remained stable. Fund management attributed these gains to active portfolio optimization focused on maintaining occupancy, maximizing rental income, and sustaining the Fund's dividend-paying capacity. The combination of portfolio rationalization and the strategic addition of the Magistral centre positions EfTEN Real Estate Fund AS for continued cash flow generation across its Baltic States commercial property holdings.
On 1 June 2026, the Fund deployed proceeds toward a EUR 31.69 million acquisition of a 100% stake in Magistral Kaubanduskeskuse OÜ, a shopping centre investment. The transaction was structured with an expected net yield of 8.1%, positioning the asset as a core income-generating component of the Fund's portfolio. The Magistral centre demonstrated immediate operational strength, generating EUR 213 thousand in rental income during June 2026 alone. By the reporting date, 165.5 m² of vacant space had lease agreements in place, resulting in 100% occupancy—a significant achievement for a newly acquired property.
The Fund's broader portfolio performance improved substantially during H1 2026. Q2 consolidated revenue totalled EUR 8.545 million, reflecting a 4.1% increase year-on-year. Portfolio vacancy rates compressed to 2.3%, marking the lowest level in three years, while tenant payment behaviour remained stable. Fund management attributed these gains to active portfolio optimization focused on maintaining occupancy, maximizing rental income, and sustaining the Fund's dividend-paying capacity. The combination of portfolio rationalization and the strategic addition of the Magistral centre positions EfTEN Real Estate Fund AS for continued cash flow generation across its Baltic States commercial property holdings.
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