Estonia, Funds, Investments, Real Estate

The smaller net profit is due to lower investment property revaluation profit, which in the first half of this year was 962, 000, compared with 2.3 mln euros last year, the company told the stock exchange.

The fund's main events of the first half of 2018 were the acquisition of the Evolution office building in Vilnius, the completion of the DSV Riga Logistics Center and the acquisition of a property at Tahesaju Business campus in Tallinn for the construction of a new garden center for Hortes, CEO Viljar Arakas said.

"At the time of the publication of the interim report, a building permit has been issued to the fund for the construction of the garden center and negotiations are being carried out for the signing of a construction contract and a lease contract. The fund plans to start construction in August 2018. The Selver development project in Laagri is also completed after the completion of the asphalting works in May this year," he added.

"In addition, in the first quarter of 2018 the temporary vacancies were filled in the Ulonu office building in Vilnius. Regarding to usual economic activity, the second quarter and the first half-year of 2018 met the expectations of the management," Arakas said.

During the first half of the year 2018, the fund earned free cash-flow for the potential dividend payout of 1.2 mln euros, which is 37 euros per share. The fund's dividend policy foresees a dividend payment of 80% from the fund's annual cash flow. If necessary, it will be coordinated with the creditors of the fund. The distribution of the fund's profit will be decided by the general meeting of the fund and the dividend payment from the profit of 2018 will be made after the general shareholders' meeting on spring 2019.