Loan portfolio overview (December of 2021)

2021 ended strongly on EstateGuru’s platform, with our investors financing €18,6M worth of loans in December.

The total funded amount for the year was €202,8M. In December, Estonia, Lithuania and Germany all contributed over €4,0M in funded loans. There was a total of €75,1M in loans funded in Germany over the course of the year, and the outstanding portfolio in that market is now the largest, at €65,6M.

Repayments continued at a stable pace in December and amounted to €11,8M (a total of 73 loans with average returns of 10,4%). Despite the ongoing coronavirus pandemic and the attendant uncertainty, the real estate markets in all of our operating countries are performing well, which affects the loan repayments positively.

During the last month we fully recovered two loans in Estonia (€0,2M). We introduced a new loan status for our investors (partially recovered), which will apply to defaulted loans where some of the principal has already been recovered (e.g. part of the collateral sold). This will allow us to represent investors’ outstanding loan portfolios more transparently and fairly. When we separate partially recovered loans from defaulted ones, we can show our investors loans where our debt collection has already been successful, and investors can soon expect full recovery.

The default rate is at 7%. Despite the holiday period our debt collection team and partners have been actively working with our defaulted projects in Latvia and Finland – we expect positive news and a rapid decrease of defaults during the first quarter of 2022.

2021 saw us introducing principal capital loss to our investors in the total amount of €0,04M, which is a relatively small amount considering our total financed loans since 2014. Total full loan recoveries in 2021 amounted to €5,2M.

The loan portfolio’s growth over the past year has been facilitated by our investments into loan origination technology and recruitment (loan managers, credit analysts). We also re-organized our risk department at the end of 2021 to support the origination plans for upcoming years. 

We will keep you informed about the credit portfolio quality on a monthly basis.