Loan portfolio overview (May 2021)

laenuportfell

Estateguru’s investors financed €16,8M worth of loans in May. The most active markets were Estonia and Germany – with loan volumes of €6,8M and €5,0M, respectively.

Despite the fact that the holiday period has started, we still expect the monthly funding levels to remain at over €15,0M as healthy demand in the real estate market supports the need for loan capital.

Our borrowers repaid a total of €8,9M of loans (total of 98 loans with an average return of 10,8%) in May. During the last months, our monthly repayment amount has been nearly two times lower than the financed loan amount. The main reason is the growth of the German market, where the portfolio is young and maturity dates have not yet been reached. A positive aspect related to this is that our late and defaulted loan portfolio has not increased (which means no negative effect on the repayments).

The default rate increased to 8,2% and we now have the first defaulted case in Sweden. One Finnish defaulted loan will be recovered in June as we have accepted an offer from an investor who will buy our assets from the bankrupt estate. The Latvian market has stabilized – the late loan amount is below 4% and there have been no new defaulted loans in the last two months.

One of the Estonian defaulted loans, where we waited for repayment (successful auction), has now been recovered (€0,2M). Also, two other recoveries (total €0,2M) occurred in Estonia during the past month.

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