EstateGuru notes that 2021 ended “strongly” for their platform, with their investors financing €18.6M worth of loans in December 2021.
As mentioned in the update from EstateGuru, the total funded amount for the year was €2028M. 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.”
The report further noted that 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 COVID-19 crisis 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 past month, the team “fully” recovered two loans in Estonia (€0.2M). They introduced a new loan status for their 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 them to “represent investors’ outstanding loan portfolios more transparently and fairly.” When we separate partially recovered loans from defaulted ones, the company can show their investors loans where their debt collection “has already been successful, and investors can soon expect full recovery.”
The update also mentioned that the “default rate is at 7%.” Despite the holiday period, their debt collection team and partners have been “actively working with [their] defaulted projects in Latvia and Finland – [they] expect positive news and a rapid decrease of defaults during the first quarter of 2022.”
EstateGuru also noted that 2021 saw them “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),” the update revealed.
They also re-organized their risk department “at the end of 2021 to support the origination plans for upcoming years.”
The team said they will keep clients informed about the credit portfolio quality “on a monthly basis.”
As stated in the report (as of December 1, 2022):
- Total financed loans since 2014 – 498.8 Million Euros
- Total Repaid loans since 2014 – 282.9 Million Euros
- Total outstanding portfolio – 215.8 Million Euros
- Total outstanding defaulted loans – 15.0 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 69
- Default Rate (Outstanding loans) – 7.0%
- Default Rate (total Financed loans) – 0.8%
- Total amount of Recovered loans – 14.5 Million Euros
- Total number of Recovered loans – 94
- Average return rate of recovered loans – 9.5%
- Average time from default to recovery – 8.9 months
- Write-off rate (total financed loans) – 0.008%
