EstateGuru notes that summer is in full swing, which is also evident in their loan volumes.
During July 2022, their investors financed €11.8M worth of loans “with Estonia contributing the most with €4.0M, followed by Latvia (€2.3M) and Lithuania (€2.2M).”
EstateGuru further noted that they are seeing that both borrowers and investors are “already more active during August, and [they] are expecting higher volumes as the holiday season comes to an end.”
Repayments during July “amounted to €4.4M, a figure reflective of seasonality and extensions.” There were “no major changes in late loans’ amounts.” They are “expecting an increase in repayments during the following months.”
As mentioned in their last portfolio report, they were “expecting at least two recoveries, which have now occurred.” In Finland, they recovered €1.5M and in Estonia €0.6M. Additionally, one long term default (€0.2M) was “resolved in Latvia with the sale of the claim following the court’s confirmation of bankruptcy.”
In Germany, the first two defaults occurred, and are “now being resolved using our external default lawyer and debt collection agency.” The default rate is “currently at 5,8% and [they] will be working hard over the coming months to get that even lower.”
You may read an overview about how EstateGuru tackles late loans in order “to maximize value creation for their investors.”
The firm added that they will “keep you informed about the credit portfolio quality on a monthly basis.”
As stated in the report (as of August 18, 2022):
- Total financed loans since 2014 – 613.0 Million Euros
- Total Repaid loans since 2014 – 346.0 Million Euros
- Total outstanding portfolio – 266.6 Million Euros
- Total outstanding defaulted loans – 15.5 Million Euros
They also confirmed:
- Total number of outstanding defaulted loans – 52
- Default Rate (Outstanding loans) – 5.8%
- Partially recovered loans rate (outstanding loans) – 1.2%
- Default Rate (total Financed loans) – 2.5%
- Total amount of Recovered loans – 22.4 Million Euros
- Total number of Recovered loans – 116
- Average return rate of recovered loans – 9.2%
- Average time from default to recovery – 10.6 months
- Write-off rate (total financed loans) – 0.007%