Estateguru, which is currently facing significant operational challenges, has shared their latest loan portfolio overview for May 2024.
In May, although Estateguru says it experienced “a temporary dip in repayments, recoveries, and funded amounts, there were several positive developments.”
Estateguru reveals that they “secured a new contract with an institutional investor who has already started to invest, and they witnessed a 6.74% increase in new investor registrations compared to April (935 compared to April’s 876 registrations).”
Out of all €6.3 million funded in May, the largest amount this month “came from Estonia – €3.2 million and Lithuania was the second largest with €1.4 million.”
In May, Estateguru reports that investors “received €7.3M from repaid and recovered loans (including interest, bonuses, penalties and indemnities).”
Most of the repayments came from Estonia.
In addition to recovered defaulted loans, several other problematic loans “from Germany and Finland with principal amounts of €1.3M were successfully paid back to investors.”
As covered, Mihkel Stamm, CEO of Estateguru, says that the firm will reach profitability by the end of the year.
Estateguru, a real estate-backed crowdfunding platform, announced several decisions this week that should “enable the company, which has struggled with losses in recent years, to end this year in profit.”
According to Mihkel Stamm, CEO of Estateguru, “achieving profitability is crucial not only for the company’s owners and team but also for all investors using the platform.”
As noted in the update:
“In fact, it is important for every investor to know that we have managed to make our business model profitable and sustainable. This is encouraging and inspiring for everyone, but to achieve this, we had to further reduce costs and increase revenues.”
Stamm’s comments aim to shed light on the importance of the changes.
This week, alongside additional cuts to operating expenses, the company was forced to lay off a fifth of its employees.
Stamm affirmed:
“These are never easy decisions, but we need to be able to operate efficiently because that is what is expected of us today.”
With the price list adjustment effective from June, “the transfer fee for payouts was raised to three euros, and accounts that have not made any new investments for over 12 months will incur a fee until they resume investing.”
Stamm explained:
“The goal is to streamline the entire portfolio and implement fees for services to establish a comprehensive model. We believe it is entirely logical that an active investor has lower costs associated with the technical management of their account. At the same time, making just one investment per year is enough to avoid the so-called inactivity fee.”