Real Estate Investment blog

Q2 2020 property overview

Reinvest24 real estate crowdfunding platform property overview
Reading Time: 5 minutes

In the past, our property quarter overviews were sent via email only to users who are invested in a particular project. Starting from Q1 2020, the overviews of our rental properties are available for everyone. We believe that this will increase the transparency and all our investors will have a better overview of what’s happening with the properties on Reinvest24 – real estate crowdfunding platform. It is very important as the secondary market launch approaches and all investors will be able to invest in already working properties in the very near future.
Let’s see what is Q2 property overview all about.

In overall the Q2 of 2020 was definitely not the best 3 months, as 2/3 of this period was the peak of COVID19 and the lockdown was applied by the governments. Some sectors took a bigger hit than others, but everyone was effected one way or another. Real estate in overall was one of the asset class, that did a lot better than the rest. In May we already saw a recovery in Tallinn market and that trend has continued in June and July. For our rental properties in most part, the impact has been very small, but due to low activity on the market, some processes have been taking longer than expected.

High yielding office space in Rocca Al Mare property overview

Reinvest24 Q2 property overview
Address: Vabaõhumuuseum tee 1, Tallinn

Income and costs:

AprilMayJune
Gross rental: 3633 EURGross rental: 4005 EURGross rental: 4378 EUR
Platform fee: 0 EURPlatform fee: 0 EURPlatform fee: 169 EUR
Profit: 3633 EURProfit: 4005 EURProfit: 4209 EUR
Payout: 3633 EURPayout: 4005 EURPayout: 4209 EUR
2020 Q2
  • Until the property was fully funded, the monthly rental payouts were proportional, based on the days user was invested in the previous month.
  • Until the property was fully funded, Reinvest24 did not take any management fees.
  • We plan to keep this property long-term, as the property is well secured with a good rental contract for the next 8 years period and has a great potential for capital growth!
  • COVID19 lockdown had no effect on rental income!

Restaurant and wine boutique commercial space in Kadriorg

Reinvest24 Q2 property overview
Address: Terase 16, Tallinn

Income and costs:

AprilMayJune
Gross rental: 600 EURGross rental: 1750 EURGross rental: 2333 EUR
Platform fee: 0 EURPlatform fee: 0 EURPlatform fee: 233 EUR
Profit: 600 EURProfit: 1750 EURProfit: 2100 EUR
Payout: 600 EURPayout: 1750 EURPayout: 2100 EUR
2020 Q2
  • This property has a tenant who suffered from the COVID19 lockdown. The restaurant was partially closed in April and could only offer “takeaways”. They opened doors again in mid-May. Therefore we accepted their request to postpone some part of April and May rental payments to the second part of the year. This will not have any negative effects on the total rental income in 2020.
  • The new appraisal report is planned for the second part of 2020. The new appraisal report will be made, once the purpose of the property is changed to commercial space (notarial obligation of the previous owner).

Land plot with existing cash flow and development potential

Reinvest24 Q2 property overview
Address: Vinkli 9, Tallinn

Income and costs:

AprilMayJune
Gross rental: 1900 EURGross rental: 1900 EURGross rental: 1900 EUR
Platform fee: 190 EUR
Other costs: 20 EUR
Platform fee: 190 EUR
Other costs: 20 EUR
Platform fee: 190 EUR
Other costs: 20 EUR
Profit: 1690 EURProfit: 1690 EURProfit: 1690 EUR
Payout: 1690 EURPayout: 1690 EURPayout: 1690 EUR
2020 Q2
  • Net rental yield in 2020 Q2: 7,44% (01.04.2020 – 30.06.2020)
  • In the past 6 months we have been in contact with real estate developers who are interested to build on this land. We already have some options on the table and most likely the profitable exit will happen within 2020.
  • COVID19 lockdown had no effect on rental income!

Land plot with cash flow and signed buyout

Reinvest24 Q2 property overview
Address: Vinkli 10, Tallinn

Income and costs:

AprilMayJune
Gross rental: 1300 EURGross rental: 1300 EURGross rental: 1300 EUR
Platform fee: 130 EUR
Other costs: 20 EUR
Platform fee: 130 EUR
Other costs: 20 EUR
Platform fee: 130 EUR
Other costs: 20 EUR
Profit: 1150 EURProfit: 1150 EURProfit: 1150 EUR
Payout: 1150 EURPayout: 1150 EURPayout: 1150 EUR
2020 Q2
  • Net rental yield in 2020 Q2: 6% (01.04.2020 – 30.06.2020)
  • The latest exit date for this property is 2021 May, but currently it seems that we are going to be able to finalize the preliminary agreement within 2020.
  • COVID19 lockdown had no effect on rental income!

Rental apartments in Tallinn´s tech hub

Rental apartments in Tallinn´s tech hub
Address: Majaka 54-13, Tallinn

Income and costs:

AprilMayJune
Gross rental: 0 EURGross rental: 0 EURGross rental: 0 EUR
Platform fee: 0 EURPlatform fee: 0 EURPlatform fee: 0 EUR
Profit: 0 EURProfit: 0 EURProfit: 0 EUR
Payout: 0 EURPayout: 0 EURPayout: 0 EUR
2020 Q2
  • Currently the property is not rented out and does not generate monthly income.
  • The lockdown has caused the operator to renounce the operations, we are in progress of selling this property as two separate units.
  • The property could have been rented out long-term, but that would have made it difficult to sell it at the same time.
  • The capital growth is going to compensate “no income period” for our investors.

Modern office in the business center of Tallinn

Modern office in the business center of Tallinn
Address: Ahtri 6a, Tallinn

Income and costs:

AprilMayJune
Gross rental: 0 EURGross rental: 0 EURGross rental: 0 EUR
Platform fee: 0 EURPlatform fee: 0 EURPlatform fee: 0 EUR
Profit: 0 EURProfit: 0 EURProfit: 0 EUR
Payout: 0 EURPayout: 0 EURPayout: 0 EUR
2020 Q2
  • Currently the property is not rented out and does not generate monthly income.
  • The key factor for this property is the purchase price, which would not have been possible, if the property came with a valid rental contract.
  • Currently the property is not owned by Reinvest24 SPV, as it is not purchased yet, but reserved through notarial agreement.
  • The lockdown has extended the period for finding a good tenant for this property. We have decided to lower the rental price for the first year, to speed up this process. To compensate that to our investors, Reinvest24 will not take management fee for that period.
  • As of 24.07 there is one very seriously interested company in the same builidng, who is expanding and needs additonal office space. We hope to give you good news about this in the very near future.
  • The capital growth is going to compensate “no income period” for our investors.

You can read more about how Reinvest24 platform did in overall in the past 3 months in our blog post: Reinvest24 Q2 2020 overview

Are you looking for the investment strategy where the monthly cash flow of dividends is in the foreground? Then Reinvest24 real estate crowdfunding platform is the best choice of yours. Seed your future profits now.

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