InRento upbeat about 2023 after second-quarter lending volumes rise
InRento saw its lending increase by more than a third in the second quarter to €2.39m (£2.04m) and said its portfolio is “in solid shape” as it enters the second half of the year.
The European buy-to-let crowdfunding platform financed 11 new projects in the second quarter, equating to 20 unique properties.
By comparison, in the first quarter, the Lithuania-headquartered firm lent out €1.7m across seven new projects comprising 12 unique properties.
However, returns fell quarter-on-quarter. Average project returns decreased to 8.75 per cent in the second quarter from 9.44 per cent, while average investor returns fell to 13.25 per cent from 14.6 per cent.
“We’ve entered the second half of the third year of our operations, and our projects’ portfolio continues to remain in solid shape,” InRento said in a blog post.
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“In the second quarter, we had three different projects in Lithuania and Spain being partially and fully realized. Additionally, no projects were late or defaulted and continued to outperform the investment return initially offered at the fundraising of the project.
“The main reasons for that are: projects had interest indexation – meaning their interest rate was indexed to inflation, and additionally, when you invest via the InRento [platform], you participate in fixed or variable capital gains, thus as projects are realized this capital gain is paid and increases the investment return. We expect in the second half of the year even more projects to be realized based on the ongoing progress of projects.”
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InRento introduced a number of new platform features during the second quarter. Investors can now connect their InRento account using their Google Gmail account, which simplifies the registration and login process.
It also revamped the way investors can view project stages on its website, with tabs for current and past stages. InRento said it will be easier for investors to track the progress of projects and compare before and after images and documents.
Earlier this month, InRento announced that it had increased its share capital to fund expansion into new countries and invest in its technology.
The firm said the fundraise also meant it could maintain high-quality lending during periods of uncertainty.