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Profitus Analysis

Real Estate Debt
Real Estate Crowdfunding

Last updated in September 2023.

What is Profitus?

Profitus is the leading real estate crowdfunding platforms in Lithuania. It was founded in 2018 and has since funded €125m worth of loans to more than 1,000 real estate projects. There are 8,000 active investors on the platform which since launch has earned roughly €6.5m interest to date. During the past 12 months Profitus has funded €4.5m in loans every month with an average annual rate at 10.44% on all projects.

Key Takeaways

  • Leading real estate crowdfunding platform in Lithuania
  • Real estate loans backed by property as collateral with an average annual rate of 10.44%
  • Less than 3% of the total loan portfolio is late or in recovery.

How Profitus Works

Profitus offers investments in Lithuanian residential real estate via three types of real estate loans:

  • Development loans provide financing for one-off projects, usually smaller-sized (approx. €200,000).
  • Business loans can serve as working capital, for the acquisition of real estate or refinancing with real estate as collateral.
  • Stage loans finance large-scale development projects (approx. €1-2 million), where funds are raised in stages as the property is being developed and its value increases (from land plot to construction to completed property).

All loans are backed by property collateral with LTV ratios up to 70%. The loan repayment schedules vary but bullet loans with quarterly interest repayments seem to be most frequent. Profitus uses a risk scoring system for each project from A+ (safest) to D (highest interest). 

Investors can use an auto-invest feature and buy or sell investments on a secondary market.

Profitus Returns & Fees

Profitus displays a 10.44% average interest rate since launch and provides more detailed statistics into the performance of the loan portfolio.

The platform has less than 3% of their total loan portfolio in recovery or with late payments. Currently 1.51% of all loans are late and 1.28% are in recovery with more than 64% being fully repaid of the €125m loans funded. No losses have been incurred up to date.

In an interview with the Profitus CEO Vikrotija Cijunskyte told us in 2021 that early repayments can increase investors’ real returns as high as up to 10-11% and that the average investor's portfolio is over €5,000.

Profitus primarily makes money from charging the borrowers fees which includes a 2%-5% one-off platform fee and a 0.1%-0-2% monthly administration fee. The investors are also charged a fee if they sell a loan on the secondary market. For more information on how Profitus makes money you can see the entire fee list.

Profitus Management

Viktorija Cijunskyte and Mindaugas Vanagas launched Profitus in 2018. Before the Profitus platform, they founded and successfully ran Citus – a real estate agency. Ms Cijunskyte leads Profitus as a Director, while they both sit on the Board and make business decisions jointly. They also hold all the shares – Profitus hasn’t used any external funding to date.

Profitus doesn’t publish financial reports and Lemonway is used as the payment provider to store investors funds in a seperate bank account and for transfers only.1

Special Considerations

Profitus remains a Lithuania-focused platform – all borrowers (96%) and most lenders (about 70%) come from this Baltic state. However, in an interview with P2PMarketData, Profitus CEO – Viktorija Cijunskyte expressed her hope that the new EU regulation would facilitate cross-border investing. She also shared her views on the market and Profitus’ future:

Our expectations are positive and ambitious. We believe that the crowdfunding market will grow rapidly, both in Lithuania and in Europe. In 2020, Lithuania recorded a 66% growth in the real estate funding market. I believe that the trend will continue in the upcoming years. Moreover, during the first quarter of this year [2021], we attracted three times more new investors than during the whole of 2019.

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