Baltic Horizon Fund (NHCBHFFT) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with a review of 2023 activities, strategic ambitions, and an outline of plans for the coming year.

Financial performance review

• Net rental income for 2023 was EUR 14.6m, down from EUR 17.4m in 2022, mainly due to office vacancies, asset disposals, and tenant changes.

• 2023 net loss of EUR 23.0m, impacted by EUR 21.9m negative property revaluation and higher financial expenses.

• Q1 2024 net rental income was EUR 2.8m, a 33.5% decrease year-on-year, with a net loss of EUR 624k.

• Portfolio occupancy increased to 83–83.5% by end of Q1, with a target of 90% by year-end and 95% by end 2025.

• GAV at end Q1 2024 was EUR 268.3m, up 3.1% from year-end 2023, mainly due to new loans and partial bond redemption.

Strategic initiatives and plans

• Six strategic targets guide efforts, including >90% occupancy by end 2024, EUR 18m operating results, LTV <50%, 100% asset certification, potential asset disposals, and GRESB ≥4 stars.

• Plans for H2 2024 include disposing of a non-strategic asset (~EUR 10m), refinancing loans to extract EUR 5m, and raising up to EUR 10m in equity.

• Ongoing ESG initiatives have led to full property certification, improving financing conditions.

• Plans to develop a second tower at Meraki when tenant demand is confirmed.

• Aim to return to dividend payments in 2025 as financial health and occupancy targets are achieved.