Baltic Horizon Fund (NHCBHFFT) Q1 2025 earnings summary

Executive summary

• Average occupancy improved to 82.3% in Q1, with further increases expected as new tenants move in and management targets occupancy above 90% by year-end.

• Net rental income increased to EUR 3.0 million for the quarter, up 6.3% year-on-year.

• Strategic sale of Meraki office building for EUR 16 million reduced exposure to B-class offices, contributed to deleveraging, and proceeds were used to repay loans and redeem bonds.

• Key tenants such as International School of Riga and Lithuanian State Tax Inspectorate have signed or prolonged leases, supporting future occupancy and income.

• Delisting from Stockholm underway, expected to save EUR 100,000 annually and to be completed by October 2025.

Financial highlights

• Net operating income (NOI) returned to around EUR 1 million per month, expected to remain stable and gradually increase in H2.

• Net rental income margin was 78.3% in Q1 2025.

• Operating profit impacted by a EUR 900,000 loss from Meraki disposal and higher financial expenses due to extraordinary items, resulting in a net loss of EUR 968 thousand.

• Loan-to-value (LTV) ratio stood at 61.4%, with interest-bearing loans and borrowings at EUR 139.2 million.

• Cash and cash equivalents increased to EUR 12.8 million at quarter-end.

Outlook and guidance

• Occupancy projected to rise to 86%-87% as signed tenants move in, with a target above 90% by year-end.

• NOI expected to remain stable and increase in the second half of the year.

• Continued focus on cost reduction, improving DSCR to at least 1.2, and no dividend distributions planned for 2025.

• Ongoing efforts to optimize tenant mix, fill vacancies, and pursue sustainability initiatives.