Baltic Horizon Fund (NHCBHFFT) Q1 2025 earnings summary

Executive summary

• Net rental income rose 6.3% year-over-year to EUR 3.0 million in Q1 2025, driven by higher occupancy and new tenant agreements.

• Portfolio occupancy improved to 82.3% at quarter-end, with lease signing date occupancy at 86.9% and further increases expected as new tenants move in.

• Sale of Meraki office building for EUR 16 million reduced B-class office exposure and supported deleveraging.

• Net loss for Q1 2025 was EUR 968 thousand, mainly due to losses on property disposals.

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

Financial highlights

• Rental income for Q1 2025 was EUR 3.79 million, with net rental income at EUR 2.97 million; net operating income returned to around EUR 1 million per month.

• Administrative expenses decreased to EUR 548 thousand; EBITDA was EUR 1.65 million (margin 43.5%), and EBIT EUR 1.53 million (margin 40.3%).

• Losses on disposal of investment properties rose to EUR 905 thousand; net loss widened to EUR 968 thousand.

• LTV 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

• Management targets occupancy above 90% by year-end and aims to reduce LTV to below 50% through further asset disposals and bond repayments.

• Focus remains on cost reductions, energy efficiency, and improving DSCR to at least 1.2.

• No dividend distributions planned for 2025 to strengthen the fund's financial position.

• Emphasis on mixed-use concepts and government/social tenants, reducing B-class office exposure.

• Market recovery expected to be gradual due to economic and geopolitical uncertainties.