Baltic Horizon Fund (NHCBHFFT) Q2 2025 earnings summary

Executive summary

• Portfolio occupancy increased to 84.2% by end of Q2 2025, with new tenants such as the International School of Riga and ongoing leasing and tenant diversification efforts.

• Net operating income (NOI) reached EUR 3.1 million in Q2, with stable quarterly NOI and a EUR 12 million target for 2025.

• H1 2025 saw a net loss of EUR 891 thousand, a significant improvement from the EUR 12,849 thousand loss in H1 2024, mainly due to lower valuation losses and property disposals.

• The Fund completed the sale of Meraki office building for EUR 16 million, using proceeds to repay loans and partially redeem bonds.

• Focus remains on increasing occupancy, reducing leverage, and enhancing operational efficiency amid challenging market conditions.

Financial highlights

• NOI for Q2 was EUR 3.1 million, with a quarterly run rate of approximately EUR 3 million.

• Rental income for H1 2025 was EUR 7.5 million, with net rental income at EUR 6.1 million, up 1.6% year-over-year.

• EBITDA reached EUR 4.1 million, with an EBITDA margin of 54.5% compared to negative margins in H1 2024.

• Net asset value (NAV) stood at EUR 97.1 million, or EUR 0.6766 per unit, down slightly from year-end 2024.

• Loan-to-value (LTV) ratio improved to 60.7% from 61.8% at year-end 2024.

Outlook and guidance

• NOI is expected to remain stable at around EUR 3 million per quarter for the rest of the year.

• Management targets further occupancy gains and LTV reduction, with options including asset disposals, refinancing, and a potential public offering.

• Annual property valuations postponed to the second half of the year or year-end 2025 to reflect more stable tenancy and cash flows.

• Expense reductions are expected, including from the delisting process and renegotiated contracts.

• Market stabilization is expected to be slow due to economic and geopolitical uncertainties; cost-saving and efficiency measures are prioritized.