Baltic Horizon Fund (NHCBHFFT) Q2 2025 earnings summary

Executive summary

• Portfolio occupancy increased to 84.2% by end of Q2 2025, with active leasing and tenant diversification, though some vacancies remain due to lease expiries and relocations.

• Net operating income (NOI) for Q2 2025 was EUR 3.1 million, with expectations to maintain similar levels per quarter for the rest of the year.

• The Meraki office property was sold in March 2025 for EUR 16 million, impacting asset base and used to repay loans and redeem bonds.

• Major leasing events included the handover of premises to the International School of Riga and the extension of the Latvian State Forests lease for eight years, albeit with reduced space.

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

Financial highlights

• 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.

• NOI per sq m increased from EUR 107 in Q1 to EUR 109 in Q2, with a long-term target of EUR 130 per sq m.

• Net loss for H1 2025 was EUR 891 thousand, a significant improvement from EUR 12.8 million loss in H1 2024.

• Total assets as of 30 June 2025 were EUR 238.8 million, down from EUR 256.0 million at year-end 2024.

• EBITDA reached EUR 4.1 million, with an EBITDA margin of 54.5% in H1 2025.

Outlook and guidance

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

• Fit-out investments for new tenants are budgeted at EUR 3–4 million for the year.

• No interim property revaluations will be conducted until year-end 2025 due to market uncertainty, with some downside risk anticipated.

• Management expects further reductions in operating expenses by end of 2025.

• Equity increase and asset disposals are under consideration to fund capital expenditures and reduce debt.