Baltic Horizon Fund (NHCBHFFT) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw stable operational performance with portfolio occupancy at 84.2% at quarter-end, up from 82.3% a year earlier, driven by active leasing and tenant diversification.

• Net rental income for Q2 2025 was EUR 3.1 million, a 2.5% decrease year-over-year, but H1 2025 net rental income rose 1.6% compared to H1 2024.

• H1 2025 saw a net loss of EUR 891 thousand, a significant improvement from the EUR 12.8 million loss in H1 2024, mainly due to lower valuation losses and property disposals.

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

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

• 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% compared to negative margins in H1 2024.

Outlook and guidance

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

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

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

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

• Management may consider raising equity to fund capital expenditures and reduce debt.