Baltic Horizon Fund (NHCBHFFT) Q3 2025 earnings summary

Executive summary

• Portfolio occupancy increased to 85.6% by end of Q3 2025, supported by strong leasing activity and new tenant additions.

• Net loss for Q1–Q3 2025 was EUR 959 thousand, a significant improvement from a EUR 13.4 million loss in Q1–Q3 2024, mainly due to lower valuation losses and disposals.

• Net rental income for Q3 2025 was EUR 2.63 million, down 8.8% year-over-year, mainly due to higher bad debt allowances.

• Major change in management company ownership and rebranding to Baltic Horizon Capital AS, with new Lithuanian partners and board appointments.

• A new equity offering is proposed to raise up to EUR 25 million from existing investors to repay expensive bonds, reduce leverage, and fund asset enhancements.

Financial highlights

• Rental income for Q1–Q3 2025 was EUR 11.4 million, nearly unchanged year-over-year, with net rental income at EUR 8.7 million.

• Net operating income was impacted by a EUR 500,000 provision for bad debts in Q3.

• GAV as of 30 September 2025 was EUR 237.7 million, down from EUR 256.0 million at year-end 2024, mainly due to property disposal.

• LTV improved to 60.1% at the end of Q3 2025, with total debt outstanding at EUR 134.5 million.

• Cash and cash equivalents at EUR 6.0 million as of 30 September 2025.

Outlook and guidance

• Management proposes a new unit issuance in Q1 2026 to raise up to EUR 25 million, aiming to repay bonds, strengthen the balance sheet, and fund asset enhancements.

• No cash distributions to unitholders are expected until bonds are repaid and turnaround initiatives are completed.

• Priority is to remove the bond by 2026, using a mix of refinancing, property sales, and new equity.

• If the equity raise is insufficient, management will consider alternative steps, including possible tranches or further asset disposals.

• Strategic focus areas include improving rental income, cost control, and deleveraging to reduce LTV below 50% in the long term.