Baltic Horizon Fund (NHCBHFFT) Q4 2023 earnings summary

Executive summary

• 2023 net loss was €22.973m versus €3.944m net profit in 2022, driven mainly by €21.876m in negative property revaluations and €4.047m in disposal losses.

• Like-for-like net rental income declined 0.2%; total net rental income fell 16.1% to €14.617m, reflecting disposals and office vacancies.

• Year-end occupancy was 81.1%; priorities include reaching at least 90% occupancy by end-2024, refinancing bonds and reducing leverage.

Financial highlights

• Rental income was €17.743m, down 13.4% YoY; net rental income was €14.617m, down 16.1%.

• Operating loss was €13.879m versus €11.238m operating profit in 2022; EPS was -€0.19 versus €0.03.

• Net financial expenses rose to €9.750m from €6.311m; cash and cash equivalents were €6.2m versus €5.3m.

• Generated net cash flow was €0.5m versus €7.1m in 2022.

Outlook and guidance

• Management targets occupancy of at least 90% by end-2024 and portfolio NOI of €18m by 2027; market conditions are not expected to fully recover before 2025.

• Following planned 2024 refinancing, leverage targets are ~50–55%; a separate strategic priority is to keep LTV at or below 50%.

• Leasing initiatives, anchor tenants and concept upgrades aim to improve retail performance; solar plants in Lithuania and Latvia are expected to become operational by end-2024.