Baltic Horizon Fund (NHCBHFFT) Q4 2024 earnings summary

Executive summary

• Strategic focus on increasing occupancy to over 95% by June 2025, reducing LTV below 50%, and achieving full ESG certification across the portfolio, with a strong presence in Latvia, Lithuania, and Estonia.

• Active leasing in 2024 led to 22,743 sq.m of new leases, 61 new tenants, and 69 renewals, raising signed occupancy to 88.5% by February 2025.

• Portfolio consists of 12 income-generating properties valued at EUR 241.2m as of 31 December 2024, focused on retail, office, and leisure segments in Tallinn, Riga, and Vilnius.

• Net loss for 2024 was EUR 16.8m, mainly due to property valuation losses, but improved from EUR 23.0m loss in 2023.

• Management is executing a disposal strategy to reduce LTV below 50%, with several asset sales in progress.

Financial highlights

• Rental income for 2024 was EUR 15.1m (down from EUR 17.7m in 2023); net rental income EUR 11.6m (down from EUR 14.6m).

• Net loss of EUR 16.8m (2023: EUR 23.0m loss); EPS at EUR -0.12 (2023: EUR -0.19).

• Portfolio fair value decreased by 3.7% to EUR 241.2m, mainly due to valuation losses in Galerija Centrs and S27.

• LTV increased to 61.8% (2023: 57.3%); average cost of debt rose to 6.7% (2023: 5.2%).

• NAV per unit at year-end was EUR 0.6833 (2023: EUR 0.9156); market capitalization at EUR 36.2m.

Outlook and guidance

• 2025 focus on increasing occupancy above 95% and reducing LTV via asset disposals and bond repayments.

• Targeting monthly NOI of EUR 1.4–1.5 million by June 2025, contingent on tenant fitouts and no asset disposals.

• Up to three assets identified for sale; proceeds to be used for debt reduction and portfolio optimization.

• Continued investment in ESG, green leases, and renewable energy; all Latvian and Lithuanian properties to use solar energy from Q1 2025.

• Plans to achieve a DSCR of at least 1.2 through disposals and NOI growth, and to redeem EUR 22 million in bonds during 2025.