Baltic Sea Properties (BALT) Q2 2024 earnings summary

Executive summary

• Achieved improved income and profit for the first half of 2024 compared to the same period last year, despite high interest rates, inflation, and geopolitical uncertainty.

• Focused on growth through new development projects and successful capital raises totaling mNOK 98, providing flexibility for new and ongoing projects.

• Distributed NOK 1.75 per share in dividends and received recognition as the strongest brand among Baltic logistics developers.

Financial highlights

• Rental income rose to mEUR 4.14, up 4% year-over-year, mainly due to CPI adjustments on leases.

• EBITDA reached mEUR 2.96 (down from mEUR 3.00), and IFPM was mEUR 1.06 (down from mEUR 1.60), reflecting higher funding costs.

• Net profit after tax increased to mEUR 2.19 from mEUR 1.20 year-over-year.

• Net Asset Value (NAV) grew to mEUR 49.85 from mEUR 39.83, with investment property valuation at mEUR 103.96.

• Loan to Value (LTV) improved to 54.12% from 60.10%; Net LTV (adjusted for cash) at 50.55%.

Outlook and guidance

• Maintains a robust position with ongoing portfolio expansion and dividend distribution, despite global market uncertainties.

• Construction of Liepų Parkas for ESO (Ignitis) is on schedule; Rhenus project design underway with construction planned for next year.

• Successful equity raise in H1 2024 provides financial flexibility for continued growth and economies of scale.

• Market conditions show signs of improvement, with favorable interest rate trends and resilient Baltic market fundamentals.