Baltic Sea Properties (BALT) Q3 2024 earnings summary

Executive summary

• Achieved strong performance and robust cash flow growth in Q3 2024, despite a complex economic environment, with continued focus on sustainable real estate development and disciplined growth strategy.

• Lithuanian market remains resilient, with GDP growth forecasted at 2% for 2024, supporting BSP's long-term value proposition.

• Raised NOK 98.4 million in new equity and distributed NOK 1.75 per share in dividends in June 2024.

• Awarded "Strongest Brand Baltics Developers logistics" for the fourth consecutive year.

Financial highlights

• Rental income for the first three quarters reached mEUR 6.22, up 4.1% year-over-year, mainly due to CPI adjustments.

• EBITDA was mEUR 4.58, slightly up from mEUR 4.52 year-over-year; IFPM decreased to mEUR 1.79 from mEUR 2.40 due to higher funding and one-time capital raising costs.

• Net profit after tax was mEUR 2.40, up from mEUR 1.49 year-over-year.

• Net Asset Value (NAV) increased to mEUR 50.72 from mEUR 40.00 year-over-year.

• Valuation of investment properties rose to mEUR 105.85 from mEUR 98.59 year-over-year.

Outlook and guidance

• Management expects improvements in funding costs due to lower EURIBOR forward curves and swap rates, which should positively impact IFPM going forward.

• Substantial investment pipeline and focus on sustainable development are expected to support continued growth.