Baltic Sea Properties (BALT) Q4 2024 earnings summary

Executive summary

• Achieved strong financial performance in Q4 2024, maintaining operational resilience and executing long-term growth strategy despite market uncertainties.

• Completed first stage of Liepų Parkas on schedule, handed over to ESO (Ignitis) in January 2025.

• Reinforced capital position with NOK 98.4 million raised and maintained stable dividend of NOK 1.75 per share.

• Awarded "Strongest Brand Baltics Developers - Logistics" at the European Real Estate Brand Awards.

• Achieved BREEAM In-Use 'Excellent' certification for two DPD terminals, underlining sustainability commitment.

Financial highlights

• Rental income reached EUR 8.29 million, up 3.7% year-over-year, driven by CPI adjustments and portfolio expansion.

• Net income from property management (IFPM) was EUR 2.34 million, down from EUR 2.90 million due to higher funding and one-time capital raising costs.

• Net profit after tax rose to EUR 4.60 million from EUR 2.62 million, despite a one-time deferred tax expense from Lithuania's tax rate increase.

• Portfolio fair value increased to EUR 111.4 million (NOK 1,314 million), up from EUR 99.8 million.

• NAV per share (BSP method) at year-end was NOK 72.27, up from NOK 68.95; total equity reached NOK 613.5 million.

Outlook and guidance

• Expectation of improved IFPM in 2025 due to lower EURIBOR rates and expanded investment portfolio.

• Development pipeline remains robust, with further stages of Liepų Parkas and other projects in progress.

• Market outlook for 2025 is optimistic, with projected GDP growth near 3% in Lithuania and a recovering real estate market.