Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Investor Presentation (June 2019)
28 slides from Baltic Horizon Fund's investor presentation, Jun 11, 2019
Slide 1: June 11, 2019
June 11, 2019 Please note that the investor must not use this material as a basis for investment decisions
Slide 2: Disclaimer
Disclaimer This material is provided to you for information purposes only. You should not rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever. Northern Horizon Capital AS (NHC) has taken all reasonable care to ensure that the information co
Slide 3: Baltic Horizon listed on June 2016: the first most diversified Baltic publicly traded evergreen real estate fund
Baltic Horizon listed on June 2016: the first most diversified Baltic publicly traded evergreen real estate fund EfTEN Real Vehicle Baltic Horizon Eastnine Estate Fund III AIF with REIT like AIF with LLC Type contractual structure LLC (Aktiebolag) legal structure (Estonian) Inception1) June 2016 201
Slide 4: Baltic Horizon: April 2019
Baltic Horizon: April 2019 FINANCIALS: PORTFOLIO: Property value3: EUR 263,5m Net lettable area: 122,439 NAV4: EUR 110m + EUR 25m Vacancy1: <2.0% (April) WAULT2 : 5.14 years LTV: 50% / max 65% Net initial yield: 6.5% NOI: EUR 17m+ 2018 div payout: EUR 8,8m Div yield 2018: 7,8% STP rating: MM3 (BB/BB
Slide 5: Financing Summary as of December 2018
FINANCING SUMMARY AS OF 31 DECEMBER 2018 Maturity by separate loan 45 000 000 57.3% 2.4% 40 000 000 Bonds LTV Cost of debt 35 000 000 30 000 000 25 000 000 20 000 000 Europa Cocal cola Plaza 0.1% 4.0 years 15 000 000 and Postimaja Upmalas Biroji 10 000 000 Domus Pro Vainodes Annual debt Weighted deb
Slide 6: Strong portfolio with a total value of EUR 263.5 million
Strong portfolio with a total value of EUR 263.5 million Details of existing property portfolio Coca- Sky Europa Upmalas Domus Postimaja LNK Property G4S HQ Lincona Duetto I Duetto 1I Cola Piirita Supermar Vainodes Total SC Biroji Pro SC Centre Plaza ket Vilnius Tallinn Riga City Riga Vilnius Tallin
Slide 7: Rental concentration – 10 largest
Rental concentration – 10 largest 8% Rimi Latvian State Forestry 7% G4S Eesti Forum Cinemas 7% Largest tenant accounts SEB for only 7.8% of the Intrum Global Business Services 6% portfolio Exigen Services Latvia 53% H&M 6% New Yorker 4% Swedbank 3% Others 2% 2% 2% 7
Slide 8: NEW ACQUISITION: Galerija Centrs – Riga, Latvia
NEW ACQUISITION: Galerija Centrs – Riga, Latvia Details of Galerija Centrs SC, February 2019 Construction 1938 / 2006 (reconstruction) Type Shopping centre Location Audeju Street 16, Riga, Latvia NLA 20,073 sqm Offered price EUR 76m NOI EUR 5.0m Price per NLA 3,789 EUR / m2 Initial yield 6.6% Averag
Slide 9: NEW ACQUISITION: Galerija Centrs – Riga, Latvia
NEW ACQUISITION: Galerija Centrs – Riga, Latvia Retail spending per capita 2017 Retail Turnover Index (2010 = 100) 170.0 150.0 130.0 110.0 90.0 70.0 50.0 Q1 2000 Q3 2000 Q1 2001 Q3 2001 Q1 2002 Q3 2002 Q1 2003 Q3 2003 Q1 2004 Q3 2004 Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1
Slide 10: TOP 1: CC Plaza / Postimaja SC – Tallinn, Estonia
TOP 1: CC Plaza / Postimaja SC – Tallinn, Estonia Details of Postimaja SC, February 2019 Acquisition date March 2013 / February 2018 Acquisition price EUR 11.9m + EUR 34.4m Construction 2013 (reconstruction) Type Shopping centre Location Narva road 1, Tallinn, Estonia NLA 9,141 sqm Fair value EUR 47
Slide 11: Visualization of possible extension of Postimaja Shopping Center and Coca-Cola Plaza
Visualization of possible extension of Postimaja Shopping Center and Coca-Cola Plaza – Tallinn, Estonia 11
Slide 12: Visualization of possible extension of Postimaja Shopping Center and Coca-Cola Plaza
Visualization of possible extension of Postimaja Shopping Center and Coca-Cola Plaza – Tallinn, Estonia Illustration only, visualization of possible connection between buildings. 12
Slide 13: TOP 2: Europa Shopping Center – Vilnius, Lithuania
TOP 2: Europa Shopping Center – Vilnius, Lithuania Details of Europa Shopping Center, February 2019 Acquisition date March 2015 Acquisition price EUR 35.8m Construction 2004 Type Shopping centre Location Konstitucijos Av. 7A, 7B, Vilnius, Lithuania NLA 16,856 sqm Fair value EUR 41.1m Vacancy 4.4% WA
Slide 14: Europa Shopping Center – Vilnius, Lithuania
Europa Shopping Center – Vilnius, Lithuania Europa Shopping Center Vilnius city centre With its 16,856 sq.m. of lettable area, the Europa SC is the fourth largest shopping centre in Vilnius. Compared to the larger three, Europa SC is the most centrally located. Its location in the very heart of the
Slide 15: Projects in the area around Europa Shopping Center (2016)
Projects in the area around Europa Shopping Center (2016) 6 2 1 5 4 3 1. Europa Shopping Center 2. East Capital Explorer – New Swedbank office (A class, NLA 11,000 sq.m., opening in 2018, 70% pre-let to Swedbank) 3. Schage – Quadrum 1 (A+ class, NLA 30,000 sq.m., opened Q4 2016, 80% leased, includin
Slide 16: Example CBD-asset: Europa Centre benefitted from new office projects in Vilnius
Example CBD-asset: Baltic Horizon’s Europa Centre has continuously benefitted from new office projects in the central business district area in Vilnius (2019) 10 9 Vilnius Central Business District Vilnius business district is a growing hub for providers of financial, legal and other professional se
Slide 17: TOP 3: Domus Pro – Vilnius, Lithuania
TOP 3: Domus Pro – Vilnius, Lithuania Details of Domus Pro, February 2019 Acquisition date May 2014 Acquisition price EUR 23m Construction 1st stage 2014, 2nd stage 2016, 3rd stage 2017 Type Shopping centre / Business center Location Bieliunu St 1, Vilnius, Lithuania 11,247 sqm retail; 4,831 sqm off
Slide 18: Domus Pro – Vilnius, Lithuania
Domus Pro – Vilnius, Lithuania Domus Pro Vilnius city centre Domus Pro is a neighbourhood shopping centre located in north-eastern Vilnius, close to the Perkunkiemis neighbourhood and the intersection of the future northern bypass around Vilnius. Perkunkiemis is one of the newest and fastest-growing
Slide 19: Visualization of possible extension of Domus PRO – Vilnius, Lithuania
Visualization of possible extension of Domus PRO – Vilnius, Lithuania Illustration only, visualization of possible connection between buildings. 19
Slide 20: TOP 4: Vainodes – Riga, Latvia
TOP 4: Vainodes 1 – Riga, Latvia Details of Vainodes, February 2019 Acquisition date November 2017 Acquisition price EUR 21.5m Construction 2014 (72% - new construction, 28% - reconstruction) Type Office Location Vainodes iela 1, Riga, Latvia NLA 8,052 sqm Fair value EUR 21,3m Vacancy 0% WAULT 14.9
Slide 21: Visualization of possible extension of Vainodes – Riga, Latvia
Visualization of possible extension of Vainodes 1 – Riga, Latvia Illustration only, visualization of possible connection between buildings. 21
Slide 22: Liquidity overview: one of the most liquid equities in the Baltics
Liquidity overview: Baltic Horizon has become one of the most liquid equities in the Baltics and churns around ca 15 per cent of market cap annually NUMBER OF BALTIC HORIZON UNITS TRADED ON NASDAQ PER MONTH # units 1600,000 1400,000 1200,000 1000,000 800,000 600,000 400,000 200,000 - Nasdaq Tallinn
Slide 23: Baltic listed securities Nasdaq turnovers 18.04.2018-17.04.2019
Baltic listed securities Nasdaq turnovers 18.04.2018-17.04.2019 23
Slide 24: Medium-term potential according to Catella Bank: Sustainable dividends expected
Medium-term potential according to Catella Bank: Sustainable dividends expected and increased visibility among investors LATE DEPLOYMENT OF EQUITY HAS NEGATIVELY IMPACTED Q2-Q3 2017 DIVIDENDS. MORE STABLE DIVIDEND DISTRIBUTIONS FROM 2018 ONWARDS Eurocent per unit per quarter 3.6 Positive dividend tr
Slide 25: Long-term potential: upside if established as go-to listed vehicle in Baltics
Long-term potential: Baltic Horizon has clear upside if established as “go-to” listed vehicle for investment properties in Baltics BALTIC HORIZON VERSUS NORDIC PEERS Market capitalization, MEUR 4 000 3 500 Risk premium Hufvudstaden expected to be 3 000 reduced as Baltic Horizon 2 500 grows 2 000 Atr
Slide 26: THANK YOU!
@ BALTIC HORIZON THANK YOU! 26
Slide 27: Disclaimer (i)
Disclaimer (i) This material is provided to you for information purposes only. You should not rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever. This material is private and confidential and may not be used by or forwarded to any third pa
Slide 28: Disclaimer (ii)
Disclaimer (ii) Additional information for investors in Denmark Northern Horizon Capital has obtained authorisation to market the units of Baltic Horizon towards retail investors residing in Denmark in accordance with the Danish Alternative Investment Fund Managers Act and the Executive Order no 797
Baltic Horizon Fund — Investor Presentation (June 2019) on 6ix