Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Q3 2019 Earnings Presentation
19 slides from Baltic Horizon Fund's earnings presentation, November 2019
Slide 1: Baltic Horizon Fund Q3 Webinar
BALTIC HORIZON FUND Q3 WEBINAR Financial results for 2019 Q3 Page 1
Slide 2: Main Events Q2-Q3 2019
MAIN EVENTS Q2-Q3 2019 April 2019 – 20.5 mEUR oversubscribed private placement closing (total orders represented over Further growth of 160% of the maximum supply permitted); portfolio is expected April 2019 – 4.1 mEUR private placement closing; May 2019 – 10 mEUR unsecured bond maturing in 5y place
Slide 3: Recent Developments 2018–2019
RECENT DEVELOPMENTS – 2018–2019 13 February: 25 April: 27 April: 16 May: 15 August: 18 December: 12/30 April and 8 May: 27 May: Postimaja Shopping Baltic Horizon EUR 30mln EUR 0,87ha land plot LNK Centre office Signed agreement to 15 May: Baltic Horizon Baltic Horizon Fund Centre in Tallinn 30m EUR
Slide 4: Stabilized Growth Strategy
STABILIZED GROWTH STRATEGY Main focus on Diversified cash flow Baltic listed REIT with key focus on high dividends and expansion projects long term value creation through active asset management Flexible market adjusted strategy following the main RE market trends Main focus on capital cities and re
Slide 5: Active Property Management
ACTIVE PROPERTY MANAGEMENT Details of existing propertyportfolio Upmalas Coca-Cola Sky Postimaja LNK Galerija Property Europa SC Domus Pro G4S HQ Lincona Duetto I Duetto 1I Pirita Vainodes Total Biroji Plaza Supermarket SC Centre Centrs City Vilnius CBD Riga Vilnius Tallinn Tallinn Vilnius Vilnius T
Slide 6: Financial Results for Q3 2019: Property Performance
FINANCIAL RESULTS FOR Q3 2019 PROPERTY PERFORMANCE Book value1 Direct property Occupancy rate Euro ‘000 Sector Net initial yield3 Euro ‘000 yield2 for Q3 2019 Duetto I Office 16,020 7.7% 7.2% 98.7% Duetto II Office 17,900 7.1% 7.3% 100.0% Europa SC Retail 40,402 6.7% 6.1% 95.6% Domus Pro Retail Park
Slide 7: Property Portfolio Breakdown
BALTIC HORIZON’S 15 PROPERTY PORTFOLIO BREAKDOWN Geographical allocation Geographical and 30% 27% Estonia Segmental Lithuania diversification 43% Latvia 5 properties with Segment allocation expansion potential 4% 54% Leisure Retail 42% Office Page 7
Slide 8: Financing Summary
FINANCING SUMMARY AS OF 30 SEPTEMBER 2019 Maturity by separate loan 58.5% 2.6% 60 000 000 50 000 000 Bonds LTV Cost of debt 40 000 000 30 000 000 Galerija Centrs 0.2% 3.3 years 20 000 000 Europa Coca cola Plaza and Postimaja Duetto 10 000 000 Domus Pro Upmalas Biroji Vainodes Annual debt Weighted de
Slide 9: Financial Results for Q3 2019 Key Figures
FINANCIAL RESULTS FOR Q3 2019 KEY FIGURES Investments in properties Gross asset value (GAV) EUR 1.3400 (mEUR) (mEUR) 400 400 IFRS NAV per unit 350 336 350 345 30.09.2019 300 300 261 245 250 250 216 EUR 1.3988 200 150 142 189 200 150 155 IFRS NAV per unit 100 100 31.12.2018 50 50 0 0 2016 2017 2018 2
Slide 10: Financial Results for Q3 2019: Financial Performance
FINANCIAL RESULTS FOR Q3 2019 FINANCIAL PERFORMANCE • In Q3 2019, NOI Euro ‘000 Q3 2019 Q3 2018 Change (%) amounted to EUR 5.4 Rental income 5,782 4,012 44.1% million and was Service charge income 1,476 619 138.4% Cost of rental activities (1,846) (791) 133.4% higher than in Q3 Net rental income 5,4
Slide 11: Assets as of 30/09/2019
FINANCIAL RESULTS FOR Q3 2019 ASSETS AS OF 30/09/2019 • Total investment value Euro ‘000 30.09.2019 31.12.2018 increased from EUR 245 Non-current assets million to EUR 336 Investment properties 336,488 245,160 Derivative financial instruments 33 9 million after Galerija Other non-current assets 96 5
Slide 12: Equity & Liabilities as of 30/09/2019
FINANCIAL RESULTS FOR Q3 2019 EQUITY & LIABILITIES AS OF 30/09/2019 • In Q3 2019, the Fund Euro ‘000 30.09.2019 31.12.2018 NAV increased to EUR Equity 135.2 million. The Paid in capital 121,883 93,673 Own units - (335) increase is related to Cash flow hedge reserve (2,310) (1,005) capital raising in
Slide 13: Financial Debt Structure of the Fund as of 30/09/2019
FINANCIAL DEBT STRUCTURE OF THE FUND AS OF 30/09/2019 • During Q3 2019, Carrying Fixed rate Property Maturity amount Euro % of total portion there were no ’000 Lincona 31 Dec 2022 7,188 3.6% 95% changes in financing, CC Plaza and Postimaja 12 Feb 2023 17,200 8.7% 100%1 expect for new Sky SC 1 Aug 20
Slide 14: BH Units Secondary Trading
BH UNITS SECONDARY TRADING Over 4,500 investors BH units secondary trading per month 4 500 Improving liquidity in the 4 000 secondary market 3 500 3 000 Volume, thousand OTC transactions 2 500 excluded 2 000 1 500 Market cap of approx. 152mln EUR turns around 1 000 in c.a. 8.3 years (based on 500 la
Slide 15: Baltic Horizon & Sustainability Plan for 2019-2020
BALTIC HORIZON & SUSTAINABILITY PLAN FOR 2019-2020 Environmental Social Governance Improve data coverage: NHC related actions: Setting ESG related performance → GHG emissions → Employee satisfaction survey targets for senior staff Collect data on water, energy → Employee engagement Including ESG met
Slide 16: GRESB Performance & Action Plan
BALTIC HORIZON GRESB PERFORMANCE & ACTION PLAN Action Plan 2019-2020 Environmental: → Improve data coverage: GHG emissions → Collect data on water, energy and waster management measures → Obtain EPC certificates for all properties Social: → Employee and tenant satisfaction surveys → Employee engagem
Slide 17: Meraki BREEAM Project Visualizations
MERAKI BREEAM PROJECT VISUALIZATIONS Page 17
Slide 18: Meraki BREEAM Project Visualizations
MERAKI BREEAM PROJECT VISUALIZATIONS Source: Baltic Horizon Page 18
Slide 19: Disclaimer
DISCLAIMER This material is provided to you for information purposes only. Before investing in any product managed by Northern Horizon Capital (NHC) or associated companies, you should inform yourself about legal and tax consequences, foreign exchange restrictions or exchange control requirements th