Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Q3 2021 Earnings Presentation
26 slides from Baltic Horizon Fund's earnings presentation, 2021
Slide 1: Baltic Horizon Fund Webinar: Interim Results Q3 2021
BALTIC HORIZON FUND WEBINAR Interim Results Q3 2021 Page 1
Slide 2: Key highlights
Europa SC Key highlights Page 2
Slide 3: About Baltic Horizon Fund
ABOUT BALTIC HORIZON FUND Baltic Horizon Fund is a regulated closed-end >5,000 contractual investment fund registered in Estonia on 23 May 2016. The Fund is currently dual-listed on the Total investors Fund List of the Nasdaq Tallinn Stock Exchange and the Nasdaq Stockholm Alternative Investment Fun
Slide 4: Key figures
KEY FIGURES 30 September 2021 31 December 2020 Variance 330,860 339,992 (2.7%) Portfolio value Portfolio value Portfolio value (EUR ‘000) (EUR ‘000) 63.3% 60.5% 280bps LTV LTV LTV 1.0539 1.1395 (7.5%) IFRS NAV IFRS NAV IFRS NAV (EUR per unit) (EUR per unit) 1.1273 1.2219 (7.7%) EPRA NRV EPRA NRV EPR
Slide 5: Key figures
500 - 1 000 1 500 2 000 2 500 3 000 3 500 Not due 2020-01 2020-02 2020-03 2020-04 2020-05 1 - 30 days 2020-06 2020-07 2020-08 Trade receivables (monthly) 2020-09 2020-10 2020-11 31 - 60 days 2020-12 2021-01 2021-02 2021-03 2021-04 61 - 90 days 2021-05 2021-06 2021-07 2021-08 2021-09 > 90 days KEY FI
Slide 6: Notable events for the fund
NOTABLE EVENTS FOR THE FUND EBRD Baltic Horizon Fund received a Northern Horizon Capital AS and 7 buildings in the Baltic Horizon Fund prestigious award at the European European Bank for Reconstruction and portfolio have just achieved BREEAM Public Real Estate Association (EPRA) Development (“EBRD”)
Slide 7: Footfall and tenant turnovers
FOOTFALL AND TENANT TURNOVERS RECOVERY IS IMMINENT AFTER PHYSICAL RESTRICTIONS ARE LIFTED Reopening First COVID-19 Pre-COVID-19 Reopening with restrictions Second COVID-19 lockdown with lockdown restrictions 120% 100% 80% 60% 40% 20% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 8: Vaccinations in the Baltics
Galerija Centrs VACCINATIONS IN THE BALTICS – Baltic Horizon Fund has committed to support the fight against the COVID-19 virus. In cooperation with local authorities in Latvia we have established a vaccination centre in Galerija Centrs. – Baltic Horizon's Europa shopping centre in Vilnius and Galer
Slide 9: Economies and salaries growing
Economic Sentiment Indicator Real GDP growth, % -16 -11 -6 -1 4 9 0 50 100 150 2000-01 2000-11 2001-09 2002-07 2003-05 2004-03 EU 2005-01 2005-11 2006-09 2007-07 2008-05 Estonia 2009-03 2010-01 2010-11 2011-09 2012-07 Latvia 2013-05 2014-03 2015-01 Real GDP growth and economic sentiment 2015-11 2016
Slide 10: Portfolio performance
Europa SC Portfolio performance Page 10
Slide 11: Baltic Horizon Fund portfolio summary
BALTIC HORIZON FUND PORTFOLIO SUMMARY Net rental income by segment Rental concentration: 10 largest tenants as of 30 September 2021 Leisure 4,6% Rimi 9,5% SEB 5,9% Retail 33,0% Latvian State Forestry 5,4% EUR 13.2 m Office Forum Cinemas 4,6% 62,4% G4S Eesti 4,4% EMERGN 3,3% Net rental income by coun
Slide 12: Property performance as of September 2021
PROPERTY PERFORMANCE AS OF 30 SEPTEMBER 2021 Fair value1 Direct property Net initial yield EUR ‘000 Sector yield Q3 20212 Occupancy rate EUR ‘000 Q3 20213 Duetto I Office 16,569 8.0% 7.2% 100.0% Duetto II Office 19,455 7.4% 7.1% 100.0% Europa SC Retail 35,284 2.7% 2.9% 82.0% Domus Pro Retail Park Re
Slide 13: Europa refurbishment project
EUROPA REFURBISHMENT PROJECT Fund will invest approx. EUR 5 million in the reconstruction of Europa SC during 2021 with the aim of creating a food hall, upgrading interior design and installing new vertical connections. The shopping centre will remain open throughout the whole reconstruction period.
Slide 14: Meraki development project
MERAKI DEVELOPMENT PROJECT At the end of Q3 2021 one tower was let to 2 local tenants and the management team is in negotiations to find anchor and additional tenants for the property now that it is almost completed. Meraki BC, Vilnius The first tower is expected to be completed in Q2 2022 and the s
Slide 15: Sale of G4S HQ
SALE OF G4S HQ On 8th of November Baltic Horizon Fund signed a real right agreement with HITS Investments OÜ to sell the land plot located in Paldiski mnt 80, Tallinn together with G4S office building. The sales price is EUR 15.35 million (excluding value added tax) matching approximately the latest
Slide 16: Baltic Horizon – ESG goals
BALTIC HORIZON – ESG GOALS ESG has become an important aspect of Fund‘s long-term business strategy Short-term ESG Goals A+/A 01 100% of office buildings will obtain building certifications by end of 2021. Chosen certification program – BREEAM. 02 100% of new leases / extensions / amendments will ha
Slide 17: 59% of portfolio is BREEAM certified
59% OF PORTFOLIO IS BREEAM CERTIFIED BREEAM Certified buildings Duetto A, Vilnius Duetto B, Vilnius Domus BC, Vilnius 41% 59% G4S HQ, Tallinn Lincona, Tallinn Upmalas Biroji, Riga Not certified BREEAM Certified LNK Centre, Riga Vainodes, Riga North Star, Vilnius Page 17
Slide 18: Strategic priorities 2021 and beyond
BALTIC HORIZON FUND STRATEGIC PRIORITIES 2021 AND BEYOND 2021 2023 4% 20% EUR 331m 47% EUR 700m 54% 49% 26% Office Retail Other 26% 32% 36% 42% EUR 331m EUR 700m 38% 26% Latvia Estonia Lithuania Page 18
Slide 19: Priorities and outlook
Postimaja PRIORITIES AND OUTLOOK – Intensive focus on leasing to expand the WAULT of the portfolio and maintain good leasing momentum – Capital recycling in the portfolio to realise significant value creation and prepare for post- pandemic trends – Strengthening acquisition pipeline and concentratin
Slide 20: Financial results
Vainodes Financial results Page 20
Slide 21: Financial results for Q1-Q3 2021: profit and loss
FINANCIAL RESULTS FOR Q1-Q3 2021 PROFIT AND LOSS Key comments: EUR ‘000 Q1-Q3 2021 Q1-Q3 2020 Change (%) – In Q1-Q3 2021, the Group earned Rental income 14,844 16,549 (10.3%) net rental income of EUR 13.2 3,697 3,749 (1.4%) million, a decrease of 13.1% Service charge income compared to the net renta
Slide 22: Financial results for Q1-Q3 2021: financial position
FINANCIAL RESULTS FOR Q1-Q3 2021 FINANCIAL POSITION Key comments: EUR ‘000 30.09.2021 31.12.2020 – At the end of September 2021, the Investment properties 324,788 334,518 Fund’s GAV was EUR 349.6 million Investment property under construction 6,072 5,474 (31 December 2020: EUR 355.6 Property, plant
Slide 23: Cash distributions
BALTIC HORIZON FUND CASH DISTRIBUTIONS 0,035 0,035 0,026 0,027 0,027 0,028 0,025 0,026 0,025 0,026 0,026 0,030 0,030 0,024 0,023 0,023 0,024 0,020 0,025 0,025 0,018 0,017 0,015 0,015 0,020 0,020 0,011 0,011 0,011 0,015 0,015 0,010 0,010 0,025 0,027 0,027 0,028 0,020 0,024 0,027 0,029 0,026 0,028 0,0
Slide 24: Financing summary
FINANCING SUMMARY AS OF 30 SEPTEMBER 2021 Summary of financing terms Maturity by separate loan (EUR ‘000) Unsecured 50 000 bonds 63.3% 2.7% 40 000 LTV Cost of debt 30 000 Galerija Centrs CC Plaza and 20 000 Europa Postimaja 0.2% 1.4 years Duetto Domus Pro Upmalas Biroji 10 000 G4S Vainodes Annual de
Slide 25: Financial debt structure
FINANCIAL DEBT STRUCTURE AS OF 30 SEPTEMBER 2021 Carrying amount Property Maturity % of total Fixed rate portion (EUR’000) Galerija Centrs 26 May 2022 30,000 14.3% 100.0% Europa SC 5 July 2022 20,900 10.0% 88.0% CC Plaza and Postimaja 12 February 2023 17,200 8.2% 100.0%1 Duetto I and II 31 March 202
Slide 26: 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