Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Q2 2018 Earnings Presentation
18 slides from Baltic Horizon Fund's earnings presentation, September 2018
Slide 1: September 2018
September 2018 Please note that the investor must not use this material as a basis for investment decisions
Slide 2: Key events of Baltic Horizon
Key events of Baltic Horizon Feb 2018 – Postimaja SC in Tallinn acquired for 34,4mln EUR; 2,35mln EUR re-invested back to Fund; Acquisition in Tallinn Mar 2018 – annual report for 2017 published; Fund rated by S&P Apr 2018 – S&P mid-market rating of MM3 (corresponding to BB+/BB on a global scale) as
Slide 3: Stabilized growth strategy
Stabilized growth strategy Diversified low risk Baltic listed REIT with key focus on high dividends and long term value creation through active asset Main focus on internal LT management value creation through Flexible market adjusted strategy following the main RE market expansion proyects trends M
Slide 4: Strong cash-flow portfolio with a value of EUR 248 million
Strong cash-flow portfolio with a value of EUR 248 million Geographical and Segmental diversification Blue chip tenants including Nordic Banks, Baltic Fintechs, SSCs, Governmental agencies and leading regional retail companies 5 properties with mayor expansion potential
Slide 5: Diversified portfolio across capital cities and retail/office segments
Diversified portfolio across capital cities and retailEoffice segments Europa G4S Lincona Office Coca-Cola Sky Postimaja Upmalas Biroji Domus Pro Duetto I Piirita Vainodes 1 Shopping Center Headquarters Complex Plaza Supermarket Shopping Center Details of existing property portfolio Europa Upmalas C
Slide 6: Expansion projects 2018-2023
Expansion projects 2018-2023 5 expansion proyects 1. Upmalas Salas 2. Vainodes 1 3. G4S 4. Postimaya 5. Domus PRO 4th stage Development cost: ~70 mEUR Value: ~100 mEUR
Slide 7: Well-balanced tenant mix with major Nordic and multinational tenants
Well-balanced tenant mix with mayor Nordic and multinational tenants Strong tenants and long lease agreements % of total annualized WAULT*, No Tenant Industry Property rental income years Baltic Horizon has 206 tenants, mainly large Nordic 1 Forestry management Vainodes 1 8.1% 6.9 and multinational
Slide 8: Baltics – home for shared service centers and start-ups
Baltics – home for shared service centers and start-ups Estonia, one of the countries with Estonian Startups Total Funding most startups per capita – 550 startups by 2018 EUR 300 million raised in 2018, most recently EUR 150 million from Daimler by Taxify Approx. EUR 400 million turnover in 2018 for
Slide 9: Vilnius has established itself as a growing SSC hot spot
Vilnius has established itself as a growing SSC hot spot Share service center sector People employed in shared service centers per 1,000 residents growth of 82% in the last three years 23,000 experienced professionals employed in the financial services industry, still 25% cheaper compared to CEE ave
Slide 10: Financing snapshot August 2018
Financing snapshot August 2018 Maturity by separate loan 53.4% 2.3% 35 MILLIONS 30 Bonds LTV Cost of debt 25 20 Europa Cocal cola Plaza 15 and Postimaja Duetto Domus Pro Upmala Biroji 10 0.1% 4.6 years 5 G4S SKY Pirita Lincona 0 Annual debt Weighted debt 2021 2021 2022 2022 2023 2023 2024 2024 2025
Slide 11: Dividend return and capacity
Dividend return and capacity EUR’1000 Q2 Q3 Q4 Q1 Q2 o The Fund declared a cash distribution of 2017 2017 2017 2018 2018 EUR 0.024 per unit to the Fund (+) Net rental income 2,682 2,638 2,922 3,409 3,626 (-) Fund administrative unitholders for Q1 2018 results. expenses (670) (535) (839) (640) (621)
Slide 12: BH units secondary trading
BH units secondary trading Over 4,500 investors BH units secondary trading per month 1600 000 Improving liquidity in the 1400 000 secondary market 1200 000 OTC transactions excluded 1000 000 Volume, units 800 000 Market cap of approx. 101mln EUR turns around 600 000 in c.a. 8,6 years 400 000 200 000
Slide 13: Financial results for Q2 2018 Financial performance
Financial results for Q2 2018 Financial performance Q2 2017 Euro ‘000 Q2 2018 Change (%) o In Q2 2018, NOI amounted to EUR 3.6 million (restated)* and was higher than in Q2 2017 (EUR 2.7 Rental income 3,958 2,940 34.6% Service charge income 608 382 59.2% million). Cost of rental activities (940) (64
Slide 14: Financial results for Q2 2018 Assets as of 30 June 2018
Financial results for Q2 2018 Assets as of 30 June 2018 Change o On 16 May 2018, the Fund acquired a land Euro ‘000 30.06.2018 31.12.2017 (%) plot next to Domus Pro in Vilnius, Lithuania for a total price of EUR 1.7 million. The land Non-current assets Investment properties 226,160 189,317 19.5% was
Slide 15: Financial results for Q2 2018 Equity & Liabilities as of 30 June 2018
Financial results for Q2 2018 Equity & Liabilities as of 30 June 2018 Change Euro ‘000 30.06.2018 31.12.2017 o The Fund NAV marginally increased from EUR (%) 108.9 million to EUR 109.3 million. The increase Equity is related to an increase in property valuation. Paid in capital 94,198 91,848 2.6% Ca
Slide 16: Financial debt structure of the Fund as of 30 June 2018
Financial debt structure of the Fund as of 30 June 2018 Carrying Fixed % of Property Maturity Currency amount rate o On 27 April 2018, the Fund completed total Euro’1000 portion subscription to 5-year unsecured bond of Lincona 31 Dec 2022 EUR 7,189 5.5% 95% EUR 30 million. CC Plaza and 12 Feb 2023 E
Slide 17: Financial results for Q2 2018 Summary
Financial results for Q2 2018 Summary Euro ‘000 30.06.2018 31.12.2017 Change (%) o IFRS NAV per unit EUR 1.3811 (EUR 1.3765 as at 31E03E2018). Investment property in use 226,160 189,317 19.5% Gross asset value (GAV) 248,241 215,785 15.0% o EPRA NAV per unit EUR 1.4689 (EUR 1.4683 Interest bearing lo
Slide 18: 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