Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Q3 2016 Earnings Presentation
16 slides from Baltic Horizon Fund's earnings presentation, November 2016
Slide 1: Q3 Update 2016
PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL a LHV BALTIC HORIZON Swedbank @
Slide 2: Baltic Horizon Fund
Baltic Horizon Baltic Horizon Fund Long term strategy with focus on high-quality properties in the Baltic capitals – investing into developed properties in city centres with strong Nordic and international tenants and stable cash flows, creating a well diversified and cash generating portfolio at a
Slide 3: Recent developments in 2016
The planned offering Recent developments in 2016 29 June: 6 July: 30 August: 4 October: IPO completed and Listing on Nasdaq Upmalas Biroji in SPO plans net proceeds of EUR Tallinn Riga acquired for announced targeting 20.5m raised for EUR 23m at 7% to raise EUR acquisitions of new yield. IPO proceed
Slide 4: Strong anchor investors, experienced supervisory board and management
Baltic Horizon Baltic Horizon − Strong anchor investors, experienced supervisory board and management with deep knowledge of the local property market and exchanges 1 U n ith olders – In vestors The largest investor is the Swedish church pension fund (Svenska Kyrkans Pensionskassa) that currently ho
Slide 5: Attractive yields compared to the Nordics and low interest rates from ECB
Macroeconomics Attractive yields compared to the Nordics and low interest rates from ECB Core properties in the Baltics are still priced attractively compared Prime properties in the Baltics still attractively priced …and now enjoys low Euro-area interest rates to similar properties in the Prime off
Slide 6: The property market has recovered from the crisis and remains fundamentally attractive
Macroeconomics The property market has recovered from the crisis and remains fundamentally attractive Property market is driven by healthy Property transaction volume1 Prime yields in the Baltic capital cities2 fundamentals MEUR Yield, % 1 600 12% The market are currently driven by healthy 1382 1 40
Slide 7: Challenging Baltic demographics are currently improving
Macroeconomics Challenging Baltic demographics are currently improving Population growth is in a positive trend Population growth, % and the population in the Baltics decreased by approximately 0.8 per cent 3,0% in 2014. The capital cities are doing better, benefiting from urbanization, and 2,0% has
Slide 8: Strong portfolio with a total value of EUR 129 million
Baltic Horizon Strong portfolio with a total value of EUR 129 million Lincona Office Coca-Cola Plaza Sky Supermarket Domus Pro Europa Shopping G4S Headquarters Upmalas Biroji Complex Center Details of existing property portfolio, 30 September 2016 Lincona Office Sky Europa Shopping G4S Property Comp
Slide 9: Well-balanced tenant mix with major Nordic and multinational tenants
Baltic Horizon Well-balanced tenant mix with major Nordic and multinational tenants Strong tenants and long lease agreements 10 largest tenants, 30 Sep 2016 Baltic Horizon has 151 tenants, mainly large Nordic % of total and multinational firms. No Tenant Industry Property annualised rental WAULT, ye
Slide 10: Identified operational, financial and liquidity risk factors and mitigating factors
Historical and calculated performance Identified operational, financial and liquidity risk factors and mitigating factors IDENTIF IED RISK F ACTORS MITIGAT IN G F ACTORS Operational risks are implicit in all property investments and Examples of operational risks include: although difficult to avoid,
Slide 11: Interim financial results (Q3 2016) financial performance
Historical and calculated performance Interim financial results (Q3 2016) financial performance • NOI increased by 36%, ’000 Euro Q3 2016 Q3 2015 Change (%) mainly due to new Rental income 2,058 1,621 27% properties acquired in Expenses reimbursement revenue 617 582 6% July and August. Cost of renta
Slide 12: Interim financial results (Q3 2016) Financial position
Historical and calculated performance Interim financial results (Q3 2016) Financial position • IFRS NAV per unit EUR ’000 Euro 30.06.2016 31.12.2015 Change (%) Assets 1.3619 (+6.9% since June Investment properties 129,200 86,810 48.8% 2016) Other non-current assets 376 263 43.0% Trade and other rece
Slide 13: Q3 2016 statement of profit or loss zoomed in
Historical and calculated performance Q3 2016 STATEMENT OF PROFIT OR LOSS ZOOMED IN September is the first month Euro ‘000 Jul 2016 Aug 2016 Sep 2016 Q3 2016 when all 7 properties are earning full rent since last acquisition was closed in Rental income 631 644 783 2,058 August. Expenses reimbursemen
Slide 14: Sensitivity analysis shows relatively stable ROE at 11–16%
Estimated performance Sensitivity analysis of Catella’s estimate shows relatively stable ROE at 11–16% as nominal rental growth varies from 2–3.5% and interest rates from 1.5–4.0% Theoretical dividend capacity: Sensitivity Dividend capacity given long-term assumptions analysis shows that total cash
Slide 15: Key terms in the Offering in November
The offering Key terms in the Offering in November The Offering Issuer Baltic Horizon Fund Listing Nasdaq Tallinn and Nasdaq Stockholm ISIN EE3500110244 Number of Units 59,410,000 (37,131,000 + 22,279,000 upsizing option) Nominal amount Maximum EUR 81,391,700 Subscription price EUR 1,3456 Subscripti
Slide 16: Tarmo Karotam, Northern Horizon Capital AS CEO
Tarmo Karotam, MRICS Northern Horizon Capital AS CEO, Baltic Horizon Fund manager tarmo.karotam@nh-cap.com +372 50 89 044 Tänan tähelepanu eest!