Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — H1 2019 Earnings Presentation
17 slides from Baltic Horizon Fund's earnings presentation, September 2019
Slide 1: Baltic Horizon Fund H1 Webinar
BALTIC HORIZON FUND H1 WEBINAR Financial results for 2019 H1
Slide 2: Main Events Q1-Q2 2019
MAIN EVENTS Q1-Q2 2019 Further growth of Feb 2019 – 0.027 EUR dividend declared for Q4 2018 (0.026 EUR previous quarter); portfolio is expected Feb 2019– Q4 2018 financial results published; Feb 2019 – Duetto II acquisition in Lithuania completed → purchase price 18.3 MEUR which corresponds to entry
Slide 3: Stabilized Growth Strategy
STABILIZED GROWTH STRATEGY Main focus on DiversifiedecashefloweBalticelistedeREITewith key focus on high dividends and long expansion projects term value creation through active asset management Flexibleemarketeadlustedestrategyefollowing the main RE market trends Main focus on capitalecitieseandere
Slide 4: Baltic Horizon's Property Portfolio Breakdown
BALTIC HORIZON’S 14 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
Slide 5: Rental Concentration – 10 Largest
RENTAL CONCENTRATION – 10 LARGEST Rimi Baltic; 8,7% Latvian State Forestry; 5,3% Forum Cinemas; 4,4% SEB; 4,1% Largest tenant accounts for only 8,7% of the portfolio G4S Eesti; 3,9% EMERGN; 3,2% Intrum Global Business Others; 61,0% Services; 3,2% H&M; 2,6% Vilnius heating network company; 1,8% New Y
Slide 6: Financing Summary
FINANCING SUMMARY AS OF 30 JUNE 2019 Maturityebyeseparateeloan 58.6% 2.6% 60 000 000 50 000 000 Bonds LTV Cost of debt 40 000 000 30 000 000 Galerija Centrs 0.2% 3.6 years 20 000 000 Europa Coca cola Plaza and Postimaja Duetto 10 000 000 Domus Pro Upmalas Biroji Vainodes Annual debt Weighted debt G4
Slide 7: Acquisition of Galerija Center
ACQUISITION OF GALERIJA CENTER Galerija Center was acquired on 13 June 2019 with a purchase price of EUR 75 MEUR, which corresponds to an estimated entry yield of 6.7%. It is the largest asset in portfolio, comprising 22% of the portfolio’s total fair value. The net leasable area of the property is
Slide 8: Units Trading
UNITS TRADING BH units performance since IPO Since end of May 2019 Baltic 1,44 1,42 Horizon fund units are 1,4 1,38 traded at Premium in Nasdaq 1,36 1,34 Tallinn Stock Exchange 1,32 1,3 market 1,28 1,26 1,24 2016-07-08 2016-10-08 2017-01-08 2017-04-08 2017-07-08 2017-10-08 2018-01-08 2018-04-08 2018
Slide 9: Liquidity Overview
LIQUIDITY OVERVIEW Baltic Horizon has become one of the most liquid equities in the Baltics Market turnover calculated over a period 03.09.2019-04.09.2019 Source: Nasdaq Baltic
Slide 10: Investment Opportunity – North Star
INVESTMENT OPPORTUNITY – NORTH STAR On 30.08.2019 Baltic Horizon Fund signed an agreement with closed-end investment undertaking intended for informed investors UAB “Prosperus Strategic RE Fund” to acquire business center “North Star”. The purchase price is approximately EUR 20.7 million, which corr
Slide 11: Financial Results for Q2 2019 Key Figures
FINANCIAL RESULTS FOR Q2 2019 KEY FIGURES Investments in properties Gross asset value (GAV) EURe1.3381 (MEUR) (MEUR) 400 400 IFRS NAV per unit 350 336 350 345 30.06.2019 300 300 261 245 250 250 216 EURe1.3988 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 12: Financial Results for Q2 2019 – Financial Performance
FINANCIAL RESULTS FOR Q2 2019 FINANCIAL PERFORMANCE • In Q2 2019, NOI Euro ‘000 30.06.2019 31.12.2018 amounted to EUR 4.3 Rental income 4,646 3,958 million and was Service charge income 889 608 Cost of rental activities (1,279) (940) higher than in Q2 Net rentaleincome 4,256 3,626 2018 (EUR 3.6 Admi
Slide 13: Assets as of 30/06/2019
FINANCIAL RESULTS FOR Q2 2019 ASSETS AS OF 30/06/2019 • Total investment Euro ‘000 30.06.2019 31.12.2018 value increased from Non-currenteassets EUR 245 million to Investment properties 336,310 245,160 Derivative financial instruments 33 9 EUR 336 million after Other non-current assets 95 596 Galeri
Slide 14: Equity & Liabilities as of 30/06/2019
FINANCIAL RESULTS FOR Q2 2019 EQUITY & LIABILITIES AS OF 30/06/2019 • In Q2 2019, the Fund Euro ‘000 30.06.2019 31.12.2018 NAV increased to Equity EUR 131.1 million. Paid in capital 117,883 93,673 Own units - (335) The increase is Cash flow hedge reserve (2,022) (1,005) related to three Retained ear
Slide 15: Financial Debt Structure of the Fund as of 30/06/2019
FINANCIAL DEBT STRUCTURE OF THE FUND AS OF 30/06/2019 • During Q2 2019, the Carryinge Fixederatee Property Maturity amounteEuro %eofetotal portion Fund drew down an ’000 Lincona 31 Dec 2022 7,188 3.6% 95% EUR 8.1 million bank CC Plaza and Postimaja 12 Feb 2023 17,200 8.7% 100%1 loan for Duetto II. S
Slide 16: BH Units Secondary Trading
volume). excluded months trading 140 MEUR turns around in c.a. 8.5 OTC transactions Over 4,500 investors the secondary market Improving liquidity in Market cap of approx. years (based on last 12 Volume, thousand - 500 1 000 1 500 2 000 2 500 3 000 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 De
Slide 17: 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