Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Baltic Horizon Webinar (December 2017)
18 slides from Baltic Horizon Fund's conference presentation, Dec 18, 2017
Slide 1: Baltic Horizon Webinar Presentation
BALTIC HORIZON WEBINAR PRESENTATION 18 December 2017
Slide 2: Agenda
AGENDA 12 Fund overview – portfolio 22 Financial results update 32 Property loan overview 42 Updated dividend policy 52 Stock Exchange update 62 Future outlook 2
Slide 3: New Acquisition – Latvian State Forestry, Riga
NEW ACQUISITION – LATVIAN STATE FORESTRY, RIGA Price: 21,3 mEUR (+ 0,4 mEUR deferred tax) Transaction closed on 13 December 7% starting yield, with NOP of 1,5mEUR /year GLA: 9,547 sqm; NLA: 8,052 sqm 4 floors + basement Development potential: 7000+ sqm Anchor lease contract till 2034 (unbreakable un
Slide 4: Property Portfolio Breakdown
10 PROPERTY PORTFOLIO BREAKDOWN Geographical allocation post V1 acquisition Geographical and Segmental diversification 31,2% 40,8% Latvian State Forestry 28,0% as largest tenant in portfolio Vilnius Riga Tallinn 6 properties with Segment allocation post V1 acquisition expansion potential 7,2% 42,0%
Slide 5: Strong Portfolio with a Total Value of EUR 179 Million
STRONG PORTFOLIO WITH A TOTAL VALUE OF EUR 179 MILLION Europa Shopping Upmalas Biroji Domus Pro G4S Headquarters Lincona Office Duetto 1 Coca-Cola Plaza Piirita Sky Supermarket Center Complex 5
Slide 6: Well-Balanced Tenant Mix with Major Nordic and Multinational Tenants
WELL-BALANCED TENANT MIX WITH MAJOR NORDIC AND MULTINATIONAL TENANTS 11 largest tenants 1. LATVIAN STATE FORESTRY: 12% of total GRI Strong tenants and long lease % of total annualised agreements No Tenant Pndustry Property WAULT, years rental income Baltic Horizon has ~180 tenants, mainly large 2 Se
Slide 7: Portfolio Performance
PORTFOLIO PERFORMANCE Main events in Q3- GAV: EUR 169,8 million Q4: NAV: EUR 86,7 million • Additional capital 7,2% direct property yield holding strong (6,9% net initial yield) raised EUR 17 Actual occupancy today remains strong at 97-98% – latest lease million contract win with Vilniaus Vandenys (
Slide 8: Financial Results for Q3 2017
FINANCIAL RESULTS FOR Q3 2017 FINANCIAL PERFORMANCE 01.07.2017- 01.07.201:- 01.01.2017- 01.01.201:- • During Q3 2017, the Fund Euro ‘000 30.09.2017 30.09.201: 30.09.2017 30.09.201: incurred EUR 61 thousand of non-recurring costs Rental income 2,955 2,058 8,622 5,334 Service charge income 820 617 2,6
Slide 9: Financial Results for Q3 2017 – Assets
FINANCIAL RESULTS FOR Q3 2017 ASSETS AS OF 30/09/2017 • Investment under Euro ‘000 30.09.2017 31.12.201: construction is Domus Non-current assets Pros stage III; the Pnvestment properties 157,822 141,740 construction ended in Pnvestment property under construction 5,725 1,580 Derivative financial in
Slide 10: Financial Results for Q3 2017 – Equity & Liabilities
FINANCIAL RESULTS FOR Q3 2017 EQUITY & LIABILITIES AS OF 30/09/2017 • Domus PRO loan fully Euro ‘000 30.09.2017 31.12.201: repaid, new loan signed Equity (as of 30/09/2017 was Paid in capital 75,597 66,224 Own units - (8) not withdrawn) Cash flow hedge reserve (143) (294) Retained earnings 11,199 10
Slide 11: Financial Results for Q3 2017 Summary
FINANCIAL RESULTS FOR Q3 2017 SUMMARY Euro ‘000 30.09.2017 31.12.201: Change (%) • IFRS NAV per unit EUR 1.3402 (EUR Pnvestment property in use 157,822 141,740 1123% Gross asset value (GAV) 169,738 154,938 926% 1.3414 as at 31/12/2016). Pnterest bearing loans 72,569 69,172 429% Total liabilities 83,
Slide 12: Financial Debt Structure of the Fund as of 30/09/2017
FINANCIAL DEBC SCRUCCURE OF CHE FUND AS OF 30/09/2017 • Weighted average time Carrying Fixed rate Property Maturity Currency amount % of total to maturity lengthened Euro’1000 portion from 2.7 years at the end Lincona 31 Dec 2017 EUR 8,296 11% -% of 2016 to 3.9 years on CC Plaza 8 Mar 2019 EUR 6,938
Slide 13: Updated Dividend Policy
UPDATED DIVIDEND POLICY Targeting 7-9% yield of To provide more stable and predictable cash flow to the Fund unitholders2 annual dividends to The Fund sets a target of dividend distributions to its unitholders in the range investors from invested between 80% of generated net cash flow (GNCF) and a n
Slide 14: Updated Dividend Policy
UPDATED DIVIDEND POLICY Maximum efficiency EUR’1000 Q3 201: Q4 201: Q1 2017 Q2 2017 Q3 2017 (+) Net rental income 1,928 2,310 2,526 2,682 2,638 for the fund expected (-) Fund administrative expenses (482) (728) (730) (670) (535) (-) External interest expenses (302) (408) (327) (438) (340) to be achi
Slide 15: Swedbank's Analysis of Listed Securities in All Baltic Exchanges
SWEDBANK’S ANALYSIS OF LISTED SECURITIES IN ALL BALTIC EXCHANGES Turnover, YTD 2017, EURk Company Primary listing Secondary listing Total 1 Šiaulių bankas 41,139 41,139 2 Olympic Entertainment Group 35,561 12 35,573 3 Tallink Grupp 33,020 33,020 4 Silvano Fashion Group 13,849 600 14,449 5 Tallinna V
Slide 16: Unit Price Movement in 2017
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Slide 17: Future Outlook
FUTURE OUTLOOK Strong focus on unlocking value: Vainodes 1 → Domus PRO PPP Duetto PP stage → Vainodes 1 extension → G4S new extension → CC Plaza CC Plaza extension expansion → Duetto PP → Europa SC repositioning Domus PRO stages G4S HQ 17
Slide 18: Disclaimer
DISCLAIMER This material is provided to you for information purposes only2 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
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