Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — Q4 2023 Earnings Presentation
15 slides from Baltic Horizon Fund's earnings presentation, Feb 22, 2024
Slide 1: Baltic Horizon Fund Webinar Q4 2023
22 February 2024 Webinar Q4 2023 Baltic Horizon Fund
Slide 2: Closing the gap between unit price and portfolio value - strategic objectives
Closing the gap between unit price and portfolio value - strategic objectives • Fund’s goal is to achieve a portfolio occupancy of at least 90% by end of 2024; • The LTV target remains at 50% or lower and the outstanding bond must be repaid in line with the agreement with the bond holders or waiver
Slide 3: Closing the gap between unit price and portfolio value - strategic objectives
Closing the gap between unit price and portfolio value - strategic objectives • We believe centrally located buildings catering to the modern era will still be in demand from a tenant and investor perspective. However, these buildings must be adapted to modern ways of working and socializing, design
Slide 4: Strong focus on operational results - Retail
Strong focus on operational results - Retail • While market conditions are still challenging and not expected to fully recover before 2025, we are cautiously optimistic about 2024 with a goal to achieve a portfolio occupancy of 90% by year-end. Our centrally located strategic mixed-use retail/servic
Slide 5: Strong focus on operational results - Offices
Strong focus on operational results - Offices • In the office segment, the market conditions in the Baltic capitals, especially in Riga, are expected to remain challenging in the coming years. We see this development reflected in NOI which dropped 9% when comparing 2023 with 2022 due to anchor tenan
Slide 6: Baltic Horizon Fund portfolio summary
Baltic Horizon Fund portfolio summary The Fund is minimizing concentration risk by diversifying the client base, segment, and geographical allocation Net rental income by segment, 31 December 2023 Rental concentration: 10 largest tenants as of 31 December 2023 Retail 8.5% 54.0% 8.2% Leisure 5.3% 3.7
Slide 7: Portfolio overview
Portfolio overview As of 31 December 2023 Direct Net initial Fair value1 NLA Property name Sector property yield yield Occupancy rate (EUR ‘000) (sq. m) Q4 20232 Q4 20233 Vilnius, Lithuania Europa SC Retail 36,437 17,047 4.0% 4.4% 84.5% North Star Office 20,028 10,579 7.0% 7.3% 99.7% Meraki Office 1
Slide 8: NOI development
NOI development As of 31 December 2023 Property Date of acquisition 2018 2019 2020 2021 2022 2023 Galerija Centrs 13 June 2019 - 2,552 3,023 1,448 2,193 2,139 Postimaja & CC Plaza complex 8 March 20131 2,447 2,495 1,932 1,805 2,044 2,126 Europa SC 2 March 2015 2,332 2,467 1,681 1,006 1,028 1,508 Nor
Slide 9: Financial results for 2023
Financial results for 2023 Profit and loss 01.01.2023- 01.01.2022- EUR ‘000 Change (%) Key comments: 31.12.2023 31.12.2022 Rental income 17,743 20,482 (13.4%) – The Group earned net rental income of EUR 14.6 Service charge income 6,008 5,974 0.6% million in 2023 (2022: EUR 17.4 million). Cost of ren
Slide 10: Financial results for 2023
Financial results for 2023 Financial position EUR ‘000 31.12.2023 31.12.2022 Key comments: Non-current assets Investment properties 250,385 333,123 – At the end of Q4 2023, the Fund’s GAV was EUR Intangible assets 11 6 261.1 million (31 December 2022: EUR 344.0 million), Property, plant and equipmen
Slide 11: Financial debt structure
Financial debt structure As of 31 December 2023 Carrying Hedged Property Maturity Currency amount (EUR % of total portion ‘000) (%) Galerija Centrs 26 August 2024 EUR 30,000 20.8% 100.0% CC Plaza and Postimaja 12 February 2026 EUR 16,727 11.6% 102.8% Europa SC 15 March 2024 EUR 8,400 5.8% 219.1% Upm
Slide 12: Outlook for 2024 and beyond
Outlook for 2024 and beyond • Europa and Northstar new 5-year loan agreements with Šiaulių bankas in total amount of EUR 26 million is signed. Approximately EUR 17.4 million of the loan amounts will be used for refinancing the existing bank loans and the rest of the amount will be used to redeem par
Slide 13: Contact information
Contact information Management board message We declare that, to the best of our knowledge, the information provided in this document is accurate and that the document is not subject to any omissions that may serve to distort the picture of the document provided. Tarmo Karotam Fund Manager tarmo.kar
Slide 14: Disclaimer
Disclaimer This material is provided to you for information purposes only. You should not rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever. Northern Horizon Capital AS (NHC) has taken all reasonable care to ensure that the information co
Slide 15: Slide 15