Baltic Horizon Fund · OMXTSE:NHCBHFFT
Baltic Horizon Fund — H1 2021 Earnings Presentation
28 slides from Baltic Horizon Fund's earnings presentation, 2021
Slide 1: Baltic Horizon Fund Webinar: Interim Results H1 2021
BALTIC HORIZON FUND WEBINAR Interim Results H1 2021 Page 1
Slide 2: Key highlights
Europa SC Key highlights Page 2
Slide 3: About Baltic Horizon Fund
ABOUT BALTIC HORIZON FUND Baltic Horizon Fund is a regulated closed-end >5,000 contractual investment fund registered in Estonia on 23 May 2016. The Fund is currently dual-listed on the Total investors Fund List of the Nasdaq Tallinn Stock Exchange and the Nasdaq Stockholm Alternative Investment Fun
Slide 4: Key figures
KEY FIGURES 30 June 2021 31 December 2020 Variance 328,449 339,992 (3.4%) Portfolio value Portfolio value Portfolio value (EUR ‘000) (EUR ‘000) 63.8% 60.5% 330bps LTV LTV LTV 1.0439 1.1395 (8.4%) IFRS NAV IFRS NAV IFRS NAV (EUR per unit) (EUR per unit) 1.1176 1.2219 (8.5%) EPRA NRV EPRA NRV EPRA NRV
Slide 5: Key figures
500 1,000 1,500 2,000 2,500 3,000 3,500 - Not due 2020-01 2020-02 2020-03 2020-04 2020-05 1 - 30 days 2020-06 2020-07 Trade receivables (monthly) 2020-08 2020-09 31 - 60 days 2020-10 2020-11 2020-12 2021-01 2021-02 61 - 90 days 2021-03 2021-04 2021-05 2021-06 > 90 days KEY FIGURES - 2,000 3,000 4,00
Slide 6: Notable events for the fund
NOTABLE EVENTS FOR THE FUND On 12 May 2021, BH Meraki UAB Standard and Poor’s rating has In May 2021, the Fund has finished an completed an oversubscribed private remained unchanged. On 12 April international tender for property placement of 18 months secured 2021, S&P Global Ratings affirmed manage
Slide 7: Retail footfall and turnovers are recovering when restrictions are lifted
RETAIL FOOTFALL AND TURNOVERS ARE RECOVERING WHEN RESTRICTIONS ARE LIFTED Reopening First COVID-19 Pre-COVID-19 Reopening with restrictions Second COVID-19 lockdown with lockdown restrictions 120% 120.0 0% 90.5% 100% of invoiced 2021 rent 100.0 0% collected as of 16 August 2021 80% 80.00 % 60% 60.00
Slide 8: Vaccinations in the Baltics
Galerija Centrs VACCINATIONS IN THE BALTICS – Baltic Horizon Fund has committed to support the fight against the COVID-19 virus. In cooperation with local authorities in Latvia we have established a vaccination centre in Galerija Centrs. – Baltic Horizon's Europa shopping centre in Vilnius and Galer
Slide 9: Financial results
Vainodes Financial results Page 9
Slide 10: Financial results for H1 2021: Profit and loss
FINANCIAL RESULTS FOR H1 2021 PROFIT AND LOSS EUR ‘000 H1 2021 H1 2020 Change (%) Key comments: Rental income 9,512 11,282 (15.7%) – In H1 2021, the Group earned net Service charge income 2,426 2,504 (3.1%) rental income of EUR 8.5 million, a decrease of 17.9% compared to the Cost of rental activiti
Slide 11: Financial results for H1 2021: Financial position
FINANCIAL RESULTS FOR H1 2021 FINANCIAL POSITION EUR ‘000 30.06.2021 31.12.2020 Key comments: Investment properties 324,509 334,518 – At the end of H1 2021, the Fund’s Investment property under construction 3,940 5,474 GAV was EUR 346.9 million (31 Property, plant and equipment 3 2 December 2020: EU
Slide 12: Portfolio valuations
PORTFOLIO VALUATIONS Key comments: Fair value Fair value Change Change EUR ‘000 30.06.2021 31.12.2020 (EUR '000) (%) – The like-for-like value of the Like-for-like assets property portfolio excluding developments decreased by EUR Retail 160,795 166,667 (5,872) (3.5%) 10.0 million (3.0%) in H1 2021,
Slide 13: Cash distributions
BALTIC HORIZON FUND CASH DISTRIBUTIONS 0.035 0.035 0.028 0.026 0.026 0.027 0.025 0.026 0.027 0.026 0.030 0.030 0.024 0.023 0.025 0.025 0.023 0.024 0.025 0.020 0.020 0.018 0.0150.015 0.020 0.015 0.011 0.011 0.011 0.015 0.010 0.010 0.025 0.027 0.027 0.028 0.020 0.024 0.027 0.029 0.026 0.028 0.030 0.02
Slide 14: Financing summary
FINANCING SUMMARY AS OF 30 JUNE 2021 Summary of financing terms Maturity by separate loan (EUR ‘000) Unsecured 50,000 bonds 63.8% 2.7% 40,000 LTV Cost of debt Galerija 30,000 Centrs 20,000 Europa CC Plaza and Postimaja Duetto 0.2% 1.6 years Domus Pro Upmalas Biroji 10,000 LNK Vainodes Annual debt We
Slide 15: Financial debt structure
FINANCIAL DEBT STRUCTURE AS OF 30 JUNE 2021 Carrying amount Property Maturity % of total Fixed rate portion (EUR’000) Galerija Centrs 26 May 2022 30,000 14.3% 100.0% Europa SC 5 July 2022 20,900 10.0% 88.0% CC Plaza and Postimaja 12 February 2023 17,200 8.2% 100.0%1 Duetto I and II 31 March 2023 15,
Slide 16: Financing strategy for the next few years
FINANCING STRATEGY FOR THE NEXT FEW YEARS Carrying Leverage: Property Maturity amount – Gradual decrease in Fund’s leverage over the next 2 years is (EUR’000) Sky SC 31 January 2022 2,120 planned by prepaying a part of loans at maturity and/or financing of Pirita SC 20 February 2022 4,944 new acquis
Slide 17: Portfolio performance
Europa SC Portfolio performance Page 17
Slide 18: Baltic Horizon Fund portfolio summary
BALTIC HORIZON FUND PORTFOLIO SUMMARY Net rental income by segment as of 30 June 2021 Rental concentration: 10 largest tenants as of 30 June 2021 Leisure 3.9% Rimi 9.4% SEB 5.9% Office 64.3% 5.3% Retail EUR 8.5 m Latvian St ate Forest ry 31.8% Foru m Cin emas 4.5% G4S Ees ti 4.3% EMERGN 3.3% Net ren
Slide 19: Property performance as of 30 June 2021
PROPERTY PERFORMANCE AS OF 30 JUNE 2021 Fair value1 Direct property Net initial yield EUR ‘000 Sector yield Q2 20212 Occupancy rate EUR ‘000 Q2 20213 Duetto I Office 16,569 8.4% 7.6% 100.0% Duetto II Office 19,455 7.0% 6.9% 100.0% Europa SC Retail 35,071 2.9% 2.9% 85.1% Domus Pro Retail Park Retail
Slide 20: Strong on-site retail teams
STRONG ON-SITE RETAILS TEAMS… – Changed 100% of retail site management team. – Attracted leaders of retail market who has experience over 10 or 20 years working with the largest retail landlords: DEKA Immobilien, Linstow, Akropolis Group, CBRE, Nepi Rockcastle and others. – The active dedicated leas
Slide 21: And active focus on customer experience
…AND ACTIVE FOCUS ON CUSTOMER EXPERIENCE… – Started repositioning of the Galerija Centrs and Europa – stagnant and traditional marketing campaigns were changed to customers experience and dialog type of marketing. – SCs are prepared for the leading positions in Convenience type of SCs field. – Durin
Slide 22: Results in new and extended relationships with tenants
… RESULTS IN NEW AND EXTENDED RELATIONSHIPS WITH TENANTS Page 22
Slide 23: Development projects
DEVELOPMENT PROJECTS Planning Under construction Under construction CC Plaza and Postimaja, Tallinn Europa, Vilnius Meraki, Vilnius – The final building permit for joining the – Refurbishment project was initiated with – New building/construction Postimaja and CC Plaza buildings was the aim of intro
Slide 24: Baltic Horizon ESG goals
BALTIC HORIZON – ESG GOALS ESG has become an important aspect of Fund‘s long-term business strategy Short-term ESG Goals A+/A 01 100% of office buildings will obtain building certifications by end of 2021. Chosen certification program – BREEAM. 02 100% of new leases / extensions / amendments will ha
Slide 25: Above 59% of portfolio expected to be certified during 2021/2022
ABOVE 59% OF PORTFOLIO IS EXPECTED TO BE CERTIFIED DURING 2021/2022 BREEAM Certified buildings 15% 41% Duetto A, Vilnius Duetto B, Vilnius Domus BC, Vilnius BREEAM Certification in progress 44% BREEAM Certified BREEAM Certification in progress G4S HQ, Tallinn Lincona, Tallinn Upmalas Biroji, Riga No
Slide 26: Baltic Horizon Fund strategic priorities 2021 and beyond
BALTIC HORIZON FUND STRATEGIC PRIORITIES 2021 AND BEYOND 2021 2023 4% 20% EUR 329m 47% EUR 700m 54% 49% 26% Office Retail Other 26% 32% 36% 42% EUR 329m EUR 700m 38% 26% Latvia Estonia Lithuania Page 26
Slide 27: Priorities and outlook
Postimaja PRIORITIES AND OUTLOOK – On-boarding of new property management company with the aim to improve operational excellence – Capital recycling in the portfolio to realise significant value creation and prepare for post-pandemic trends – Equity investments into development projects to reduce LT
Slide 28: 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