Baltic Horizon Fund · OMXTSE:NHCBHFFT

Baltic Horizon Fund — H1 2020 Earnings Presentation

23 slides from Baltic Horizon Fund's earnings presentation, 2020

  1. Slide 1: Baltic Horizon Fund Webinar Interim Results H1 2020

    BALTIC HORIZON FUND WEBINAR Interim Results H1 2020 Page 1

  2. Slide 2: Key highlights

    Europa SC Key highlights Page 2

  3. Slide 3: Diversified Investment Strategy

    DIVERSIFIED INVESTMENT STRATEGY Fund information  Focus on high-quality properties in the Baltic capitals Total >5,000 investors Units EUR >113 million  High dividend capacity outstanding Nasdaq churn ca 14% of the market cap p.a  Active management and solid existing portfolio Largest Swedish chu

  4. Slide 4: Key Figures

    KEY FIGURES 30 June 2020 31 December 2019 Variance 342,267 356,575 (4.0%) Portfolio value Portfolio value Portfolio value (EUR ‘000) (EUR ‘000) 59.5% 57.3% 220bps LTV LTV LTV 1.2169 1.3451 (9.5%) IFRS NAV IFRS NAV IFRS NAV (EUR per unit) (EUR per unit) 1.3044 1.4333 (9.0%) EPRA NAV EPRA NAV EPRA NAV

  5. Slide 5: Notable Events During 2020

    NOTABLE EVENTS DURING 2020 EUR 0.028 EUR 0.015 per unit  On 19 February 2020, the Fund per unit  On 14 May 2020, the Fund distributed EUR 3.18 million to distributed EUR 1.70 million to investors (EUR 0.028 per unit). investors (EUR 0.015 per unit). Distribution on Distribution on 19 February  Th

  6. Slide 6: COVID-19 impact

    LNK Centre COVID-19 impact Page 6

  7. Slide 7: Changes in the Operating Environment (1/3)

    CHANGES IN THE OPERATING ENVIRONMENT (1/3) While the operating environment changed dramatically with the outbreak of the COVID-19 pandemic, Baltic countries managed to avoid the worst of the health care crisis Europe Estonia Latvia Lithuania Cases have been reported: Cases have been reported: Cases

  8. Slide 8: COVID-19 Risk Management

    COVID-19 RISK MANAGEMENT Government support measures: January February March April May June July August In Estonia, government support for a single affected tenant is capped at 25% of monthly Lithuania rent provided that the landlord gives a rental discount of at least 25%, resulting in minimum savi

  9. Slide 9: Impact of the COVID-19

    IMPACT OF THE COVID-19 Rent collection Recoveries 97.7% 99.4% 98.3% 2020: 98.5% 80.7% 95.6% 95.5% 92.9% 94.8% Rent collection Q1 Recovered footfall in 2020 Lithuania (July) 81.6% 94.7% 85.4% Rent collection Q2 Recovered turnover in 2020 Europa SC (July) 73.4% 68.4% Recovered footfall in Recovered tu

  10. Slide 10: Financial results

    Vainodes I Financial results Page 10

  11. Slide 11: Financial Results for H1 2020

    FINANCIAL RESULTS FOR H1 2020 KEY FIGURES IFRS NAV per unit (EUR) Investment portfolio value (EUR ‘000) Net rental income (EUR ‘000) 10,390 EUR 1.2169 358,942 8,172 345,541 31.12.2019: EUR 1.3451 7,035 245,160 5,208 EPRA NAV per unit (EUR) 189,317 143,320 2,915 EUR 1.3044 31.12.2019: EUR 1.4333 2016

  12. Slide 12: Financing Summary

    FINANCING SUMMARY AS OF 30 JUNE 2020 Summary of financing terms Maturity by separate loan (EUR ‘000) 60,000 59.5% 2.6% 50,000 Bonds LTV Cost of debt 40,000 30,000 Galerija Centrs 20,000 Europa CC Plaza and Postimaja 0.2% 2.6 years Duetto Domus Pro Upmalas Biroji Annual debt Weighted debt 10,000 G4S

  13. Slide 13: Financial Debt Structure

    FINANCIAL DEBT STRUCTURE AS OF 30 JUNE 2020 Carrying amount Property Maturity % of total Fixed rate portion (EUR’000) Galerija Centrs 26 May 2022 30,000 14.5% 100% Europa SC 5 July 2022 20,900 10.1% 88% CC Plaza and Postimaja 12 February 2023 17,200 8.3% 100%1 Duetto I and II 31 March 2023 15,376 7.

  14. Slide 14: Financial Results for H1 2020: Profit and Loss

    FINANCIAL RESULTS FOR H1 2020 PROFIT AND LOSS EUR ‘000 H1 2020 H1 2019 Change (%) Key comments: Rental income 11,282 8,797 28.2%  In H1 2020, the Group recorded a Service charge income 2,504 1,652 51.6% net loss of EUR 9.5 million against a Cost of rental activities (3,396) (2,277) 49.1% net profit

  15. Slide 15: Financial Results for H1 2020: Financial Position

    FINANCIAL RESULTS FOR H1 2020 FINANCIAL POSITION EUR ‘000 30.06.2020 31.12.2019 Key comments: Investment properties 342,267 356,575 Investment property under construction 3,274 2,367  At the end of H1 2020, the GAV decreased to EUR 356.8 million (31 Derivative financial instruments 6 73 December 20

  16. Slide 16: Q2 2020 Distribution

    BALTIC HORIZON FUND Q2 2020 DISTRIBUTION 0.035 0.035 0.030 0.028 0.030 0.027 0.027 0.026 0.026 0.026 0.025 0.025 0.024 0.024 0.025 0.023 0.023 0.025 0.020 0.020 0.018 0.020 0.015 0.015 0.015 0.015 0.025 0.027 0.027 0.028 0.020 0.024 0.027 0.029 0.026 0.028 0.030 0.024 0.031 0.029 0.031 0.023 0.010 0

  17. Slide 17: Property performance

    G4S HQ Property performance Page 17

  18. Slide 18: Baltic Horizon's Property Portfolio Breakdown

    BALTIC HORIZON’S PROPERTY PORTFOLIO BREAKDOWN Net rental income by segment as of 30 June 2020 Rental concentration: 10 largest tenants as of 30 June 2020 Retail 41.9% 1. Rimi Baltic 9.4% Leisure 2. Latvian State Forestry 5.4% 4.0% 3. Forum Cinemas 4.5% 4. G4S 4.3% 5. SEB 4.2% Office 54.1% 6. Intrum

  19. Slide 19: Property Performance

    PROPERTY PERFORMANCE Fair value1 Direct property Net initial yield for Occupancy rate for EUR ‘000 Sector yield for Q2 20202 EUR ‘000 Q2 20203 Q2 2020 Duetto I Office 16,250 8.0% 7.3% 100.0% Duetto II Office 18,665 7.4% 7.2% 100.0% Europa SC Retail 39,691 1.9% 1.8% 92.8% Domus Pro Retail Park Retail

  20. Slide 20: Portfolio Valuations

    PORTFOLIO VALUATIONS Fair value Fair value Change Change Key comments: EUR ‘000 30.06.2020 31.12.2019 (EUR '000) (%)  The like-for-like value of the Like-for-like assets property portfolio excluding Retail 172,188 180,740 (8,552) (4.7%) developments decreased by EUR 14.3 million (4.0%) in H1 2020,

  21. Slide 21: Expansion Plans

    EXPANSION PLANS Planning Planning Under construction Pirita SC, Tallinn CC Plaza and Postimaja, Tallinn Meraki, Vilnius  Pirita SC reconstruction project has been  Final design and construction project  New building/construction finalized was started in Q1 2020 for phase I of the  25% of net lea

  22. Slide 22: Previous Bond Issues and Unit Offerings

    PREVIOUS BOND ISSUES AND UNIT OFFERINGS Previous and upcoming unit offerings July 2016. Initial public offering (IPO) April 2019. Two private placements  Up to 30,567,018 units were offered with a price per unit set @ 1.3086.  Up to 15,699,366 and 3,139,873 new units were offered with the price pe

  23. Slide 23: 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

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