Slide 1: Baltic Horizon Fund Q3 Webinar
BALTIC HORIZON FUND Q3 WEBINAR Financial results for 2018 Q3
Slide 2: Main Events Q2-Q3
MAIN EVENTS Q2-Q3 Further growth of Apr 2018 – S&P mid-market rating of MM3 (corresponding to BB+/BB on a global scale) portfolio is expected assigned; Apr 2018 – 30mln EUR unsecured bond maturing in 5y placed at 4,25% fixed coupon; → subscribed by 8 Baltic institutional investors (59% - LMV, 19% -
Slide 3: Stabilized Growth Strategy
STABILIZED GROWTH STRATEGY Main focus on Diversified eash flow Baltie listed REIT with key focus on high dividends and expansion projects long term value creation through active asset management Flexible market adjusted strategy following the main RE market trends Growth by off-market (in-kind) oppo
Slide 4: Baltic Horizon's Property Portfolio Breakdown
BALTIC HORIZON’S 12 PROPERTY PORTFOLIO BREAKDOWN Geographical allocation Geographical and 34% Segmental 38% Estonia diversification Latvia Lithuania 28% 5 properties with expansion potential Segment allocation 6% Retail 44% Office 50% Leisure 5
Slide 5: Rental Concentration – 10 Largest Tenants
RENTAL CONCENTRATION – 10 LARGEST Largest tenant now only 7.6% of the 8% G4S Eesti portfolio Latvian State Forestry 7% RIMI 7% Forum Cinemas SEB Exigen Services Latvia 6% Intrum Global Business Services 54% M&M 6% Cabot Latvia 3% New Yorker 3% 2% Others 2% 2% 6
Slide 6: Financing Summary
FINANCING SUMMARY AS OF 30 SEPTEMBER 2018 Maturity by separate loan 53.3% 2.3% 35 000 000 30 000 000 Bonds LTV Cost of debt 25 000 000 20 000 000 Europa Cocal cola Plaza 15 000 000 and Postimaja 0.1% 4.3 years 10 000 000 Domus Pro Upmala Biroji Vainodes G4S Duetto Lincona Annual debt Weighted debt 5
Slide 7: Baltics – Home for Shared Service Centers and Start-ups
BALTICS – HOME FOR SHARED SERVICE CENTERS AND START-UPS Estonia, one of the countries with – Estonian Startups Total Funding most startups per capita – 550 startups by 2018 EUR 300 million raised in 2018, most recently EUR 150 million from Daimler by Taxify Approx. EUR 400 million turnover in 2018 f
Slide 8: Vilnius Has Established Itself as a Growing SSC Hot Spot
VILNIUS HAS ESTABLISHED ITSELF AS A GROWING SSC HOT SPOT Share service center sector – People employed in shared serviee eenters per 1,000 residents growth of 82% in the last three years 23,000 experienced professionals employed in the financial services industry, still 25% cheaper compared to CEE a
Slide 9: Financial Results for Q3 2018
FINANCIAL RESULTS FOR Q3 2018 FINANCIAL PERFORMANCE • In Q3 2018, NOI Euro ‘000 2018 Q3 2017 Q3 Change (%) (restated)* amounted to EUR 3.8 million and was Rental income 4,012 2,955 35,8% higher than in Q3 Service charge income 619 425 45,6% 2017 (EUR 2.6 Cost of rental activities -791 -742 6,6% Net
Slide 10: Financial Results for Q3 2018 – Assets
FINANCIAL RESULTS FOR Q3 2018 ASSETS AS OF 30/09/2018 • Total investment Euro ‘000 30.09.2018 31.12.2017 value increased from EUR 189 Non-eurrent assets million to EUR 243 Investment properties 243,497 189,317 Derivative financial instruments 39 89 million after Other non-current assets 138 146 Post
Slide 11: Financial Results for Q3 2018 – Equity & Liabilities
FINANCIAL RESULTS FOR Q3 2018 EQUITY & LIABILITIES AS OF 30/09/2018 • In Q3 2018, the Fund Euro ‘000 30.09.2018 31.12.2017 Equity NAV to EUR 109,7 Paid in capital 94,198 91,848 million. The increase Cash flow hedge reserve (472) (56) is related to an Retained earnings 15,981 15,184 Total equity 109,
Slide 12: Financial Results for Q3 2018 Summary
FINANCIAL RESULTS FOR Q3 2018 SUMMARY • IFRS NAV per unit Euro ‘000 30.09.2018 31.12.2017 Change (%) EUR 1.3859 (EUR 1.3811 as at Investment property in use 243,497 189,317 28.6% 30/06/2018). Gross asset value (GAV) 248,948 215,785 15.4% • EPRA NAV per unit Interest bearing loans 129,896 98,087 32.4
Slide 13: Financial Debt Structure of the Fund as of 30/09/2018
3. FINANCIAL DEBT STRUCTURE OF THE FUND AS OF 30/09/2018 Carrying % of Fixed rate Property Maturity Curreney amount total portion Euro’1000 Lincona 31 Dec 2022 EUR 7,189 5.5% 95% CC Plaza and 12 Feb 2023 13.2% EUR 17,200 100%1 Postimaja Sky SC 1 Aug 2021 EUR 2,414 1.9% -% Europa SC 5 Jul 2022 EUR 20
Slide 14: BH Units Secondary Trading
BH UNITS SECONDARY TRADING Over 4,500 investors BH units seeondary trading per month 1 600 Improving liquidity in the 1 400 secondary market 1 200 Volume, thousand 1 000 OTC transactions excluded 800 600 Market cap of approx. 400 104mln EUR turns around 200 in c.a. 6.8 years (based on last 12 months
Slide 15: Disclaimer
DISCLAIMER This material is provided to you for information purposes only. Before investing in any product managed by Northern Morizon Capital (NMC) or associated companies, you should inform yourself about legal and tax consequences, foreign exchange restrictions or exchange control requirements th