Annual Report 2025 - Baltic Sea Properties (BALT)

BALTIC SEA

PROPERTIES

Annual Report 2025

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About us 4

Market update from Newsec Baltics 6

CEO's comment 8

Key figures 9

Financing 11

Annual Statements - 2025 12

Board of Directors & CEO's annual report & declaration 13

Consolidated statement of profit or loss 18

Consolidated statement of comprehensive income 18

Consolidated statement of financial position 19

Consolidated statement of changes in equity 20

Consolidated statement of cash flows 20

Notes to the consolidated financial statements 21

Annual financial statement for the parent company 32

Independent auditor's report 38

Contact 40

Appendix - Reconciliation of APM's 41

Disclaimer:

This report has been prepared by Baltic Sea Properties AS in good faith and to our best ability with the purpose to give the company's shareholders updated information about the company's operations and status. This document must not be understood as an offer or encouragement to invest

in the company. Baltic Sea Properties AS further makes reservations that errors may have occurred in its calculations of key figures or in the development of the report which may contribute to an inaccurate impression of the company's status and/or operations. The report also includes descriptions and comments which are based on subjective assumptions and considerations, and thus must not be understood as a guarantee of future events or future profits.

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Baltic Sea Properties (BALT) is a Norwegian real estate investment company listed on

WAULT

€ 9.1 m contracted rent

GLA

investment projects

Euronext Growth Oslo. We acquire, develop, and manage high-quality commercial properties, focusing on logistics, industrial, and retail segments. Our portfolio consists of long-term, triple-net leased assets with solid tenants, ensuring stable cash flows and predictable returns.

Net LTV

dividend yield

NOI yield

€ 120.4 m

GAV

We operate with a long-term, partnership-oriented approach, combining local market expertise with Scandinavian governance standards. The company emphasises sustainability, efficient property management, and

value creation through active development and optimisation of its assets.

With headquarters in Oslo and a fully operational local organisation in Lithuania, we are strategically positioned to capitalise on the region's growing logistics and industrial demand, driven by EU integration, strong economic fundamentals, and increased trade connectivity between Northern and Eastern Europe.

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annual dividend's share of NAV

€ 100m equity by end of 2028

average annual IRR

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Baltic Sea Properties AS Annual report | 2025

Provided by Kristina Živatkauskaitė and Mindaugas Kulbokas at Newsec Baltics (3 April 2026)

Steady Growth Amid External Uncertainty

Lithuania enters 2026 with growth expected to remain solid, following 2.8% real GDP growth in 2024 and an estimated 2.9% expansion in 2025. Real GDP is forecast to accelerate to 3.1% in 2026, before moderating thereafter, supported by resilient household consumption, rising public spending and a more supportive interest rate environment. While exports remain exposed to a weak and uncertain external backdrop, nominal GDP is projected to approach EUR 90bn in 2026, underpinned by continued wage growth and rebounding investment.

Inflation has reaccelerated and the outlook remains uncertain. HICP averaged 3.4% in 2025 and is forecast at 3.7% in 2026, with upside risks linked to energy prices and the broader geopolitical environment. Wage growth is expected to remain robust at 7.9% in 2026, while unemployment is projected to ease to 6.8%, pointing to a gradually tightening labour market.

Fiscal policy remains expansionary, partly reflecting higher defence-related expenditure. According to the latest European Commission forecast, public debt is projected to rise to 42.1% of GDP in 2026 and 45.4% in 2027, still below the EU average.

Looking ahead, downside risks remain linked to geopolitics, energy prices and weaker demand in key partner markets. At the same time, domestic demand should remain supportive, including the temporary consumption impulse from the second-pillar pension reform, while investment is expected to benefit from public spending and easing financing conditions.

Investment Market Dominated by Local Capital

Investment activity strengthened in Lithuania in 2025, with total transaction volume rising to EUR 270 million from EUR 155 million in 2024, and a further increase is expected in 2026. Reported volumes reflect transactions of EUR 5 million and above and remain concentrated in the mid-sized segment, while the share generated by deals above EUR 20 million fell to its lowest level of the past decade. At the same time, market liquidity continues to be supported by a large number of smaller transactions below EUR 5 million, although these are not captured in the headline figures.

The market continues to be driven primarily by local capital, including investment funds, corporates and end-users, while larger transactions remain comparatively rare and often require more structured execution. Investors remain selective, prioritising defensive income, strong tenant profiles and assets that are straightforward to finance in a still cautious lending environment. As interest rates ease, pricing has stabilised and prime yields have remained broadly steady, with limited near-term pressure for sharp compression. However, bid-ask gaps persist for secondary assets, where refurbishment needs and reletting risk remain harder to underwrite.

Retail Remains One of the Most Active Investment Segments

Retail assets remain among the most active segments in Lithuania's investment market as the country moves through 2025-2026, supported by resilient occupier fundamentals and steady consumer demand. Investor interest continues to focus on established shopping centres and retail parks with proven catchment areas, stable anchor tenants and resilient footfall, while well-performing schemes in regional cities are also attracting attention. Across the Baltic retail market, prime assets continue to benefit from low vacancy and stable rental conditions, reinforcing the appeal of well-located retail formats with clear income visibility. Lithuania's retail sector is further supported by real wage growth and high employment, which help sustain household spending despite a more uncertain external environment. Looking ahead, retail should remain attractive to investors, although demand is likely to stay selective and concentrated on modern assets with secure cash flow and limited reletting risk.

Offices: Demand Fragments as Flight to Quality Strengthens

Office leasing market in 2025 was shaped less by expansion and more by relocations, consolidation and efficiency-driven moves. Demand became increasingly fragmented, with activity shifting towards smaller deal sizes and some buildings reducing vacancy through a combination of multiple smaller tenants rather than a single anchor occupier. The technology, IT and fintech ecosystem continued to lead in terms of transaction numbers, while the public sector accounted for a meaningful share of take-up by area. Tenant expectationsalsocontinuedtoevolve, with greater emphasis on workplace quality, flexibility and accessibility, reinforcing a clear flight to quality. As a result, market performance has become more polarised. Well-located, modern assets remain more competitive, while older or less efficient stock faces longer vacancy periods and growing pressure to reposition through subdivision, refurbishment or reconfiguration to meet current occupier requirements and ESG standards.

Logistics Market Moves into a More Balanced Phase

Lithuania's logistics and industrial market moved into a more balanced phase in 2025 after the supply peak of 2024, with development becoming more selective and occupier demand increasingly concentrated in modern, efficient premises. In Vilnius, warehouse vacancy normalised at 5.0% by 2025 year end, reflecting both the release of previously less visible space and a continued preference for higher-quality buildings. Modern warehouse stock reached 1.2 million sqm in Vilnius and close to 2.3 million sqm in three major regions. This points to a market where speculative activity is becoming more measured and new development is increasingly aligned with clearer demand visibility.

The market is also becoming more polarised. Modern, well-located logistics assets continue to attract occupier interest, particularly where they offer strong functionality, energy efficiency and ESG readiness, while older or less efficient facilities face slower absorption and greater leasing pressure. Prime warehouse rents have remained broadly stable, supporting income visibility for better-quality assets even as competition has increased in parts of the market. Looking ahead, the sector should remain stable, with demand continuing to focus on modern, efficient and sustainable space.

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Baltic Sea Properties AS Annual report | 2025

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We are pleased to report solid progress in 2025, as BSP continued its project and income growth. We also see the clear benefits of the lower interest rate environment experienced during the year.

Financial Performance

Total income increased by 10%, driven by new cash flows from recently completed developments and CPI-indexed rental increases across the portfolio. Income from Property Management increased by more than 34% year-on-year, supported by active asset management and lower financing costs. Together, these factors have significantly improved our underlying cash flow generation and financial resilience, providing a strong base for further expanding our portfolio.

Portfolio Development

While we continue to evaluate potential acquisitions and tender new build to suit opportunities, our continued focus has been on optimizing the existing portfolio. An example is BSP Park Vilnius East, which transitioned from a master lease to a diversified multi-tenant park. Approximately 70% of the income is already secured, and we expect the full c. 17,000 sqm to be leased during 2026. The asset has been conservatively valued, limiting downside at current levels. CAPEX is linked to securing longer-term leases which would improve income predictability and cash flow stability.

In Liepų Parkas, Klaipėda, we recently delivered a new building to Inchcape for their new BMW and BYD sales and service center. This marks another important step in establishing one of Western Lithuania's leading business and retail parks. We have now delivered two of the four planned buildings. The

third multi tenant building is expected to be completed during the year, and we have currently secured over 65% pre leases. The fourth building is at preliminary stages and remains part of our development pipeline. Upon full completion, the park is expected to comprise close to 15,000 sqm.

Market Environment

From a market perspective, we have observed increased stabilisation. Yields in our core segments have flattened out and in some cases are contracting, finance conditions have improved significantly, and transaction activity is

picking up. Lithuania continues to demonstrate relative economic strength, with projected GDP growth in 2026 of 2.5-2.7%, compared to approximately 1.5% in the Nordics and the broader European average.

Net Asset Value

Net Asset Value increased to EUR 56.7 million through the year, including dividends distributed in line with our policy, represents a total annual return of 9.1% (EUR). 2025 return was slightly below our average expectations, mainly due to conservative valuations on some projects and increase in tax rate (affecting deferred tax in valuations), however the improved financing

environment, new projects, increased scale, and operational efficiency provide a solid foundation for stronger performance going forward.

Outlook & Strategy

BSP remains a development-focused real estate platform with a long-term partnership mindset. Our fully integrated in-house management team, disciplined capital allocation, strong governance framework, and commitment to environmental and social sustainability continue to support our positioning in the market.

Looking ahead, we remain firmly focused on our development and acquisition pipeline, prudent asset management and leasing across the portfolio and pursuing selective M&A opportunities. BSP shareholders and board have approved share buybacks, as we believe the recent share price does not reflect the underlying asset value and risk adjusted returns of the Company.

Repurchasing shares at these levels represents a compelling capital allocation opportunity to enhance long-term value for our shareholders.

We thank all of our stakeholders and shareholders for their continued trust and support.

- Lars Christian Berger (CEO)

+47 930 94 319

LCB@BalticSea.no

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Year-end report 2025

1. EURNOK rate per balance sheet date is used when converting balance sheet figures.

2. EURNOK YTD average rate is used when converting P&L figures.

   *The NAV return for 2024 has been adjusted to account for 2,007,848 new shares being issued in 2024 (at NOK 49 each), with the return KPI based on the operational return for 2024, excluding cash proceeds and the new issued shares. Of these shares, 1,781,398 were issued in the 2nd quarter of 2024 and 226,450 in the 3rd quarter.

   Group key figures	31 Dec 2025	31 Dec 2024	31 Dec 2023
   Fair value of portfolio (MNOK)	1 426	1 316	1 121
   Fair value of portfolio (MEUR)	120.4	111.6	99.8
   Value of equity based on NAV - BSP method (MNOK)	671	630	460
   Value of equity based on NAV - BSP method (MEUR)	56.6	53.4	40.9
   Annualised contracted rent (MNOK)	107.7	105.1	93.6
   Annualised contracted rent (MEUR)	9.1	9.0	8.3
   Net income from property management (IFPM) (MNOK)	38.2	28.3	33.3
   Net income from property management (IFPM) (MEUR)	3.3	2.4	2.9
   NOI yield (investment projects)	7.95%	8.00%	8.06%
   Dividend yield (NAV)	2.60%	2.39%*	2.44%
   Occupancy rate	96%	100%	100%
   WAULT (years)	9.2	8.6	9.1
   IBD (incl. mezzanine facility) (NOK)	749	702	656
   IBD (incl. mezzanine facility) (EUR)	63.2	59.5	58.3
   LTV investment portfolio (incl. mezzanine facility)	52.49%	53.32%	58.43%
   Net LTV (incl. Cash)	46.36%	47.17%	54.80%
   Interest coverage ratio (ICR) - Group	2.23	1.74	2.09
   Interest coverage ratio (ICR) - SPV finance	2.72	2.27	2.68

   Net Asset Value (NAV)	31 Dec 2025	31 Dec 2024	31 Dec 2023	31 Dec 2025	31 Dec 2024	31 Dec 2023
   Currency	EUR	EUR	EUR	NOK	NOK	NOK
   	thousands	thousands	thousands	thousands	thousands	thousands
   Equity as recognised in balance sheet	54 677	52 170	40 041	647 537	615 340	450 061
   Pr share	6.29	6.01	6.00	74.50	70.83	67.40
   Deferred tax according to balance sheet (-)	7 037	5 534	4 317	83 344	65 277	48 518
   Equity excluding deferred tax	61 714	57 704	44 358	730 881	680 617	498 579
   Deferred tax according to BSP original NAV definition (-)	5 016	4 289	3 390	59 400	50 589	38 109
   Net asset value - BSP Method	56 699	53 415	40 967	671 481	630 028	460 470
   Pr share	6.52	6.15	6.13	77.25	72.52	68.95

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   Terms & Abbreviations

   • Average interest rate = The average interest rate across the loan portfolio, including the impact of any derivatives.

   • CPI = Consumer Price Index.

   • EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortisation: A measure of a company's operational profitability.

   • EURIBOR = Euro Interbank Offered Rate: The average interest rate at which major European banks lend to each other, commonly used as a benchmark for loans and financial contracts in Euros.

   • Fair value of portfolio = Valuation of the real estate assets at market value.

   • IFPM = Income From Property Management: Profit/loss before tax excluding depreciation, profit/loss or value movements on properties, realised investments, currency effects, and other financial instruments.

   • Interest Coverage Ratio = ICR - Group: Group EBITDA divided by all interest paid; measures ability to cover interest obligations.

   • Interest Coverage Ratio = ICR - SPV finance: Consolidated EBITDA of real estate subsidiaries divided by interest paid on real estate-specific financing.

   • IBD = Interest-Bearing Debt: All outstanding debt to credit institutions and/or other credit facilities.

   • LTV = Loan-to-Value ratio: A measure of financial leverage, calculated as total debt divided by the market value of the asset or portfolio.

   • M&A = Mergers & Acquisitions: Business transactions involving the consolidation or transfer of companies or assets.

   • NAV = Net Asset Value: The total value of a company's assets minus its liabilities, often used to represent the per-share value of a real estate or investment company.

   • Net rent = Income from rental activity from the property portfolio minus all unrecovered property expenses (not including internal property management fees).

   • NOI = Net Operating Income: Income from the property portfolio after operating expenses, including internal property management expenses.

   • NOI yield = NOI divided by the market value of the investment portfolio, excluding development land (land bank); used to assess investment performance.

   • ROE = Return on Equity: Profit for the period/year as a percentage of average equity; indicates how efficiently equity is being used.

   • Run rate = Method of annualising current financial or operational figures by projecting existing numbers over a 12-month period, assuming the same performance continues.

   • SPV = Special Purpose Vehicle: A legal entity created for a specific, limited purpose.

   • Triple Net (NNN) = A lease agreement in which the tenant pays not only rent but also all property expenses, including taxes, insurance, and maintenance

   • WAULT = Weighted Average Unexpired Lease Term: The average remaining lease term of all tenants in a property or portfolio, weighted by rental income, used to assess income stability and risk.

   • YTD = Year to Date: The period from 1st of January of a given year up to and including the reporting date.

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Year-end report 2025

Notes

1. Run rate figures, i.e interest is annualised over a 12 month period assuming same EURIBOR and based on a snapshot as at 31/12/2025.

2. Subsequent to balance date, the Group entered into a new interest rate swap agreement with a notional principal of EUR 10,000,000, fixed at an interest rate of 2.57% per annum, maturing on 30 May 2030. The new swap brings the Group's total hedged position to approximately 16% of its existing loan exposure.

3. The principal of the mezzanine debt is MNOK 50.0. NOK amounts in the table are converted to EUR at exchange rate as at 31/12/2025.

Notes

1. LTV in this table does not include cash position.

2. Excl. 3-months EURIBOR & swap agreements.

3. Adjusting for the interest rate swap agreement entered in early 2026, the interest rate hedging ratio per 31.12.2025 would have been 15.82%.

4. Includes all internal management fees

1. Net LTV include cash position

Notes

1. Interest-bearing debt per 31/12/2024 here includes MEUR 1.2 in construction cost which in the annual accounts are presented as debt to suppliers but will be financed with bank loan.

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Table of contents

1. Board of Directors & CEO's annual report and declaration

2. Consolidated statement of profit or loss & comprehensive income

3. Consolidated statement of financial position

4. Consolidated statement of changes in equity

5. Consolidated statement of cash flows

6. Notes to the consolidated financial statements

   Note 1 Accounting Principles

   Note 2 Critical accounting estimates and subjective judgement Note 3 Operating income from contract customers

   Note 4 Investment property

   Note 5 Employee benefit expenses Note 6 Other operating assets Note 7 Operating costs

   Note 8 Other administrative costs Note 9 Finance income and expenses Note 10 Interest rate swap agreements Note 11 Tax

   Note 12 Earnings per share

   Note 13 Lease agreements where the group is the lessee

   Note 14 Classification and measurement of financial assets and liabilities Note 15 Long-term receivables

   Note 16 Other receivables and other current assets Note 17 Cash and bank deposits

   Note 18 Share capital and shareholder information Note 19 Interest bearing liabilities

   Note 20 Debt to credit institutions Note 21 Other short-term debt Note 22 Financial risk management Note 23 Subsidiaries

   Note 24 Segment information and rental income

   Note 25 Reconciliation of liabilities from financing activities Note 26 Uncertain liabilities

   Note 27 Transactions with related parties Note 28 Geopolitical risks

   Note 29 Events after reporting date

7. Annual financial statement 2025 for the parent company

8. Independent auditor's report

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The Board of Directors & CEO's

Year summary

We delivered solid progress in 2025, with rental income and Property Management income both growing strongly on the back of recently completed developments, CPI-indexed rental growth, and a significantly improved financing environment. Net Asset Value increased to NOK 671 million, representing a total annual return of 9.54% (NOK) including dividends distributed in line with our policy.

Portfolio activity centred on optimising existing assets alongside continued development in Liepų Parkas, Klaipėda, where we recently delivered the second of four planned buildings, with construction of the third phase underway, and with advanced leasing across the park. Market conditions continued to stabilise, with yields stabilising or even contracting in some segments and we are seeing that the transaction activity is picking up. Lithuania's economy continues to outperform the broader European average, underpinning long-term demand for quality assets in our markets.

On ESG, we continue to work in a structured manner and have initiated the adoption of the VSME sustainability reporting framework. The Board has also approved a share buyback programme, reflecting confidence in the underlying value of the portfolio. With a disciplined approach to capital allocation and a fully integrated management team, we remain well positioned to deliver sustainable long-term value for our shareholders.

Nature of business and location

Baltic Sea Properties AS (BSP) is a Norwegian publicly listed real estate company and a leading investor, owner, and developer in the Baltics, owning a portfolio of logistics, industrial, and commercial assets. Our aim is to become the preferred real estate partner and a leading investment company in the region. The company (ticker: BALT) has been listed on Euronext Growth Oslo (formerly known as "Merkur Market") since November 2017.

The management and development of the group's properties are undertaken by our local team, which possesses extensive experience in the Baltic real estate market, through seventeen wholly owned subsidiaries, all registered in Lithuania. In addition to refining the current portfolio, the company is continuously working to enhance the portfolio with new cash flow and development projects that will increase shareholder value and strengthen the company's capacity for dividend distribution.

The group's central head office is located at Tollbugata 8A in Oslo, Norway.

The Group's Annual Financial Statements

Accounting Standard

The Group's consolidated annual financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS. Please refer to the financial statements' notes 1 and 2 for more detailed descriptions of the accounting principles applied under IFRS).

Profit & Loss

The Group's total operating income (excluding adjustments in asset valuations) saw an increase of NOK 10.3 million in 2025, reaching NOK 107.5 million, up from NOK 97.2 million in 2024. Furthermore, the fair value adjustment of investment properties for 2025 amounted to MNOK 25.4 driven by CPI adjustments on rent and profit from development on the first stage of Liepų Parkas.

Of total operating income, NOK 105.6 million, previously NOK 96.4 million, was attributable to rental income. This growth is mainly due to almost a full year of income from the first stage of the Liepų Parkas project. Total operating income increased approximately 9.8% measured in EUR.

The Group's operating expenses increased by NOK 6.6 million in 2025 to NOK 34 million (NOK 27.4 million). (Note 7

and 8).

The Group's net financial items for the year were a net cost of NOK 40.0 million, decreased from NOK 42.3 million in 2024, mainly due to a significant decrease in the group's interest expenses. (Note 9).

As for the year before, a 1 percentage point increase in the Lithuanian corporate income tax rate (increasing from 16 to 17 % on 1st of January 2026) had a significant negative one-time effect on the profit after tax due to the recalculation of deferred tax liabilities. (Note 11).

Financial Position (Balance Sheet)

The Group's total assets at the end of the year 2025 were NOK 1,552 million. Of this, NOK 1,456 million were investment properties (including NOK 29.4 million in right-of-use assets). (Note 4).

The Group's equity on the balance sheet date was NOK

647.5 million.

Interest-bearing liabilities were NOK 748.6 million. (Notes 19 and 20).

Real estate portfolio

The Group made no divestments in 2025. In January 2025, we completed the first stage and handed over an office and part warehouse complex (4,340 m²) to ESO, a subsidiary of the public listed energy company Ignitis Group. In February 2026, we completed the second stage

- a 2,475 m² A++ energy-class building - and handed it over to UAB Inchcape Auto for BMW, BMW Motorrad, and BYD showrooms and service.

The third multi-tenant building is currently in advanced stages of construction and is expected to be completed during 2026, with over 65% of space already pre-leased. The fourth building remains at preliminary stage in the development pipeline. Upon full completion, the park is expected to comprise close to 15,000 m².

For investment properties owned at the end of the year (including building D in Liepu Parkas - 2,475 m2), the total valuation was NOK 1,426 million. Valuations as of 31.12.2025 have, as usual, been obtained from Newsec Baltics and Ober-Haus Real Estate Advisors. The market value of the group's real estate portfolio increased by NOK 110 million compared to 31.12.2024, mainly driven by profit and investment in Liepų Parkas and CPI adjustment on rent.

Financing

The group holds a robust financing platform, with Luminor and SEB serving as its primary financing partners at SPV level. Additionally, we strategically leverage mezzanine facilities to improve our capacity for undertaking new projects.

The year before (2024), we successfully raised NOK 98.4 million through a private placement and a subsequent offering. Key investors included UAB Baltic Equity (controlled by our Chairman, James Clarke), Auris AS (controlled by Henrik Austgulen, who was elected to the Board in June), and Arthen Invest AS (controlled by our CEO, Lars Christian Berger), reflecting strong confidence from insiders to our long-term strategy.

The Parent Company's Annual Financial Statements

Accounting Standard

The annual financial statements have been prepared in accordance with the accounting laws and follow Norwegian accounting standards and recommendations for good accounting practice, in compliance with the ongoing obligations for companies listed on Euronext Growth Oslo. (Note 1).

Summary

In 2025, the parent company had operating revenues of NOK 4.7 million, consisting of asset management fees from its own subsidiaries. The parent company's operating expenses for the year were NOK 9.2 million, with the largest item being salary costs of NOK 5.3 million (including board fees, national insurance contributions, pension expenses, etc).

The parent company's net financial items for the year were positive at NOK 3.8 million, of which interest income from subsidiaries and currency gains on group loans contributed the most.

The book value of the parent company's assets was NOK 275.8 as of 31.12.25, of which loans to subsidiaries amounted to NOK 229 million. Assets also included investments in subsidiaries of NOK 10.6 million, trade receivables from subsidiaries of NOK 0.8 million, and bank deposits of NOK 34.3 million. The decrease in asset values from the year prior is mainly due to the year's dividend distribution of NOK 17.4 million.

The parent company's equity decreased by NOK 18 million in 2025, while the parent company's total liabilities remained largely unchanged at NOK 52.0 million (NOK 51.5 million), which mainly were made up of the mezzanine loan. (Note 8)

Continued Operations

The annual financial statements have been prepared on a going concern basis. The Board's assessment is based on budgets and earnings forecasts for 2026 as well as the Group's strategy. The Group has equity of NOK 647.5 million, profit for the year of NOK 45.8 million after tax, and net cash flow from operating activities of NOK 79.8 million.

The Board and management consider the assumptions for continued operations to be sound.

Research and Development

The Group was not involved in research or development activities (R&D) in 2025.

Events after the balance sheet date

Liepų Parkas

In February 2026, we completed the second stage of Liepų Parkas - a 2,475 m² A++ energy-class building

- and handed it over to UAB Inchcape Auto for BMW, BMW Motorrad, and BYD showrooms and service.

The third multi-tenant building is currently in advanced stages of construction and is expected to be completed during 2026, with over 65% of space already pre-leased. The fourth building remains at preliminary stage in the development pipeline. Upon full completion, the park is expected to comprise close to 15,000 m².

Share buy-back program

In February 2026, the Board of Directors has resolved to initiate a share buyback programme for the repurchase of the Company's own shares for up to NOK 5 million. The decision was made pursuant to item 12 of the resolutions adopted by the General Meeting on 15th of May 2025 and announced in a stock market announcement on 27th of February 2026 (NewsWeb message ID 667068).

New interest rate swap agreement

Subsequent to balance date, the Group entered into a new interest rate swap agreement with a notional principal of EUR 10,000,000, fixed at an interest rate of 2.57% per annum, maturing on 30 May 2030. The underlying loan exposure is non-amortising in nature, and the new swap brings the Group's total hedged position to approximately 16% of its existing loan exposure.

The decision to enter into this arrangement reflects the Group's commitment to prudent financial risk management. The Group regularly reviews its hedging position as an integral part of its ongoing risk management framework, ensuring that its exposure to interest rate movements is assessed and managed on a continuous basis. Given the heightened volatility currently observed in global interest rate markets, management considered it appropriate to incrementally increase the proportion of fixed-rate hedging in order to reduce the Group's sensitivity to adverse rate movements and provide greater certainty over future financing costs.

Financial Risk Management

The Group is exposed to financial risk through variations in interest rates and exchange rates. The Company is also dependent on access to financing in the banking and capital markets. The risk of losses on receivables is also closely monitored because of the geopolitical risks, market turbulence and its effect on the Baltic states and

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the global economy.

Capital Management

Capital management focuses on the optimal balance between equity and debt in a company's capital structure. It aims to maximise shareholder value and ensure longterm financial stability by minimising the cost of capital and maintaining an appropriate level of financial flexibility for its operations.

Currently the board has set a target on its investment and company strategy to not go over 60 % loan-to-value and maintain a minimum 12-month interest coverage liquidity buffer. At the date of this report, the loan to value ratio for the group's real estate portfolio is 47.2 % and including the group leverage positions 53.3% (excluding cash reserves). The group's total cash position was MNOK 87.4 per 31.12.2025, which is considered in line with the strategy on cash reserves of minimum 12-month interest coverage but also leaves room for new investments.

The Group is exposed to financial risk and has defined the following relevant risk areas:

Credit risk

Credit risk is assessed at group level and is mainly linked to the risk of incurring losses as a result of tenants not paying the agreed rent. Rent payment is normally secured with a rent deposit or payment guarantees from banks or guaranteed by parent companies, usually with a high credit rating. In recent years, the group has had relatively low losses on rental claims, and the risk that the group will incur significant losses because of bankruptcies among tenants, is considered moderate. Realised losses have not increased significantly since the Covid-19 pandemic or Russia's invasion of Ukraine, and the group considers that the rental income achieved in the financial year indicate that tenants' capacity to withhold its lease obligations will be maintained. In recent years, rental losses have accounted for less than 0.1 % of the group's rental income.

(Please refer to note 20 for maturity analysis related to the group's debt and other payables.)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the financial liabilities when they are due. The liquidity risk is mitigated by having adequate cash/liquidity reserves, a moderate loan-to-value ratio and long-term loan agreements. The liquidity reserve consists of liquid current assets and unused long-term credit lines in larger financial institutions. The board has set targets for the group's liquidity reserves which will both ensure financial freedom of action to be able to exploit investment opportunities quickly, and to contribute to significantly reducing the financial risk. The liquidity risk linked to the refinancing of the group's debt is mitigated by balancing the refinancing need within the next period in relation to the group's liquidity reserve.

There are financial covenant requirements (loan conditions) in all of the group's bank loan agreements related to equity share, debt service cost coverage ratio and loan-to-

value ratio. The group has fulfilled all requirements in the loan agreements in the financial year. The group has a relatively good margin in relation to the defined covenant requirements, and the risk of breach of these requirements is considered to be moderate to low for the next 12 months. The group has assessed that there is a low probability that the current market turbulence will affect the group's ability to service its financial liabilities in the next 12 months.

Optimisation of the Company's short-term and longterm financing is a natural part of the Company's daily operations, and the Company makes ongoing strategic assessments in this connection, which may include the sale of assets, refinancing of existing loans, bond financing, M&A, and/or raising capital from the Company's shareholders or external investors to ensure continued operations.

Currency risk

The Group is also exposed to currency risk against NOK, as the Group's investments, revenues, and the majority of costs are in euros. All properties are financed through debt in euros, collectively forming a natural hedge for part of the currency risk. The remaining exposure is not hedged by the Group, in line with the company's strategy to allow investments in Baltic Sea Properties to also include a euro exposure for the investor.

(Please refer to note 4 for currency sensitivity analysis.)

Interest rate risk

Changes in interest rates can have a significant impact on the value of real estate assets, the cost of financing, and the ability of real estate companies to generate income. The risk associated with unpredictable cost of financing, can be mitigated by having a portion of long-term fixed interest rates in the financing mix.

The board closely discuss targets for the share of fixed interest depending on the cost at the time. Interest positions and interest profiles are reported to the board on a regular basis.

(Please refer to note 22 for interest sensitivity analysis.)

Risk factors and risk management

Risk management is crucial in identifying, assessing, and mitigating potential risks associated with operations of the group. It ensures that risks are proactively addressed to safeguard the financial, legal, and operational wellbeing of the investment portfolio, the employees, the environment, shareholders, and stakeholders.

We update our risk management policy continuously whereas we are focusing on a structured framework to manage risks across our organisation and in our project and property management. The following tables describe some of the most influential risks we are monitoring on a regular basis.

14

15

Environmental Reporting

The construction and real estate sector affect the environment and climate both directly and indirectly. The areas with the greatest direct impact are the development of the buildings themselves and energy consumption throughout the building's lifespan. In addition, the environment is indirectly affected by our tenants' water consumption and waste production, among other things. More than 60% of our tenants are involved in logistics operations, and goods are transported to and from warehouse buildings by road transport.

Throughout 2025, management has continued the process of developing the group's environmental strategy and have initiated the adoption of the VSME sustainability reporting framework with 2025 as its baseline year.

Corporate Strategy

Our vision: To be the preferred real estate partner and leading investment company in the region.

Our mission: To foster a great team, to provide high quality and sustainable solutions for our partners, thus creating superior long-term value and returns for our shareholders.

Our values:

• Commitment to our people and their professional development.

• Focusing on innovation and value creation.

• Respect for our social and physical environment.

• Accountability and fairness with our stakeholders.

• Reliability and integrity in all we do.

Working Environment, Personnel, and Equality

The Board of Directors consists of three people, all of whom are men. As of today, the group has 17 employees, consisting of 9 women and 8 men. The group strives to

event services. Total fees paid to BMP amounted to EUR 15,563 (NOK 180,960) in 2024 and EUR 22,309 (NOK 261,403)

in 2025. All the transactions have been carried out as part of the ordinary operations and at arms-length prices. (Please refer to Note 27.)

Directors and Officers Insurance

Baltic Sea Properties AS has a Directors and Officers insurance policy with an annual total liability limit of NOK 50 million. The insurance covers the Board's legal liability for financial loss arising from the exercise of their directorial duties, as well as associated legal costs. The insurance also covers the boards of the group's subsidiary companies (where Baltic Sea Properties directly or indirectly owns at least 50% of the shares) and employees who represent Baltic Sea Properties in external directorial roles.

Future development

As of the date of the Board's annual report, it is expected that more than 75 % of the Group's rental income in 2026 will be from the logistics and industrial segment, according to signed lease agreements.

• We continue to develop our portfolio, committed to delivering high-quality facilities tailored to our clients' needs. In our Liepų Parkas in Klaipėda, the third multi-tenant building is currently in advanced stages of construction and is expected to be completed during 2026, with over 65% of space already pre-leased. The fourth building remains at preliminary stage in the development pipeline. Upon full completion, the park is expected to comprise close to 15,000 m². We will continue to focus on strengthening our development pipeline and ensuring long-term value creation in the years ahead.

• The Group's operations are shaped by regional and macroeconomic conditions, with the interest rate environment remaining a key factor. While borrowing costs have moderated somewhat, they remain elevated compared to pre-2022 levels. As of 31.12.2025, the Group's net LTV under IFRS stood at 46.36% (including the mezzanine loan), reflecting a

  existing property portfolio to maintain/increase the properties' attractiveness and/or strengthen tenants' prospects for stable and long-term operations.

  Investments in maintenance and standard upgrades are mainly borne by the tenant, either in the form of their contractual obligations or through increases in the agreed rental price. However, Baltic Sea Properties sees value in covering such expenses in certain cases to secure future cash flow and maintain a good relationship with the tenant. In addition to implementation of the EU Taxonomy/"Green Deal", real estate owners need to assess its need for improving energy efficiency in their buildings.

  • Our fundamental approach to real estate management and development, supported by a strong capital structure, positions us to navigate market cycles effectively. We remain a key player in our sector, and are optimistic about our future opportunities in development, new acquisitions, and asset management of our existing portfolio.

    Transparency Act reporting

    As part of our work on human rights and decent working conditions, we carry out regular due diligence assessments to identify, prevent and limit actual and potential negative impacts from our operations and supply chain. These due diligence assessments are based on the OECD guidelines in the Factlines system. We give priority to following up risks of negative consequences based on The Norwegian Agency for Public and Financial Management's high-risk list, which take into account both the severity of the consequences for those affected and the likelihood of negative impact.

    
    
    

    Information regarding the results of these due diligence assessments are published on our website (balticsea.no/ about/#responsibility) on an ongoing basis and the next planned statement will be published by 30th of June 2026.

    Declaration

    The undersigned declare that to the best of their knowledge, the annual accounts for Baltic Sea Properties AS have been prepared in accordance with applicable accounting standards, and that the information in the accounts provides a true and fair view of the company's and the group's assets, liabilities, financial position, and overall result as of 31st December 2025.

    The undersigned further declare that to the best of their knowledge, the annual report for Baltic Sea Properties AS provides a true and fair overview of the development, results, and position of the company and the group as of 31st December 2025.

    Allocation of the result for the year - Parent Company (in accordance with Norwegian accounting standards)

    The Board proposes the following allocation of the parent company's result for 2025: Dividend: NOK 17 383 702 1

    Transfer to/from retained earnings (equity): NOK -18 120 410

    Result for the year: NOK -736 708

    1 NOK 17 383 702 (NOK 2.00 per share) was distributed as dividend in May 2025, in accordance with the decision of the AGM held on the 15th of May 2025.

    Oslo, the 15th of April 2026

    avoid discrimination based on ethnicity and orientation. No injuries or accidents were reported in 2025.

    Transactions with Related Parties

    During 2024 and 2025, certain Group entities engaged UAB "Baltijos maitinimo paslaugos" (BMP) - a company directed by Marina Clarke, spouse of James Clarke (Chairmanofthe Board, majorityshareholder& CIO in Baltic Sea Properties) - for marketing services and catering &

    solid capital structure that provides resilience in the

    current market. We maintain a moderate debt level, ensuring good solvency and the ability to navigate potential fluctuations in financing costs.

• Baltic Sea Properties continues to develop its sustainability strategy with the aim of turning increasing requirements into a competitive advantage, including by making significant investments that will reduce the portfolio's carbon footprint and assist our tenants in their green transition. As part of this strategy, the Group continuously evaluates investments in the

James Andrew Clarke Chairman of the Board

Lars Christian Berger CEO

Henrik Austgulen Board Member

John David Mosvold Board Member

16

17

Year-end report 2025

Amounts in NOK thousand

For the period Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2023

Total operating expenses 34 040 27 436 26 162

Operating profit 98 906 111 085 69 840

Change in fair value of financial instruments 9, 10 -170 -479 -6 449

Financial income 9 420 688 311

Financial expenses 9 -36 680 -42 827 -33 892

Net currency exchange differences 9 -532 341 58

Net financial income (cost) -36 963 -42 276 -39 972

Profit before income tax 61 943 68 809 29 868

Income taxes 11 16 123 13 482 900

Profit for the period 45 820 55 325 28 968

Profit for the period 45 820 55 325 28 968

Other comprehensive income that may be reclassified to profit or loss in subsequent periods

Foreign currency translation differences 3 631 26 202 26 008

3 631 26 202 26 008

Total comprehensive income for the period 49 450 81 528 54 977

Total comprehensive income is attributable to:

• Owners of Baltic Sea Properties group 49 450 81 528 54 977

• Non-controlling interests - - -

  49 450 81 528 54 977

  18

  Consolidated Financial Position
  Amounts in NOK thousand
  For the period that ended on	Note	31 Dec 2025	31 Dec 2024	31 Dec 2023	For the period that ended on	Note	31 Dec 2025	31 Dec 2024	31 Dec 2023
  Assets					Equity
  Investment property	4	1 455 590	1 345 746	1 150 216	Share capital	18	870	870	669
  Other operating assets	6	1 203	1 654	1 631	Share premium		214 031	214 031	118 788
  Right-of-use assets	13	-	-	133	Treasury shares		-1	-1	-1
  Financial derivatives, non-current	14	-	-	412	Total paid-in equity		214 900	214 900	119 456
  Long-term receivables	14, 15	151	2 509	2 391
  Total non-current assets		1 456 945	1 349 911	1 154 784	Retained earnings		432 637	400 440	330 605
  					Total equity		647 537	615 340	450 061
  Trade receivables	14	5 226	3 271	3 209
  Financial derivatives, current	14	-	171	214	Liabilities
  Other receivables and other current assets	16	2 516	2 087	3 089
  Cash and cash equivalents	14, 17	87 449	80 990	40 888	Deferred tax liabilities	11	83 344	65 277	48 518
  Total current assets		95 191	86 519	47 400	Interest-bearing liabilities	19, 20, 25	720 248	657 058	616 955
  					Lease liabilities, non-current	13	30 402	30 381	29 051
  Total assets		1 552 135	1 436 429	1 202 184	Total non-current liabilities		833 994	752 716	694 523
  					Lease liabilities, current	13	104	103	232
  Disclaimer:				Interest-bearing liabilities, current		19, 20, 25	28 368	30 433	37 460
  This report has been prepared by Baltic Sea Properties AS in good faith and to our best ability with the purpose to give the company's				Trade payables		14	17 050	14 171	3 237

  shareholders updated information about the company's operations and status. This document must not be understood as an offer or encouragement to invest in the company. Baltic Sea Properties AS further makes reservations that errors may have occurred in its calculations of key figures or in the development of the report which may contribute to an inaccurate impression of the company's status and/or operations. The report also includes descriptions and comments which are based on subjective assumptions and considerations, and thus must not be understood as a guarantee of future events or future profits.

  Other current liabilities 14, 21 25 082 23 665 16 671

  Total current liabilities 70 604 68 372 57 600

  Total equity and liabilities 1 552 135 1 436 429 1 202 184

  Oslo, the 15th of April 2026

  James Andrew Clarke Chairman of the Board

  Henrik Austgulen Board Member

  John David Mosvold Board Member

  Lars Christian Berger CEO

  19

  
  
  

  Baltic Sea Properties AS Annual report | 2025

  Changes in Consolidated Equity

  Amounts in NOK thousand

  Consolidated Cash Flows

  Amounts in NOK thousand

  Attributable to owners of Baltic Sea Properties AS

  	Share capital	Share premium reserve	Treasury shares	Retained earnings	Total	Non-controlling interests	Total equity
  Equity at 1 January 2024	669	118 788	-1	330 605	450 061	-	450 061
  Net profit for the period	-	-	-	55 325	55 325	-	55 325
  Capital increase	201	95 243	-	-	95 444	-	95 444
  Share based payments	-	-	-	-	-	-	-
  Other comprehensive income for the period	-	-	-	26 202	26 202	-	26 202
  Total comprehensive income in the period	201	95 243	-	81 527	81 527	-	81 527
  Transactions with owners of the company: Transactions with non-controlling interests Dividends paid	-	-	-	-	-	-	-
  	-	-	-	-11 692	-11 692	-	-11 692
  Equity at 31 December 2024	870	214 031	-1	400 440	519 896	-	615 341

  Note Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2023

  Profit for the period before tax 61 943 68 808 29 868

  Adjustments for:

  Changes in value of investment properties 4 -25 402 -41 323 -3 961

  Depreciation, amortisation and impairment 4 923 699 1 035

  Changes in fair value of derivatives 9, 10 170 479 6 449

  Financial income 9 -420 -688 -311

  Financial expenses 9 36 680 42 827 33 892 Net currency exchange differences 9 532 - -Changes in trade recievables & payables 14, 21 1 981 11 684 -3 456

  Changes in other accruals 14, 21 1 955 -1 016 3 630

  Taxes paid 11 362

  Taxes refunded 11 1 482 835 -

  Net cash flows from operating activities 79 845 82 306 66 785

  Investments in investment property 4 -78 648 -93 164 -29 280

  Investments in property, plant and equipment 4 -511 -3 059 -2 259

  Interest received 420 688 311

  Net cash flows from investing activities -78 740 -95 535 -31 228

  Proceeds from interest-bearing debt 19, 20, 25 81 870 42 204 64 260

  Repayment of interest-bearing debt 19, 20, 25 -21 769 -38 328 -53 993

  Repayments of lease liabilities 19, 20 -904 -1 055 -291

  Dividends paid to company's shareholders -17 384 -11 692 -10 595

  Capital increase 130 95 444 -

  Interest paid -36 438 -35 410 -38 110

  Net cash flows from financing activities 5 506 51 162 -38 729

  Net change in cash and cash equivalents 6 610 37 933 -3 173

  	Share capital	Share premium reserve	Treasury shares	Retained earnings	Total	Non-controlling interests	Total equity
  Equity at 1 January 2025	870	214 031	(1)	400 440	615 340	-	615 340
  Net profit for the period	-	-	-	45 820	45 820	-	45 820
  Capital increase			-	-	-	-	-
  Share based payments			-	130	130	-	130
  Other comprehensive income for the period	-	-	-	3 631	3 631	-	3 631
  Total comprehensive income in the period	-	-	-	49 450	49 450	-	49 450
  Transactions with owners of the company: Transactions with non-controlling interests Dividends paid	-	-	-	-	-	-	-
  	-	-	-	-17 384	-17 384	-	-17 384
  Equity at 31 December 2025	870	214 031	(1)	432 637	647 537	-	647 537

  Effects of foreign exchange on cash and cash equivalents

  Cash and cash equivalents at the beginning of the period

  Cash and cash equivalents at the end of the period

  20

  -151 2 169 -22

  80 989 40 888 44 083

  87 449 80 990 40 888

  Baltic Sea Properties AS Annual report | 2025

  Notes to the consolidated financial statements - Baltic Sea Properties Group

  Note 1 Accounting Principles

  General information

  Baltic Sea Properties AS is a Norwegian limited liability company listed on the market place Euronext Growth Oslo. The Company's head office is located at Tollbugata 8a, 0152 Oslo. The Company's consolidated financial statements for 2025 were approved by the board as at 15.04.2026.

  The Group's operations consist of acquisition, development and letting of investment properties in Lithuania as well as some related business

  Basis of preparation

  The consolidated financial statements of Baltic Sea Properties AS have been prepared in accordance with international accounting principles (IFRS) as approved by the EU, with additional information as required by the Norwegian Accounting Act as per 31.12.2025.

  New and amended accounting standards

  At the date of approval of the consolidated financial statements for 2025, the International Accounting Standards Board (IASB) has issued certain new and amended accounting standards and interpretations that are not yet effective and have therefore not been applied in the preparation of these financial statements. The Group will adopt the new standards and amendments to accounting policies when they become effective.

  Management has assessed the new standards and interpretations relevant to the Group. The most significant is:

  IFRS 18 Presentation and Disclosure in Financial Statements

  IFRS 18 replaces IAS 1 Presentation of Financial Statements and introduces new requirements for the presentation and structure of the statement of profit or loss, including defined subtotals and enhanced disclosure requirements. The standard is effective for annual reporting periods beginning on or after 1 January 2027.

  The Group expects IFRS 18 to primarily affect the presentation and disclosures in the consolidated financial statements, but not the measurement of assets, liabilities, income or expenses.

  Based on assessments performed as at the reporting date, the Group does not expect the implementation of new and amended IFRS standards and interpretations that are not yet effective to have a material impact on its financial position, results or cash flows, but primarily to result in changes in presentation and disclosures.

  Accounting principles

  Basic principles

  The consolidated financial statements have been prepared based on the historic cost principle with the following modifications:

  • Investment properties are presented at fair value

  • Some financial instruments are presented at fair value through profit and loss

The consolidated financial statements have been presented on the assumption of the business being a going concern.

The consolidated financial statements are prepared based on similar accounting principles for similar transactions and events.

Functional currency and presentation currency

The Group's presentation currency is NOK. This is also the functional currency of the parent company.

Financial statements of group entities with different functional currencies are translated to NOK using closing date currency rates for balance sheet items and transaction date curency rates for profit and loss items. Translation differences are presented as other comprehensive income.

Consolidation

The Consolidated financial statements consist of the parent company Baltic Sea Properties AS and subsidiaries (as listed in note 23) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity"

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method is used to account for purchases of subsidiaries that constitute a business. The consideration given is measured at the fair value of the transferred assets, the equity instruments that have been issued, liabilities assumed on the transfer of control and direct costs relating to the actual purchase. The cost of acquisition also includes the fair value of all assets or liabilities that are the result of an agreement on contingent consideration. Identifiable purchased assets, assumed liabilities and contingent liabilities are recognised at fair value on the date of acquisition. The costs associated with the business combination are expensed when they are incurred.

If the aggregate of the consideration, the carrying amount of non-controlling interests and the fair value on the acquisition date of any previously held ownership interests exceeds the fair value of the acquired entity's identifiable net assets, the difference is capitalised as goodwill. If the aggregate is less than the company's net assets, the difference is immediately recognised in profit or loss. Contingent consideration is recognised at fair value on the date of acquisition. Subsequent changes in the fair value of the contingent consideration are recognised in profit or loss or recognised as a change in other comprehensive income (OCI), if the contingent consideration is classified as an asset or a liability. Contingent consideration classified as equity is not remeasured, and subsequent settlement is recognised in equity. For accounting purposes, acquisitions of subsidiaries that do not constitute a business as defined in IFRS 3, such as subsidiaries that only consist of a property, are treated as asset acquisitions. The cost of acquisition is then attributed to the individual identifiable assets and liabilities based on their relative fair values on the acquisition date. Expenses associated with the transaction are capitalized under the investment property. In such cases no provision is made for deferred tax in accordance with the exceptions in IAS 12.

Intra-group transactions, balances and unrealised gains are eliminated. Unrealised losses are eliminated, but are considered evidence of impairment in terms of writing down the value of the transferred asset. If necessary, the accounting policies at subsidiaries are changed in order to bring them into line with the Group's accounting policies.

Segment information

Operating segments are reported in the same way as in internal reports to the Group's Chief Operating Decision Maker . The Group's highest decision-making authority, which is responsible for allocating resources and assessing the profitability of the operating segments, has been identified as the Board of Directors and the CEO.

Revenue recognition

Revenue from lease contracts

The Group enters into lease agreements as a lessor with respect to its investment properties. Lease contracts where a significant proportion of the risks and benefits of ownership remain with the Group are classified as operating leases. Revenue recognition under a lease commences at the inception of the lease. Rent payments for the leases are recognised in a straight line over the duration of the lease."

Rental income encompasses the fair value of the payments received for services that fall within the ordinary activities of the company. Rental income is presented net of VAT, rebates and discounts.

Costs for shared services provided to the tenants by external parties do not affect the result beyond an administrative premium recognised as rental income. Shared costs are charged to tenants and recognised in the balance sheet together with payments on account of tenants. Shared costs are settled after the balance sheet date.

Revenue from contracts with customers

In determining the basis for revenue recognition from contracts with customers, the Group identifies the distinct performance obligations under the contracts, allocate the transaction price to each identified performance obligation and account for revenue as each performance obligation is met."

Service income for additional services to tenants is recognised in the period the service is performed. Performance obligations are defined in the individual service agreements, either by standard terms or terms specifically agreed with the client. The performance obligation is considered satisfied when the agreed service(s) is/are delivered and/or the agreed time period for the client relationship expires.

Operating cost

Property related cost include cost associated with property management, cost related to letting of properties, marketing of properties, owners share of maintenance and day-to-day servicing and other cost. Other operating cost include cost related to activities in non-property related operations.

Provisions

The Group recognises provisions for legal claims when a legal or self-imposed obligation exists as a result of past events, when it is likely that an outflow of resources will be required to settle the obligation and its amount can be estimated with a sufficient degree of reliability.

In cases where there are several obligations of the same nature, the likelihood of settlement is determined by assessing the Group as a whole. A provision for the Group is recognised even if there is little likelihood of settlement of the Group's individual elements.

Provisions are measured at the present value of expected payments to settle an obligation. A discount rate before tax is used which reflects the present market situation. Any increase in an obligation as a result of a changed time value is reported as a financial expense.

A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract and taking into consideration any reasonably obtainable subleases.

Investment property

Investment properties are owned with the aim of achieving a long term return from rental income and increase in value. Investment properties are recognised at fair value, based on market values estimated by independent appraisers adjusted for any circumstances not taken into account in the external valuation. Leased properties (right-of-use assets) are accounted for as investment property if the underlying asset meet the definition of an investment property as set out above.

Investment properties are measured initially at its cost, which includes direct transaction costs such as document duty and other public duties, legal fees and due diligence costs. Transaction costs associated with properties acquired through business combinations (as defined in IFRS 3) are expensed.

Subsequent expenditure is added to the investment property's carrying amount, if it is probable that future financial benefits associated with the expenditure will flow to the Group and the expense can be measured reliably. Other maintenance costs and the cost of day-to-day servicing are recorded through the income statement in the period in which they are incurred. Parts of investment property acquired through replacement are capitalised and included in the carrying amount of the investment property if the general asset recognition criteria are met as described above. The carrying amount of the part replaced is derecognised. When investment properties are disposed of, the difference between the net sales proceeds and carrying amount is recognised as change in value from investment properties.

Investment properties are valued at each reporting date based on valuations obtained from independent appraisers biannualy (half-year and year-end). The valuation is based on the individual property's assumed future cash flows, and property values are arrived at by discounting cash flows with an individual risk-adjusted required rate of return.

The required rate of return for each property is defined as being a long-term risk-free interest rate plus a property-specific risk supplement. The latter is defined on the basis of the property segment to which the property belongs, its location, standard, occupancy rate, tenants' financial reliability and remaining lease term. Known market transactions with similar properties in the same geographical area are also taken into consideration. The value of investment

properties under construction is measured using the cost method when the fair value cannot be measured reliably. Investment property under construction is measured at its cost until either its fair value becomes reliably measurable or construction is completed (whichever is earlier). Once the entity becomes able to measure reliably the fair value of an investment property under construction that has previously been measured at cost, it measures that property at its fair value.

Changes in fair value, including gains and losses on sale of investment properties, are recognised as "Changes in value of investment properties".

Borrowing costs

Borrowing costs for capital used to finance investment properties under construction are capitalised under the asset in question. When calculating the capitalised borrowing costs, the average interest rate on the company's debt portfolio over the course of the year is used, unless there is separate financing for the specific project. In such cases the specific borrowing cost for the loan in question is used. When calculating the average interest rate to be used for the capitalisation of borrowing costs, loans taken out for specific projects are not included.

Other operating assets

Other operating assets are recognised at acquisition cost, less depreciation. The acquisition cost includes costs directly related to the acquisition of the asset. Other operating assets are depreciated in a straight line over their anticipated remaining useful life.

The assets' remaining useful life and residual value are reassessed on each balance sheet date and changed if necessary. If the carrying amount of an asset is higher than its recoverable amount, the value of the asset is written down to the recoverable amount.

Gains and losses on disposals are recognised through profit or loss, and are calculated as the difference between the sales price and the carrying amount at the time of disposal. Please refer to note 6 for a detailed presentation of the other operating assets in the balance sheet.

Lease contracts (the group as a lessee)

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease contracts in which it is the lessee, except for leases with a lease term of 12 months or less, and leases of low value assets (such as vehicles and technical and office equipment), for which the Group applies the "short-term lease" and "lease of low-value assets" recognition exemptions. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the lease term.

Only fixed payments are included in the initial measurement of the lease liability, and the lease term corresponds to the non-terminable period. The discount rate used to calculate the lease liability is determined, for each asset, based on the Group's incremental borrowing rate for leases. The lease liability is presented as part of other liabilities in the balance sheet.

For lease contracts where the leased properties meet the definition of investment properties in IAS 40, the Group applies the fair value model to the associated right-of-use assets. The right of use asset is measured on initial recognition at present value of the future lease payments, and on subsequent measurement under the fair value model. The discount rate used to calculate the right-of-use asset may be different from the discount rate used to calculate the lease liability. The right-of-use assets are presented as part of investment properties in the balance sheet.

Financial instruments

A financial instrument is defined as being any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity. Financial instruments are recognised on the transaction date, i.e. the date on which the Group commits to buying or selling the asset. The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them.

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through OCI, and FVTPL. For a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are "solely payments of principal and interest (SPPI)" on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Further, the financial assets shall be held within a business model whose objective is to hold the financial assets in order to collect contractual cash flows. The majority of the Group's financial assets are classified as measured at amortised cost.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group's financial assets at amortised cost includes trade and other current receivables, cash and cash equivalents and other financial assets.

Financial assets at FVTPL include financial assets designated upon initial recognition at FVTPL and financial assets mandatorily required to be measured at fair value. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at FVTPL. The Group's financial assets at FVTPL includes financial derivates.

Financial liabilities are classified upon initial recognition as financial liabilities at FVTPL and financial liabilities at amortised cost. Financial liabilities at FVTPL comprise loans designated at fair value upon initial recognition and derivatives. Financial liabilities at amortised cost consist of liabilities that do not fall under the category at FVTPL.

Trade receivables and other financial assets

Trade receivables and other financial assets are classified as financial assets measured at amortised cost. Interest is ignored if it is insignificant. The Group applies the simplified approach in IFRS 9 to measure the loss allowance at lifetime expected credit losses. A provision for bad debt is determined by estimating expected credit losses with reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. Any subsequent payments received against accounts for which a provision has previously been made are recognised in the income statement. Trade receivables, contract assets and other financial assets are classified as current assets, unless they are due more than twelve months after the balance sheet date. If so, they are classified as non-current assets.

Cash and cash equivalents

Cash and cash equivalents consist of bank deposits and other short-term, highly liquid investments with an original term to maturity of no more than three months.

Financial derivatives

The Group uses derivatives to manage its interest rate risk. Derivatives are initially recognised at fair value on the date on which the contract was signed, and subsequently at fair value. Gains or losses on remeasurement at fair value are recognised in the income statement. Regular payments are presented as interest and other finance expenses. Changes in the value of the derivatives are presented under "Change in value of financial instruments". The fair value of interest rate swaps is the estimated amount the Group would receive or pay to redeem the contracts on the balance sheet date. This amount will depend on interest rates and the contracts' remaining term to maturity. The derivatives are classified on the balance sheet as current or non-current, depending on whether they are expected to be redeemed under or over 12 months from the balance sheet date.

Trade payables and other non-interest bearing financial liabilities

Trade payables and other non-interest bearing liabilities are classified as financial liabilities at amortised cost, and are measured at fair value upon initial recognition, and subsequently at amortised cost using the effective interest rate method. Interest is ignored if it is insignificant.

Interest bearing liabilities

Interest bearing liabilities are classified as financial liabilities at amortised cost, and are measured at fair value upon initial recognition, and subsequently at amortised cost using the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortisation is included as net realised financials in the statement of profit or loss. The liabilities are measured at their nominal value when the effect of discounting is immaterial.

Interest bearing liabilities are classified as current liabilities where the debt is due for repayment less than 12 months from the balance sheet date.

Currency

Foreign currency transactions are translated at the exchange rate on the date of the transaction. Monetary foreign currency items are translated to NOK at the exchange rate on the balance sheet date. Non-monetary items that are measured at cost in a foreign currency are translated to NOK using the exchange rate on the transaction date. Non-monetary items that are measured at fair value in a foreign currency are translated to NOK using the exchange rate on the balance sheet date. Exchange rate fluctuations are recognised in profit or loss as they arise.

Statement of cash flows

The statement of cash flows is prepared using the indirect method. This means that the statement is based on the Group's profit before tax in order to present cash flows from operating, investing and financing activities respectively. Interest on leases and net interest and fees paid on loans are presented as operating cash flows. Dividends paid to shareholders are presented under financing activities.

Tax

The tax expense consists of tax payable and deferred tax. Tax is charged to the income statement, except where it relates to items that are recognised in OCI or directly in equity. In such cases, the tax is either recognised in OCI or directly in equity.

Deferred tax is calculated using the liability method for all temporary differences between the tax values and consolidated accounting values of assets and liabilities. Deferred tax liabilities are not calculated and recognised upon initial recognition of assets or liabilities obtained through an acquisition of a subsidiary not classified as a business combination. Deferred tax is defined using tax rates and laws which are enacted or likely to be enacted on the balance sheet date, and which are expected to be used when the deferred tax asset is realised or when the deferred tax is utilised.

Deferred tax is calculated and provided or reduced in the event of adjustments to the value of investment properties at a nominal tax rate of 17 per cent. A deferred tax asset is recognised to the extent that it is likely that future taxable profit will be available against which the temporary differences can be offset.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary differences and it is probable that the temporary difference will not reverse in the foreseeable future.

Events after the reporting period

Events after the reporting period related to the group's financial position at the end of the reporting period, are considered in the financial statements. Events after the reporting period that have no effect on the group's financial position at the end of the reporting period, but will have effect on future financial position, are disclosed if the future effect is material.

Other shares

Investments in equity instruments with an ownership below 20 % are normally classified as other shares and recognised in other non-current assets in the statement of financial position. Shares in listed companies are measured at fair value through profit or loss. Investments in equity instruments that do not have a quoted market price in an active market are classified as financial assets measured at fair value through other comprehensive income (OCI). Changes in fair values recognised in OCI cannot be subsequently recycled to statement of profit or loss. Dividends from such investments are recognised as other items in the statement of profit or loss.

Treasury shares

When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.

Measurement of fair value

The company measures investment property and several financial assets and liabilities at fair value. For the classification of fair value, the company uses a system which reflects the significance of the input used to make the measurements:

Level 1

Fair value is measured using quoted prices from active markets for identical assets or liabilities.

Level 2

Fair value is determined from input based on other observable factors, either direct (price) or indirect (derived from prices), than the quoted price (used in level 1) for the asset or liability. This will be relevant for the financial instruments.

Level 3

Fair value is measured using input which is not based on observable market data. This will be relevant for the investment property.

21

Baltic Sea Properties AS Annual report | 2025

Note 2 Critical accounting estimates and subjective judgement

The preparation of the consolidated financial statements requires management to make jugdements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. When management makes estimates about the future, the resulting accounting estimates, by definition, will seldom equal the actual outcome.

Estimates and judgements are evaluated continuously and are based on historical experience and other factors. This includes expectations of future events that are belived to be reasonable under the circumstances. Revisions of reported estimates are recognised in the period which the estimates are revised and in any future period affected. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year are the fair value of investment properties and the fair value of financial derivatives.

Fair value of investment properties

Investment properties are measured at their fair value based on valuations performed by external, independent appraisers. The valuations at 31st December 2025 were obtained from Newsec and Ober-Haus. The valuations are mainly based on a discounted cash flow method, which involves discounting future cash flows over a specified period using an estimated discount rate and adding a residual value at the end of the period. Future cash flows are calculated on the basis of cash flows from signed leases, as well as future cash flows based on an expected market rent at the end of the lease terms. Both contractual and expected cash flows are included in the calculations. Fair-value assessment of investment properties, therefore, depends largely on assumptions related to market rents, discount rates, and inflation. The market rent for each property takes into account the property's situation, standard and leases signed for comparable properties in the area. Updated macroeconomic assumptions are applied in the calculations. Based on an assessment of the properties, tenants, and macroeconomic conditions at the balance sheet date, cash flows are discounted using discount rates based on individual assessments of each property.

The appraisers perform their valuations on the basis of the information they have received, and estimate future market rents, yields, inflation and other relevant parameters. Each individual property is assessed in terms of its market position, rental income and ownership costs, with estimates being made for anticipated vacancy levels and the need for alterations and upgrades. The remaining term of the leases is also assessed for risk, along with any special clauses in the contracts. Each property is also compared with recently sold properties in the same segment (location, type of property, mix of tenants, etc.). The sensitivity of the fair-value assessment of investment properties depends to a considerable extent on assumptions related to yield, interest rates, market rents and operating costs for the properties. Reference is made to note 4 Investment property.

Note 3 Operating income

Below is a breakdown of the group's income from contracts with customers.

Note 4 Investment property

Bi-annually, per 30 June and 31 December, Baltic Sea Properties collects valuations of its properties from two independent valuators (Ober-haus and Newsec). When determining property values for accounting and NAV purposes, the valuation method is based on the average of the two valuations for each property/portfolio. However, the company also conducts its own value assessments, and in certain instances, where there are reasons for applying an amended value estimate than the average of the external valuations, the company will use its own best estimate to reflect the correct market value per balance date. In these instances, the reasoning behind the chosen value must be explained. The valuation is carried out by the company's own employees and approved by the company's board.

Key factors are current income and expenses for the property, market rent and yield. A set of macroeconomic assumptions is used as a basis, but beyond this, each individual property and area is measured separately. To determine the yield, the property's location, attractiveness, quality, the general property market and credit market, the tenant's assumed solvency and the lease agreement structure are assessed. This model uses a number of significant unobservable parameters and is included at level 3 in the valuation hierarchy. These parameters include the following:

Future rental payments

These are estimated based on the actual location, type and condition of the building. The estimates are supported by existing lease agreements, as well as recently concluded lease agreements for similar properties in the same area.

Required rate of return (Yield)

Yield refers to the annual rate of return on an investment property, expressed as a percentage of the property's purchase price or current market value. It is a key metric used by investors to evaluate the performance of a property and compare it to other investment opportunities.Yield is typically calculated by dividing the property's annual net income (rental income minus expenses) by its purchase price or current market value. This provides an indication of the invest-ment's profitability and potential cash flow.There are two primary types of yield in commercial real estate:

1. Gross Yield = (Annual Rental Income / Property Purchase Price or Market Value) x 100.

   This is the annual rental income generated by a property as a percentage of its purchase price or current market value, without accounting for expenses like maintenance, property management fees, and vacancy rates.

2. Net Yield = (Annual Net Income / Property Purchase Price or Market Value) x 100. This is a more accurate representation of the actual return on investment as it factors in expenses like maintenance, property management fees, and vacancy rates. It is the annual net income generated by a property as a percentage of its purchase price or current market value.

operty type, tenant quality, and market conditions.

Below is a description of the group's revenue recognition terms and associated accounting:

Property-related income

Common costs, tenants:

The rental contracts for the tenants regulate service deliveries which are paid via the common costs (e.g. cleaning, common utilities, facility and technical maintenance/supervision and management). The group's assessment is that the services/elements covered by common costs are included as an overall delivery of an operating service as agreed in the contract. The service is considered to be a series of independent services to the tenant that have the same characteristics and transmission pattern. Income from forward charge of common costs is invoiced to an a-account per tenant based on an estimate/ settlement from the previous year. The transaction price is variable. Income recognition is based on the a-account invoicing as this is considered

to be the best estimate of the variable remuneration, and it is unlikely that there will be a significant reversal of the a-account invoicing. The income is recognized over time since the tenant receives the services in ongoing delivery obligations, and consumes them simultaneously, in that the services directly touch the rented premises and associated common areas.

Revenue from common costs (including net income from solar energy production), which is forward-charged to tenants is netted against the common costs expense in the profit and loss statement, and is therefore not reflected in the group's specification of income.

Other operating Income

Other operating income mainly consists of management fees and other operating income. The services and goods that are included are assessed as separate delivery obligations, and revenue is recognized over time since the customer receives and consumes these simultaneously.

Investment properties in balance sheet 31 December 2025 31 December 2024 31 December 2023

Investment properties measured at fair value 1 392 401 525 1 300 676 404 1 120 598 432

Investment properties under construction measured at cost 33 787 511 15 444 894 741 078

Investment properties excl. right-of-use asset, investment property 1 426 189 035 1 316 121 298 1 121 339 510

Right-of-use asset, investment property (cf. note 18/IFRS 16) 29 401 361 29 624 353 28 876 498

Sum 1 455 590 396 1 345 745 651 1 150 216 008

Investment properties measured at fair value 31 December 2025 31 December 2024 31 December 2023

Opening balance 1 300 676 404 1 120 453 859 1 002 753 675

Purchase of investment property - - -

Sale of investment property - - -Capital expenditure on investment properties 98 254 508 93 831 304 43 572 937

Net gains/losses from fair value adjustments in the period 25 401 603 41 323 157 3 960 754

Currency effects -31 930 990 45 068 084 70 166 493

Fair value per 31.12 1 392 401 525 1 300 676 404 1 120 453 859

Investment properties held for continued investment, measured at fair value 1 392 401 525 1 300 676 404 1 120 453 859 Investment properties held for sale, measured at fair value - - -

Closing balance investment properties measured at fair value 1 392 401 525 1 300 676 404 1 120 453 859

22

Baltic Sea Properties AS Annual report | 2025

Investment properties under construction measured at cost

BSP assess that the fair value of their properties under construction cannot be measured reliably and as such measure these at cost until completion. The cost is considered to better reflect the underlying value of the investment property as the uncertainty related to the estimation of the fair value is deemed to be substantial. The properties under construction will be measured at fair value when its fair value is reliably measurable or construction is completed, whichever is earlier.

Information regarding leased investment properties:

As of 31/12/2025 the BSP portfolio includes 7 leased land plots. All leased land plots are on long-term leases. The leases are accounted for in line with IFRS 16 and IAS 40. Refer to note 13 for further information. The land leases are regulated annually in accordance with municipal decisions.

(market value)

Currency risk

The group has financial risk linked to the conversion of subsidiaries in Lithuania (EUR) to the presentation currency (NOK).

Adjusted valuations for the purpose of the financial statements

The average fair value of investment properties estimated by external valuators have been adjusted by a total of MNOK -30.0 to arrive at the fair value booked. The adjustments have been made to reflect the uncertainties related to current geopolitical and local market conditions, as well as uncertainties related to future capital expenditure requirements and assumed risk related to contract renewals. See reconciliation of adjustments below.

NOK Asset 1 Asset 2 Asset 3 Asset 4 Asset 5 Asset 6 Asset 7

Total 19 307 429 17 457 242 15 486 907

Other payments / benefits 32 135 62 952 65 128

Total 4 683 273 4 073 858 4 085 667

1 In addition to the expenses listed in this table, the company in 2024 covered the Chairman and CIO's tuition fee for the Senior Executive Programme at London Business School (NOK 569,238/ GBP 40,300). This arrangement is subject to a clawback clause tied to Mr Clarke's continued engagement with the company.

Remuneration to CEO 2025 2024 2023

NOK Asset 8 Asset 9 Asset 10 Asset 11 Asset 12 Asset 13

The CEO is entitled to 6 months salary upon termination of employment.

Average fair value estimated by external valuers + book value of constructions in progress

10 599 485 43 049 305 145 905 760 221 892 059 221 790 090 6 504 057

Adjustment 8 -1 361 945

Adjustment 9 -

Adjustment 10 -

Adjustment 11 -10 421 852

Adjustment 12 -4 394 937

Adjustment 13 -

The aim is to create the right conditions for recruiting and keeping members of the management who possess the qualities required to manage the operations of the company profitably and with correct set of values and principles aligned with the company´s. The individual employee's remuneration must be competitive and reflect the person's area of responsibility and performance of the work. The remuneration may consist of a combination of fixed and ongoing performance and other remuneration, including:

• Benefits in kind that appear in employment agreements (for example telephone/ICT solutions, car maintenance and insurance schemes).

• Collective and individual pension schemes.

The remuneration can include share and share value-based schemes based on the company's owned shares. However, the company cannot offer such incentives beyond existing owned shares without being approved in advance by the company's annual general meeting. For the financial year, executive personnel have received a total of 1,536 shares. The company distributed a total of 2,846 shares during the financial year to its employees. The Group has recognised a total expense of NOK 130,233 as an expense in the income statement. The market value of these 2,846 shares were NOK 132,908 per year-end.

Fair value booked per 31.12 9 237 540 43 049 305 145 905 760 211 470 207 217 395 153 6 504 057

2025 2024 2023

Remuneration provided to the board of directors (ex. employer's national insurance contributions) 970 000 1 050 000 950 000

23

Baltic Sea Properties AS Annual report | 2025

Note 6 Other operating assets

2025 Cars & vehicles Machinery & equipment Software & other fixed

assets

Total

Note 7 Property expenses (excl. management)

2025 2024 2023

85 177 3 314 467 3 683 000

2025 2024 2023

Carrying amount at 31.12 386 895 104 033 712 316 1 203 243

Estimated useful life 6-10 years 5 years 3-5 years

Depreciation plan Straight-line Straight-line Straight-line

Other operating expenses 5 905 453 2 038 217 3 683 646

Total 9 024 798 5 965 526 5 956 419

2024 Cars & vehicles Machinery & equipment Software & other fixed

assets

Total

Tax advisory 32 000 28 840 26 445

Opening balance at 01.01. 1 735 417 317 903 1 084 531 3 137 851

Additions during the year - 47 191 520 216 567 407

Disposals during the year - - - -

Currency differences 85 609 12 330 6 077 104 017

Closing balance as of 31.12 1 821 026 377 424 1 610 824 3 809 274

Accumulated depreciation and amortisation as of 01.01. -973 193 -204 089 -329 431 -1 506 713

This year's depreciation -255 791 -61 516 -265 097 -582 405

This year's amortisation - - - -Currency adjustment of accumulated depreciation and amortisations -51 691 -8 441 -6 077 -66 209

Accumulated depreciation and amortisations of 31.12 -1 280 676 -274 046 -600 605 -2 155 327

Carrying amount at 31.12 540 350 103 378 1 010 219 1 653 947

Other attestation and advisory services 0 - 176 577

Total 992 250 1 098 036 895 993

Note 9 Finance income and expenses

Change in fair value of financial instruments 2025 2024 2023

Unrealized gain/(loss) on Interest rate swaps and options -170 084 -479 154 -6 448 872

Total -170 084 -479 154 -6 448 872

Finance income 2025 2024 2023

Interest income 419 630 687 566 311 398

Currency gains (net) -532 235 341 133 57 692

Total -112 604 1 028 699 369 090

Estimated useful life 6-10 years 5 years 3-5 years

Depreciation plan Straight-line Straight-line Straight-line

2023 Cars & vehicles Machinery & equipment Software & other fixed

assets

Total

Finance expenses 2025 2024 2023

Interest expenses 34 514 947 33 149 428 38 199 310

Loss (+) / gain (-) interest hedge agreements -118 045 6 816 140 -5 939 299

Interest expenses, lease liabilities 802 665 800 572 755 664

Other financial expenses 1 480 486 2 060 701 876 057

Opening balance at 01.01. 1 428 419 630 160 972 031 3 030 610

Additions during the year 383 917 57 106 112 500 553 523

Disposals during the year -175 649 -409 160 - -584 809

Currency differences 98 730 39 797 - 138 527

Closing balance as of 31.12. 1 735 417 317 903 1 084 531 3 137 851

Accumulated depreciation and amortisation as of 01.01. -783 102 -377 546 -142 930 -1 303 578

This year's depreciation -249 675 -59 662 -187 807 -497 144

This year's amortisation 111 532 260 786 - 372 318

Currency adjustment of accumulated depreciation and amortisations -51 949 -27 666 1 306 -78 310

Accumulated depreciation and amortisations of 31.12. -973 193 -204 089 -329 431 -1 506 713

Carrying amount at 31.12.2023 762 223 113 814 755 100 1 631 138

Estimated useful life 6-10 years 5 years 3-5 years

Depreciation plan Straight-line Straight-line Straight-line

Total 36 680 053 42 826 841 33 891 732

Specification of currency gains (net) 2025 2024 2023

Exchange rate effects bank 41 419 83 742 68 376

Other currency items -573 654 257 399 -10 684

Sum -532 242 341 133 57 692

24

Baltic Sea Properties AS

Note 10 Interest rate swap agreements

In order to adapt the debt portfolio to the group's target interest rate profile, the following financial instruments are used:

Interest rate swap agreement

Agreement to exchange interest terms for a specific nominal amount over a specific number of periods.

The financial instruments are measured at fair value on the reporting date. Changes in value during the accounting period are booked in profit or loss.

1 As it is uncertain whether the parent company will be able to make use of its deferred tax advantage, this is not included in the calculation of the group's tax advantage.

2 Lithuania's tax rate (increased from 16% to 17% with effect from 1st January 2026) has been used in the group's calculation of deferred tax.

rate

rate

Interest cap rate Pays fixed and receives floating 28/07/2025 254 405 0.72%

Interest rate swap Pays fixed and receives floating 28/07/2025 1 006 739 0.72%

Income tax expenses 16 123 13 483 900

Effective tax rate 26.0 % 19.6 % 3.0%

Note 12 Earnings per share

The calculation of basic earnings per share has been based on profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding during the year. For the financial year, executive personnel have received a total of 1,536 shares. The company distributed a total of 2,846 shares during the financial year to its employees.

25

Baltic Sea Properties AS Annual report | 2025

Note 13 Lease agreements where the group is the lessee

Right-of-use assets specified by type Land Cars Total

properties at 31 December 2025 was NOK 29.4 million (NOK 29.6 million per 31 December 2024).

Additions - -

Other / exchange differences 116 918 925 642

Balance per 31 December 2025 29 401 361 30 506 106

Note 14 Classification and measurement of financial assets and liabilities

The table below provides an overview of the classification of the group's financial assets and liabilities, and shows the valuation hierarchy for financial instruments that are measured at fair value. The table also shows the balance sheet values and fair value for the group's financial instruments.

31 December 2025 Valuation

hierarchy level

Financial instruments at fair value over profit and loss

Financial instruments at

amortized cost

Total book value Total fair value

Balance per 31 December 2024 29 624 353 30 483 972

Opening balance 1 January 2023 24 140 852 24 139 006

Payments - -1 050 421

Depreciation -162 192

Additions 1 562 360 1 562 360

Other / exchange differences 3 149 749 4 632 013

Balance per 31 December 2023 28 690 769 29 282 958

Maturity analysis: Contractual, undiscounted cashflows 31 December 2025 31 December 2024 31 December 2023

Total financial assets - 95 341 794 95 341 794 95 341 794

Liabilities

Debt to credit institutions 2 - -748 615 862 -748 615 862 -748 615 862

Accounts payable and other debts 2 - -42 132 026 -42 132 026 -42 132 026

Interest rate swap 2 - - - -

Total financial liabilities - -790 747 888 -790 747 888 -790 747 888

Valuation level 1 (net) - 87 448 737 87 448 737 87 448 737

Valuation level 2 (net) - -782 854 831 -782 854 831 -782 854 831

Baltic Sea Properties AS

amortized cost

Fair value hierarchy

The Group uses the following hierarchy to classify assets and liabilities, based on the input to the valuation methods used to measure and disclose their fair value.

Level 1: Use of quoted prices in active markets for identical assets and liabilities.

Level 2: Use of valuation methods with observable market data as input.

Level 3: Use of valuation methods where input is based on a significant degree of unobservable market data.

Valuation of financial instruments is performed by the group's finance department, in consultation with an external advisor. The valuation methods used are adapted to each financial instrument, and aim to make the most of the information available in the market.

Fair value of financial instruments measured at fair value in the balance sheet

Measurement of the fair value of the group's interest rate swaps and hedging instruments is valued based on inputs classified at level 2. The fair value of interest rate swaps and hedging instruments is estimated based on observable forward rates and yield curves, and confirmed by the financial institution with which the company has entered into the agreements.

Fair value of financial instruments measured at amortized cost in the balance sheet

In addition to the above-mentioned financial assets and liabilities which are carried in the balance sheet at fair value, the group's other financial assets and liabilities (financial instruments) are carried on the balance sheet at amortized cost. The fair value of these financial instruments as shown in the table above is expected to be approximately equal to the book value (amortized cost). The carrying value of bank deposits and cash is approximately equal to fair value due to the fact that these instruments have a short maturity. Correspondingly, the book value of receivables and trade payables is approximately equal to fair value as they are entered into under normal conditions and discounting is not assumed to have a significant effect. Bank loans are measured at the fair value of future cash flows, where account is taken of the assumed difference between the current margin and market conditions.

27

Baltic Sea Properties AS Annual report | 2025

Note 19 Interest bearing liabilities

31 December 2025 31 December 2024* 31 December 2023

Interest-bearing debt 748 615 862 687 490 977 654 415 000

Bank deposits -87 448 737 -80 989 728 -40 888 000

Financial derivatives 0 -170 921 -626 000

Net interest-bearing debt 661 167 125 606 330 328 612 901 000

Investment properties (excl. additions related to IFRS 16) 1 426 189 035 1 316 121 298 1 121 339 510

Group Net LTV* 46.4 % 46.1 % 54.8 %

* The difference to Net LTV in our Q4 2024 report was due to the loan amount for the Liepu Parkas development. While we reported this amount as drawn, as of 31.12.24, EUR 1,003,248 had not yet been drawn and was instead classified as short-term liabilities.

Covenant requirements

All bank loans, except for UAB Grandus, are financed by Luminor Bank while UAB Grandus is financed by SEB. The group was not in breach of covenants at the end of the year 2025. Luminor:

• LTV*: Max 70 % (consolidated)

• DSCR**: Minimum 1.20 (consolidated)

• Cash buffer: 12 month interest in cash reserves in accounts

  SEB:

• LTV*: Max 60 %

• DSCR**: Minimum 1.10

Abbreviations explained:

* LTV = Loan-to-value.

** DSCR = The coverage ratio of EBITDA *** over total debt payment per year. In the BSP Group, this is only applied for the real estate SPV's holding assets with Mortgage. Hence, central administration and company costs in management companies and Holding companies are not part of EBITDA calculation for bank covenants.

*** EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization.

Note 20 Debt to credit institutions

* IBD = Interest-Bearing Debt

28

receivables is also closely monitored because of the general market turbulence and Russia's continued occupation of Ukraine and its effect on the Baltic states and the global economy.

Capital management focuses on the optimal balance between equity and debt in a group's capital structure. It aims to maximize shareholder value and ensure long-term financial stability by minimizing the Asset Value)".

the net loan to value ratio for the group's real estate portfolio is 46.4 % and including the group leverage positions 52.5 % (excluding cash reserves). The group's total cash position was MNOK 87.5 per

The Group is exposed to financial risk and has defined the following relevant risk areas:

Credit risk

Credit risk is assessed at group level and is mainly linked to the risk of incurring losses as a result of tenants not paying the agreed rent. Rent payment is normally secured with a rent deposit or payment guarantees from banks or guaranteed by parent companies, with a high credit rating. In recent years, the group has had relatively low losses on rental claims, and the risk that the group will incur significant losses because of bankruptcies among tenants, is considered moderate. BSP Group currently has minimal vacancy and forecasts a stable outlook for its portfolio, with some contingencies. (The only exception is the Vilnius East Terminal, which has vacancy from 1st of January 2026. While vacancy is primarily an operational risk matter, it is noted here as it directly affects the pool of rental income exposed to credit risk. However, management is actively engaged in leasing efforts and anticipates that the park will be fully leased by the end of 2026.) In recent years, rental losses have accounted for less than 0.5 % of the group's rental income.

Please refer to note 20 for maturity analysis related to the group's debt and other payables.

Liquidity risk

Liquidity risk is the risk that the group will encounter difficulty in meeting the financial liabilities when they are due. The liquidity risk is mitigated by having adequate cash/liquidity reserves, a moderate loan-to-value ratio and long-term loan agreements. The liquidity reserve consists of liquid current assets and unused long-term credit lines in larger financial institutions. The board has set targets for the group's liquidity reserves which will both ensure financial freedom of action to be able to exploit investment opportunities quickly, and to contribute to significantly reducing the financial risk. The liquidity risk linked to the refinancing of the group's debt is mitigated by balancing the refinancing need within the next period in relation to the group's liquidity reserve.

There are financial covenant requirements (loan conditions) in all of the group's bank loan agreements related to equity share, debt service cost coverage ratio and loan-to-value ratio. The group has fulfilled all requirements in the loan agreements in the financial year. The group has a decent to good margin in relation to the defined covenant requirements, and the risk of breach of these requirements is considered to be low for the next 12 months. The group has assessed that there is a low probability that the current geopolitical/market turbulence will affect the group's ability to service its financial liabilities in the next 12 months.

Optimisation of the group's short-term and long-term financing is a natural part of the group's daily operations, and the group makes ongoing strategic assessments in this connection, which may include the sale of assets, refinancing of existing loans, bond financing, M&A, and/or raising capital from the group's shareholders or external investors to ensure continued operations.

Please refer to note 20 for maturity analysis related to the group's debt and other payables.

Currency risk

The group is also exposed to currency risk against NOK, as the group's investments, revenues, and the majority of costs are in euros. All properties are financed through debt in euros, collectively forming a natural hedge for part of the currency risk. The remaining exposure is not hedged by the Group, in line with the company's strategy to allow investments in Baltic Sea Properties to also include a euro exposure for the investor.

Sensitivity analyses for items recognised in other comprehensive income (OCI) are not relevant for the Group, as the Group is not exposed to such items.

Interest rate risk

Changes in interest rates can have a significant impact on the value of real estate assets, the cost of financing, and the ability of real estate companies to generate income. The risk associated with unpredictable cost of financing, can be mitigated by having a portion of long-term fixed interest rates in the financing mix. The board closely discuss targets for the share of fixed interest depending on the cost at the time. Interest positions and interest profiles are reported to the board on a regular basis. BSP Group continues to refine its Finance Policy, including its interest hedging strategy, ensuring an optimal balance between fixed and variable interest costs. Interest rate positions, covenant compliance and financing profiles are reviewed regularly and reported to the Board.

Interest rate risk

Changes in interest rates can have a significant impact on the value of real estate assets, the cost of financing, and the ability of real estate companies to generate income. The risk associated with unpredictable cost of financing, can be mitigated by having a portion of long-term fixed interest rates in the financing mix. The board closely discuss targets for the share of fixed interest depending on the cost at the time. Interest positions and interest profiles are reported to the board on a regular basis. BSP Group continues to refine its Finance Policy, including its interest hedging strategy, ensuring an optimal balance between fixed and variable interest costs. Interest rate positions, covenant compliance and financing profiles are reviewed regularly and reported to the Board.

The table shows the sensitivity and effect of budgeted interest cost (fixed bank margin) plus a 3-month EURIBOR assumption on a range between 2% - 4% in the respective period.

The sensitivity table presented above does not consider Group financing options like mezzanine facilities, as they do not include a Euribor component. It should be noted that the margins for the mezzanine facilities are 9% for Ambolt mezzanine.

Further refrence is made to finance table overview in note 20.

29

Baltic Sea Properties AS Annual report | 2025

Note 23 Subsidiaries

The following companies are part of the group and therefore consolidated in the Consolidated financial statement

Note 24 Segment information and rental income

The group has one operational segment as there are no material differences in risk and returns in the economic environments in which the company operates. The property portfolio consists of properties in Lithuania and internal reporting is consolidated into one reporting segment.

The group's lease contracts per 31.12.2024 have the following maturity structure measured in annual rent*

The group's lease contracts per 31.12.2023 have the following maturity structure measured in annual rent*