Half-year report - Q2 2025
Baltic Sea Properties AS Half-year report | Q2 2025
About us
Baltic Sea Properties is a Norwegian public listed, open-ended and fully integrated investment company. The company is among the Baltics' leading real estate investors and developers
- owning a diversified cash flow generating portfolio of modern real estate in the logistics, industrial and commercial segments.
Our strategy is to develop long-term relationships with strong clients and to hold high-quality assets in attractive locations. We grow our portfolio by own developments and acquisitions with the objective to maximise shareholder values and the company's dividend capacity.
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The property management is conducted through fully-owned subsidiaries by a professional management team with deep knowledge of the Baltic real estate market
Baltic Sea Properties AS Half-year report | Q2 2025
Contents
About us 2
Operational & Financial Highlights 4
Financial Overview
Key figures 6
Financing 10
Responsibility statement from the Board of Directors & CEO 12
Interim consolidated financial statements 14
Market update from Newsec Baltics 20
Contact 22
Appendix 1 - Reconciliation of APM's 23
Disclaimer:
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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. The financial figures presented are unadited and may thus include discrepancies. 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.
Baltic Sea Properties AS Half-year report | Q2 2025
Operational and financial highlights
30th June 2025 (Q2)
Top Line Growth - Improving Results as Financing Costs Decline
Rental income rose 11% to mEUR 4.60 in the first half of 2025 (from mEUR 4.14 in the first half of 2024), driven by CPI indexation and the commencement of rental income from newly developed premises for ESO at Liepų Parkas (Klaipėda) early in the year.
Direct ownership costs for the first six months of 2025 amounted to mEUR 0.20, up from mEUR 0.13 in the same period last year. Net rent increased to mEUR 4.40 from mEUR 4.01, demonstrating our ability to grow NOI through both new projects and active asset management, where the majority of direct ownership costs are recovered through lease agreements.
Administration costs for the period were mEUR 0.77, up from mEUR 0.65 last year, while other operating expenses decreased to mEUR 0.42 from mEUR 0.49.
As a result, EBITDA increased 11% to mEUR 3.29 from mEUR 2.96 last year, and Income from Property Management grew 57% to mEUR 1.66 compared with mEUR 1.06. These results highlight not only strong top-line growth but also our ability to translate revenues into higher operating profits through disciplined cost control and active asset management. Importantly, the improvement reflects sustainable drivers, CPI linked rental growth, successful project deliveries, and structurally lower financing costs, providing a solid foundation for further earnings growth.
Valuations Remain Relatively Stable
We observed a modest upward movement in market yields in the first half of 2025, but higher CPI expectations supported a like-for-like valuation gain of mEUR 0.49. Annualised return on equity was 5.7% (vs. 5.4% last year, incl. dividends), with profit after tax of mEUR 1.34.
Impact from Tax Increases
While the successive increases in Lithuanian corporate tax (from 15% to 16% in 2025 and to 17% in 2026) have temporarily weighed on returns through higher deferred tax liabilities, we do not expect further tax increases beyond these defence-related measures. Looking ahead, we see upside from active asset management, scale benefits, and a stable tax framework, which should strengthen run-rate returns going forward.
Maintaining Dividend Capacity
In May, the Board approved a cash dividend of NOK 2.00 per share. This is the 5th consecutive year of dividend distributions, highlighting our consistent dividend track record.
Portfolio Updates
BSP Park Vilnius A4: Amended expansion agreement with anchor tenant Rhenus, extending the build option to 2027 and confirming a long-term lease to 2040.
BSP Park Vilnius East: Active asset management to secure new clients after the anchor tenant leaves in January 2026.
Liepų Parkas: Building D is on schedule for handover to Inchape Auto in January 2026, while construction of Building B has commenced with active pre-leasing ongoing.
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Liepų Parkas | Early August 2025
Baltic Sea Properties AS Half-year report | Q2 2025
Liepų Parkas | Early August 2025
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