Half-year report - Q2 2025
Baltic Sea Properties AS Half-year report | Q2 2025
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
ContentsAbout 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 highlights30 th 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 Inchcape 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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Baltic Sea Properties AS Half-year report | Q2 2025
Key Figures30 th June 2025 (Q2)
Per share | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Net Asset Value (NAV) in NOK | 72.72 | 72.52 | 66.41 |
NAV in EUR | 6.14 | 6.15 | 5.83 |
Annualised Return NAV incl. dividend (NOK)* | 6.40% | 16.78% | 8.43% |
Annualised Return NAV incl. dividend (EUR) * | 5.70% | 11.22% | 5.42% |
Dividend distributed (NOK) | 2.00 | 1.75 | 1.75 |
Dividend distributed (EUR) | 0.17 | 0.15 | 0.15 |
Last transaction price per date (NOK) | 53.00 | 49.46 | 50.00 |
Number of shares issued | 8 696 077 | 8 696 077 * | 8 469 627 * |
EURNOK rate, balance sheet date 1 | 11.83 | 11.80 | 11.40 |
EURNOK rate, YTD average 2 | 11.66 | 11.63 | 11.49 |
*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 | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Fair value of portfolio (MNOK) | 1 358 | 1 316 | 1 184 |
Fair value of portfolio (MEUR) | 114.7 | 111.6 | 103.9 |
Value of equity based on NAV - BSP method (MNOK) | 632 | 630 | 562 |
Value of equity based on NAV - BSP method (MEUR) | 53.4 | 53.4 | 49.3 |
Annualised contracted rent (MNOK) | 111.4 | 105.1 | 102.2 |
Annualised contracted rent (MEUR) | 9.4 | 9.0 | 8.9 |
Net income from property management (IFPM) (MNOK) | 19.4 | 28.3 | 12.2 |
Net income from property management (IFPM) (MEUR) | 1.7 | 2.4 | 1.1 |
NOI yield (investment projects) | 8.03% | 8.00% | 8.01% |
Dividend yield (NAV) | 2.75% | 2.39%* | 2.44%* |
Occupancy rate | 100% | 100% | 100% |
WAULT (years) | 8.3 yrs | 8.6 yrs | 8.9 yrs |
IBD (incl. mezzanine facility) (NOK) | 735 | 702 | 640 |
IBD (incl. mezzanine facility) (EUR) | 62.1 | 59.5 | 56.2 |
LTV investment portfolio (incl. mezzanine facility) | 54.17% | 53.32% | 54.06% |
Net LTV (inc. Cash) | 46.69% | 47.17% | 46.99% |
Interest coverage ratio (ICR) - Group | 2.27 | 1.74 | 1.66 |
Interest coverage ratio (ICR) - SPV finance | 2.78 | 2.27 | 2.14 |
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Half-year report | Q2 2025
EBITDA & IFPM | Jan - Jun 2025 | Jan - Dec 2024 | Jan - Jun 2024 | Jan - Jun 2025 | Jan - Dec 2024 | Jan - Jun 2024 |
EUR | EUR | EUR | NOK | NOK | NOK | |
thousands | thousands | thousands | thousands | thousands | thousands | |
Rental income | 4 603 | 8 292 | 4 141 | 53 678 | 96 413 | 47 581 |
Property expenses ex mng | -206 | -285 | -132 | -2 407 | -3 314 | -1 512 |
Net rent | 4 396 | 8 007 | 4 010 | 51 271 | 93 099 | 46 069 |
Other operating income | 28 | 67 | 38 | 327 | 785 | 436 |
Administration cost | -779 | -1 501 | -655 | -9 085 | -17 457 | -7 521 |
Other operating cost | -357 | -513 | -429 | -4 163 | -5 966 | -4 928 |
EBITDA | 3 288 | 6 060 | 2 964 | 38 349 | 70 461 | 34 055 |
Net realised interest cost & finance expenses | -1 626 | -3 624 | -1 904 | -18 964 | -42 139 | -21 874 |
IFPM | 1 662 | 2 436 | 1 060 | 19 385 | 28 322 | 12 181 |
Changes in value of investment properties | 515 | 3 554 | 1 165 | 6 001 | 41 323 | 13 385 |
Changes in value of financial instruments | -13 | -41 | -10 | -147 | -479 | -119 |
Realised changes in value of investment properties | - | - | - | - | - | - |
Depreciation, amortisation and impairment | -41 | -60 | -29 | -472 | -699 | -332 |
Net currency exchange differences | -11 | 29 | 7 | -125 | 341 | 84 |
Profit before tax | 2 113 | 5 918 | 2 193 | 24 641 | 68 808 | 25 200 |
Current tax | - | 54 | - | - | 626 | - |
Deferred tax | -770 | -1 213 | -577 | -8 981 | -14 108 | -6 624 |
Profit from continued operations | 1 343 | 4 758 | 1 617 | 15 660 | 55 325 | 18 576 |
Net Asset Value (NAV) | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Currency | EUR | EUR | EUR | NOK | NOK | NOK |
thousands | thousands | thousands | thousands | thousands | thousands | |
Equity as recognised in balance sheet | 52 076 | 52 170 | 48 282 | 616 293 | 615 340 | 550 244 |
Pr share | 5.99 | 6.01 | 5.71 | 70.92 | 70.83 | 65.03 |
Equity as recognised in balance sheet | 52 076 | 52 170 | 48 282 | 616 293 | 615 340 | 550 244 |
Deferred tax according to balance sheet (-) | 6 303 | 5 534 | 4 895 | 74 591 | 65 277 | 55 784 |
Equity excluding deferred tax | 58 379 | 57 704 | 53 177 | 690 884 | 680 617 | 606 028 |
Deferred tax according to BSP orignal NAV definition (-) | 4 979 | 4 289 | 3 872 | 58 923 | 50 589 | 44 127 |
Net asset value - BSP Method | 53 400 | 53 415 | 49 305 | 631 961 | 630 028 | 561 901 |
Pr share | 6.14 | 6.15 | 5.83 | 72.72 | 72.52 | 66.41 |
Figures per 30/06/2024 have been adjusted for the effect of the increase in corporate income tax rate's (16% since 1st of January 2025) effect on deferred tax liabilities. | ||||||
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Baltic Sea Properties AS
Baltic Sea Properties AS Half-year report | Q2 2025
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Baltic Sea Properties AS Half-year report | Q2 2025
Guide to Terms & AbbreviationsAverage interest rate = The average interest rate across the loan portfolio, including the impact of any derivatives.
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
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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Baltic Sea Properties AS Half-year report | Q2 2025
Financing30 th June 2025 (Q2)
Debt & maturity
Amount (EUR)
Share
Base interest
rate
Interest margin
Total interest
rate
Total interest
(EUR)
Senior debt - bank loans
3m Euribor
Fixed
Annualised
0-1 year
1-3 years
4-5 years
58 024 797
100.0 %
1.96 %
2.04 %
4.0 %
2 320 415
Hedging of senior debt
0-1 year
905 281
0.72 %
-1.24 %
-11 225
Total senior debt
58 024 797
Mezzanine debt2
1-3 years
4 224 936
6.79 %
9.30%
392 919
Total debt
62 249 733
100 %
4.34 %
2 702 109
Notes
Run rate figures, i.e interest is annualised over a 12 month period assuming same EURIBOR and based on a snapshot as at 30/06/2025.
The principal of the mezzanine debt is MNOK 50.0. NOK amounts in the table are converted to EUR at exchange rate as at 30/06/2025.
Loan financing | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Interest-bearing debt incl. mezzanine debt (MEUR) | 62.1 | 59.50 | 56.24 |
LTV incl. mezzanine debt1 | 54.17% | 53.32% | 54.12% |
Interest-bearing debt excl. mezzanine debt (MEUR) | 57.9 | 55.26 | 51.86 |
LTV excl. mezzanine debt1 | 50.47% | 49.53% | 49.90% |
12-month running interest margin credit loans excl. mezzanine (margin)2 | 2.04% | 2.18% | 2.75% |
Interest rate hedging ratio | 0.00% | 3.72% | 3.91% |
Interest rate coverage (ICR) - group | 2.27 | 1.74 | 1.66 |
Interest rate coverage (ICR) - SPV finance3 | 2.78 | 2.27 | 2.14 |
Time until maturity interest-bearing debt (weighted) | 5.0 yrs | 2.4 yrs | 2.91 yrs |
Time until maturity interest hedging contracts (weighted) | 0 yrs | 0.3 yrs | 0.8 yrs |
Notes
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(MEUR) | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Interest-bearing debt, total | 62.14 | 59.50 | 56.18 |
Interest-bearing debt, bank loan | 57.90 | 55.26 | 51.79 |
Interest-bearing debt, mezzanine | 4.23 | 4.23 | 4.39 |
Interest-bearing debt, seller credit | 0.00 | 0.00 | 0.00 |
Cash | 8.58 | 6.87 | 7.35 |
Net LTV, total1 | 46.69% | 47.17% | 46.99% |
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Half-year report | Q2 2025
BSP Group - ICR | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
EUR | EUR | EUR | |
EBITDA | 3 288 354 | 6 059 796 | 2 964 027 |
Interest payable | 1 448 193 | 3 481 225 | 1 782 429 |
ICR - group | 2.27 | 1.74 | 1.66 |
Net realised interest cost & finance expenses | |||
Interest on real estate portfolio | 1 271 882 | 3 136 481 | 1 621 542 |
SWAP costs | -1 203 | - | 1 830 |
SWAP income | -7 651 | -92 546 | -59 153 |
Interest mezzanine incl. contract fee | 200 491 | 468 716 | 204 616 |
Interest seller's credit | - | 27 706 | 27 285 |
Interest income | -15 327 | -59 132 | -13 691 |
Sum interest expenses | 1 448 193 | 3 481 225 | 1 782 428 |
Consolidated SPV-financed entities - ICR | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
EUR | EUR | EUR | |
EBITDA (incl. internal management cost) | 3 585 447 | 6 711 761 | 3 354 257 |
Interest payable | 1 289 064 | 2 955 028 | 1 564 218 |
ICR - SPV finance | 2.78 | 2.27 | 2.14 |
Net realised interest cost & finance expenses | |||
Interest on real estate portfolio | 1 297 918 | 3 047 574 | 1 621 542 |
SWAP costs | - | - | 1 830 |
SWAP income | -8 854 | -92 546 | -59 153 |
Sum interest expenses | 1 289 064 | 2 955 028 | 1 564 218 |
Loan-to-Value ratio | 30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
EUR | EUR | EUR | |
Net nominal interest-bearing debt excl. mezzanine loan | 57 900 748 | 55 262 258 | 51 793 958 |
Mezzanine | 4 237 534 | 4 239 084 | 4 387 312 |
Seller's credit | - | - | - |
Net nominal interest-bearing debt incl. mezzanine loan & seller's credit1 | 62 138 282 | 59 501 342 | 56 181 270 |
Valuation of real estate portfolio | 114 717 855 | 111 582 984 | 103 926 041 |
Loan to value excl. cash | 54.17% | 53.32% | 54.06 % |
Cash | 8 578 072 | 6 866 446 | 7 348 148 |
Loan to value incl. cash (Net LTV) | 46.69% | 47.17% | 46.99 % |
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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Baltic Sea Properties AS
Baltic Sea Properties AS Half-year report | Q2 2025
Responsibility StatementFirst half of 2025
Risks and uncertainty factors
Baltic Sea Properties' risks and approach to risk management is thoroughly described in the annual report for 2024. The Annual Report 2024 can be downloaded from the company's website (https://balticsea.no/for-investors/#financial-reporting).
Outlook
The global economic environment remains marked by uncertainty, with persistent geopolitical risk and a
slower-than-expected decline in inflation and interest rates continuing to influence financial markets. For Lithuania and the Baltic nations, the proximity to Russia and Belarus adds an additional layer of geopolitical tension.
Despite these challenges, Baltic Sea Properties has maintained resilient operations and solid financial performance.
In the first half of 2025, we achieved further growth in rental income and EBITDA, supported by CPI adjustments, active asset management, and efficiency improvements. A dividend of NOK 2.00 per share was distributed in May, underlining the company's capacity to generate stable cash flow.
Construction activity at Liepų Parkas remains firmly on track. Building C was successfully handed over to ESO at the start of the year, while Building D is scheduled for delivery to Inchcape Auto in January 2026. Construction of Building B has also commenced. In parallel, we have strengthened our long-term lease commitments, including through the amended expansion agreement with Rhenus Group in Vilnius, which extends their build option until 2027 and confirms their lease through 2040.
We remain disciplined in our approach to growth and continue to assess opportunities in line with our strategy while maintaining the financial flexibility to act when the right projects arise.
As we move through 2025, our focus remains on long-term value creation. This includes completing ongoing developments, maintaining dividend capacity, and reinforcing our ESG commitments. The Lithuanian market has once again demonstrated resilience, and with our strong balance sheet, long-term tenant relationships, and proven execution capacity, we are well positioned to navigate ongoing uncertainties and deliver sustainable value for our shareholders.
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Baltic Sea Properties AS Half-year report | Q2 2025
Responsibility statement
The undersigned declare that to the best of their knowledge, the condensed set of financial statements for Baltic Sea Properties AS for the period from 1st of January to 30th of June 2025 have been prepared in accordance with applicable accounting standards, and that the information in the accounts provides a true and fair view of the group's assets, liabilities, financial position, and overall result as of 30th of June 2025.
The undersigned further declare that to the best of their knowledge, this unaudited interim report for Baltic Sea Properties AS provides a true and fair overview of the development, results, and position of the group as of 30th of June 2025.
Oslo, the 28th of August 2025
Lars Christian Berger
CEO
+47 930 94 319
LCB@BalticSea.no
James Andrew Clarke
Chairman & CIO
+370 612 37 515
JAC@BalticSea.no
Henrik Austgulen
Board Member
John David Mosvold
Board Member
Bjørn Bjøro
Board Member
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Baltic Sea Properties AS Half-year report | Q2 2025
Consolidated statement of profit or loss | |||
Amounts in NOK thousand | |||
For the period | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
Unaudited | Unaudited | ||
Rental income | 53 678 | 96 413 | 47 581 |
Other income | 327 | 785 | 436 |
Total operating income | 54 005 | 97 198 | 48 016 |
Payroll and related costs | 9 085 | 17 457 | 7 521 |
Depreciation, amortisation and impairment | 472 | 699 | 332 |
Other operating expenses | 6 571 | 9 280 | 6 440 |
Total operating expenses | 16 128 | 27 436 | 14 293 |
Change in fair value of investment properties | 6 001 | 41 323 | 13 385 |
Operating profit | 43 877 | 111 085 | 47 108 |
Change in fair value of financial instruments | -147 | -479 | -119 |
Financial income | 179 | 688 | 157 |
Financial expenses | -19 143 | -42 827 | -22 031 |
Net currency exchange differences | -125 | 341 | 84 |
Net financial income (cost) | -19 236 | -42 276 | -21 908 |
Profit before income tax | 24 641 | 68 809 | 25 200 |
Income tax expense | - | -626 | - |
Change in deferred tax liability/asset | 8 981 | 14 108 | 6 624 |
Profit for the period | 15 660 | 55 325 | 18 576 |
Earnings per share | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
Basic | 2 | 6 | 2 |
Diluted | 2 | 6 | 2 |
Profit is attributable to: | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
Owners of Baltic Sea Properties group | 15 660 | 55 325 | 18 576 |
Non-controlling interests | - | - | - |
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Baltic Sea Properties AS Half-year report | Q2 2025
Consolidated statement of comprehensive income | |||
Amounts in NOK thousand | |||
For the period | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 |
Unaudited | Unaudited | ||
Profit for the period | 15 660 | 55 325 | 18 576 |
Other comprehensive income not to be reclassified to profit and loss | |||
Foreign currency translation differences | 2 546 | 26 202 | 7 382 |
2 546 | 26 202 | 7 382 | |
Total comprehensive income for the period | 18 206 | 81 528 | 25 960 |
Total comprehensive income is attributable to: | |||
- Owners of Baltic Sea Properties group | 18 206 | 81 528 | 25 960 |
- Non-controlling interests | - | - | - |
18 206 | 81 528 | 25 960 | |
Figures per 30/06/2024 have been adjusted for the effect of the increase in corporate income tax rate's (16% since 1st of January 2025) effect on deferred tax liabilities. | |||
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Baltic Sea Properties AS Half-year report | Q2 2025
Consolidated statement of financial position | |||
Amounts in NOK thousand | |||
For the period that ended on | 31 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Unaudited | Unaudited | ||
Assets | |||
Investment property | 1 387 180 | 1 345 746 | 1 213 182 |
Other operating assets | 1 385 | 1 654 | 1 941 |
Right-of-use assets | - | - | 54 |
Financial derivatives, non-current | - | - | 317 |
Long-term receivables | 2 518 | 2 509 | 2 425 |
Total non-current assets | 1 391 083 | 1 349 911 | 1 217 919 |
Trade receivables | 5 663 | 3 271 | 3 510 |
Financial derivatives, current | 23 | 171 | 202 |
Other receivables and other current assets | 1 277 | 2 087 | 3 132 |
Cash and cash equivalents | 101 517 | 80 990 | 83 744 |
Total current assets | 108 480 | 86 519 | 90 587 |
Investment property held for sale | - | - | - |
Total assets | 1 499 563 | 1 436 429 | 1 308 506 |
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Baltic Sea Properties AS Half-year report | Q2 2025
Consolidated statement of financial position | |||
Amounts in NOK thousand | |||
For the period that ended on | 31 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 |
Unaudited | Unaudited | ||
Equity | |||
Share capital | 870 | 870 | 847 |
Share premium | 214 031 | 214 031 | 204 539 |
Other paid-in equity | -1 | -1 | -1 |
Total paid-in equity | 214 900 | 214 900 | 205 385 |
Retained earnings | 401 393 | 400 440 | 344 859 |
Total equity | 616 293 | 615 340 | 550 244 |
Liabilities | |||
Deferred tax liabilities | 74 591 | 65 277 | 55 784 |
Interest-bearing liabilities | 721 323 | 657 058 | 626 300 |
Lease liabilities, non-current | 30 773 | 30 381 | 29 738 |
Total non-current liabilities | 826 687 | 752 715 | 711 822 |
Lease liabilities, current | 103 | 103 | 153 |
Interest-bearing liabilities, current | 14 053 | 30 433 | 14 718 |
Trade payables | 27 311 | 14 171 | 17 481 |
Other current liabilities | 15 116 | 23 665 | - |
Total current liabilities | 56 583 | 68 372 | 46 439 |
Total equity and liabilities | 1 499 563 | 1 436 429 | 1 308 506 |
Figures per 30/06/2024 have been adjusted for the effect of the increase in corporate income tax rate's (16% since 1st of January 2025) effect on deferred tax liabilities. | |||
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. 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 may also include 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 AS Half-year report | Q2 2025
Consolidated statement of changes in equity | |||||||
Amounts in NOK thousand | |||||||
Attributable to owners of Baltic Sea Properties AS | |||||||
Share capital | Share premium reserve | Other paid-in equity | 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 |
Share capital | Share premium reserve | Other paid-in equity | 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 | - | - | - | 15 660 | 15 660 | - | 15 660 |
Capital increase | - | - | - | - | - | - | - |
Share based payments | - | - | - | 130 | 130 | - | 130 |
Other comprehensive income for the period | - | - | - | 2 546 | 2 546 | - | 2 546 |
Total comprehensive income in the period | - | - | - | 18 206 | 18 206 | - | 18 206 |
Transactions with owners of the company: | - | - | - | - | - | - | - |
Transactions with non-controlling interests | - | - | - | - | - | - | - |
Dividends paid | - | - | - | -17 384 | -17 384 | - | -17 384 |
Equity at 30 June 2025 | 870 | 214 031 | -1 | 401 393 | 616 293 | - | 616 293 |
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Baltic Sea Properties AS Half-year report | Q2 2025
Consolidated statement of cash flows | |||
Amounts in NOK thousand | |||
Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 | |
Profit for the period before tax | 24 641 | 68 808 | 25 200 |
Adjustments for: | |||
Paid taxes | 129 | 835 | - |
Changes in value of investment properties | -6 001 | -41 323 | -13 385 |
Depreciation, amortisation and impairment | 472 | 699 | 334 |
Changes in fair value of derivatives | 147 | 479 | 119 |
Financial income | -179 | -688 | -157 |
Financial expenses | 19 268 | 42 827 | 22 031 |
Changes in trade recievables & payables | 11 812 | 11 684 | 14 468 |
Changes in other accruals | -7 900 | -1 016 | -1 532 |
Taxes paid (net) | - | - | - |
Net cash flows from operating activities | 42 391 | 82 306 | 47 053 |
Proceeds from property transactions | - | - | - |
Investments in investment property | -30 815 | -93 164 | -31 471 |
Investments in property, plant and equipment | -220 | -3 059 | -2 805 |
Interest received | 179 | 688 | 157 |
Net cash flows from investing activities | -30 857 | -95 535 | -34 119 |
Proceeds from interest-bearing debt | 48 422 | 42 204 | - |
Repayment of interest-bearing debt | -2 338 | -38 328 | -22 479 |
Repayments of lease liabilities | 0 | -1 055 | -269 |
Dividens paid to company's shareholders | -17 384 | -11 692 | -11 704 |
Capital increase | 130 | 95 444 | 85 929 |
Interest paid | -19 354 | -35 410 | -21 194 |
Net cash flows from financing activities | 9 476 | 51 162 | 30 282 |
Net change in cash and cash equivalents | 21 010 | 37 933 | 43 216 |
Effects of foreign exchange on cash and cash equivalents | -483 | 2 169 | -360 |
Cash and cash equivalents at the beginning of the period | 80 989 | 40 888 | 40 888 |
Cash and cash equivalents at the end of the period | 101 517 | 80 990 | 83 744 |
19
Baltic Sea Properties AS Half-year report | Q2 2025
Market UpdateProvided by Kristina Živatkauskaitė and Mindaugas Kulbokas at Newsec Baltics (25 August 2025)
Steady Economic Growth
Lithuania entered 2025 in its strongest economic and investment market position in three years, setting a cautiously optimistic tone as the country moves toward 2026. The economy outperformed expectations in 2024, with GDP expanding by 2.7%, driven by resilient domestic demand and a gradual rebound in export activity. Growth gained further pace in the first half of 2025, reaching
3.2% year-on-year, and full-year GDP is now projected at 2.8%, supported by improving consumer confidence and a stabilising external environment.
Inflation averaged just 0.9% in 2024 - the lowest level since before the pandemic - as energy costs stabilised and food price growth slowed. However, with wage pressures persisting and domestic demand strengthening, inflation is forecast to rise to 3.3% in 2025. The ECB now signals that the deposit rate will remain at 2.0% through 2026, and combined with falling long-term bond yields, this policy stability is helping to support financing conditions.
The labour market remains stable, with unemployment close to 7%. While wage growth has started to ease, it is still elevated at around 9% year-on-year, sustaining household purchasing power and underpinning retail and residential demand.
A Selective Investment Market
The investment market strengthened notably in 2024. Transaction volumes in Lithuania reached EUR 150 million, compared with EUR 500 million across the Baltics, giving the country a 30% regional share - slightly below the five-year average of around 40%. Activity accelerated sharply in early 2025: in the first half of the year, Lithuanian investment volumes climbed to EUR 180 million, almost three times higher than in the same period of 2024 (EUR 60 million), and accounted for nearly 70% of all Baltic transactions.
Domestic Baltic capital continues to anchor market activity, compensating for subdued foreign participation. Large-scale transactions remain scarce, yet yields across most prime segments stabilized in the second half of 2024 and have held steady into 2025, signaling a gradual narrowing of the pricing gap between buyers and sellers. Stable interest rates and reduced market volatility have further supported sentiment, though investors remain selective. Capital is predominantly directed toward well-located, ESG-compliant assets with secure income streams, while secondary properties or those requiring substantial repositioning continue to face prolonged marketing periods. Looking ahead to 2026, a gradual and selective re-engagement of foreign investors, combined with steady domestic demand, could create conditions for modest yield compression in the strongest core segments.
Retail Segment Leads 2025 Investment Activity
In early 2025, retail assets have emerged as the dominant force in Lithuania's investment market, overtaking the office sector's long-standing lead. Several significant retail park and shopping centre transactions closed in the first half of the year, together
representing the largest share of investment volumes. Confidence in the segment is underpinned by robust consumer spending, driven by steady wage growth and low unemployment. Investors remain most active in established schemes with strong footfall and stable anchor tenants, yet interest is also extending to well-performing retail parks in regional cities where catchment areas and tenant performance are proven. This shift reflects a broader
recognition of retail's resilience in the current economic climate and its capacity to deliver stable income streams.
Logistics Development Focused on Occupier-Led Projects
The logistics and industrial sector in Lithuania continues to grow, but new development is increasingly driven by specific occupier requirements rather than speculative building. Built-to-suit and pre-let projects dominate the pipeline, with speculative activity limited to select prime locations where demand visibility is high. Modern, energy-efficient warehouses remain in strong demand, particularly those offering high ceiling clearance, advanced
automation potential, and favourable access to transport corridors. In contrast, older facilities are taking longer to lease unless they undergo significant upgrades. Sustainability has become a decisive factor in both tenant selection and investment underwriting, especially among institutional buyers, with green certifications and lower operating costs often tipping competitive leasing decisions.
Office Market Development Through Diversified Demand
The Vilnius office market has shown resilience in 2025, with vacancy levels holding steady despite modest additions to supply. Demand is supported by a diverse tenant base, ranging from global business services and IT to fintech companies and established local corporates. While headline-grabbing large transactions remain limited, steady leasing activity is evident in the small and mid-size segment, particularly for flexible space that accommodates hybrid work patterns. Landlords are increasingly investing in reconfiguring layouts and enhancing amenities to attract and retain tenants, while interest in refurbishing well-
located older stock is growing, driven by the need to meet modern workplace standards and comply with ESG requirements.
20
Baltic Sea Properties AS Half-year report | Q2 2025
ECONOMIC INDICATORS IN LITHUANIA
Source: State Data Agency, Ministry of Finance, F - forecast
20
16
12
8
4
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 2026F
GDP, annual change % Inflation, average annual % Unemployment, %
PRIME YIELDS IN BALTIC REGION
Source: Newsec
9%
8%
7%
6%
5%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F
Office Retail Logistics
21
Office Retail Industrial Other Forecast
2024 2025H1
2023
2022
2021
2018 2019 2020
2017
2016
0
400
800
1 200
1 600
Source: Newsec
INVESTMENT TRANSACTION VOLUMES IN BALTIC REGION
mEUR
INVESTMENT TRANSACTION VOLUMES IN BALTIC REGION
mEUR
Source: Newsec
1 600
1 200
800
400
0
2016
2017
2018
2019
2020
2021
2022 2023
2024 2025H1
Estonia Latvia Lithuania Forecast
ContactLars Christian Berger
CEO
+47 930 94 319
LCB@BalticSea.no
James Andrew Clarke
Chairman & CIO
+370 612 37 515
JAC@BalticSea.no
Sigitas Jautakis
Director, Vilnius
+370 652 47 287
SJ@BalticSea.no
Rolandas Jonuška
Director, Klaipėda
+370 618 87 270
Rolandas.Jonuska@BalticSea.no
https://www.balticsea.no
Oslo Tollbugata 8A 0152 Oslo Norway
Klaipėda Pramones str. 8A LT-94102 Klaipėda Lithuania
Vilnius
Didzioiji str. 10A-29 LT-01128 Vilnius Lithuania
Appendices
1) Reconciliation of APM's*
* Alternative Performance Measures
IFPM & EBITDA
Loan-to-Value ratio (LTV)
Net Asset Value (NAV)
Interest Coverage Ratio (ICR)
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. 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
IFPM & EBITDAReconciliation
EBITDA = Earnings Before Interest,
Taxes, Depreciations &
Amortisations
IFPM = income from property
management
Reconciliation with IFRS figures | ||||
(TNOK) | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 | Source |
Rental income | 53 678 | 96 413 | 47 581 | Consolidated Profit/Loss Statement |
Other income | 327 | 785 | 436 | Consolidated Profit/Loss Statement |
Payroll and related costs | -9 085 | -17 457 | -7 521 | Consolidated Profit/Loss Statement |
Other operating expenses | -6 571 | -9 280 | -6 440 | Consolidated Profit/Loss Statement |
EBITDA | 38 349 | 70 461 | 34 056 | |
Financial income | 179 | 688 | 157 | Consolidated Profit/Loss Statement |
Financial expenses | -19 143 | -42 827 | -22 031 | Consolidated Profit/Loss Statement |
IFPM | 19 385 | 28 322 | 12 182 |
24
Baltic Sea Properties AS Half-year report | Q2 2025
Loan-to-Value ratio (LTV)Reconciliation
LTV =
Net LTV =
Net nominal interest-bearing debt
Fair value of investment property
Net nominal interest-bearing debt - Cash
Fair value of investment property
Reconciliation with IFRS figures | ||||
(TNOK) | 30 Jun 2025 | 31 Dec 2024 | 31 Jun 2024 | Source |
Interest-bearing liabilities (non-current) | 721 323 | 657 058 | 626 300 | Consolidated statement of financial position |
Interest-bearing liabilities (current) | 14 053 | 30 433 | 14 718 | Consolidated statement of financial position |
Other adjustments1 | - | 14 327 | -748 | Internal calculation |
Net nominal interest-bearing debt | 735 375 | 701 818 | 640 270 | |
Cash | 101 517 | 80 990 | 83 744 | Consolidated statement of financial position |
Net nominal interest-bearing debt - Cash | 633 858 | 620 829 | 556 526 | |
Investment property | 1 387 180 | 1 345 746 | 1 213 182 | Consolidated statement of financial position |
- IFRS adjustments (periodisation & amortisation) | -29 552 | -29 624 | -28 789 | Internal calculation / Note 4 of annual report |
Fair value of investment property | 1 357 628 | 1 316 121 | 1 184 393 | |
LTV | 54.17% | 53.32% | 54.06% | |
Net LTV | 46.69% | 47.17% | 46.99% | |
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. | ||||
25
Baltic Sea Properties AS Half-year report | Q2 2025
Net Asset Value (NAV)Reconciliation
NAV per share =
Net Asset Value (total)
(Issued shares - own shares)
Reconciliation with IFRS figures | ||||
30 Jun 2025 | 31 Dec 2024 | 30 Jun 2024 | Source | |
Total equity (TNOK) | 616 293 | 615 340 | 550 244 | Consolidated statement of financial position |
+ Deferred tax liabilities (TNOK) | 74 591 | 65 277 | 55 784 | Consolidated statement of financial position |
- Deferred tax according to BSP original NAV definition (TNOK) | -58 923 | -50 589 | -44 127 | (See description on cited page) |
Net Asset Value (TNOK) | 631 961 | 630 028 | 561 901 | |
Number of issued shares (excl. own shares) | 8 690 312 | 8 687 466 | 8 461 015 | VPS |
NAV per share | 72.72 | 72.52 | 66.41 | |
In late June 2024, the company issued 1,781,394 new shares in a direct share issue at NOK 49 per share. Additionally, in July, BSP issued another 226,450 shares in a repair issue. Due to the lower subscription price of the newly issued shares compared to the existing NAV per share, the NAV per share has been diluted. Figures per 30/06/2024 have been adjusted for the effect of the increase in corporate income tax rate's (16% since 1st of January 2025) effect on deferred tax liabilities. | ||||
26
Baltic Sea Properties AS Half-year report | Q2 2025
Interest Coverage Ratio (ICR)Reconciliation
ICR* =
EBITDA
Net Interest expenses
* Interest Coverage Ratio
Reconciliation with IFRS figures | ||||
(TNOK) | Jan-Jun 2025 | Jan-Dec 2024 | Jan-Jun 2024 | Source |
EBITDA (Group) | 38 349 | 70 461 | 34 055 | Own calculaltions |
Interest income | -179 | -688 | -156 | |
Interest expenses payable (incl. hedge effect) | 17 067 | 41 166 | 20 636 | |
Net interest expenses | 16 889 | 40 478 | 20 479 | |
ICR (Group) | 2.27 | 1.74 | 1.66 | |
27
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. 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 may also include 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.