From GlobeNewswire: 2024-11-07 12:40:00

Northern Horizon Capital AS has confirmed the unaudited consolidated interim results of Baltic Horizon Fund (the Fund) for the first nine months of 2024. The board of Northern Horizon Capital has approved the results, which include various key performance indicators and financial data.

The strategic focus of the Fund is on modern urban living concepts, with an emphasis on sustainable value creation. It aims to generate two-thirds of its net operating income from centrally located multifunctional properties that align with the concept of modern urban living.

Key performance indicators have been implemented to measure and track the Fund’s operational efficiency effectively. The management team aims to enhance transparency, accountability, and decision-making processes by defining specific KPIs.

The Fund’s leadership is focused on achieving several objectives by the end of 2024, including maintaining at least a 90% occupancy rate, reducing the loan-to-value ratio, and considering the sale of non-strategic assets within the next 18 months.

The Fund has successfully redeemed a portion of its bonds due in July 2024 and refinanced the remaining portion with a cheaper loan. The focus is on reducing the overall debt levels, achieving full certification for all properties, and working towards the Fund’s financial goals.

In a challenging market environment, the Fund has signed numerous new lease agreements and extended existing ones. Notable agreements include leases with anchor tenants like Narbutas Merakis, Apollo Group Coca-Cola Plaza, MyFitness, and Expo Group.

New lease agreements totaling 17,985 square meters have been signed in the first nine months of 2024, securing an annual rental income of 2.229 million euros. The Fund has attracted 41 new tenants and retained 48 existing ones.

By the end of September 2024, the Fund had achieved 80% of its target lease agreements and approached the goal of reaching 90% occupancy. The weighted average remaining lease term increased to 3.4 years.

The Fund’s strategic initiatives focus on strengthening its central location shopping centers, attracting new anchor tenants, extending lease agreements, and reducing office vacancies. The goal is to maximize the potential of these properties and enhance their attractiveness.

In 2024, the Fund aims to improve debt servicing and reduce financial leverage to strengthen its financial position. Strategic initiatives include refinancing existing loans, signing new favorable leases, and addressing capital expenses for property adaptation.

The Fund maintains its commitment to sustainability by ensuring that all portfolio buildings are BREEAM-certified. Green clauses are included in lease agreements, and efforts are made to reduce environmental impact and improve financial resilience.

Financial results for the first three quarters of 2024 show a net loss of 13.4 million euros and a net operating income of 8.9 million euros. The Fund continues to focus on enhancing profitability and operational efficiency in a shifting market landscape.



Read more at GlobeNewswire:: Baltic Horizon Fondi 2024. aasta I-III kvartali