Baltic Horizon Fund reports net loss of 12.9 million euros in first half of 2024.

From GlobeNewswire: 2024-08-08 15:05:00

Northern Horizon Capital AS’s board has approved Baltic Horizon Fund’s unaudited consolidated interim results for the first six months of 2024. The Fund’s strategic efforts have focused on sustainable value creation, with a target to earn two-thirds of its net business income from centrally located multifunctional properties designed to enrich modern lives.

Despite challenging market conditions, the Fund has adapted well by signing important lease agreements in 2024. The Fund aims to achieve at least 90% portfolio occupancy by the end of 2024, reduce the loan-to-value ratio to 50% or below, consider selling non-strategic assets, and maintain 100% BREEAM or LEED certified properties.

The Fund is actively working towards reducing the gap between share price and net asset value (NAV). In order to strengthen its financial position, the Fund successfully redeemed a portion of its bonds in July 2024 and plans to conduct a new equity offering in the second half of the year.

For the first half of 2024, the Fund reported a net loss of 12.9 million euros, mainly impacted by property revaluation losses. Rental income decreased by 14% compared to the same period last year, with portfolio occupancy reaching 82.3% in the second quarter of 2024.

By focusing on core shopping center properties and reducing office space vacancies, the Fund aims to bridge the gap between share price and NAV. Active negotiations are underway to lease over 10,500 square meters of office space, while financial leverage reduction remains a priority.

The Fund’s portfolio comprises 12 investments in Baltic capitals, with a fair value of 239.9 million euros as of June 2024. The Fund aims to enhance the attractiveness and maximize potential of its properties by adjusting spaces according to tenant needs.

The Fund is dedicated to achieving sustainable and successful results for its investors through conservative financial management, active leasing activities, and efforts to improve occupancy levels. The Fund’s net asset value decreased by 11.9% compared to the end of 2023, primarily due to property valuation changes.

As part of its financial strategy, the Fund is working towards a more conservative loan-to-value ratio and aims to repay outstanding debt, including a bond issued in May 2023. As of June 30, 2024, the Fund’s cash and cash equivalents stood at 5.4 million euros.

The Fund’s long-term goals include further reducing financial leverage, strengthening its financial position, and aligning share price with net asset value through strategic initiatives aimed at maximizing property potential and improving occupancy rates.



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