From GlobeNewswire: 2025-02-17 12:30:00

Management Board of Northern Horizon Capital AS has approved the unaudited financial results of Baltic Horizon Fund for 2024. Strategic goals for 2024 include a portfolio occupancy of at least 95% by June 2025, maintaining a loan-to-value target at 50% or lower, and disposing of non-strategic assets. The Fund aims for a clear ESG strategy and refurbishment plan to reach a portfolio NOI potential of EUR 18 million by 2027.

In 2024, Baltic Horizon Fund achieved 100% portfolio certification, despite receiving a 3-star GRESB rating. The Fund aims for a 4-star GRESB rating in 2025. While not reaching the 90% portfolio occupancy target, significant progress was made with an 86.5% occupancy rate based on lease signing date. Disposal strategy to reduce LTV level to target has commenced.

Leasing performance in 2024 faced challenges but saw success with renewing existing leases and signing new ones. New leases were signed for 22,743 sq. m, securing an annual rental income of EUR 2,945 thousand. Occupancy of the portfolio increased to 82.1% by December 2024, with signed premises to be handed over in 2025.

In 2025, Baltic Horizon Fund plans to focus on flexible and sustainable solutions to meet tenant demands and market conditions. Key goals include increasing portfolio occupancy and decreasing LTV through bond repayment. The commercial real estate market is expected to face challenges and opportunities in 2025 due to economic uncertainty and evolving consumer preferences.

To enhance financial stability, Baltic Horizon Fund plans to divest select assets to reduce the LTV ratio to below 50%. The Fund has engaged advisors for this process and has a potential buyer for one property. The Fund aims to repay a significant portion of its bonds while investing in core assets for future growth.

Adapting to market demands, Baltic Horizon Fund aims to increase portfolio occupancy by providing entertainment and experiences in its properties. Various new leases and entertainment concepts are planned for shopping centers. The Fund also plans to diversify office tenant mix beyond traditional occupiers to meet evolving demands.

In 2024, the Fund recorded a net loss of EUR 16.8 million, driven by property valuation loss. Net rental income was EUR 11.6 million. The Fund aims to optimize leasing strategies and property concepts to enhance asset performance and maximize net operating income. Initiatives are designed to create long-term value for investors.

The Fund’s financial position in 2024 saw a decrease in GAV to EUR 256.0 million, mainly due to negative revaluation of investment properties. NAV decreased to EUR 98.1 million. Interest-bearing loans and bonds were EUR 149.0 million, with the Fund having EUR 10.1 million in cash and cash equivalents.

During Q4 2024, the average actual occupancy of the portfolio was 81.0%, increasing to 82.1% by the end of December 2024. The Fund’s investment properties in Vilnius, Riga, and Tallinn contributed to its overall portfolio net rental income. The Fund continues to focus on optimizing its property portfolio and financial stability.



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