The net asset value (NAV) of Baltic Horizon Fund (the Fund) unit at end of
December 2021 amounted to EUR 1.1082 per unit. Compared to the previous month,
NAV per unit increased by +5.63%. The total net asset value of the Fund rose to
EUR 132.6 million over the month. The NAV increase was mainly affected by the
operating performance and positive year-end revaluation of investment
properties. The EPRA NRV as of 31 December 2021 was EUR 1.1884 per unit,
corresponding to an increase of +5.72% over the last month.
As of 31 December 2021, the fair value of the Baltic Horizon Fund portfolio
increased to EUR 327.4 million (31 December 2020: EUR 340.0 million). In
December 2021, the portfolio revaluation resulted in a fair value gain of EUR
7.1 million (+2.2% of portfolio value). The portfolio valuation is based on the
valuations conducted by an independent real estate appraiser Colliers. Fair
values of investment properties in the portfolio increased primarily due to
upward adjustments of future cash flow projections and changes in exit yields
for most of the office properties. The summary of property valuations will be
published on the Fund`s webpage during week 6. More information will be provided
in the annual report.
The Fund has earned EUR 1.4 million from operations in December 2021 resulting
from unaudited consolidated net rental income and COVID-19 grant from the
Latvian government. In December, the Fund has utilised a grant of EUR 0.4
million from the Latvian government with the aim to partially support tenants of
Galerija Centrs with discounts due to a brief lockdown in November. The Fund
recognized an unaudited consolidated net profit of EUR 7.0 million in December
2021. For the entire year of 2021, the Fund achieved an unaudited consolidated
net profit of EUR 1.4 million (2020: net loss of EUR 13.5 million).
At the end of December 2021, the Fund's consolidated cash and cash equivalents
amounted to EUR 16.1 million (30 November 2021: EUR 19.6 million). Investments
into (re)development projects and partial bank loan repayments were among the
main reasons for the decrease in cash balance. The Fund is planning to invest
part of outstanding cash to (re)development projects during the upcoming year.
As of 31 December 2021, the total consolidated assets of the Fund were EUR
346.4 million (31 December 2020: EUR 355.6 million). The Fund has invested an
additional EUR 1.2 million into ongoing constructions of the Meraki office
building and Europa SC reconstruction during December 2021.
Additional information:
Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
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The Fund is a registered contractual public closed-end real estate fund that is
managed by Alternative Investment Fund Manager license holder Northern Horizon
Capital AS. Both the Fund and the Management Company are supervised by the
Estonian Financial Supervision Authority.
Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm,
www.baltichorizon.com
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