Gross Asset Value (GAV)
In Q3 2019, the GAV increased slightly from EUR 344.9 million to EUR 345.3
million compared to the end of Q2 2019. The increase is mainly related to the
increase in investment property book value due to capital expenditures and the
increase in cash as a result of the newly acquired Galerija Centrs's positive
effect on the Fund's cash flows over the quarter.
Net Asset Value (NAV)
In Q3 2019, the Fund NAV increased from EUR 131.1 million to EUR 135.2 million
compared to the end of Q2 2019. The Fund NAV was positively affected by the
Fund's operational performance over the quarter and capital raising in the
amount of EUR 4 million (net equity) through a private placement in July.
However, this was offset by a EUR 2.6 million cash distribution to unitholders
(EUR 0.026 per unit) and a negative cash flow hedge reserve movement during the
quarter.
Net Rental Income and Net Profit
In Q3 2019, the Fund earned a net profit of EUR 3.1 million (EUR 2.2 million
during Q3 2018). In Q3 2019, the Fund recorded a EUR 5.4 million net rental
income (EUR 3.8 million in Q3 2018). Growth in net rental income and net profit
was positively affected by new property acquisitions in 2019 (Duetto II office
building and Galerija Centrs shopping centre).
Cash Distributions (dividends)
On 18 October 2019, the Fund declared a EUR 3.06 million quarterly cash
distribution to investors, which represents a EUR 0.027 distribution per unit
for the Q3 2019 results (EUR 2.62 million or EUR 0.026 per unit for Q2 2019).
Quarterly key figures
Euro '000 Q3 2019 Q3 2018 Change (%)
-------------------------------------------------------------------------------
Net rental income 5,412 3,840 40.9%
Operating profit 4,550 3,095 47.0%
Net financing costs (1,339) (774) 73.0%
Profit before tax 3,211 2,321 38.3%
Net profit for the period 3,059 2,195 39.4%
Weighted average number of units
outstanding 100,461,178 79,064,293(1) 27.1%
-------------------------------------------------------------------------------
Earnings per unit (EUR) 0.03 0.03 -
-------------------------------------------------------------------------------
Euro '000 30.09.2019 31.12.2018 Change (%)
--------------------------------------------------------------------------
Investment property in use 336,488 245,160 37.3%
Gross asset value (GAV) 345,327 260,878 32.4%
Interest bearing loans 196,947 140,507 40.2%
Total liabilities 210,098 151,073 39.1%
Net asset value (NAV) 135,229 109,805 23.2%
--------------------------------------------------------------------------
Number of units outstanding 100,915,202 78,496,831(2) 28.6%
Net asset value (NAV) per unit (EUR) 1.3400 1.3988 (4.2%)
Loan-to-Value ratio (LTV) 58.5% 57.3% -
Average effective interest rate 2.6% 2.4% -
--------------------------------------------------------------------------
1. The number of units excludes 278,402 units purchased by the Fund and
cancelled in October 2018 as part of the unit buy-back program.
2. The number of units excludes 255,969 units acquired by the Fund and
cancelled in February 2019 as part of the unit buy-back program.
Investment properties PERFORMANCE in Q3 2019
During Q3 2019, the average actual occupancy of the portfolio was 97.3% (Q2
2019: 95.4%). When all rental guarantees are considered, the effective occupancy
rate is 97.7% (Q2 2019: 96.7%). The average direct property yield during Q3
2019 was 6.7% (Q2 2019: 6.8%). The net initial yield for the whole portfolio for
Q3 2019 was 6.5% (Q2 2019: 6.5%).
Overview of the Fund's investment properties as of 30.09.2019
-------------------------------------------------------------------------------
Book Direct Net Occupancy
Property name value(1) property initial rate for Q3
Sector Euro '000 NLA yield(2) yield(3) 2019
-------------------------------------------------------------------------------
Vilnius,
Lithuania
Duetto I Office 16,020 8,498 7.7% 7.2% 98.7%
Duetto II Office 17,900 8,673 7.1% 7.3% 100.0%(4)
Europa SC Retail 40,403 16,856 6.7% 6.1% 95.6%
Domus Pro
Retail Park Retail 16,523 11,247 7.5% 7.1% 98.1%
Domus Pro
Office Office 7,530 4,831 8.7% 7.5% 100.0%
Meraki Land 1,700 - - - -
-------------------------------------------------------------------------------
Total Vilnius 100,076 50,105 7.2% 6.8% 97.9%
-------------------------------------------------------------------------------
Riga, Latvia
Upmalas Biroji
BC Office 25,220 10,458 6.9% 6.5% 100.0%
Vainodes I Office 21,497 8,052 6.9% 6.9% 100.0%
LNK Centre Office 16,830 7,453 6.4% 6.5% 100.0%
Sky SC Retail 5,424 3,254 7.9% 7.4% 99.4%
Galerija Centrs Retail 75,840 20,022 6.1% 6.0% 95.9%
-------------------------------------------------------------------------------
Total Riga 144,811 49,239 6.5% 6.4% 98.3%
-------------------------------------------------------------------------------
Tallinn,
Estonia
Postimaja & CC
Plaza Retail 32,140 9,145 4.2% 4.5% 90.8%
Postimaja & CC
Plaza Leisure 14,980 8,664 9.0% 7.1% 100.0%
G4S
Headquarters Office 17,133 9,179 7.7% 7.0% 100.0%
Lincona Office 17,513 10,871 8.0% 7.2% 99.4%
Pirita SC Retail 9,835 5,508 6.8% 8.6% 92.6%
-------------------------------------------------------------------------------
Total Tallinn 91,601 43,367 6.5% 6.3% 97.0%
-------------------------------------------------------------------------------
Total portfolio 336,488 142,711 6.7% 6.5% 97.7%
-------------------------------------------------------------------------------
1. Based on the latest valuation as at 30 June 2019 and subsequent capital
expenditures.
2. Direct property yield (DPY) is calculated by dividing NOI by the acquisition
value and subsequent capital expenditure of the property.
3. The net initial yield (NIY) is calculated by dividing NOI by the market
value of the property.
4. Duetto II effective occupancy rate is 100% due to a rental guarantee.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Euro '000 01.07.2019-30.09.2019 01.07.2018-30.09.2018 01.01.2019-30.09.2019 01.01.2018-30.09.2018
-------------------------------------------------------------------------------------------------------
Rental income 5,782 4,012 14,579 11,576
Service charge
income 1,476 619 3,128 1,812
Cost of rental
activities (1,846) (791) (4,123) (2,513)
-------------------------------------------------------------------------------------------------------
Net rental
income 5,412 3,840 13,584 10,875
-------------------------------------------------------------------------------------------------------
Administrative
expenses (879) (748) (2,405) (2,009)
Other
operating
income 17 3 23 48
Valuation
gains (losses)
on investment
properties - - (2,439) 480
-------------------------------------------------------------------------------------------------------
Operating
profit 4,550 3,095 8,763 9,394
-------------------------------------------------------------------------------------------------------
Financial
income 1 2 4 6
Financial
expenses (1,340) (776) (3,316) (1,981)
-------------------------------------------------------------------------------------------------------
Net financing
costs (1,339) (774) (3,312) (1,975)
-------------------------------------------------------------------------------------------------------
Profit before
tax 3,211 2,321 5,451 7,419
Income tax
charge (152) (126) (75) (964)
-------------------------------------------------------------------------------------------------------
Profit for the
period 3,059 2,195 5,376 6,455
-------------------------------------------------------------------------------------------------------
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gains
(losses) on
cash flow
hedges (305) 205 (1,397) (425)
Recognition of
initial
interest rate
cap costs - - - (33)
Income tax
relating to
net gains
(losses) on
cash flow
hedges 17 (37) 92 42
-------------------------------------------------------------------------------------------------------
Other
comprehensive
income
(expense), net
of tax, that
is or may be
reclassified
to profit or
loss in
subsequent
periods (288) 168 (1,305) (416)
-------------------------------------------------------------------------------------------------------
Total
comprehensive
income for the
period, net of
tax 2,771 2,363 4,071 6,039
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Basic and
diluted
earnings per
unit (Euro) 0.03 0.03 0.06 0.08
-------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Euro '000 30.09.2019 31.12.2018
------------------------------------------------------------------
Non-current assets
Investment properties 336,488 245,160
Derivative financial instruments 33 9
Other non-current assets 96 596
------------------------------------------------------------------
Total non-current assets 336,617 245,765
------------------------------------------------------------------
Current assets
Trade and other receivables 1,958 2,229
Prepayments 247 154
Other current assets 960 505
Cash and cash equivalents 5,545 12,225
------------------------------------------------------------------
Total current assets 8,710 15,113
------------------------------------------------------------------
Total assets 345,327 260,878
------------------------------------------------------------------
Equity
Paid in capital 121,883 93,673
Own units - (335)
Cash flow hedge reserve (2,310) (1,005)
Retained earnings 15,656 17,472
------------------------------------------------------------------
Total equity 135,229 109,805
------------------------------------------------------------------
Non-current liabilities
Interest bearing loans and borrowings 196,559 140,401
Deferred tax liabilities 5,809 5,844
Derivative financial instruments 2,491 1,069
Other non-current liabilities 1,248 905
------------------------------------------------------------------
Total non-current liabilities 206,107 148,219
------------------------------------------------------------------
Current liabilities
Interest bearing loans and borrowings 388 106
Trade and other payables 2,890 2,397
Income tax payable 1 -
Other current liabilities 712 351
------------------------------------------------------------------
Total current liabilities 3,991 2,854
------------------------------------------------------------------
Total liabilities 210,098 151,073
------------------------------------------------------------------
Total equity and liabilities 345,327 260,878
------------------------------------------------------------------
For additional information please contact:
Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
www.baltichorizon.com
Baltic Horizon Fund is a registered contractual public closed-end real estate
fund managed by Alternative Investment Fund Manager license holder Northern
Horizon Capital AS.
Distribution: Nasdaq Tallinn, Nasdaq Stockholm, GlobeNewswire,
www.baltichorizon.com
This announcement contains information that the Management Company is obliged to
disclose pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the above distributors, at
17:15 EET on 15 November 2019.
|