Gross Asset Value (GAV)
As at 31 December 2018, the GAV was EUR 260.9 million (EUR 248.6 million as at
30 September 2018). During Q4 2018, the Group completed subsequent subscription
for its 5-year unsecured notes (bonds) worth EUR 10 million.
Net Asset Value (NAV)
In Q4 2018, the Fund NAV increased from EUR 109.3 million to EUR 109.8 million.
Equity was positively affected by the Fund's operational performance over the
quarter, however, this was offset by a EUR 2.04 million cash distribution to its
unitholders (EUR 0.026 per unit) and a buy-back of own units.
Net Operating Income (NOI) and Net Profit
In Q4 2018, the Fund NOI was EUR 3.9 million (EUR 2.9 million in Q4 2017), net
profit was EUR 3.5 million (EUR 5.3 million in Q4 2017). Growth in NOI was
positively affected by the new property acquisitions (Vainodes I office
building, Postimaja shopping centre and LNK Centre). During the quarter, the
Fund recorded a fair value gain of EUR 1.5 million whereas the fair value gain
in Q4 2017 was EUR 3.3 million.
Cash Distributions (dividends)
On 13 February 2019, the Fund declared a cash distribution of EUR 2,119 thousand
(EUR 0.027 per unit) to the Fund unitholders for Q4 2018 results (EUR 2,044
thousand or EUR 0.026 per unit for Q3 2018). During Q4 2018, the Generated Net
Cash Flow (GNCF) amounted to EUR 2,204 thousand or EUR 0.028 per unit (EUR
2,067 thousand or EUR 0.026 per unit for Q3 2018).
Quarterly Key Figures
Euro '000 Q4 2018 Q4 2017 Change (%)
-------------------------------------------------------------------------------
Net rental income 3,929 2,922 34.5%
Valuation gains / (loss) on investment
properties 1,534 3,337 (54.0%)
Operating profit 4,685 5,357 (12.5%)
Net financing costs (806) (403) 100%
Profit before tax 3,879 4,954 (21.7%)
Net profit for the period 3,535 5,277 (33.0%)
Weighted average number of units outstanding 78,637,645* 69,011,121 13.9%
-------------------------------------------------------------------------------
Earnings per unit (EUR) 0.04 0.08 (50%)
-------------------------------------------------------------------------------
Euro '000 31.12.2018 31.12.2017 Change (%)
-------------------------------------------------------------------------------
Investment property in use 245,160 189,317 29.5%
Gross asset value (GAV) 260,878 215,785 20.9%
Interest bearing loans 140,507 98,087 43.2%
Total liabilities 151,073 108,809 38.8%
Net asset value (NAV) 109,805 106,976 2.6%
-------------------------------------------------------------------------------
Number of units outstanding 78,496,831* 77,440,638 1.4%
Net asset value (NAV) per unit (EUR) 1.3988 1.3814 1.3%
Loan-to-value ratio (LTV) 57.3% 51.8%
Average effective interest rate 2.4% 1.7%
-------------------------------------------------------------------------------
*The number of units excludes 255,969 units purchased by the Fund as part of
the units buy-back program.
Investment properties PERFORMANCE in Q4 2018
During Q4 2018, the average actual occupancy of the portfolio was 98.2% (Q3
2018: 97.5%). When all rental guarantees are considered, the effective occupancy
rate is 98.6% (Q3 2018: 97.8%). The average direct property yield during Q4
2018 was 6.8% (Q3 2018: 6.9%). The net initial yield for the whole portfolio for
Q4 2018 was 6.5% (Q3 2018: 6.6%).
-------------------------------------------------------------------------------
Book Direct Net Occupancy
value(1) property initial rate for
Property name City Country Euro'000 NLA yield(2) yield(3) Q4 2018
-------------------------------------------------------------------------------
Duetto I Vilnius Lithuania 16,320 8,498 6.7% 6.1% 100.0%(4)
Pirita SC Tallinn Estonia 10,020 5,427 7.4% 9.0% 100.0%(4)
Upmalas
Biroji BC Riga Latvia 25,730 10,458 7.3% 6.7% 100.0%
G4S
Headquarters Tallinn Estonia 17,240 9,179 7.7% 6.9% 100.0%
Europa SC Vilnius Lithuania 41,100 16,856 6.3% 5.7% 95.6%
Domus Pro
Retail Park Vilnius Lithuania 17,460 11,247 7.2% 6.5% 98.4%
Domus Pro
Office Vilnius Lithuania 7,460 4,831 8.2% 7.1% 98.4%
Meraki Vilnius Lithuania 1,670 - - - -
Sky SC Riga Latvia 5,390 3,254 8.1% 7.5% 99.4%
Lincona Tallinn Estonia 17,170 10,870 8.1% 7.4% 98.5%
Vainodes I Riga Latvia 21,230 8,052 6.8% 6.8% 100.0%
Postimaja &
CC Plaza
complex Tallinn Estonia 46,920 17,809 5.9% 5.8% 97.9%
LNK Centre Riga Latvia 17,450 7,453 6.3% 6.3% 100.0%
-------------------------------------------------------------------------------
Total
portfolio 245,160 113,934 6.8% 6.5% 98.6%
1. Based on the latest valuation as at 28 December 2018.
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. Effective occupancy rate is 100% due to a rental guarantee.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
01.10.2017-31.12.2017 01.01.2017-31.12.2017
Euro '000 01.10.2018-31.12.2018 (restated)* 01.01.2018-31.12.2018 (restated)*
-------------------------------------------------------------------------------------------------------
Rental income 4,284 3,217 15,860 11,839
Service charge
income 948 756 2,760 1,921
Cost of rental
activities (1,303) (1,051) (3,816) (2,992)
-------------------------------------------------------------------------------------------------------
Net rental
income 3,929 2,922 14,804 10,768
-------------------------------------------------------------------------------------------------------
Administrative
expenses (804) (839) (2,813) (2,774)
Other
operating
income /
(expenses) 26 (63) 74 14
Valuation
gains / (loss)
on investment
properties 1,534 3,337 2,014 3,676
-------------------------------------------------------------------------------------------------------
Operating
profit 4,685 5,357 14,079 11,684
-------------------------------------------------------------------------------------------------------
Financial
income 2 2 8 47
Financial
expenses (808) (405) (2,789) (1,528)
-------------------------------------------------------------------------------------------------------
Net financing
costs (806) (403) (2,781) (1,481)
-------------------------------------------------------------------------------------------------------
Profit before
tax 3,879 4,954 11,298 10,203
Income tax
charge (344) 323 (1,308) (759)
-------------------------------------------------------------------------------------------------------
Profit for the
period 3,535 5,277 9,990 9,444
-------------------------------------------------------------------------------------------------------
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gains
(losses) on
cash flow
hedges (588) 147 (1,013) 273
Termination of
interest rate
swap agreement - - - 57
Recognition of
initial
interest rate
cap costs - (43) (33) (43)
Income tax
relating to
net gains
(losses) on
cash flow
hedges 55 (17) 97 (49)
-------------------------------------------------------------------------------------------------------
Other
comprehensive
income/
(expense), net
of tax, that
is or may be
reclassified
to profit or
loss in
subsequent
periods (533) 87 (949) 238
-------------------------------------------------------------------------------------------------------
Total
comprehensive
income for the
period, net of
tax 3,002 5,364 9,041 9,682
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Basic and
diluted
earnings per
unit (Euro) 0.04 0.08 0.13 0.15
-------------------------------------------------------------------------------------------------------
*In 2018, the Group adopted IFRS 15 Revenue from Contracts with Customers,
effective 1 January 2018. As a result, the comparative figures for "service
charge income" and "cost of rental activities" were adjusted. The adjustment did
not have an impact on the Group's equity. The impact is related to presentation
changes in accordance with IFRS 15.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Euro '000 31.12.2018 31.12.2017
------------------------------------------------------------------
Non-current assets
Investment properties 245,160 189,317
Derivative financial instruments 9 89
Other non-current assets 596 146
------------------------------------------------------------------
Total non-current assets 245,765 189,552
------------------------------------------------------------------
Current assets
Trade and other receivables 2,734 1,568
Prepayments 154 108
Cash and cash equivalents 12,225 24,557
------------------------------------------------------------------
Total current assets 15,113 26,233
------------------------------------------------------------------
Total assets 260,878 215,785
------------------------------------------------------------------
Equity
Paid in capital 93,673 91,848
Own units (335) -
Cash flow hedge reserve (1,005) (56)
Retained earnings 17,472 15,184
------------------------------------------------------------------
Total equity 109,805 106,976
------------------------------------------------------------------
Non-current liabilities
Interest bearing loans and borrowings 140,401 96,497
Deferred tax liabilities 5,844 5,206
Derivative financial instruments 1,069 88
Other non-current liabilities 905 859
------------------------------------------------------------------
Total non-current liabilities 148,219 102,650
------------------------------------------------------------------
Current liabilities
Interest bearing loans and borrowings 106 1,590
Trade and other payables 2,397 4,202
Income tax payable - 14
Derivative financial instruments - 15
Other current liabilities 351 338
------------------------------------------------------------------
Total current liabilities 2,854 6,159
------------------------------------------------------------------
Total liabilities 151,073 108,809
------------------------------------------------------------------
Total equity and liabilities 260,878 215,785
------------------------------------------------------------------
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
14:23 EET on 15 February 2019.
Attachments
* BHF IV kvartali vahearuanne 2018 (https://ml-
eu.globenewswire.com/Resource/Download/68ffaa44-6d82-4a48-9ab1-11c3a462a526)
* BHF quarterly report Q4 2018 (https://ml-
eu.globenewswire.com/Resource/Download/9da05e36-bab4-43c3-b93d-739a6b385da9)
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