Net asset value (NAV) of Baltic Horizon Fund (the Fund) unit at end of December
2020 amounted to EUR 1.1395 per unit. Compared to the previous month, NAV per
unit decreased by -5.73%. The NAV was negatively affected by a decrease in the
values of investment properties. The negative impact on the NAV was partially
offset by a positive result from the operating performance of investment
properties. EPRA NAV, EPRA NRV and EPRA NTA as at the end of December 2020
decreased to EUR 1.2219 per unit, corresponding to a decrease of -5.55% over the
last month.
As of 31 December 2020, the fair value of the Baltic Horizon Fund portfolio
decreased to EUR 340.0 million (31 December 2019: 358.9 million). In December
2020, the portfolio revaluation resulted in a fair value loss of EUR 9.4 million
(-2.69% of portfolio value) primarily due to retail market disruption caused by
COVID-19 pandemic. The portfolio valuation is based on the valuations conducted
by an independent real estate appraiser Newsec Baltics as of 31 December 2020.
Fair values of investment properties in the portfolio decreased mainly due to
downward adjustments to discount rate assumptions and cash flow projections
compared to the previous valuations. Exit yield assumptions remained similar to
2019 valuation assumptions. More information will be provided in the annual
report.
Unaudited consolidated net rental income for the 12 months of 2020 amounted to
EUR 19.8 million, exceeding the previous year's net rental income for the same
period by EUR 0.6 million or +3.2% (EUR 19.2 million during the 12 months ended
31 December 2019). The strong growth was driven by the acquisitions of Galerija
Centrs and North Star, which had a positive effect on the Group's net rental
income growth in 2020 as compared to 2019, albeit rental income growth in 2020
slowed down due to relief measures granted to tenants during the COVID-19
pandemic. The Fund earned an unaudited consolidated net loss of EUR 8.4 million
in December 2020.
At the end of December 2020, the Fund's consolidated cash and cash equivalents
amounted to EUR 13.3 million (31 December 2019: EUR 9.8 million) which
demonstrates sufficient liquidity and financial flexibility. The Fund continues
to generate stable positive cash flow from operations despite rent reliefs
granted to tenants during the second COVID-19 wave in the Baltics. Cash holdings
rose by 0.9 million during December 2020. The Fund's management team is actively
monitoring the collection of trade receivables from tenants. Trade receivables
remained at a regular level of EUR 1.4 million at the end of December.
As of 31 December 2020, the total consolidated assets of the Fund stood at EUR
355.6 million (31 December 2019: EUR 371.7 million). The Fund has invested an
additional EUR 0.5 million into ongoing constructions of Meraki office buildings
during December 2020.
Additional information:
Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
(https://www.globenewswire.com/Tracker?data=uMlftpVUP59vcFGbVHHzr_KcjChy3SCrD-
dLLbKTf0tYKkwB7G6reju32f7rd8ox82AC6Fn9dBPVvf3Ds42Jh3HUJLP5jcLLX8sWJsVvChk=)
www.baltichorizon.com
(https://www.globenewswire.com/Tracker?data=GSQVye1bgzTst_zGKIpP26VIk1zPIzIgVMWj
ti3i1cf-4E0NoN4fd-0Tfskl1CsTlTHoZAL_uWoEIZ8vsfyPcNQbnnYeu2x_1pKetGZPyYM=)
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
|