Market announcement

Title

Baltic Horizon Fund update on COVID-19

Message

In response to COVID-19 outbreak, Northern Horizon Capital AS, the management
company of Baltic Horizon Fund (the Fund) has taken assertive action to manage
the risks arising from the pandemic and to protect the health and safety of the
public, our tenants, employees and the operating partners. We are closely
monitoring the developments surrounding the outbreak and diligently implementing
the instructions of WHO and the national health authorities. Baltic Horizon Fund
will keep all its stakeholders informed on the most important actions we have
initiated and will aim to ensure that we do everything in our power to prevent
further spread of the virus, ensure continuity of our business and minimize the
risks to our investors.

We are witnessing significant shifts in the operating environment across the
Baltic region and anticipate the disruptions to persist in the near term. All
three Baltic countries have responded with different measures in order to slow
down the spread of COVID-19 and announced financial support programs to help
businesses deal with the losses incurred as a result of the pandemic.

  * Lithuania has initiated the quarantine over its entire territory until March
    30. Shopping centers remain open, but all retail activities except for
    groceries, pharmacies and certain other necessity driven shopping are
    forbidden according to the government decree.
  * In Latvia, the government hasn't imposed retail bans per se so shopping
    centers also remain open, but due to a significant drop in customer flow, we
    observe that stores of non-essential goods are voluntarily cutting down the
    working hours or temporarily suspending operations.
  * In Estonia, similar to Latvia, the shopping centers remain open, albeit with
    large share of tenants especially in discretionary spending category are
    temporarily suspending operations.

Meanwhile, our grocery anchored neighborhood shopping centres are demonstrating
increased footfalls and revenues. In offices, most of our tenants have switched
to remote working models and have restricted business travel, but the properties
remain open and fully operational. We maintain active dialogue with our tenants
in light of the changing situation, but for now, all rental obligations remain
in effect and income is being collected as per original lease contracts.
Additional safety measures such as more frequent cleaning and disinfection of
the premises, increased ventilation capacity and public awareness initiatives
have been put in place in all of our properties to reduce the risks of
contagion.

The following measures are also in place to further mitigate the risks and
protect the long-term interests of Baltic Horizon Fund and its investors:

  * We have active communication channels with our tenants and property managers
    who on a regular basis inform us on the measures they are taking to ensure
    their business continuity. We have agreed on regular updates on tenants'
    performance and any issues in relation to COVID-19.
  * We have approached the developers and construction companies to inform us
    promptly of any interruptions in supply chain of materials or any other
    potential delays in development projects. So far, none have been reported.
  * There is a sufficient liquidity buffer in a form of cash balance to meet
    financial obligations in case of any temporary shortages in liquidity.
  * We are continuously performing stress testing of debt covenants to be able
    to take any necessary measures in due time.
  * The management company has initiated additional measures to protect the key
    staff of the Fund and ensure continuity: all employees are working remotely,
    all business travel is suspended, and succession plan has been reviewed and
    updated.
  * The majority of our accounting and fund administration services providers
    and audit companies have the measures necessary to ensure uninterrupted
    business continuity in the case of a quarantine.

While it is too early to evaluate the full economic impact of the pandemic, it
is likely that it will have negative overall effect on the Fund's 2020
performance. Nonetheless, we believe that our diversified portfolio, leading
operating partners, solid balance sheet and experienced team will get through
this extraordinary times and protect the long-term value for the investors.

For additional information please contact:

Tarmo Karotam
Baltic Horizon Fund manager
E-mail [email protected]
(https://www.globenewswire.com/Tracker?data=aEpV814lS5gW-
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www.baltichorizon.com
(https://www.globenewswire.com/Tracker?data=F3j1UhXvVWszocGXziuxyPcJXi2in_nLyPex
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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.
Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq
Stockholm, www.baltichorizon.com
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