Baltic Horizon Fund Consolidated Un-Audited Results for Q4 2018

  • 3

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 ‘000Q4 2018Q4 2017Change (%)
    
Net rental income3,9292,92234.5%
Valuation gains / (loss) on investment properties1,5343,337(54.0%)
Operating profit4,6855,357(12.5%)
Net financing costs(806)(403)100%
Profit before tax3,8794,954(21.7%)
Net profit for the period3,535 5,277(33.0%)
    
Weighted average number of units outstanding78,637,645*69,011,12113.9%
Earnings per unit (EUR)0.04 0.08(50%)


Euro ‘00031.12.201831.12.2017Change (%)
    
Investment property in use245,160189,31729.5%
Gross asset value (GAV)260,878215,78520.9%
    
Interest bearing loans140,50798,08743.2%
Total liabilities151,073108,80938.8%
    
Net asset value (NAV)109,805106,9762.6%
Number of units outstanding78,496,831*77,440,6381.4%
Net asset value (NAV) per unit (EUR)1.3988 1.38141.3%
Loan-to-value ratio (LTV)57.3%51.8% 
Average effective interest rate2.4%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%).

Property nameCityCountryBook value1
Euro‘000
NLADirect property yield2Net initial yield3Occupancy rate for Q4 2018
Duetto IVilniusLithuania16,3208,4986.7%6.1%100.0%4
Pirita SCTallinnEstonia10,0205,4277.4%9.0%100.0%4
Upmalas Biroji BCRigaLatvia25,73010,4587.3%6.7%100.0%
G4S HeadquartersTallinnEstonia17,2409,1797.7%6.9%100.0%
Europa SCVilniusLithuania41,10016,8566.3%5.7%95.6%
Domus Pro Retail ParkVilniusLithuania17,46011,2477.2%6.5%98.4%
Domus Pro OfficeVilniusLithuania7,4604,8318.2%7.1%98.4%
MerakiVilniusLithuania1,670---
Sky SCRigaLatvia5,3903,2548.1%7.5%99.4%
LinconaTallinnEstonia17,17010,8708.1%7.4%98.5%
Vainodes IRigaLatvia21,2308,0526.8%6.8%100.0%
Postimaja & CC Plaza complexTallinnEstonia46,92017,8095.9%5.8%97.9%
LNK CentreRigaLatvia17,4507,4536.3%6.3%100.0%
Total portfolio  245,160113,9346.8%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

Euro ‘00001.10.2018-31.12.201801.10.2017-31.12.2017
(restated)*
01.01.2018-31.12.201801.01.2017-31.12.2017
(restated)*
     
Rental income4,2843,21715,86011,839
Service charge income9487562,7601,921
Cost of rental activities(1,303)(1,051)(3,816)(2,992)
Net rental income3,929 2,92214,80410,768
     
Administrative expenses(804)(839)(2,813)(2,774)
Other operating income / (expenses)26(63)7414
Valuation gains / (loss) on investment properties1,5343,3372,0143,676
Operating profit4,685 5,35714,079 11,684
     
Financial income22847
Financial expenses(808)(405)(2,789)(1,528)
Net financing costs(806)(403)(2,781)(1,481)
     
Profit before tax3,879 4,95411,29810,203
Income tax charge(344)323(1,308)(759)
Profit for the period3,535 5,2779,990 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 hedges55(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 tax3,0025,3649,041 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 ‘00031.12.201831.12.2017
   
Non-current assets  
Investment properties245,160189,317
Derivative financial instruments989
Other non-current assets596146
Total non-current assets245,765189,552
   
Current assets  
Trade and other receivables2,7341,568
Prepayments154108
Cash and cash equivalents12,22524,557
Total current assets15,11326,233
Total assets260,878215,785
   
Equity  
Paid in capital93,67391,848
Own units(335)-
Cash flow hedge reserve(1,005)(56)
Retained earnings17,47215,184
Total equity109,805 106,976
   
Non-current liabilities  
Interest bearing loans and borrowings140,40196,497
Deferred tax liabilities5,8445,206
Derivative financial instruments1,06988
Other non-current liabilities905859
Total non-current liabilities148,219 102,650
   
Current liabilities  
Interest bearing loans and borrowings1061,590
Trade and other payables2,3974,202
Income tax payable-14
Derivative financial instruments-15
Other current liabilities351338
Total current liabilities2,854 6,159
Total liabilities151,073 108,809
Total equity and liabilities260,878 215,785

For additional information please contact:

Tarmo Karotam
Baltic Horizon Fund manager
E-mail [email protected]
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

ti?nf=MTAwMDE0ODM3MSM0MDAyNjk5OTgjMjA4NDExOQ==

logo.jpg

GlobeNewsWire
GlobeNewsWire

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases, financial disclosures and multimedia content to media, investors, and consumers worldwide.