Gross Asset Value (GAV)
As at 30 September 2018, GAV was EUR 248.6 million, slightly higher than at the end of the previous quarter (EUR 248.5 million as at 30 June 2018). During Q3 2018, the Fund completed the acquisition of LNK Centre. However, as the acquired asset is not yet leveraged, the acquisition had no effect on GAV.

Net Asset Value (NAV)
In Q3 2018, the Fund’s NAV remained unchanged at EUR 109.3 million. Equity was positively affected by the Fund’s operational performance over the quarter, however, this was offset by a EUR 2.0 million cash distribution to unitholders (EUR 0.025 per unit) and a buyback of own units. 

Net Operating Income (NOI) and Net Profit
In Q3 2018, the Fund’s NOI was EUR 3.8 million (EUR 2.6 million in in Q3 2017) and net profit was EUR 2.2 million (EUR 1.7 million in Q3 2017). Growth in NOI and net profit were positively affected by new property acquisitions (Vainodes I office building, Postimaja shopping centre and LNK Centre).

Cash Distributions (dividends)
On 31 October 2018, the Fund declared a cash distribution of EUR 2,058 thousand (EUR 0.026 per unit) to Fund unitholders for Q3 2018 results (EUR 1,979 thousand or EUR 0.025 per unit for Q2 2018). During Q3 2018, the Generated Net Cash Flow (GNCF) amounted to EUR 2,070 thousand or EUR 0.026 per unit (EUR 2,267 thousand or EUR 0.029 per unit for Q2 2018).

Table 1: Quarterly Key Figures

Euro ‘000Q3 2018Q3 2017Change (%)
Net rental income3,8402,63845.6%
Operating profit3,0952,16742.8%
Net financing costs(774)(346)123.7%
Profit before tax2,3211,82127.5%
Net profit for the period2,1951,67531.0%
Weighted average number of units outstanding79,064,293*60,006,85631.8%
Earnings per unit (EUR)0.030.03-%


Euro ‘00030.09.201831.12.2017Change (%)
Investment property in use243,497189,31728.6%
Gross asset value (GAV)248,586215,78515.2%
Interest bearing loans129,89698,08732.4%
Total liabilities139,241108,80928.0%
Net asset value (NAV)109,345106,9762.2%
Number of units outstanding78,878,692*77,440,6381.9%
Net asset value (NAV) per unit (EUR)1.38621.38140.35%
Loan-to-value ratio (LTV)53.3%51.8% 
Average effective interest rate2.3%1.7% 

*The number of units excludes 278,402 units purchased by the Fund as part of the units buy-back program.

Investment properties PERFORMANCE in Q3 2018

During Q3 2018, the average actual occupancy of the portfolio was 97.5% (Q2 2018: 97.3%). When all rental guarantees are considered, the effective occupancy rate is 97.8% (Q2 2018: 97.6%). The average direct property yield during Q3 2018 was 6.9% (Q2 2018: 6.8%). The net initial yield for the whole portfolio for Q3 2018 was 6.6% (Q2 2018: 6.5%).

Property nameCityCountryBook value1
NLADirect property yield2Net initial yield3Occupancy rate for Q3 2018
Duetto IVilniusLithuania16,2408,3277.7%7.1%100.0%4
Pirita SCTallinnEstonia10,9505,4007.4%8.2%100.0%4
Upmalas Biroji BCRigaLatvia24,66010,6007.3%7.0%99.8%
G4S HeadquartersTallinnEstonia16,9008,3637.7%7.1%100.0%
Europa SCVilniusLithuania40,40116,9006.5%6.0%93.3%
Domus Pro Retail ParkVilniusLithuania17,35011,2477.4%6.6%98.4%
Domus Pro OfficeVilniusLithuania7,3064,7598.2%7.2%97.9%
Domus Pro LandVilniusLithuania1,670----
CC PlazaTallinnEstonia13,1908,6648.4%7.6%100.0%
Sky SCRigaLatvia5,3623,2638.0%7.4%99.2%
Vainodes IRigaLatvia21,6108,0527.0%6.9%100.0%
LNK CentreRigaLatvia17,0687,4556.6%n/a100.0%
Total portfolio  243,497113,0306.9%6.6%97.8%
  1. Based on the latest valuation as of 30 June 2018; the marked value of LNK Centre is based on the acquisition price.
  2. Direct property yield (DPY) is calculated by dividing NOI by the acquisition value and subsequent capital expenditure on 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.


Euro ‘00001.07.2018-30.09.201801.07.2017-30.09.2017
Rental income4,0122,95511,5768,622
Service charge income6194251,8121,165
Cost of rental activities(791)(742)(2,513)(1,941)
Net rental income3,8402,63810,875 7,846
Administrative expenses(748)(535)(2,009)(1,935)
Other operating income / (expenses)3644877
Valuation gains / (loss) on investment properties--480339
Operating profit3,0952,1679,394 6,327
Financial income22645
Financial expenses(776)(348)(1,981)(1,123)
Net financing costs(774)(346)(1,975)(1,078)
Profit before tax2,3211,8217,419 5,249
Income tax charge(126)(146)(964)(1,082)
Profit for the period2,1951,6756,455 4,167
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gains (losses) on cash flow hedges205(94)(425)126
Termination of interest rate swap agreement---57
Recognition of initial interest rate cap costs--(33)-
Income tax relating to net gains (losses) on cash flow hedges(37)842(32)
Other comprehensive income/ (expense), net of tax, that is or may be reclassified to profit or loss in subsequent periods168 (86)(416)151
Total comprehensive income for the period, net of tax2,363 1,5896,039 4,318
Basic and diluted earnings per unit (Euro)0.03 0.03 0.08 0.07

*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.


Euro ‘00030.09.201831.12.2017
Non-current assets  
Investment properties243,497189,317
Derivative financial instruments3989
Other non-current assets138146
Total non-current assets243,674189,552
Current assets  
Trade and other receivables2,0561,568
Cash and cash equivalents2,61024,557
Total current assets4,91226,233
Total assets248,586215,785
Paid in capital94,19891,848
Own units(362)-
Cash flow hedge reserve(472)(56)
Retained earnings15,98115,184
Total equity109,345106,976
Non-current liabilities  
Interest bearing loans and borrowings129,79096,497
Deferred tax liabilities5,6415,206
Derivative financial instruments51288
Other non-current liabilities966859
Total non-current liabilities136,909102,650
Current liabilities  
Interest bearing loans and borrowings1061,590
Trade and other payables1,9354,202
Income tax payable-14
Derivative financial instruments-15
Other current liabilities291338
Total current liabilities2,3326,159
Total liabilities139,241108,809
Total equity and liabilities248,586215,785

Additional information:
Tarmo Karotam
Baltic Horizon Fund manager

The 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,

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 17:40 EET on 9th of November 2018.