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Management Board of Northern Horizon Capital AS has approved the audited financial results of Baltic Horizon Fund (the Fund) for the year 2022. The financial results remained unchanged compared to the preliminary disclosure on 15 February 2023.

Net result and net rental income
In 2022, the Group recorded a net profit of EUR 3.9 million against EUR 1.4 million for 2021. The net result was mainly driven by strong recovery of the Galerija Centrs operating performance as fewer COVID-19 rent reliefs were granted to tenants in 2022 and increased rent indexation.  The net result in 2021 was significantly impacted by the one-off negative valuation result of EUR 7.1 million. In 2022, the valuation resulted in a net fair value loss of EUR 2.9 million (-1.8% of portfolio value). The positive impact of the increase in net rental income was partly offset by non-recovered property costs. Earnings per unit for 2022 were EUR 0.03 (2021: EUR 0.07).

In 2022, the Group earned net rental income of EUR 17.4 million in 2022 compared to 17.0 million in 2021. The results for 2021 still included EUR 1.0 million of net rental income from G4S Headquarters, which was sold in Q4 2021 and did not contribute to 2022 results. The 2022 result was impacted by negative net rental income of EUR 0.1 million generated by the Meraki property. The Fund completed the development of the first tower of the Meraki building in September 2022. Rental income has been received since October 2022. Initial rental costs were recognised in September 2022. Rent indexations and the recovery of income improved the net rental income of the same portfolio mix (like-for-like portfolio).

Portfolio properties in the office segment contributed 56.2% (2021: 63.0%) of net rental income in 2022, followed by the retail segment with 38.8% (2021: 32.4%) and the leisure segment with 5.0% (2021: 4.6%).

During 2022, investment properties in Latvia and Lithuania contributed 39.5% (2021: 38.1%) and 38.6% (2021: 31.6%) of net rental income, respectively, while investment properties in Estonia contributed 21.9% (2021: 25.9%).

Gross Asset Value (GAV)
At the end of 2022, the Fund’s GAV was EUR 344.0 million (31 December 2021: EUR 346.3 million), 0.7% lower than at the end of the previous period. The decrease is mainly related to a negative property revaluation of EUR 2.9 million. The Group made capital investments (EUR 5.7 million) in the Meraki office building development project during 2022. An additional EUR 4.6 million was invested in Europa reconstruction project and EUR 1.3 million in other (re)development projects.

Net Asset Value (NAV)
At the end of 2022, the Fund’s NAV slightly increased to EUR 133.7 million (31 December 2021: EUR 132.6 million). Compared to the year-end 2021 NAV, the Fund’s NAV increased by 0.8%. The increase in operational performance, positive cash flow hedge reserve movement of EUR 2.5 million over the period was partially offset by a EUR 5.4 million dividend distribution to the unitholders. As of 31 December 2022, IFRS NAV per unit rose to EUR 1.1172 (31 December 2021: EUR 1.1082), while EPRA net tangible assets and EPRA net reinstatement value was EUR 1.1865 per unit (31 December 2021: EUR 1.1884). EPRA net disposal value was EUR 1.1143 per unit (31 December 2021: EUR 1.1086).

Investment properties
The Baltic Horizon Fund portfolio consisted of 15 cash flow generating investment properties in the Baltic capitals as of 31 December 2022. The fair value of the Fund’s portfolio was EUR 333.1 million (31 December 2021: EUR 327.4 million) and incorporated a total net leasable area of 151,870 sq. m.  The first tower of the Meraki office building was commissioned in September 2022, which added additional area to the Fund’s portfolio.  

Interest-bearing loans and bonds
During 2022, interest-bearing loans and bonds (excluding lease liabilities) were EUR 194.6 million, remaining at a level similar to year-end 2021 (31 December 2021: EUR 198.6 million). Outstanding bank loans decreased slightly due to repayment of part of the Europa loan, the Meraki bond and regular bank loan amortisation. Annual loan amortisation accounted for 0.7% of total debt outstanding.

During Q4 2022, the Group successfully extended its Lincona and Duetto bank loans with the same banks. The bank’s credit committee approved the extension of the Lincona loan in the amount of EUR 7.2 million until 2027 December. The Duetto loan was increased in the amount of EUR 4.0 million. At the end of 2022, the Fund received binding offers for CC Plaza and Postimaja, Duetto and Sky SC bank loan prolongations. Therefore, these bank loans were reclassified to long-term loans. The Fund has also started the procedures for refinancing the 5-year unsecured bonds maturing in May 2023. Various refinancing options are being considered to ensure the finest financing terms for Baltic Horizon investors. It is planned that a part of the bonds will be redeemed using proceeds from asset sales and additional bank loans taken by Group companies. A new bond issue as well as a private debt are being considered for the remaining part of the bonds.

As of 31 December 2022, 80.3% of total debt was hedged against interest rate risks while the remaining 19.7% had floating interest rates. The Fund hedges interest rates on a portion of its debt by acquiring IRS-type hedging instruments or limits the impact of rising interest rates with interest rate cap instruments (CAP).

Key earnings figures

EUR ‘00020222021Change (%)
Net rental income17,430 17,004 2.5%
Administrative expenses(3,133)(2,869) (9.2%)
Other operating income 278 444  (37.4%)
Losses on disposal of investment properties(423)(71)(495.8%)
Valuation losses on investment properties(2,914)(7,161)59.3%
Operating profit11,238 7,347 53.0%
Net financing costs(6,311)(5,705) (10.6%)
Profit before tax4,927 1,642 200.1%
Income tax(983)(229)(329.3%)
Net profit for the period3,944 1,413 179.1%
Weighted average number of units outstanding (units)119,635,429 119,635,429 -
Earnings per unit (EUR)0.03 0.01 200.0%

Key financial position figures

EUR ‘00031.12.202231.12.2021Change (%)
Investment properties in use333,123315,9595.4%
Investment property under construction-11,400 (100.0%)
Gross asset value (GAV)343,963346,338 (0.7%)
Interest bearing loans and bonds194,569198,571 (2.0%)
Total liabilities210,308213,754 (1.6%)
IFRS Net asset value (IFRS NAV)133,655132,5840.8%
EPRA Net Reinstatement Value (EPRA NRV) 141,943142,176 (0.2%)
Number of units outstanding (units)119,635,429119,635,429-
IFRS Net asset value (IFRS NAV) per unit (EUR)1.11721.10820.8%
EPRA Net Reinstatement Value (EPRA NRV) per unit (EUR)1.18651.1884 (0.2%)
Loan-to-Value ratio (%)58.40%60.70%-
Average effective interest rate (%)3.00%2.70%-

During 2022, the average actual occupancy of the portfolio was 92.1% (2021: 93.4%). The occupancy rate as of 31 December 2022 was 90.5% (31 December 2021: 92.1%). The overall occupancy rate was impacted by the completion of the development of the first tower of the Meraki building. The first tenants moved to the premises in September 2022. As of December 2022, the occupancy rate of the portfolio, excluding the impact of the Meraki building, increased to 93.3% Occupancy figures were supported by new lease agreements signed in Europa SC, North Star and Vainodes I. Additional premises of almost 500 and 200 sq. m were leased to the existing tenants in Vainodes I and North Star buildings respectively in Q4 2022.

Property nameSectorFair value1 (EUR ‘000) NLA (sq. m) Direct property yield2Net initial yield3Occupancy rate
Vilnius, Lithuania
Duetto IOffice18,8458,5877.9%6.6%97.6%
Duetto IIOffice20,2538,6747.6%7.0%100.0%
Europa SCRetail35,65816,9012.4%2.6%85.5%
Domus Pro Retail ParkRetail17,04711,2268.1%7.8%98.5%
Domus Pro OfficeOffice8,0404,8318.5%6.9%91.4%
North StarOffice21,78810,5796.5%6.5%100.0%
Meraki4Office17,330        8,113  (1.6%) (1.8%)30.9%
Total Vilnius138,96168,9115.4%5.3%87.2%
Riga, Latvia
Upmalas Biroji BCOffice20,96110,4597.3%8.0%98.8%
Vainodes IOffice18,0108,1286.4%7.6%100.0%
LNK CentreOffice17,0007,4526.6%6.6%100.0%
Sky SCRetail5,7613,2418.3%7.8%98.5%
Galerija CentrsRetail67,13019,1372.9%3.3%80.6%
Total Riga128,86248,4174.8%5.4%92.0%
Tallinn, Estonia
Postimaja & CC Plaza complexRetail26,7159,2323.3%4.3%95.6%
Postimaja & CC Plaza complexLeisure14,3859,0947.2%6.0%100.0%
Pirita SCRetail9,0005,4415.3%7.1%92.6%
Total Tallinn65,30034,5425.0%5.6%95.0%
Total portfolio333,123151,8705.1%5.4%90.5%
  1. Based on the latest valuation as of 31 December 2022, subsequent capital expenditure and recognised right-of-use assets,  
  2. Direct property yield (DPY) is calculated by dividing annualized NOI by the acquisition value and subsequent capital expenditure of the property.
  3. The net initial yield (NIY) is calculated by dividing annualized NOI by the market value of the property.
  4. The Fund completed the development of the first tower of the Meraki building in September 2022. Rental income is generated starting from October 2022.


EUR ‘00020222021
Rental income20,482 19,495
Service charge income5,974 4,901
Cost of rental activities(9,026)(7,392)
Net rental income17,430 17,004
Administrative expenses(3,133)(2,869)
Other operating income278 444
Losses on disposal of investment properties(423)(71)
Valuation losses on investment properties(2,914)(7,161)
Operating profit11,238 7,347
Financial income1 1
Financial expenses(6,312)(5,706)
Net financing costs(6,311)(5,705)
Profit before tax4,927 1,642
Income tax charge(983)(229)
Profit before tax3,944 1,413
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gain on cash flow hedges2,746 898
Income tax relating to net loss on cash flow hedges(236)(66)
Other comprehensive expense, net of tax, that is or may be reclassified to profit or loss in subsequent periods2,510 832
Total comprehensive income for the period, net of tax6,454 2,245
Basic and diluted earnings per unit (EUR)0.030.01


EUR ‘00031.12.202231.12.2021
Non-current assets
Investment properties333,123 315,959
Investment property under construction- 11,400
Intangible assets6 9
Property, plant and equipment1 2
Derivative financial instruments2,228 -
Other non-current assets- 23
Total non-current assets335,358 327,393
Current assets
Trade and other receivables2,693 2,708
Prepayments273 137
Derivative financial instruments292 -
Cash and cash equivalents5,347 16,100
Total current assets8,605 18,945
Total assets343,963 346,338
Paid in capital145,200 145,200
Cash flow hedge reserve1,681 (829)
Retained earnings (13,226)(11,787)
Total equity133,655 132,584
Non-current liabilities
Interest-bearing loans and borrowings124,017 157,471
Deferred tax liabilities7,490 6,297
Derivative financial instruments- 756
Other non-current liabilities1,240 1,103
Total non-current liabilities132,747 165,627
Current liabilities
Interest-bearing loans and borrowings71,094 41,676
Trade and other payables5,644 5,223
Income tax payable10 5
Derivative financial instruments- 109
Other current liabilities813 1,114
Total current liabilities77,561 48,127
Total liabilities210,308 213,754
Total equity and liabilities343,963 346,338

For more information, please contact: 

Tarmo Karotam
Baltic Horizon Fund manager

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,

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 00:10 EET on 1 April 2023.


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