Baltic Horizon Fund Financial Overview for Q3 2025
The Management Board of Baltic Horizon Capital AS has released its unaudited financial results for the Baltic Horizon Fund, covering the nine-month period of 2025. This reflects not only operating performance but also the significant changes that have recently been implemented in management and ownership.
Operational Changes and Equity Needs
As part of a strategic restructuring, the Fund's management has cited a need for approximately EUR 25 million in new equity. This funding is essential for settling existing bonds and initiating asset enhancement projects within the current investment portfolio. Throughout November, the management has committed to informing existing unitholders about the terms of a new offering scheduled to start in January, contingent on unitholder approval.
Current Portfolio Performance
During the first three quarters of 2025, the Baltic Horizon Fund successfully leased out 12,500 square meters of property. Additionally, leases covering approximately 7,150 square meters have been extended. A total of 48 new tenants have joined the portfolio, strategically replacing existing tenants where necessary. As of the end of September, the occupancy rate reached 85.6%, an improvement compared to previous quarters.
Leasing Activity and Future Projections
Current trends indicate a growing occupancy rate, with approximately 10% of leases set to expire in the coming months, necessitating timely renewals and re-lettings. The weighted average unexpired lease term increased to 3.8 years by September 30, 2025, reflecting effective management initiatives.
GRESB Engagement
In 2025, the Baltic Horizon Fund achieved a commendable 4-star rating as part of the Global Real Estate Sustainability Benchmark (GRESB), showcasing its commitment to sustainability and responsible investment practices.
Financial Performance Summary
For the period of Q1 to Q3 in 2025, the Group reported a net loss of EUR 959 thousand. This figure indicates a significant improvement from the net loss of EUR 13,399 thousand recorded during the same timeframe in 2024. Notably, when excluding the prior year's interim valuation loss, the previous year’s net loss was EUR 870 thousand. The loss this year was primarily attributed to disposals of investment properties.
Rental Income and Financial Metrics
The group generated consolidated net rental income of EUR 8.7 million in Q1-Q3 2025, marginally down from EUR 8.9 million in the previous year, partly due to an increase in the reserve for bad debts as a cautious approach to debtor risk management.
Investment Properties Status
By September 30, 2025, the portfolio comprised 11 investment properties, with a fair value assessed at EUR 228.3 million, down from EUR 241.2 million at the end of 2024. During the year, about EUR 3.4 million was invested in tenant improvements, highlighting active portfolio management.
Asset Valuation Insights
The Gross Asset Value (GAV) for the Fund stood at EUR 237.7 million, a reminder of the impacts of recent property sales. The Net Asset Value (NAV) diminished to EUR 97.2 million, largely due to the losses from property disposals.
Debt Management Overview
As of September 30, 2025, interest-bearing debts amounted to EUR 134.5 million. The total cash and equivalents were recorded at EUR 6.0 million, down from EUR 10.1 million at the end of the previous year. These metrics underline the importance of managing liabilities effectively moving forward.
Key Earnings Figures
The report did present an array of important fiscal details, which include:
- Net Rental Income: EUR 8,709,000
- Administrative Expenses: EUR (1,519,000)
- Losses on Disposal: EUR (1,350,000)
- Net Profit (Loss) for the Period: EUR (959,000)
Future Outlook
As we move toward the end of 2025, Baltic Horizon Capital AS and the Baltic Horizon Fund remain focused on enhancing portfolio performance and improving occupancy rates while managing the financial repercussions of its transition. The forthcoming months will be crucial as the fund seeks to stabilize and regain cash distribution capabilities.
Conclusion and Additional Resources
The Baltic Horizon Fund continues to adapt to the evolving market and economic conditions while prioritizing stakeholder interests. For any inquiries, please reach out to Tarmo Karotam, Fund Manager at Baltic Horizon. For further information about our projects and updates, visit the official website.
Frequently Asked Questions
What is Baltic Horizon Fund?
The Baltic Horizon Fund is a public closed-end real estate fund managed by Baltic Horizon Capital AS, focusing on the Baltic region's property market.
What were the key financial results for Q3 2025?
The Fund reported a net loss of EUR 959 thousand and a consolidated net rental income of EUR 8.7 million.
How has leasing performance changed?
Approximately 12,500 sq. m. has been newly leased, and occupancy rates have improved, reaching 85.6% by the end of September.
What challenges does the Fund face?
Currently, the Fund is focused on managing existing debt and enhancing asset performance while adapting to market trends.
Who can be contacted for more information?
Tarmo Karotam, the Fund Manager, can be reached for inquiries related to the Fund's performance and future strategies.
