(MENAFN- GlobeNewsWire - Nasdaq) Management Board of Baltic Horizon Capital AS (previously Northern Horizon Capital AS) has approved the unaudited financial results of Baltic Horizon Fund (the Fund) for the nine months of 2025.

The Fund reports on its 9 months of operations in 2025 under the new composition of its management board as well as the new ownership of its management company which are effective from 30 October 2025. In connection with this change of ownership, the management company has changed its name to Baltic Horizon Capital AS.

The management estimates that approximately EUR 25 million in new equity is required to enable full repayment of the bonds and funding asset enhancement projects on the current portfolio. Over the course of November, the management will communicate to the market the terms of the new units offering which will be intended for the existing unitholders of the Fund. Subject to the approval of the unitholders' meeting, this offering will be commenced in January already.

Until the bonds are not repaid in full, necessary asset enhancements are not implemented - the Fund will not have the capacity to distribute any cash to the unitholders. It is therefore unlikely that any distributions would restart anytime soon.

Leasing performance
During the 9 months of 2025, the Fund handed over approx. 12,500 sq. m. of newly leased out premises. Moreover, leases of approx. 7,150 sq. m. were prolonged. 48 new tenants have been attracted to our buildings, in many cases to replace more problematic ones, while 28 existing tenants have decided to continue their cooperation with us.

As of the end of September 2025, the portfolio occupancy rate based on handover date stood at 85.6%, while occupancy calculated according to lease signing date reached 87.7%. Still, around 10% of leases during the next 3 months are set to expire therefore respective prolongations and relettings are of utmost urgency.

Recent leasing activity is reflected in the increase in the weighted average unexpired lease term until the first break option, which was 3.8 years as of 30 September 2025 (compared to 3.3 years as of 31 December 2024).

GRESB benchmarking
In 2025 the Fund received a 4-star GRESB rating.

Net result and net rental income
In Q1-Q3 2025, the Group recorded a net loss of EUR 959 thousand compared with a net loss of EUR 13,399 thousand for Q1-Q3 2024. Excluding last year's interim valuation loss, net loss for the prior year period was EUR 870 thousand. The result was mainly driven by the losses on disposal of investment properties. Earnings per unit for Q1-Q3 2025 were negative at EUR 0.01 (Q1-Q3 2024: negative at EUR 0.09).

The Group earned consolidated net rental income of EUR 8.7 million in Q1-Q3 2025 (Q1-Q3 2024: 8.9 million). The results for Q1-Q3 2025 include two months of net rental income of the Meraki office property (EUR 0.2 million), which was sold on 13 March 2025. A slight decline in net rental income year-on-year primarily reflects a higher allowance for bad debts recognised as part of a more conservative debtor risk management approach.

Investment properties
At the end of Q3 2025, the Baltic Horizon Fund portfolio consisted of 11 investment properties in the Baltic capitals. The fair value of the Fund's portfolio was EUR 228.3 million at the end of September 2025 (31 December 2024: EUR 241.2 million) and incorporated a total net leasable area of 111.5 thousand sq. m. During Q1-Q3 2025 the Group invested approximately EUR 3.4 million in tenant fit-outs.

Gross Asset Value (GAV)
As of 30 September 2025, the Fund's GAV was EUR 237.7 million (31 December 2024: EUR 256.0 million). The decrease compared to the prior year was mainly related to the disposal of the Meraki office building, which had contributed approx. EUR 16.4 million to the GAV.

Net Asset Value (NAV)
As of 30 September 2025, the Fund's NAV was EUR 97.2 million (31 December 2024: EUR 98.1 million). The NAV decrease was mainly due to losses on disposal of Meraki. As of 30 September 2025, IFRS NAV per unit amounted to EUR 0.6773 (31 December 2024: EUR 0.6833), while EPRA net tangible assets and EPRA net reinstatement value were EUR 0.7224 per unit (31 December 2024: EUR 0.7267). EPRA net disposal value was EUR 0.6745 per unit (31 December 2024: EUR 0.6797).

Interest-bearing loans and bonds
As of 30 September 2025, interest-bearing loans and bonds (excluding lease liabilities) were EUR 134.5 million (31 December 2024: EUR 149.0 million).

As of 30 September 2025, the Fund's consolidated cash and cash equivalents amounted to EUR 6.0 million (31 December 2024: EUR 10.1 million).

Cash flow
Cash inflow from core operating activities in Q1-Q3 2025 amounted to EUR 5.8 million (Q1-Q3 2024: cash inflow of EUR 6.6 million). Cash inflow from investing activities was EUR 11.8 million (Q1-Q3 2024: cash outflow of EUR 4.3 million) mainly due to the sale of Meraki in March 2025 for EUR 16 million and higher capital expenditure on investment properties. Cash outflow from financing activities was EUR 21.6 million (Q1-Q3 2024: cash inflow of EUR 1.5 million). In Q1-Q3 2025, the Fund repaid the BH Novus UAB (previously BH Meraki UAB) loan amounting to EUR 10.3 million, redeemed early bonds in the amount of EUR 3 million, prepaid EUR 1.7 million of loans, and paid regular amortisation and interest on bank loans and bonds.

Key earnings figures

EUR '000	Q1-Q3 2025	Q1-Q3 2024	Change (%)
Net rental income	8,709	8,869	(1.8%)
Administrative expenses	(1,519)	(1,729)	(12.1%)
Other operating income (expenses)	39	15	160.0%
Losses on disposal of investment properties	(1,350)	(618)	118.4%
Valuation losses on investment properties	(13)	(12,529)	(99.9%)
Operating (loss) profit	5,866	(5,992)	197.9%
Net financial expenses	(7,061)	(7,724)	(8.6%)
(Loss) profit before tax	(1,195)	(13,716)	(91.3%)
Income tax	236	317	(25.6%)
Net (loss) profit for the period	(959)	(13,399)	(92.8%)
Weighted average number of units outstanding (units)	143,562,514	143,562,514	-
Earnings per unit (EUR)	(0.01)	(0.09)	(88.9%)

Key financial position figures

EUR '000	30.09.2025	31.12.2024	Change (%)
Investment properties in use	228,320	241,158	(5.3%)
Gross asset value (GAV)	237,694	256,048	(7.2%)
Interest-bearing loans and bonds	134,475	148,989	(9.7%)
Total liabilities	140,465	157,953	(11.1%)
IFRS Net asset value (IFRS NAV)	97,229	98,095	(0.9%)
EPRA Net Reinstatement Value (EPRA NRV)	103,714	104,333	(0.6%)
Number of units outstanding (units)	143,562,514	143,562,514	-
IFRS Net asset value (IFRS NAV) per unit (EUR)	0.6773	0.6833	(0.9%)
EPRA Net Reinstatement Value (EPRA NRV) per unit (EUR)	0.7224	0.7267	(0.6%)
Loan-to-Value ratio (%)	60.1%	61.8%	(1.7%)
Average effective interest rate (%)	6.2%	6.7%	(0.5%)

During Q3 2025, the average actual occupancy of the portfolio was 84.9% (Q2 2025: 82.6%). The occupancy rate increased to 85.6% as of 30 September 2025 (30 June 2025: 84.2%).

Overview of the Fund's investment properties as of 30 September 2025

Property name	Sector	Fair value1	NLA	Direct property yield	Net initial yield	Occupancy rate
(EUR '000)	(sq. m)	20252	20253
Vilnius, Lithuania
Europa SC	Retail	36,521	17,530	1.7%	2.0%	71.8%
North Star	Office	19,688	10,706	5.7%	6.2%	93.2%
Total Vilnius		56,209	28,236	3.0%	3.7%	79.9%
Riga, Latvia
Upmalas Biroji BC	Office	19,274	11,175	3.8%	4.8%	64.3%
Vainodes I	Office	16,000	8,128	6.1%	8.4%	100.0%
LNK Centre	Office	12,830	7,348	(1.0%)	(1.6%)	58.4%
Sky SC	Retail	4,913	3,260	8.4%	9.0%	100.0%
Galerija Centrs	Retail	61,119	20,016	3.5%	4.6%	89.0%
Total Riga		114,136	49,927	3.5%	4.7%	81.4%
Tallinn, Estonia
Postimaja & CC Plaza complex	Retail	21,876	9,232	3.5%	5.9%	100.0%
Postimaja & CC Plaza complex	Leisure	13,196	7,877	7.2%	6.5%	100.0%
Lincona	Office	13,110	10,767	6.9%	8.5%	92.4%
Pirita SC	Retail	9,793	5,425	6.6%	8.5%	94.5%
Total Tallinn		57,975	33,301	5.3%	7.1%	96.6%
Total portfolio		228,320	111,464	3.9%	5.0%	85.6%

Based on the latest valuation as of 31 December 2024, recognised right-of-use assets and subsequent capital expenditure.

Direct property yield (DPY) is calculated by dividing annualized NOI by the acquisition value and subsequent capital expenditure of the property.

The net initial yield (NIY) is calculated by dividing annualized NOI by the market value of the property.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

EUR '000
01.07.2025 - 30.09.2025	01.07.2024 - 30.09.2024
Rental income	3,833	3,690
Service charge income	1,233	1,236
Cost of rental activities	(2,435)	(2,040)
Net rental income	2,631	2,886
Administrative expenses	(450)	(615)
Other operating income	13	31
Losses on disposal of investment properties	(254)	(171)
Valuation losses on investment properties	(4)	(5)
Operating profit (loss)	1,936	2,126
Financial income	5	8
Financial expenses	(2,058)	(2,597)
Net financial expenses	(2,053)	(2,589)
Profit (loss) before tax	(117)	(463)
Income tax charge	49	(87)
Profit (loss) for the period	(68)	(550)
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gain (loss) on cash flow hedges	159	(238)
Income tax relating to net gain (loss) on cash flow hedges	(1)	17
Other comprehensive income (expense), net of tax, that is or may be reclassified to profit or loss in subsequent periods	158	(221)
Total comprehensive income (expense) for the period, net of tax	90	(771)
Basic and diluted earnings per unit (EUR)	(0.00)	(0.00)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR '000		30.09.2025	31.12.2024
Non-current assets
Investment properties		228,320	241,158
Intangible assets		-	4
Property, plant and equipment		1	5
Derivative financial instruments		-	1
Other non-current assets		941	1,225
Total non-current assets		229,262	242,393
Current assets
Trade and other receivables		2,005	2,800
Prepayments		407	802
Cash and cash equivalents		6,020	10,053
Total current assets		8,432	13,655
Total assets		237,694	256,048
Equity
Paid in capital		151,495	151,495
Cash flow hedge reserve		(327)	(420)
Retained earnings		(53,939)	(52,980)
Total equity		97,229	98,095
Non-current liabilities
Interest-bearing loans and borrowings		110,296	98,491
Deferred tax liabilities		1,684	1,898
Derivative financial instruments		273	-
Other non-current liabilities		1,179	1,446
Total non-current liabilities		113,432	101,835
Current liabilities
Interest-bearing loans and borrowings		24,408	50,736
Trade and other payables		2,306	4,473
Income tax payable		-	14
Derivative financial instruments		-	317
Other current liabilities		319	578
Total current liabilities		27,033	56,118
Total liabilities		140,465	157,953
Total equity and liabilities		237,694	256,048

For more information, please contact:

Tarmo Karotam
Baltic Horizon Fund Manager
E-mail:...

The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Baltic Horizon Capital AS.

Distribution: GlobeNewswire, Nasdaq Tallinn,

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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 17:30 EET on 07 November 2025.

Attachment

• 2025 Q3 report EN

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