Baltic Horizon Fund Consolidated Unaudited Results For Q1 2026

(MENAFN- GlobeNewsWire - Nasdaq) Management Board of Baltic Horizon Capital AS has approved the unaudited financial results of Baltic Horizon Fund (the Fund) for the three months of 2026.

With the injection of EUR 12.3 million of new equity completed in March 2026, ahead of significant increase in macroeconomic turbulence, the Fund has secured sufficient liquidity from its current investors to continue its operations and repaid ahead of the schedule EUR 7.5 million of the bonds. As communicated before, the management team is determined to complete the repayment of the remaining bonds (EUR 11.5 million) during 2026, preferably from the property disposals.

At the time of this report, the three properties intended for disposal - Pirita Keskus, Hipokrata Center (ex-Sky SC) and North Star - each have prospective buyers in various phases of engagement, and the management believes that at least one of the three will be successfully disposed during the summer.

The Fund's profit for Q1 2026 amounted EUR 237 thousand. However, this includes EUR 286 thousand in one-off costs from new equity issuance and early bond prepayments. Excluding these one-offs and non-cash items the adjusted net result was EUR 601 thousand.

As of the start of the year most of the properties are managed by the organization directly employed by the subsidiaries of the fund which will start having positive effect on the property costs (benefiting both the Fund and its tenants) and debt collection levels. Even more important, this dedicated organisation operates exclusively in the interest of Baltic Horizon, with no competing economic interests, ensuring full alignment with the Fund's immediate and long-term objectives.

The overheads of the fund have also been reduced to the bare minimum, and as of Q2 2026 onwards the cost base of fund overheads (excluding fund management fee and one-off items such as new equity issue) is projected to be at the level of EUR 100 thousand per quarter (compared to approx. EUR 207 thousand a year ago).

As part of ongoing efforts to streamline reporting, the fund has simplified its segment structure. Effective from this report, business segments are presented on a country basis (office, retail and leisure are thus discontinued).

Most of the legacy accounting issues (such as provisions for doubtful receivables, accrual and expending of broker fees, etc.) are resolved by now. One of the larger items with uncertain prospect of effective utilization is deferred tax asset (and deferred tax liabilities) kept on the consolidated accounts at the net value of EUR 1.4 million as of the end of the quarter and relating to the corporate tax accounting matters in the Lithuanian subsidiaries. Given the uncertainty surrounding the future utilisation of these deferred tax assets, it is likely that this item will be derecognised during 2026.

Effective 1 April 2026, Edvinas Karbauskas was appointed to the Management Board as Co-Fund Manager. Following the departure of Tarmo Karotam, Edvinas Karbauskas assumed the role of Chairman of the Management Board and Fund Manager effective 1 May 2026. The Management Board currently comprises two members: Edvinas Karbauskas and Gerda Bliuvienė.

Going forward, this management has one top priority to deliver on - attracting and retaining tenants in each of the properties of the Fund. Current level of occupancy across the portfolio is unsatisfactory. Success in this area will determine the future strategic options available for the fund, and the potential of restoring profitable operations for the benefit of the unitholders.

Overview of the Fund's investment properties as of 31 March 2026

Property name	Sector	Fair value1	NLA	Net initial yield	Occupancy rate
(EUR '000)	(sq. m)	Q1 20262
Galerija Centrs	Retail	58,357	19,948	4.9%	86.9%
Postimaja and Apollo Plaza complex	Retail	34,576	17,109	6.6%	100.0%
Europa SC	Retail	32,172	17,447	5.3%	83.0%
North Star	Office	18,779	10,706	7.4%	92.7%
Upmalas Biroji BC	Office	14,608	11,095	5.4%	56.6%
Vainodes I	Office	12,432	8,128	7.3%	100.0%
S27	Office	12,344	7,348	3.2%	64.5%
Lincona	Office	11,418	10,767	4.6%	63.2%
Pirita SC	Retail	10,050	5,425	7.6%	93.9%
Hipokrata SC	Retail	4,701	3,260	9.1%	100.0%
Total portfolio		209,437	111,233	5.7%	83.8%

Based on the latest valuation as of 31 December 2025, recognised right-of-use assets and subsequent capital expenditure.

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
01.01.2026 - 31.03.2026	01.01.2025 - 31.03.2025
Rental income	3,646	3,794
Service charge income	1,259	1,332
Cost of rental activities	(1,896)	(2,156)
Net rental income	3,009	2,970
Administrative expenses	(508)	(548)
Other operating income	-	18
Losses on disposal of investment properties	-	(905)
Valuation losses on investment properties	(5)	(5)
Operating profit (loss)	2,496	1,530
Financial income	10	42
Financial expenses	(2,228)	(2,715)
Net financial expenses	(2,218)	(2,673)
Profit (loss) before tax	278	(1,143)
Income tax charge	(41)	175
Profit (loss) for the period	237	(968)
Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
Net gain (loss) on cash flow hedges	365	51
Income tax relating to net gain (loss) on cash flow hedges	-	(5)
Other comprehensive profit (loss), net of tax, that is or may be reclassified to profit or loss in subsequent periods	365	46
Total comprehensive profit (loss) for the period, net of tax	602	(922)
Basic earnings per unit (EUR)	0.00	(0.01)
Diluted earnings per unit (EUR)	0.00	(0.01)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR '000	31.03.2026	31.12.2025
Non-current assets
Investment properties	209,437	208,940
Property, plant and equipment	7	7
Derivative financial instruments	179	-
Other non-current assets	154	242
Total non-current assets	209,777	209,189
Current assets
Trade and other receivables	1,853	1,760
Prepayments	569	294
Cash and cash equivalents	9,835	5,377
Total current assets	12,257	7,431
Total assets	222,034	216,620
Equity
Paid in capital	163,765	151,495
Cash flow hedge reserve	179	(186)
Retained earnings	(72,822)	(73,059)
Total equity	91,122	78,250
Non-current liabilities
Interest-bearing loans and borrowings	117,973	77,443
Deferred tax liabilities	685	644
Derivative financial instruments	-	186
Other non-current liabilities	1,209	1,110
Total non-current liabilities	119,867	79,383
Current liabilities
Interest-bearing loans and borrowings	8,311	55,842
Trade and other payables	2,368	2,729
Income tax payable	-	14
Other current liabilities	366	402
Total current liabilities	11,045	58,987
Total liabilities	130,912	138,370
Total equity and liabilities	222,034	216,620

For additional information, please contact:

Edvinas Karbauskas
Baltic Horizon Fund manager
E-mail ...

Baltic Horizon Fund is a registered contractual public closed-end real estate fund 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 17:25 EET on 7 May 2026.

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• 2026 Q1 report EN

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