Management Board of Baltic Horizon Capital AS has approved the unaudited financial results of Baltic Horizon Fund (the Fund) for the six months of 2026.
The Fund returned to profit in the first half of 2026, its first profitable half year since 2022. Net profit for H1 2026 was EUR 698 thousand, against a loss of EUR 891 thousand in H1 2025. The turn came mainly from the EUR 12.3 million equity injection completed in March and the EUR 7.5 million of bonds repaid ahead of schedule, which cut the Fund’s interest cost for the rest of the period: financial expenses fell to EUR 4,049 thousand from EUR 5,068 thousand.
On a like-for-like basis, excluding the disposal of Meraki, net operating income rose slightly from EUR 5,881 thousand to EUR 6,086 thousand against the same period last year. During H1 the Fund moved to a more conservative approach to bad debt provisioning and now provides against every tenant debt where a payment problem has been notified, an accrual of EUR 335 thousand for H1 2026. All of the tenants concerned are engaged and the property teams are working closely to clear their arrears. Even carrying that provision in full, and with Meraki out of the comparison, NOI was ahead of last year.
Fund overheads have been cut back to only the essential costs the Fund needs to operate. Management is targeting a run rate for overheads, excluding the management fee and one-off items, of around EUR 100 thousand per quarter, or EUR 400 thousand a year, against approximately EUR 207 thousand a quarter in 2025. That level has not been reached yet, but the Fund is moving towards it. Administrative expenses for the six months of 2026 were EUR 1,026 thousand against EUR 1,069 thousand in H1 2025, and still carry EUR 124 thousand of write-offs relating to accruals from 2025.
Occupancy moved compared with Q4 2025 for two reasons. SKAI Baltija, the grocery anchor at Hipokrata SC, went bankrupt, and Swedbank left Lincona, which leaves that building at 61.2% occupancy. The Hipokrata SC anchor tenant has since been replaced.
The new management has also recognised a valuation loss of EUR 320 thousand arising from legacy lease incentives and capital expenditure that had been booked to other balance sheet lines. Property values were adjusted for these legacy lease costs, and the balance sheet is now clear of such items from earlier periods. With that, the clean-up of legacy accounting issues is complete, including the provisions for doubtful receivables and the accrual and expensing of broker fees.
The Management Board, with the approval of the Supervisory Board, decided not to commission mid-year valuations. The money is better spent on asset improvements, and in management’s view the value of the Fund’s assets has not changed materially since the year-end exercise. The portfolio will be revalued at the end of 2026.
As communicated before, the management team is determined to complete the repayment of the remaining bonds, EUR 11.5 million, during 2026.
Overview of the Fund’s investment properties as of 30 June 2026
| Property name | Sector | Fair value1 | NLA | Net initial yield | Occupancy rate |
| (EUR ‘000) | (sq. m) | Q2 20262 | |||
| Galerija Centrs | Retail | 58,362 | 19,959 | 4.9% | 87.3% |
| Postimaja and Apollo Plaza complex | Retail | 34,584 | 17,109 | 7.2% | 99.9% |
| Europa SC | Retail | 32,358 | 17,447 | 4.8% | 80.8% |
| North Star | Office | 18,781 | 10,706 | 7.6% | 92.5% |
| Upmalas Biroji BC | Office | 14,617 | 11,095 | 6.1% | 56.6% |
| Vainodes I | Office | 12,485 | 8,128 | 7.4% | 100.0% |
| S27 | Office | 12,412 | 7,348 | 3.2% | 64.5% |
| Lincona | Office | 11,423 | 10,767 | 5.1% | 61.2% |
| Pirita SC | Retail | 10,050 | 5,425 | 7.7% | 92.8% |
| Hipokrata SC | Retail | 4,701 | 3,260 | 5.5% | 79.4% |
| Total portfolio | 209,773 | 111,244 | 5.8% | 82.6% |
- 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 | ||||||||
| 01.04.2026 – 30.06.2026 |
01.04.2025 – 30.06.2025 |
01.01.2026 – 30.06.2026 |
01.01.2025 – 30.06.2025 |
|||||
| Rental income | 3,900 | 3,734 | 7,546 | 7,528 | ||||
| Service charge income | 1,254 | 1,217 | 2,513 | 2,549 | ||||
| Cost of rental activities | (2,077) | (1,843) | (3,973) | (3,999) | ||||
| Net rental income | 3,077 | 3,108 | 6,086 | 6,078 | ||||
| Administrative expenses | (518) | (521) | (1,026) | (1,069) | ||||
| Other operating income | 22 | 8 | 22 | 26 | ||||
| Losses on disposal of investment properties | – | (191) | – | (1,096) | ||||
| Valuation losses on investment properties | (315) | (4) | (320) | (9) | ||||
| Operating profit (loss) | 2,266 | 2,400 | 4,762 | 3,930 | ||||
| Financial income | 21 | 18 | 31 | 60 | ||||
| Financial expenses | (1,821) | (2,353) | (4,049) | (5,068) | ||||
| Net financial expenses | (1,800) | (2,335) | (4,018) | (5,008) | ||||
| Profit (loss) before tax | 466 | 65 | 744 | (1,078) | ||||
| Income tax charge | (5) | 12 | (46) | 187 | ||||
| Profit (loss) for the period | 461 | 77 | 698 | (891) | ||||
| Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods | ||||||||
| Net gain (loss) on cash flow hedges | (72) | (109) | 293 | (58) | ||||
| Income tax relating to net gain (loss) on cash flow hedges | – | (2) | – | (7) | ||||
| Other comprehensive profit (loss), net of tax, that is or may be reclassified to profit or loss in subsequent periods | (72) | (111) | 293 | (65) | ||||
| Total comprehensive profit (loss) for the period, net of tax | 389 | (34) | 991 | (956) | ||||
| Basic earnings per unit (EUR) | 0.00 | 0.00 | 0.00 | (0.01) | ||||
| Diluted earnings per unit (EUR) | 0.00 | 0.00 | 0.00 | (0.01) | ||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR ‘000 | 30.06.2026 | 31.12.2025 |
| Non-current assets | ||
| Investment properties | 209,773 | 208,940 |
| Property, plant and equipment | 7 | 7 |
| Derivative financial instruments | 107 | – |
| Other non-current assets | 12 | 242 |
| Total non-current assets | 209,899 | 209,189 |
| Current assets | ||
| Trade and other receivables | 1,212 | 1,760 |
| Prepayments | 471 | 294 |
| Cash and cash equivalents | 8,770 | 5,377 |
| Total current assets | 10,453 | 7,431 |
| Total assets | 220,352 | 216,620 |
| Equity | ||
| Paid in capital | 163,765 | 151,495 |
| Cash flow hedge reserve | 107 | (186) |
| Retained earnings | (72,361) | (73,059) |
| Total equity | 91,511 | 78,250 |
| Non-current liabilities | ||
| Interest-bearing loans and borrowings | 117,249 | 77,443 |
| Deferred tax liabilities | 690 | 644 |
| Derivative financial instruments | – | 186 |
| Other non-current liabilities | 1,309 | 1,110 |
| Total non-current liabilities | 119,248 | 79,383 |
| Current liabilities | ||
| Interest-bearing loans and borrowings | 7,034 | 55,842 |
| Trade and other payables | 2,253 | 2,729 |
| Income tax payable | – | 14 |
| Other current liabilities | 306 | 402 |
| Total current liabilities | 9,593 | 58,987 |
| Total liabilities | 128,841 | 138,370 |
| Total equity and liabilities | 220,352 | 216,620 |
For additional information, please contact:
Edvinas Karbauskas
Baltic Horizon Fund manager
E-mail edvinas.karbauskas@baltichorizon.com
www.baltichorizon.com
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.
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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 18:30 EET on 6 August 2026.
