As at 30 June 2017 the GAV of the Fund increased to EUR 170.9 million (EUR 169.0 million as at 31 March 2017). During Q2 the Fund successfully refinanced the Domus Pro property by fully repaying the existing bank loan. The Fund used its own cash to repay the loan and agreed to draw down the new loan once the funds are needed for the new acquisitions. 

As of 30 June 2017, the Fund NAV was EUR 86.2 million, compared to EUR 76.8 million as at 31 March 2017. The increase in NAV is mainly related to new capital raised during Q2 2017 and the performance of the Fund. 

During Q2 2017, the Fund recorded a net profit of EUR 1,542 thousand (EUR 8 thousand during Q2 2016). The net result was positively affected by the revaluation gains and the operational performance of the properties. However, the net profit was negatively affected by the costs of the secondary public offering. During Q2 2017, the Fund incurred EUR 171 thousand of non-recurring costs related to the secondary public offering (EUR 373 thousand during H1 2017).

In Q2 2017, the net rental operating income (NOI) earned by the Group amounted to EUR 2.7 million and was higher than in Q2 2016 when the Group earned EUR 1.5 million. Compared to Q2 2016, the increase in NOI is mainly related to rental income earned by the newly acquired properties.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Euro ‘000 01.04.2017-30.06.2017 01.04.2016-30.06.2016 01.01.2017-30.06.2017 01.01.2016-30.06.2016
         
Rental income 2,940 1,657 5,667 3,276
Service charge income 919 572 1,843 1,193
Cost of rental activities (1,177) (751) (2,302) (1,554)
Net rental income 2,682 1,478 5,208 2,915
         
Administrative expenses (670) (798) (1,400) (980)
Other operating income / (expenses) 78 13 78
Valuation gains / (loss) on investment properties 382 (441) 382 (441)
Valuation gains / (loss) on investment property under construction (43) (43)
Operating profit 2,351 317 4,160 1,572
         
Financial income 2 4 43 8
Financial expenses (443) (253) (775) (533)
Net financing costs (441) (249) (732) (525)
         
Profit before tax 1,910 68 3,428 1,047
Income tax charge (368) (60) (936) (175)
Profit for the period 1,542 8 2,492 872
         
Other comprehensive income to be reclassified to profit or loss in subsequent periods
 
Net gains (losses) on cash flow hedges 82 8 220 (29)
Termination of interest rate swap agreement 57 57
Income tax relating to net gains (losses) on cash flow hedges (23) (1) (40) 6
Other comprehensive income/ (expense), net of tax, to be reclassified to profit or loss in subsequent periods 116 7 237 (23)
         
Total comprehensive income/ (expense) for the period, net of tax 1,658 15 2,729 849

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Euro ‘000 30.06.2017  31.12.2016
     
Non-current assets    
Investment properties 157,274 141,740
Investment property under construction 3,390 1,580
Derivative financial instruments 6
Other non-current assets 77 288
Total non-current assets 160,747 143,608
     
Current assets    
Trade and other receivables 1,282 1,269
Prepayments 210 178
Cash and cash equivalents 8,628 9,883
Total current assets 10,120 11,330
Total assets 170,867 154,938
     
Equity    
Paid in capital 75,597 66,224
Own units (8)
Cash flow hedge reserve (57) (294)
Retained earnings  10,688 10,887
Total equity 86,228 76,809
     
Non-current liabilities    
Interest bearing loans and borrowings 65,932 58,981
Deferred tax liabilities 5,380 4,383
Derivative financial instruments 74 345
Other non-current liabilities 849 935
Total non-current liabilities 72,235 64,644
     
Current liabilities    
Interest bearing loans and borrowings 9,004 10,191
Trade and other payables 3,039 2,876
Income tax payable 24 46
Other current liabilities 337 372
Total current liabilities 12,404 13,485
Total liabilities 84,639 78,129
Total equity and liabilities 170,867 154,938

Additional information:

Tarmo Karotam
Baltic Horizon Fund manager
E-mail 
tarmo.karotam@nh-cap.com
www.baltichorizon.com

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: Nasdaq, GlobeNewswire, www.baltichorizon.com

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 20:15 EET on 3rd of August 2017.