As at 31 March 2017 the GAV of the Fund increased to EUR 169.0 million (EUR 154.9 million as at 31 December 2016). The increase is mainly related to the closing of the acquisition of the Duetto I office building in Q1 2017.

As of 31 March 2017, the Fund NAV was EUR 76.5 million, compared to EUR 76.8 million as at 31 December 2016. The decrease in NAV is mainly related to a distribution to investors made in February. The average actual occupancy of the portfolio was 96.7% and with all rental guarantees 97,6% (96.5% during Q1 2016). Average Direct Property Yield during Q1 was 7.1% (7.0% during Q1 2016). The uptick is mainly due to improved performance and rental indexations across the portfolio.

During Q1 2017, the Fund recorded a net profit of EUR 950 thousand (EUR 864 thousand during Q1 2016) which had a positive effect on the Fund NAV. The net result was positively affected by the operational performance of the properties. On the other hand, the net profit was negatively affected by the recognition of a deferred tax charge on the revaluation of the land plot of Upmalas Biroji which was not recognized in prior periods. The Group recognized the deferred tax liability during the first quarter of the year (negative effect of EUR 452 thousand). Management is not considering to dispose of the Upmalas Biroji property in a near future, therefore, the deferred tax charged in Q1 2017 is not expected to materialize in the near term. Also, the net profit was negatively affected by the additional costs charged for the second public offering in Stockholm (EUR 202 thousand during Q1 2017). These one-off costs were more specifically related to establishing the connection to allowing trading  between the Stockholm and the Tallinn stock exchanges through Swedish central depositary, Euroclear Sweden AB.

In Q1 2017, the net rental operating income (NOI) earned by the Group amounted to EUR 2.5 million and was higher than in Q1 2016 when the Group earned EUR 1.4 million. Compared to Q1 2016, the increase in NOI is related to rental income earned on new acquisitions and, to a lesser extent, the indexation of rents.


Euro ‘000 01.01.2017-31.03.2017 01.01.2016-31.03.2016
Rental income 2,727 1,619
Service charge income 924 621
Cost of rental activities (1,125) (803)
Net rental income 2,526 1,437
Administrative expenses (730) (182)
Other operating income / (expenses) 13
Operating profit 1,809 1,255
Financial income 41 4
Financial expenses (332) (280)
Net financing costs (291) (276)
Profit before tax 1,518 979
Income tax charge (568) (115)
Profit for the period 950 864
Other comprehensive income to be reclassified to profit or loss in subsequent periods
Net gains (losses) on cash flow hedges 138 (37)
Income tax relating to net gains (losses) on cash flow hedges (17) 7
Other comprehensive income/ (expense), net of tax, to be reclassified to profit or loss in subsequent periods 121 (30)
Total comprehensive income/ (expense) for the period, net of tax 1,071 834



Euro ‘000 31.03.2017 31.12.2016
Non-current assets    
Investment properties 156,538 141,740
Investment property under construction 2,218 1,580
Derivative financial instruments 22
Other non-current assets 82 288
Total non-current assets 158,860 143,608
Current assets    
Trade and other receivables 1,282 1,269
Prepayments 235 178
Cash and cash equivalents 8,641 9,883
Total current assets 10,158 11,330
Total assets 169,018 154,938
Paid in capital 66,216 66,224
Own units (8)
Cash flow hedge reserve (173) (294)
Retained earnings 10,463 10,887
Total equity 76,506 76,809
Non-current liabilities    
Interest bearing loans and borrowings 50,662 58,981
Deferred tax liabilities 5,001 4,383
Derivative financial instruments 153 345
Other non-current liabilities 996 935
Total non-current liabilities 56,812 64,644
Current liabilities    
Interest bearing loans and borrowings 32,716 10,191
Trade and other payables 2,534 2,876
Income tax payable 12 46
Derivative financial instruments 76
Other current liabilities 362 372
Total current liabilities 35,700 13,485
Total liabilities 92,512 78,129
Total equity and liabilities 169,018 154,938

Additional information:

Tarmo Karotam
Baltic Horizon Fund manager

Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm,

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 15:30 EET on 11th May 2017.