At the end of Q4 2017, the GAV increased by 31.8% from EUR 169.7 million to EUR 215.8 million as compared to the end of Q3 2017. During the quarter, the Group closed Vainodes I acquisition and raised additional gross equity of EUR 17 million through a secondary public offering in November. In Q4 2017, the Fund NAV increased from EUR 86.7 million to EUR 107 million. The increase is related to new equity raised in November and the Group's operational performance over the quarter. The Fund also made a EUR 1.3 million cash distribution to its unitholders (EUR 0.020 per unit). In Q4 2017, the Fund earned a net profit of EUR 5,277 thousand (EUR 1,180 thousand during Q4 2016). During Q4 2017, the Fund's performance was positively affected by year-end valuations. During the quarter, the Fund recorded a fair value gain of EUR 3,337 thousand. Last year, the Fund's investment property valuations were mainly performed in Q3 2016. Starting from 2017 onwards properties are being revalued every 6 months, in June and December. In Q4 2017, the Fund recorded a EUR 2.9 million NOI (EUR 2.3 million in Q4 2016). The increase is related to new acquisitions that were made following the capital raisings at the end of 2016 and the beginning of 2017. The Fund has completed the acquisition of Postimaja Shopping Centre on 13th of February 2018 and thus has deployed majority of the new capital raised in November 2017. Quarterly Key Figures Euro '000 Q4 2017 Q4 2016 Change (%) ------------------------------------------------------------------------------- Rental income 3,217 2,540 26.7% Service charge income 1,029 784 31.3% Cost of rental activities (1,324) (1,014) 30.6% ------------------------------------------------------------------------------- Net rental income 2,922 2,310 26.5% ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Expenses related to public offerings (203) (313) (35.1)% Administrative expenses (636) (415) 53.3% Other operating income / (expenses) (63) 2 (>100.0)% Valuation gains / (loss) on investment properties 3,337 376 787.5% Operating profit 5,357 1,960 173.3% ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Financial income 2 3 (33.3)% Financial expenses (405) (413) (1.9)% ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Net financing costs (403) (410) (1.7)% ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Profit before tax 4,954 1,550 219.6% Income tax charge 323 (370) (187.3)% ------------------------------------------------------------------------------- Profit for the period 5,277 1,180 347.2% ------------------------------------------------------------------------------- Weighted average number of units outstanding 62,270,694 47,350,881 31.5% Earnings per unit (EUR) 0.08 0.02 300.0% Euro '000 31.12.2017 31.12.2016 Change (%) -------------------------------------------------------------- Investment property in use 189,317 141,740 33.6% Gross asset value (GAV) 215,785 154,938 39.3% Interest bearing loans 98,087 69,172 41.8% Total liabilities 108,809 78,129 39.3% Net asset value (NAV) 106,976 76,809 39.3% -------------------------------------------------------------- Number of units outstanding 77,440,638 57,264,743 35.2% Net asset value (NAV) per unit (EUR) 1.3814 1.3413 3.0% Loan-to-Value ratio (LTV) 51.8% 48.8% Average effective interest rate 1.7% 1.8% Investment properties PERFORMANCE as of 31 DECEMBER 2017 During Q4 2017, the average actual occupancy of the portfolio was 96.6% (Q3 2017: 97.5%). When all rental guarantees are considered, the effective occupancy rate is 97.2% (Q3 2017: 98.0%). Average direct property yield during Q4 was 7.1% (Q3 2017: 7.2%). The net initial yield for the whole portfolio for Q4 2017 was 6.7% (Q3 2017: 6.9%). Property City Countr Market NLA Direct Net Occupancy name y value1 property initial rate for Q4 Euro'00 yield yield 2017 0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Duetto I Vilniu Lithua 16,210 8,327 6.5% 6.4% 100.0%2 s nia Pirita SC Tallin Estoni 11,630 5,436 7.4% 7.8% 100.0%2 n a Upmalas Riga Latvia 24,269 10,419 6.9% 6.7% 99.8% Biroji BC G4S Tallin Estoni 16,570 8,363 7.4% 7.0% 100.0% Headquar n a ters Europa SC Vilniu Lithua 39,600 16,856 6.9% 6.5% 95.5% s nia Domus Pro Vilniu Lithua 17,280 11,247 8.4% 6.9% 98.0% Retail s nia Domus Pro Vilniu Lithua 7,150 4,759 3.9%3 2.8% 73.4% Office s nia CC Plaza Tallin Estoni 13,240 8,664 8.3% 7.5% 100.0% n a Sky SC Riga Latvia 5,448 3,263 8.4% 7.5% 99.3% Lincona Tallin Estoni 16,050 10,859 7.6% 7.3% 94.1% n a Vainodes Riga Latvia 21,870 8,052 4.3%3 4.2% 100.0% I -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total 189,317 96,245 7.1% 6.7% 97.2% portfoli o 1. Based on the latest valuation as at 31 December 2017. 2. Effective occupancy rate is 100% due to a rental guarantee. 3. Domus Pro stage III was opened in October, however, it was not fully occupied during Q4 2017. It is expected to be fully occupied by the end of Q1 2018. The property development yield and annualized direct property yield is 7.9%. 4. Vainodes I acquisition was closed on 12 December 2017. The annualized direct property yield is 7.0%. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Euro '000 Q4 2017 Q4 2016 12M 12M 2017 2016 -------------------------------------------------------------------------------- Rental income 3,217 2,540 11,839 7,874 Service charge income 1,029 784 3,692 2,594 Cost of rental activities (1,324) (1,014) (4,763) (3,315) -------------------------------------------------------------------------------- Net rental income 2,922 2,310 10,768 7,153 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Administrative expenses (839) (728) (2,774) (2,190) Other operating income / (expenses) (63) 2 14 97 Valuation gains / (loss) on investment 3,337 376 3,676 2,737 properties Operating profit 5,357 1,960 11,684 7,797 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial income 2 3 47 14 Financial expenses (405) (413) (1,528) (1,253) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Net financing costs (403) (410) (1,481) (1,239) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before tax 4,954 1,550 10,203 6,558 Income tax charge 323 (370) (759) (798) -------------------------------------------------------------------------------- Profit for the period 5,277 1,180 9,444 5,760 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Net gains (losses) on cash flow hedges 148 (48) 274 (113) Termination of interest rate swap agreement - - 57 - reclassified to profit or loss Recognition of initial interest rate cap (43) - (43) - costs Income tax relating to net gains (losses) on (18) 19 (50) 18 cash flow hedges -------------------------------------------------------------------------------- Other comprehensive income/ (expense), net 87 (29) 238 (95) of tax, that is or may be reclassified to profit or loss in subsequent periods -------------------------------------------------------------------------------- Total comprehensive income/ (expense) for 5,364 1,151 9,682 5,665 the period, net of tax -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Basic and diluted earnings per unit (Euro) 0.08 0.02 0.15 0.12 -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF FINANCIAL POSITION Euro '000 31.12.2017 31.12.2016 -------------------------------------------------------------- Non-current assets Investment properties 189,317 141,740 Investment property under construction - 1,580 Derivative financial instruments 89 - Other non-current assets 146 288 -------------------------------------------------------------- Total non-current assets 189,552 143,608 -------------------------------------------------------------- -------------------------------------------------------------- Current assets Trade and other receivables 1,568 1,269 Prepayments 108 178 Cash and cash equivalents 24,557 9,883 -------------------------------------------------------------- Total current assets 26,233 11,330 -------------------------------------------------------------- Total assets 215,785 154,938 -------------------------------------------------------------- -------------------------------------------------------------- Equity Paid in capital 91,848 66,224 Own units - (8) Cash flow hedge reserve (56) (294) Retained earnings 15,184 10,887 -------------------------------------------------------------- Total equity 106,976 76,809 -------------------------------------------------------------- -------------------------------------------------------------- Non-current liabilities Interest bearing loans and borrowings 96,497 58,981 Deferred tax liabilities 5,206 4,383 Derivative financial instruments 88 345 Other non-current liabilities 859 935 -------------------------------------------------------------- Total non-current liabilities 102,650 64,644 -------------------------------------------------------------- -------------------------------------------------------------- Current liabilities Interest bearing loans and borrowings 1,590 10,191 Trade and other payables 4,202 2,876 Income tax payable 14 46 Derivative financial instruments 15 - Other current liabilities 338 372 -------------------------------------------------------------- Total current liabilities 6,159 13,485 -------------------------------------------------------------- Total liabilities 108,809 78,129 -------------------------------------------------------------- Total equity and liabilities 215,785 154,938 -------------------------------------------------------------- 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 an alternative investment fund manager license holder Northern Horizon Capital AS. 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 15:01 EET on 15 February 2018. Attachment: https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=663895