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Baltic Horizon Fund (NHCBHFFS.ST)

Stockholm - Stockholm Real-time price. Currency in SEK
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11.88+0.04 (+0.34%)
As of 12:21PM CEST. Market open.
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Previous close11.84
Open11.87
Bid11.88 x 0
Ask11.95 x 0
Day's range11.87 - 11.89
52-week range1.48 - 11.89
Volume44,000
Avg. volume0
Market cap1.12B
Beta (5Y monthly)0.43
PE ratio (TTM)N/A
EPS (TTM)-0.12
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • Globe Newswire

    Baltic Horizon Fund General Meeting and related change in Financial Calendar – Notice to investors

    Northern Horizon Capital AS invites Baltic Horizon Fund unit-holders to attend an annual General Meeting on 1 June 2021 at 14:00 (GMT+3, local Estonian time) at the office of Northern Horizon Capital AS at Tornimäe 2, 24th floor, 10145 Tallinn, Estonia. Registration for the meeting will begin at 13:00. The time of the AGM also results to a change in the financial calendar of Baltic Horizon Fund, as the AGM will be held on 1 June instead of previously announced 2 June. Updated financial calendar is available on Baltic Horizon Fund webpage. The meeting is convened in accordance with sections 10.4 and 10.6 of the Rules of Baltic Horizon Fund and section 47-1 of the Investment Funds Act of Estonia. The total number of units and votes in Baltic Horizon Fund amounts to 119,635,429. Considering the pandemic spread of the coronavirus around the world and its spread in Estonia Northern Horizon Capital AS strongly recommends unit-holders not to participate in the meeting physically. Unit-holders may also join the webinar to view the annual general meeting online on 1 June 2021 at 14:00. The webinar will be held in English. To join the webinar, please register via the following link: https://attendee.gotowebinar.com/register/4830540924154742031 You will be provided with the webinar link and instructions how to join successfully. When joining the webinar for the first time, you will be asked to download the plug-in. In case plug-in can't be downloaded, a web browser which enables attending the webinar, opens automatically. The registration is open until 1 June 2021 at 12:00 PM (Estonian time). Registered participants will receive a reminder e-mail one hour prior to the webinar. The webinar will be recorded and available online for everyone at the company’s website on www.baltichorizon.com. Agenda Presentation of the FY2020 audited annual report of Baltic Horizon Fund, and interim report of Q1 2021. Unit-holders are invited to send questions and comments on the agenda to the fund manager at Tarmo.Karotam@nh-cap.com by 25 May 2021. Northern Horizon Capital AS will respond to these questions and comments as soon as possible but no later than at the meeting itself. Participation – requirements and notice Investors who are entered in the Baltic Horizon Fund registry of unit-holders maintained by Nasdaq CSD SE ten days before the date of the General Meeting, i.e. at the end of business of Nasdaq CSD SE on 21 May 2021, are entitled to participate in the meeting. In order to facilitate the registration process, Investors whose units are registered in their own name are invited to provide notice of their attendance by 25 May 2021 to bhfmeeting@nh-cap.com. Notice should include name, personal identification number (or the registration number of the legal person), address, number of units represented and, if applicable, attendance of any representatives, along with the name and personal identification number of the representatives. The attendance of a representative does not deprive the unit-holder of the right to participate at the meeting. Instructions to holders of Baltic Horizon Fund units registered with Euroclear Sweden AB in Sweden Notice of participation should be sent by 16:00 EET on 25 May 2021 to bhfmeeting@nh-cap.com. Notice should include name, personal identification number (or the registration number of the legal person), address, number of units represented and, if applicable, attendance of any representatives, along with the name and personal identification number of the representatives. The attendance of a representative does not deprive the unit-holder of the right to participate at the meeting. Representation under a power of attorney Unit-holders whose representatives are acting under a power of attorney are requested to prepare a written power of attorney for the representative in Estonian or English (templates can be found at Annex 1). A copy of the executed power of attorney should be sent to bhfmeeting@nh-cap.com together with the notice of participation. In case the power of attorney is issued by a legal person, a certified copy of the registration certificate (or equivalent certificate of authority) shall be also submitted together with, as applicable, the documents certifying the authority of the representative in case the power of attorney is signed by a person under a power of attorney. Baltic Horizon Fund is registered in Estonia, which means that any power of attorney (or any certified copy of the registration certificate of a legal person) issued in a foreign country should be notarised and accompanied by an apostille. The apostille requirement applies, for example, to powers of attorney issued and notarised in Sweden or Finland. Instructions for the day of the General Meeting We kindly ask Investors to bring a personal identification document, and for their representatives also to present the original written power of attorney in English or Estonian. In case the unit-holder is a legal person, documentation in Estonian or English language certifying the authority of the unit-holder’s representative or the signatory of the power of attorney will be also requested. Data collected by Northern Horizon Capital AS from powers of attorney, the unitholders registry maintained by Nasdaq CSD SE, and the list of holders of units registered in the Euroclear Sweden AB system will be used for the purpose of registration. Annex 1: Form of power of attorney to appoint a representative for the General Meeting (in Estonian) Form of power of attorney to appoint a representative for the General Meeting (in English) For additional information, please contact: Tarmo KarotamBaltic Horizon Fond, fondijuhtE-mail tarmo.karotam@nh-cap.comwww.baltichorizon.com Baltic Horizon 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. Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com Attachments Annex1-poa-ENG.general-meeting-of-unitholders.2021-05-06 Annex1-poa-EST.general-meeting-of-unitholders.2021-05-06

  • Globe Newswire

    Baltic Horizon Fund Consolidated Unaudited Results for Q1 2021

    Management Board of Northern Horizon Capital AS has approved the unaudited consolidated interim financial statements of Baltic Horizon Fund (the Fund) for the three months of 2021. Property management tenderIn February 2021, the Fund started an international tender for property management and accounting services across the whole portfolio. The international competition was announced in accordance with the Fund’s operating policies which states that the property managers are selected every three years. The Fund has received offers from top international and local companies and intends to announce the winner(s) of the tender and future service provider(s) in May this year. Europa SC reconstructionAt the beginning of 2021, the Fund has announced intentions to invest approx. EUR 5 million in the reconstruction of Europa SC during 2021 with the aim of creating a food court and upgrading interior design. The shopping centre will remain open throughout the whole reconstruction period. Postimaja and CC Plaza complex expansionIn Q1 2021, the Fund announced intentions to invest up to EUR 20 million in the Postimaja and CC Plaza complex expansion during 2021-2024 with the aim of building new retail and office premises in the joined buildings. S&P affirms credit ratingOn 12 April 2021, S&P Global Ratings affirmed Baltic Horizon Fund “MM3” mid-market rating despite the pandemic. The indicative corresponding rating for “MM3” on the global rating scale is “BB+/ BB”. The full report of the S&P Global Ratings analysis can be found on the S&P Global Ratings website. Impact of COVID-19 pandemicAt the beginning of 2020, a new coronavirus (COVID-19) started spreading all over the world, which has had a strong impact on businesses and economies, including in the Baltics. The virus outbreak has caused significant shifts in the Fund’s operating environment, which has had a negative overall impact on the Fund’s performance in 2020 and 2021. At the end of 2020, the Baltic countries entered the second round of lockdowns and heavy government restrictions for residents and businesses to fight the spread of the COVID-19 virus. Shopping centres were forced to close for a limited period except for essential retail shops (groceries, pharmacies). At the date of release of this report, the situation is slowly stabilizing in all three countries. As of 19 April 2021, Lithuania has lifted restrictions for shopping centres, while Latvia and Estonia are expected to follow during the first half of Q2 2021. The operating results of Q1 2021 were affected by the COVID-19 lockdown effects on the tenants’ financial performance and the relief measures taken to deal with the pandemic. However, broad diversification of the portfolio should allow the Fund to limit the COVID-19 impacts and maintain healthy consolidated operational performance throughout the year. The Fund’s operational performance is expected to recover once heavy restrictions are lifted in all Baltic countries. The Fund has opted to retain approx. EUR 5.1 million of distributable cash flow from the results to strengthen the its financial position. The Management Company believes that it is in the best interest of the investors and the Fund to reduce its quarterly cash distributions during the outbreak of COVID-19 in order to protect and strengthen the Fund’s financial position. The management team will continue to actively monitor the economic impact of the pandemic and reassess future distribution levels depending on the upcoming operating results. In summary, the COVID virus induced lockdown in the Baltics has impacted mainly Baltic Horizon’s centrally located retail and entertainment centres. Retail assets located in the central business districts (Postimaja, Europa and Galerija Centrs) accounted for 19.1% of total portfolio NOI in Q1 2021. Distributions to unitholders for Q4 2020 and Q1 2021 Fund resultsOn 4 February 2021, due to introduced restrictions and increased market uncertainty the Fund applied a more conservative approach and declared a cash distribution of EUR 1,316 thousand (EUR 0.011 per unit) to the Fund unitholders for Q4 2020 results. This represents a 0.93% return on the weighted average Q4 2020 net asset value to its unitholders. On 29 April 2021, due to introduced restrictions and increased market uncertainty the Fund applied a more conservative approach and declared a cash distribution of EUR 1,316 thousand (EUR 0.011 per unit) to the Fund unitholders for Q1 2021 results. This represents a 0.96% return on the weighted average Q1 2021 net asset value to its unitholders. With reduced payouts over 2020 and 2021 in the light of prevailing market uncertainty, the Fund has opted to retain EUR 5.1 million of distributable cash flow. The Management Company of the Fund will continue to actively monitor the economic impact of the pandemic and reassess future distribution levels depending on the upcoming operating results. Dividend capacity calculation EUR ’000Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021(+) Net rental income5,7724,6184,7994,7454,173(-) Fund administrative expenses(889)(634)(682)(713)(745)(-) External interest expenses(1,331)(1,327)(1,327)(1,362)(1,346)(-) CAPEX expenditure1(95)(97)(230)(131)(79)(+) Added back listing related expenses392911485-(+) Added back acquisition related expenses---2631Generated net cash flow (GNCF)3,496 2,5892,6742,6502,034 GNCF per weighted unit (EUR)0.031 0.023 0.024 0.022 0.01712-months rolling GNCF yield2 (%)11.5% 9.6% 9.4% 8.6% 7.4% Dividends declared for the period1,7011,7013,1111,316 1,316Dividends declared per unit3 (EUR)0.0150.0150.0260.0110.01112-months rolling dividend yield2 (%)9.6%7.2%7.5%5.8%5.4% The table provides actual capital expenditures for the quarter. Future dividend distributions to unitholders are aimed to be based on the annual budgeted capital expenditure plans equalised for each quarter. This will reduce the quarterly volatility of cash distributions to unitholders.12-month rolling GNCF and dividend yields are based on the closing market price of the unit as at the end of the quarter (Q1 2021: closing market price of the unit as of 31 March 2021). Based on the number of units entitled to dividends. Net profit and net rental incomePortfolio properties in the office segment contributed 65.3% (Q1 2020: 49.2%) of net rental income in Q1 2021 followed by the retail segment with 31.0% (Q1 2020: 46.2%) and the leisure segment with 3.7% (Q1 2020: 4.6%). Retail assets located in the central business districts (Postimaja, Europa and Galerija Centrs) accounted for 19.1% of total portfolio net rental income in Q1 2021. Total net rental income attributable to neighbourhood shopping centres was 11.9% in Q1 2021. In Q1 2021, the Group earned net rental income of EUR 4.2 million, a decrease of 27.7% compared to the net rental income of EUR 5.8 million for Q1 2020. Net rental income decreased due to the relief measures granted to tenants during the pandemic. The Group recorded a net profit of EUR 1.9 million for Q1 2021 against a net profit of EUR 3.4 million for Q1 2020. The net result was significantly impacted by the weaker operational performance of investment properties in Q1 2021. The negative impact of the decrease in net rental income was partially offset by a decrease in administrative expenses. Earnings per unit for Q1 2021 were EUR 0.02 (Q1 2020: EUR 0.03). On an EPRA like-for-like basis, portfolio net rental income decreased by 27.7% year on year mainly due to weaker performance in the retail and leisure segments. The decrease was partially offset by the relatively stable performance of the office segment which remained largely unaffected by the lockdown in the Baltic states. During Q1 2021, investment properties in Latvia and Lithuania contributed 34.8% (Q1 2020: 39.9%) and 37.9% (Q1 2020: 34.6%) of net rental income respectively, while investment properties in Estonia contributed 27.3% (Q1 2020: 25.5%). Gross Asset Value (GAV)At the end of Q1 2021, the Fund’s GAV was EUR 356.0 million (31 December 2020: EUR 355.6 million), 0.1% higher than at the end of Q4 2020. The increase is mainly related to the capital investments made in the Meraki office building development project. The Fund aims to carry on with the construction of the Meraki office building throughout 2021. The Management Company will continue to actively monitor the economic impact of the pandemic and ensure sufficient liquidity levels during the construction period. Net Asset Value (NAV)By the end of Q1 2021, the Fund’s NAV increased to EUR 137.1 million (31 December 2020: EUR 136.3 million). The increase in operational performance and positive cash flow hedge reserve movement of EUR 0.2 million over the quarter was offset by a EUR 1.3 million dividend distribution to the unitholders. At 31 March 2021, IFRS NAV per unit stood at EUR 1.1460 (31 December 2020: EUR 1.1395), while EPRA net tangible assets and EPRA net reinstatement value were EUR 1.2284 per unit (31 December 2020: EUR 1.2219). EPRA net disposal value was EUR 1.1492 per unit (31 December 2020: EUR 1.1435). Investment propertiesThe Baltic Horizon Fund portfolio consists of 15 cash flow investment properties in the Baltic capitals and an investment property under construction on the Meraki land plot. At the end of Q1 2021, the fair value of the Fund’s portfolio was EUR 341.2 million (31 December 2020: EUR 340.0 million) and incorporated a total net leasable area of 153,351 sq. m. During the quarter, the Group invested EUR 0.2 million in the existing property portfolio and an additional EUR 1.1 million in the Meraki development project. Interest bearing loans and bondsInterest-bearing loans and bonds (excluding lease liabilities) were EUR 205.6 million, remaining at a level similar to year-end 2020 (31 December 2020: EUR 205.6 million). Outstanding bank loans decreased slightly due to regular bank loan amortisation. Annual loan amortisation accounts for 0.2% of total debt outstanding. Financial covenants for bonds CovenantRequirementRatio31.03.2020Ratio30.06.2020Ratio30.09.2020Ratio31.12.2020Ratio31.03.2021Equity Ratio >25%1/35.0%42.4%40.0%40.2%40.3%40.3%Debt Service Coverage Ratio > 1.203.353.303.163.052.71 On 28 July, the bondholders adopted the decision by the way of written procedure to temporarily reduce the equity ratio bond covenant to 25% or greater, until 31 July 2021 Cash flowCash inflow from core operating activities for Q1 2021 amounted to EUR 2.8 million (Q1 2020: cash inflow of EUR 4.3 million). Cash outflow from investing activities was EUR 1.6 million (Q1 2020: cash outflow of EUR 0.1 million) due to subsequent capital expenditure on existing portfolio properties and investments in the Meraki development project. Cash outflow from financing activities was EUR 2.8 million (Q1 2020: cash inflow of EUR 4.6 million). During the quarter, the Fund made a cash distribution of EUR 1.3 million and paid regular interest on bank loans and bonds. At the end of Q1 2021, the Fund’s consolidated cash and cash equivalents amounted to EUR 11.8 million (31 December 2020: EUR 13.3 million) which demonstrates sufficient liquidity and financial flexibility. Key earnings figures EUR ‘000 Q1 2021Q1 2020Change (%)Net rental income 4,173 5,772 (27.7%)Administrative expenses (745)(889)(16.2%)Other operating income -8(100.0%)Valuation (losses) on investment properties (4)(4)-Operating profit 3,424 4,887 (29.9%)Net financing costs (1,390)(1,376)1.0%Profit before tax 2,034 3,511 (42.1%)Income tax (129)(157)(17.8%)Net profit for the period 1,905 3,354 (43.2%) Weighted average number of units outstanding (units) 119,635,429113,387,5255.5%Earnings per unit (EUR) 0.020.03 (33.3%) Key financial position figures EUR ‘000 31.03.202131.12.2020Change (%)Investment properties in use 334,699334,5180.1%Investment property under construction 6,5375,47419.4%Gross asset value (GAV) 355,985 355,6020.1% Interest-bearing loans and bonds 205,551205,6040.0%Total liabilities 218,880219,281 (0.2%) IFRS Net asset value (IFRS NAV) 137,105136,3210.6%EPRA Net Reinstatement Value (EPRA NRV) 146,961146,1800.5% Number of units outstanding (units) 119,635,429119,635,429-IFRS Net asset value (IFRS NAV) per unit (EUR)1.14601.13950.6%EPRA Net Reinstatement Value (EPRA NRV) per unit (EUR)1.22841.22190.5% Loan-to-Value ratio (%) 60.2%60.5%-Average effective interest rate (%) 2.6%2.6%- Property performanceDuring Q1 2021, the average actual occupancy of the portfolio was 94.1% (Q4 2020: 94.5%). The occupancy rate as of 31 March 2021 was 94.1% (31 December 2020: 94.3%). Occupancy rates in the retail segment dipped due to some small new vacancies in Europa SC, SKY SC and Galerija Centrs. The change in occupancy rates was partially offset by take-up of approx. 4% of the total NLA in Pirita SC. Occupancy rates in the office segment remained strong and unchanged during Q1 2021. The average direct property yield during Q1 2021 was 4.8% (Q4 2020: 5.5%). The net initial yield for the whole portfolio for Q1 2021 was 5.0% (Q4 2020: 5.6%). The decrease is mainly attributable to the COVID-19 related restrictions imposed on the retail sector by governments and rent concessions granted by the Fund to tenants whose operations were affected by the restrictions. The average rental rate for the whole portfolio for Q1 2021 was EUR 10.6 per sq. m. Overview of the Fund’s investment properties as of 31 March 2021 Property nameSectorFair value1(EUR ‘000)NLA(sq. m.)Direct property yieldQ1 20212Net initial yieldQ1 20213Occupancy rate for Vilnius, Lithuania Duetto IOffice16,4198,5878.0%7.3%100.0%Duetto IIOffice18,7658,6747.4%7.3%100.0%Europa SCRetail38,85216,8563.0%2.9%88.8%Domus Pro Retail ParkRetail16,14211,2476.1%5.9%99.8%Domus Pro OfficeOffice7,5904,8317.6%6.5%100.0%North StarOffice19,13510,5505.7%6.2%86.3%Meraki Development 6,537-- -Total Vilnius 123,44060,745 5.6% 5.4% 94.5% Riga, Latvia Upmalas Biroji BCOffice23,47810,4597.3%7.4%100.0%Vainodes IOffice19,9708,0526.7%7.2%100.0%LNK CentreOffice16,0637,4536.3%6.7%100.0%Sky SCRetail4,9703,2548.5%8.6%96.7%Galerija CentrsRetail67,44720,0221.5%1.7%83.2%Total Riga 131,928 49,240 4.1% 4.4% 92.9% Tallinn, Estonia Postimaja & CC Plaza complexRetail29,8369,1452.6%3.1%95.6%Postimaja & CC Plaza complexLeisure14,1708,6645.2%4.3%100.0%G4S HeadquartersOffice16,1619,1798.0%7.7%100.0%LinconaOffice16,12110,8707.3%7.1%90.3%Pirita SCRetail9,5805,5084.9%6.4%85.8%Total Tallinn 85,868 43,366 5.0% 5.3% 94.8% Total portfolio 341,236 153,351 4.8% 5.0% 94.1% Based on the latest valuation as at 31 December 2020, subsequent capital expenditure and recognised right-of-use assets. Direct property yield (DPY) is calculated by dividing annualized NOI by the acquisition value and subsequent capital expenditure of the property.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 01.01.2021-03.31.202101.01.2020-03.31.2020 Rental income 4,677 6,209 Service charge income 1,217 1,356Cost of rental activities (1,721)(1,793)Net rental income 4,173 5,772 Administrative expenses (745)(889)Other operating income - 8 Valuation (losses) gains on investment properties (4)(4)Operating profit 3,424 4,887 Financial income - 1 Financial expenses (1,390)(1,377)Net financing costs (1,390)(1,376) Profit before tax 2,034 3,511 Income tax charge (129)(157)Profit for the period 1,905 3,354 Other comprehensive income that is or may be reclassified to profit or loss in subsequent periodsNet gains (losses) on cash flow hedges 210 (178)Income tax relating to net (losses) gains on cash flow hedges (15) 13 Other comprehensive income (expense), net of tax, that is or may be reclassified to profit or loss in subsequent periods195(165) Total comprehensive income for the period, net of tax2,100 3,189 Basic and diluted earnings per unit (EUR) 0.02 0.03 CONSOLIDATED STATEMENT OF FINANCIAL POSITION EUR ‘00031.03.202131.12.2020 Non-current assets Investment properties334,699 334,518 Investment property under construction6,537 5,474 Property, plant and equipment3 2Other non-current assets23 22 Total non-current assets341,262 340,016 Current assets Trade and other receivables2,525 1,901 Prepayments408 352 Cash and cash equivalents11,790 13,333 Total current assets14,723 15,586 Total assets355,985 355,602 Equity Paid in capital145,200 145,200 Cash flow hedge reserve(1,466)(1,661)Retained earnings(6,629)(7,218)Total equity137,105 136,321 Non-current liabilities Interest bearing loans and borrowings169,816 195,670 Deferred tax liabilities6,152 6,009 Derivative financial instruments1,4931,736 Other non-current liabilities1,040 1,026 Total non-current liabilities178,501204,441 Current liabilities Interest bearing loans and borrowings36,019 10,222 Trade and other payables3,335 3,640 Income tax payable- 1 Derivative financial instruments6027 Other current liabilities965 950 Total current liabilities40,37914,840 Total liabilities218,880 219,281 Total equity and liabilities355,985 355,602 For more information, please contact: Tarmo KarotamBaltic Horizon Fund managerE-Mail: tarmo.karotam@nh-cap.comwww.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.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 19:35 EET on 6 May 2021. Attachment BHF quarterly report Q1 2021

  • Globe Newswire

    Baltic Horizon Fund SPV plans private placement of bonds to finance construction of Meraki office building

    NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR SUCH OTHER COUNTRIES OR OTHERWISE IN SUCH CIRCUMSTANCES IN WHICH THE PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. Northern Horizon Capital AS informs of the plan to organize an issue of secured bonds of Baltic Horizon Fund SPV, BH Meraki UAB in the aggregate nominal value of up to EUR 8 million with the maturity date of 18 months as of the issue date with a possibility to issue the bonds in multiple tranches. The issue size of the first tranche is intended to be up to EUR 4 million. The bonds will be secured with a 1st rank mortgage on the properties located at Eitminų str. 3 and Ukmergės str. 308, Vilnius, Lithuania and with a surety granted by the Baltic Horizon Fund to secure the payment obligations under the bonds. The private placement is intended to be aimed mainly at institutional investors in select European countries. Redgate Capital AS and Luminor Bank AS Lithuanian branch will act as lead managers of the issue. The net proceeds from the issuance of the bonds will be used for financing the construction of the Meraki office building. BH Meraki UAB intends, after successful closing of the private placement, to apply for listing of the bonds on Nasdaq First North. Important note: This announcement does not constitute an offer to sell or the solicitation of an offer to buy the bond, nor shall there be any offer or sale of the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such state or other jurisdiction. Any offers of the bonds will be made only by means of a private placement. The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or such other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The information contained herein does not constitute an offer of securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. Consequently, this communication is directed only at (i) persons who are outside the United Kingdom, (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (iii) high net worth entities falling within Article 49(2) of the Order and (iv) other persons to whom it may lawfully be communicated (all such persons together being referred to as "relevant persons"). In addition, this communication is, in any event only directed at persons who are "qualified investors" pursuant to the Prospectus Directive (2003/71/EC, as amended). Any investment activity to which this communication relates will only be available to, and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. For additional information please contact: Tarmo Karotam Baltic Horizon Fund manager E-mail tarmo.karotam@nh-cap.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 Northern Horizon Capital AS. Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com This announcement contains information that Northern Horizon Capital AS 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 20:25 EET on 3 May 2021.