The net asset value (NAV) of Baltic Horizon Fund (the Fund) unit at end of June 2022 amounted to EUR 1.1215 per unit. Compared to the previous month, NAV per unit increased by +0.54%. The total net asset value of the Fund increased to EUR 134.2 million over the month. The NAV increase was mainly affected by the stable operating performance and positive mid-year revaluation of investment properties. The EPRA Net Reinstatement Value (EPRA NRV) as of 30 June 2022 was EUR 1.2015 per unit, corresponding to an increase of +0.71% over the last month. EPRA NRV excludes deferred income tax liability and fair value of financial instruments from NAV calculation.
Unaudited consolidated net rental income for June 2022 slightly decreased to EUR 1.5 million compared to last month (EUR 1.6 million in May 2022). The decrease is mostly related to rent reliefs granted to Europa tenants in relation to reconstruction. Other properties mostly outperformed May results. The Fund recognized an unaudited consolidated net profit of EUR 0.5 million in June 2022. Profit from valuations and operational performance was slightly offset by the recognition of deferred tax for Lithuanian properties after substantial improvement in Lithuanian property values.
At the end of June 2022, new portfolio valuations were conducted by an independent real estate appraiser Colliers. As of 30 June 2022, the fair value of the Baltic Horizon Fund portfolio increased to EUR 335.6 million (31 December 2021: 327.4 million). In June 2022, the portfolio revaluation resulted in a fair value gain of EUR 0.2 million (+0.1% of portfolio value). Compared to the previous valuations, the change in the portfolio valuation was mainly driven by increased rent indexation and cash flow assumptions associated with high inflation across Europe. The summary of property valuations will be published on the Fund`s webpage. More information will be provided in the semi-annual report.
At the end of June 2022, the Fund’s consolidated cash and cash equivalents amounted to EUR 8.7 million (31 December 2021: EUR 16.1 million) which demonstrates solid liquidity and financial flexibility. The Fund is planning to invest part of the available cash to (re)development projects during the remainder of the year.
As of 30 June 2022, the total consolidated assets of the Fund were EUR 347.5 million (31 December 2021: EUR 346.3 million). The Fund has invested an additional EUR 1.1 million into the ongoing construction of the Meraki office building and Europa SC reconstruction during June 2022. By the end of June, majority of Europa SC reconstruction works have been completed and refurbished areas with new tenants are now open for visitors.
