Financial Performance - Baltic Horizon Fund reported a net loss of EUR 20.1 million for the year 2025, following losses of EUR 16.8 million in 2024 and EUR 23.0 million in 2023, totaling EUR 59.9 million over three years [2] - The underlying result from core operations for 2025 was a loss of EUR 0.7 million, an improvement from a loss of EUR 1.9 million in 2024, excluding non-cash impacts [2] Valuation Adjustments - The substantial valuation adjustment of EUR 58.1 million over the past three years was primarily due to overpayment for properties acquired during periods of elevated market valuations and reliance on external service providers that were less adaptable to market shocks [3] Capital Structure and Liquidity - The Fund ended 2025 with equity below the required thresholds for bond covenants, prompting a successful secondary public offering in March 2026 that raised EUR 12.3 million to address liquidity needs [4] - A significant portion of the raised capital, EUR 7.5 million, is allocated for the partial redemption of outstanding bonds, stabilizing the Fund's liquidity position [4] Cost Management - The Fund streamlined its administrative cost structure, reducing expenses to EUR 1.9 million in 2025 from EUR 2.4 million in 2024, with full benefits expected in 2026 [5] Management Changes - The management company ownership transitioned to the founders of Grinvest, who became the largest unitholders after investing in 2024 [6] Debt and Future Strategy - The Fund's indebtedness remains high, and restoring the performance of its investment portfolio will require time, capital, and professional effort, with no distributions expected to unitholders in the coming year [7] Sustainability Initiatives - The Fund is advancing environmental sustainability by transitioning its property portfolio to wind and solar power through strategic green leases and hosting community health initiatives [8] Operational Focus - The newly structured management team is focused on rebuilding value and restoring a healthy balance sheet over the next 12 months, with an emphasis on improving the commercial performance of properties [9][10]