Core Viewpoint - Enlight Research has updated the equity research and price target for EfTEN Real Estate Fund AS, increasing the target price to a fair value of 22.86 euros, which is 1.6% higher than the previous analysis and nearly 20% higher than the last closing price on the Tallinn Stock Exchange [1]. Group 1: Financial Performance - The fair value of EfTEN Real Estate Fund AS shares is set at 22.86 euros under the base scenario [1]. - The new target price reflects a 1.6% increase compared to the analysis published in December [1]. - The target price is almost 20% higher than the last closing price of the stock [1]. Group 2: Operational Highlights - EfTEN Real Estate Fund AS is experiencing increasing dividend distributions [2]. - The fund has high occupancy rates in logistics, retail, and elderly care segments [2]. - There are early signs of decreasing vacancy rates in the office segment [2]. - The real estate portfolio is conservatively priced [2].

In July 2025, EfTEN Real Estate Fund AS earned consolidated rental income of EUR 2,689 thousand, an increase of EUR 39 thousand compared to June. The increase in rental income was mainly driven by the expiry of a rent discount period for a logistics sector tenant and higher turnover rents in the Mustika and Saules Miestas shopping centres. Other sales income decreased by EUR 33 thousand compared to June, primarily due to lower profit from the mediation of services. The Fund’s consolidated net operating inco ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $12.2 million, down from $15.8 million in Q2 2024, primarily due to the sale of 9 Times Square in 2024 [8] - GAAP net loss attributable to common stockholders was $41.7 million in Q2 2025, an improvement from a net loss of $91.9 million in Q2 2024, mainly due to an impairment related to the sale of Nine Times Square [8] - Adjusted EBITDA for Q2 2025 was $400,000, compared to $4.5 million in Q2 2024 [8] - Cash net operating income decreased to $4.2 million in Q2 2025 from $7.4 million in Q2 2024 [8] Business Line Data and Key Metrics Changes - Occupancy remained flat at 82%, with a focus on leasing available space [6] - Near-term lease expirations were reduced to 7% of annualized straight-line rent from 12% at the end of the previous quarter [7] - 54% of leases now extend beyond February 2030, up from 51% last quarter [7] Market Data and Key Metrics Changes - The company's real estate portfolio consists of approximately 1,000,000 square feet located primarily in Manhattan, with six office and retail properties [7] Company Strategy and Development Direction - The company is focused on tenant retention, property improvements, and cost efficiency [6] - A strategy to unlock value includes marketing 123 William Street and 196 Orchard for sale, with proceeds expected to be used for debt retirement and reinvestment in higher-yielding assets [7][10] - The company aims to maximize shareholder returns through repositioning its portfolio [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of reducing debt burden through the sale of select properties [10] - The ongoing sale process is viewed as a deliberate strategy to unlock substantial capital [10] Other Important Information - Foreclosure proceedings were initiated by the lender for 1140 Avenue Of The Americas during the quarter [9] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a Q&A segment [11]

Portfolio Highlights - The company's Manhattan-focused real estate portfolio features a tenant base in core commercial businesses, with the top 10 tenants being 77% Investment Grade rated[5, 9] - Portfolio occupancy is at 82.0%, with a weighted-average remaining lease term of 6.0 years[9] - Over 53% of the company's leases expire after 2030[9, 17] - The real estate investments are valued at $432.4 million, spread across 6 properties with a total square footage of 1.0 million[14] - Annualized Straight-line Rent is $45.1 million[14] Financial Highlights - The company has a 100% fixed-debt capital structure with a weighted-average interest rate of 6.4%[9, 38] - Total debt amounts to $350.0 million[38] - Net Leverage is at 63.8%[9, 38, 46] - Revenue from tenants for the quarter was $12.2 million, while the net loss was $41.7 million[38] - Cash NOI decreased year-over-year from $7.4 million in Q2'24 to $4.2 million in Q2'25[42, 38] Strategic Initiatives - The company continued marketing efforts for the sale of 123 William Street ($269.5 million at cost, 84% occupancy) and 196 Orchard Street ($66.6 million at cost, 100% occupancy)[9, 10, 24]

Group 1 - Baltic Horizon Fund is hosting an investor conference webinar on 15 August 2025 at 13:00 PM (CET) or 14:00 PM (EET) [1] - The webinar will be led by Tarmo Karotam, the Fund Manager, and will include a Q&A session [1] - Participants are encouraged to submit questions by 14 August to facilitate the Q&A [1] Group 2 - Registration for the webinar is available until 15 August at 12:00 PM (CET)/ 13:00 PM (EET) [2] - First-time attendees will need to download a plug-in, which is a quick process [2] - A reminder email will be sent to registered participants one hour before the webinar [3] Group 3 - The webinar will be recorded and made available on the company's website and YouTube account [3] - For further inquiries, Tarmo Karotam can be contacted via email [4] - Baltic Horizon Fund is a registered contractual public closed-end real estate fund managed by Northern Horizon Capital AS [4]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $7.1 million or $0.35 per unit basic and diluted for Q2 2025, significantly impacted by provisions for credit losses and non-cash unrealized losses on interest rate derivatives [11][12] - Cash available for distribution (CAD) was reported at $5.7 million or $0.25 per unit, with a provision for credit losses of $9.1 million during the quarter [11][12] - The book value per unit as of June 30 was $11.83, a decrease of $0.76 from March 31, primarily due to the reported net loss and distributions declared [13][14] Business Line Data and Key Metrics Changes - The physical occupancy for the stabilized mortgage revenue bond portfolio was 88.4% as of June 30, 2025, with no forbearance requests for multifamily mortgage revenue bonds [7][8] - The joint venture equity investments included five properties, four completed and one under evaluation, with good leasing activity observed in properties in the initial lease-up phase [8][9] - The Velage Senior Living Carson Valley property is currently 49% occupied and pre-leased to 55%, matching original underwriting expectations [10] Market Data and Key Metrics Changes - The U.S. Municipal bond market continued to underperform in 2025, with both investment grade and high yield tax-exempt bonds lagging behind other fixed income asset classes [24][25] - The ten-year MMD was at 3.32% and the thirty-year MMD at 4.67% as of August 6, indicating a steepening yield curve [25][26] - Year-to-date issuance through July was approximately $337 billion, with a forecasted increase in muni bond issuance by 10% to a total of $530 billion to $540 billion for 2025 [29] Company Strategy and Development Direction - The company is focusing on expanding its construction lending joint venture with BlackRock, capitalizing on the pullback in affordable construction lending by commercial banks [30] - The strategy for the joint venture aligns with historical practices, providing construction financing for low-income housing tax credit transactions [39] - The company is actively seeking to deepen relationships with existing sponsors and establish new ones to fill the void left by commercial banks [30] Management's Comments on Operating Environment and Future Outlook - Management noted that the elevated level of new supply in the municipal bond market is a significant factor in its underperformance [34] - The company expects continued activity in the multifamily investment space, albeit muted, with good demand and leasing velocity in its properties [52] - Management remains cautious about interest rate movements, maintaining a matched book strategy to mitigate risks associated with rate fluctuations [51] Other Important Information - The company amended its secured lines of credit to extend maturities and increase borrowing capacity, ensuring liquidity to fund investment commitments [15][16] - As of June 30, the company reported unrestricted cash and cash equivalents of $47.5 million and approximately $86 million of availability on secured lines of credit [15] Q&A Session Summary Question: Why is the muni bond market underperforming relative to other asset classes? - Management attributed the underperformance to elevated new supply and a gap between issuance and investment demand, leading to aggressive adjustments in interest rates on new deals [34][35] Question: What is the expected pace of placements into the BlackRock joint venture? - Management indicated that the pace of deployment typically picks up in the second half of the year as projects receive allocations of private activity volume cap [39][40] Question: How did the new investor get involved in the joint venture? - The involvement was a mutual discovery through discussions about expanding the joint venture, following the success with BlackRock [43] Question: What drove the additional capital needs for the Vantage properties? - Additional capital needs were primarily due to extended timelines for exiting investments and the necessity to cover property tax payments [45] Question: Will the company consider letting hedges go off as interest rates decline? - Management stated that they aim to maintain a matched book strategy and do not foresee changing this approach even if short-term rates decrease [51] Question: When is demand for multifamily housing expected to pick up? - Demand from institutional investors remains, with good leasing activity observed in properties, indicating a stable interest in multifamily investments [52]

Core Insights - Gladstone Commercial Corp. (NASDAQ: GOOD) maintained a disciplined portfolio management approach in Q2 2025, ending the quarter with 143 properties across 27 states, marking an expansion from the previous quarter [1][3]. Portfolio Management - In Q2 2025, GOOD executed its capital recycling strategy by selling two non-core properties for a combined total of $23.6 million [1][5]. - The company expanded its portfolio by acquiring properties totaling 519,093 square feet for $79.3 million, achieving a blended cap rate of 8.88% [1][5]. Leasing Activity - During the same period, GOOD leased or renewed 55,308 square feet with a remaining lease term of 0.8 years, emphasizing its focus on industrial assets [1][5]. Financial Moves - The company raised $10.4 million through an ATM equity offering and repaid $7.2 million in variable rate debt, indicating a proactive approach to managing its capital structure [5].

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.05 per share compared to a loss of $0.43 per share in Q2 of the previous year [15] - Baseline EBITDA for Q2 was $117 million, a 12% increase year over year, bringing the trailing twelve-month baseline EBITDA to $425 million [15] - Adjusted EBITDA totaled $147 million, significantly up from $79 million in Q2 of the previous year [15] Business Line Data and Key Metrics Changes - Assets under management grew to a record $30 billion, increasing by 70% since the beginning of 2021 [6] - The rental housing sector, representing 65% of assets under management, comprises approximately 70,000 units [7] - The company originated $1.3 billion in new rental housing construction loans, marking the second-largest quarter in originations to date [7] Market Data and Key Metrics Changes - The U.S. apartment sector is experiencing strong rental demand due to a persistent housing shortage and declining new supply, setting the stage for rental growth [12][13] - In the Pacific Northwest, NOI growth was the strongest across the portfolio at 5.6%, driven by demand from companies like Amazon and Starbucks [22] - The Mountain West region, particularly Idaho, saw impressive NOI growth of 7.2% due to higher rents and lower real estate taxes [23] Company Strategy and Development Direction - The company is focused on increasing its exposure to rental housing, aiming for this sector to grow to over 80% of assets under management over the next two years [7] - The strategy includes expanding the multifamily and affordable housing sectors while disposing of non-core assets [20] - The company plans to continue recycling capital into higher return investment opportunities within its investment management platform [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the real estate fundamentals strengthening and the compelling risk-adjusted opportunities in the rental housing sector [12] - The company anticipates a record level of new capital deployment in the remainder of 2025, supported by strong partnerships and a robust pipeline of activity [14] - Management highlighted the importance of maintaining a diversified investment management business to enhance shareholder value [14] Other Important Information - The company generated $275 million from asset sales for the year, keeping it on track to meet its goal of $400 million by year-end [11] - The company has $113 million of consolidated unrestricted cash and $450 million of undrawn availability on its credit facility [19] - The company began utilizing its share repurchase plan, repurchasing approximately 400,000 shares at an average price of $6.21 [19] Q&A Session Summary Question: Can you discuss the UK single-family rental business and its attractiveness? - The UK single-family rental market is in its early stages, with significant growth potential and a focus on a build-to-rent strategy [34][36] - Targeted returns are mid-teens at the asset level, potentially reaching the 20s with fees included [37] Question: How does the company view competition in the debt platform? - The company will continue to focus on residential construction lending, with potential expansion into bridge lending and permanent solutions [42] - The company has expertise in other property types but will primarily focus on housing [43] Question: What are the plans for non-core asset sales for the remainder of the year? - The company is on track to exceed its goal of $400 million in asset sales, having already generated $275 million [44] Question: What are the preferences between affordable versus market-rate multifamily investments? - The company is interested in expanding exposure to both affordable and market-rate sectors, with a focus on the U.S. market [47][48] - The company aims to increase the number of units it manages to between 90,000 and 100,000 over the next few years [51] Question: How is the company addressing upcoming debt maturities? - The company plans to continue disposing of non-core assets to free up capital for debt maturities and refinancing [63] - The average rate on maturing debt is close to 6%, which is above the current borrowing cost [65]

Core Insights - The Baltic Horizon Fund reported its unaudited financial results for the first half of 2025, showing a net rental income of EUR 6.1 million, a slight increase from EUR 6.0 million in H1 2024, and a net loss of EUR 891 thousand compared to a net loss of EUR 12.8 million in the same period last year [16][17]. Financial Performance - The portfolio's net rental income increased by 1.6% year-on-year, primarily due to higher occupancy in Galerija Centrs [16]. - The Fund's net loss for H1 2025 was significantly reduced by 93.1% compared to H1 2024, indicating improved operational performance [17]. - The fair value of the Fund's portfolio decreased to EUR 227.5 million as of June 30, 2025, down from EUR 241.2 million at the end of 2024 [18]. - The Gross Asset Value (GAV) also declined to EUR 238.8 million from EUR 256.0 million, largely due to the disposal of the Meraki office building [19]. Leasing Activity - During the first half of 2025, the Fund signed new leases for approximately 9,250 sq. m and extended leases for about 6,600 sq. m, attracting 30 new tenants [4]. - The portfolio occupancy rate was reported at 84.2% based on handover date, with a slight increase from 82.3% at the end of Q1 2025 [8][24]. - The Fund is facing challenges in achieving its occupancy target of 90%, with more expiries than new lettings in some properties [8]. Strategic Developments - The Fund is focusing on flexible and sustainable solutions to meet tenant demands and market conditions, aiming to increase occupancy and decrease the Loan-To-Value (LTV) ratio [9]. - A long-term partnership with Latvian State Forestry has been renewed, although the leased area will be reduced in line with government cost-saving measures [6]. - The Fund has initiated the delisting process of its Swedish Depository Receipts from Nasdaq Stockholm by October 2025 [10]. Operational Efficiency - The management team is conducting multiple tenders and evaluating cost-saving measures related to administrative services to improve operational efficiency [10]. - The Fund's cash inflow from core operating activities in H1 2025 was EUR 2.7 million, down from EUR 3.7 million in H1 2024 [22]. Investment Properties Overview - As of June 30, 2025, the Fund's portfolio consisted of 11 investment properties with a total net leasable area of 111.2 thousand sq. m [18]. - The occupancy rates varied across properties, with some like Vainodes I achieving 100% occupancy, while others like Upmalas Biroji BC reported only 64.3% [26].

Financial Data and Key Metrics Changes - Investment properties revenue decreased by 3% and operating profit fell by 4% due to persistent weak market conditions [2] - Gearing ratio improved to a new low of 17.6%, reflecting the company's commitment to deleveraging [2][6] - Core underlying net profit remained stable, with a 3% increase attributed to lower borrowing costs, which decreased by 27% [2][6] - Interim dividend per share increased by 3% to HKD 0.66 [3][6] Business Line Data and Key Metrics Changes - Hong Kong investment properties and hotels saw a 3% increase in core underlying net profit [3] - Retail rental income softened due to a drop in turnover rent, while office rental income rose by 2% driven by higher occupancy [5][12] - Harbour City maintained its revenue position relative to peers, benefiting from its scale and location [4] Market Data and Key Metrics Changes - Inbound visitation to Hong Kong increased from 9% to 15%, and retail sales ended a fourteen-month decline with positive growth in May and June [5] - Retail occupancy at Harbour City was 93%, while office occupancy rose to 90% [11][12] - Overall retail sales in Hong Kong have retreated to 2011 levels, with Harbour City retail revenue at 2014 levels [3][4] Company Strategy and Development Direction - The company is focused on deleveraging and maintaining solid cash flow despite falling asset values [6] - Plans to enhance experiential retail to drive engagement and sales, including partnerships with premium brands [9][10] - The company is considering significant capital investments to enhance competitiveness, particularly for the Marco Polo Hong Kong Hotel [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the retail market in Hong Kong is in a base-building phase, with cautious optimism for gradual recovery [3][21] - Geopolitical tensions and uncertainties around interest rates continue to impact the market [3][14] - The company remains agile and proactive in navigating ongoing headwinds, with a focus on sustainability and ESG initiatives [15][16] Other Important Information - The company achieved LEED Platinum certification for several properties, reinforcing its commitment to sustainability [10][16] - Total equity has declined by 11% since IPO, primarily due to investment property revaluation [7] Q&A Session Summary Question: Retail sales performance and footfall outlook - Management observed a small year-on-year improvement in retail sales in May and June but cautioned that it is premature to conclude a recovery [21][22] Question: Capital investment plans for hotels - Management is evaluating whether to redevelop the Marco Polo Hong Kong Hotel or undertake a complete overhaul, with significant investment required [24][25] Question: Occupancy cost sustainability and rental pressures - Occupancy cost at Harbour City is stable at about 20%, but management does not expect base rent to increase significantly in the near term [29] Question: Office rental income increase explanation - The increase in office rental income is attributed to improved occupancy rather than rising rent per square foot [32][34] Question: Competitive landscape in retail - Management acknowledged increased competition in the retail sector, particularly in Cosway Bay, and emphasized the need for strategic investments [38][39] Question: Future acquisition plans - The company is not in a hurry to undertake acquisitions and will only consider attractive opportunities that align with its deleveraging strategy [53] Question: Redevelopment potential of Ocean Center - Management confirmed plans to redevelop Ocean Center but prioritized the Marco Polo Hong Kong Hotel due to its current state [75]