Core Viewpoint - EPH European Property Holdings PLC expects a net profit of approximately EUR 4-5 million for the first half of 2025, a significant recovery from a net loss of EUR 13.89 million in the same period of 2024 [1][5] Financial Performance - The positive change in financial results is primarily attributed to a gain on revaluation of investment properties of approximately EUR 3 million, driven by a slight increase in market rental rates and stabilization of discount and capitalization rates at the end of 2024 [2] - In the first half of 2024, EPH recognized a loss of EUR 20 million on revaluation of investment properties due to rising capitalization and discount rates during that period [2] Revenue Streams - The revenue stream from rental properties remains stable, showing growth of approximately 3% compared to the first half of 2024, mainly due to rent indexations, high occupancy rates, and active asset management [3] - Loss from operations of the hotel property Trois Couronnes decreased from EUR 1.05 million in the first half of 2024 to EUR 0.63 million in the reporting period, with growth in all segments of hotel revenue, particularly from the newly opened restaurant [4]

Financial Results - Total assets of the Company amount to EUR 81.799 thousand, with equity at EUR 46.370 thousand and liabilities at EUR 35.767 thousand. Investment assets at fair value increased by EUR 12.892 thousand or 18.71% compared to December 31, 2024 [5] - The Group's total assets are EUR 179.567 thousand, equity is EUR 53.161 thousand, and liabilities total EUR 126.406 thousand. Investment property at fair value increased by EUR 12.676 thousand or 8.00% compared to December 31, 2024 [5] - The Company's total comprehensive income for the first half of 2025 is EUR 4.197 thousand, while the Group's total comprehensive income is EUR 3.482 thousand [5] Key Events - In 2025, the Company acquired investment properties valued at approximately EUR 7.69 million, including a commercial building and a land plot in Lithuania [5] - The Company completed the third tranche of public bond issuance on January 19, 2025, issuing bonds with a total nominal value of EUR 11.226 million [5] - An early redemption of non-public bonds totaling EUR 7.474 million was executed at the end of January 2025 [5] - The Group obtained building permits for retail projects in Vilnius and Klaipėda and began construction of a retail park of nearly 5,000 sq. m in Utena [5] - A loan agreement for EUR 2 million was signed on August 5, 2025, and a credit agreement for EUR 6.2 million for the Utena project was signed on August 19, 2025 [5] - Construction works commenced on three retail centers in Klaipėda district, Vilnius, and Klaipėda city, with completion planned for 2026 [5]

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].