Hello, good afternoon, and welcome to Baltic Horizon Fund's Q2 webinar. As usual, I would like to give some commentaries on the Q2 results, also half-year results, and as well some information about the outlook in this coming year. Let us continue. The KPI table that we have in every webinar is also presented here, and we are making some progress with the occupancy, as can be seen here. The main event that took place that affected the occupancy level in Q2 was that premises were handed over to the International School of Riga in June, and leasing activity continues across the board. In properties, there are many expiries of leases, but also new tenants that have been signed up. There will be more details in the coming slides about that. We're also indexing our rents, and it's good to see that the average rent level is also slightly increasing, continues to the right direction. However, of course, the activities around leasing and welcoming new tenants, it takes time, and the effect therefore is slower than anticipated. Also, we're making progress with net operating income, achieving EUR 3.1 million in the second quarter. And now that we have approximately EUR 3 million of NOI per quarter, we expect that to remain relatively stable throughout this year. EUR 12 million of net operating income in 2025 should be achievable. Despite that, you know, we have certain vacancies upcoming in the second half of the year. We're gradually also reducing our debt. Our LTV is currently at around 60.7%, when cash is added into this formula. The net LTV is approximately 56.7%. This continues to be reduced. However, as well, it takes a bit longer of time to get it down to 50% where we won't want to be. Cost of debt is also gradually decreasing along with Euribor level, but as we have been also partly paying back the bond, which is still the most expensive debt instrument in our balance sheet. Then the result can be seen already. The cost of debt and the LTV level still remains above what we feel comfortable with. We have been engaging in certain potential disposal activities. However, as also mentioned in the quarter report, it is very shallow market. Especially for some of our core properties that we have tried to test in the market that what prices could be achieved in the given period of time. Then those results have been unsatisfactory. So we have decided not to sell some of our key assets, as it is detrimental to the value of the fund. However, we continue some non-core, non-strategic asset disposal processes and hope to give you some news in the upcoming months. Let's say the overall challenge also for the fund remains that you know, converting the properties and bringing them up to the new standards and to the new cycle in many cases requires capital expenditures and fit-out investments. There's been a lot of cash flow planning, you know, in that regard. You know, many of the tenants make the investments themselves, but still, landlord's contribution in many cases is quite sizable. We've invested approximately EUR 1.3 million in the fit-out of the school's premises. The school is investing a similar amount, and also certain fit-out investments are to be expected in the upcoming periods. So we have to very carefully plan that. When it comes to the tenant mix, then, our largest tenants still continue to be Rimi Baltic, the Latvian State Forests, with whom we prolonged the lease agreement with for another eight years, even though at smaller premises. And we continue to have several governmental tenants such as State Police of Latvia and Information System Authority in Lincona in our portfolio. So, overall, a lot of leasing activity is happening. We have a lot of tenants that are moving out, but also some tenants that are coming in. Key events that also happened in Europa was the opening of the Fortas and Miyako concepts that we had and we had in Galerija Centrs as well, Massimo Dutti leave, but we are replacing them with Mango and GANT, and other tenants. Good to say that we signed up a Sinsay store for 500 sq m and also the entertainment area, which is trying to be opened in the summer of this year. One note about the Latvian State Forests lease agreement is that in the second half of this year it will impact our income from that property already due to the certain agreement that we had with the forestry. We're entering into a fit-out phase over the next 9- 12 months, where the premises will be slightly refitted to their new needs. And by year end of 2026, they will give us back around 2,600 sq m, for which we are already you know talking to potential tenants to lease out to other tenants then. And let's say some more vacancy is expected in the Lincona property by year end, where Swedbank is also planned to move out and also the search for new tenants continues. So it's still a very dynamic market. It's very challenging to find new tenants at suitable and attractive rental terms. Long negotiations, tough negotiations, also with current tenants, to keep them in our properties. But slowly we're making progress. Yeah, as of the end of Q2, we had an occupancy at around 84%. With some signed leases already, then, in the coming quarters, we expect the occupancy to continue to slightly increase. This is also a table which is quite detailed, but it gives some idea of the amount of, you know, negotiations ongoing with the team. I think the major focus still is on Europa and on Galerija Centrs. More news is definitely expected on the new anchor tenants in Europa in the coming weeks. The occupancy in Europa has temporarily decreased to 71%, but that's due to the changes of relocation of the restaurants and as well the third floor, which has now been signed up by a sports operator. So we're definitely following sports and health strategy with Europa, and it seems to be the right path forward. In Upmalas Biroji, in Latvia, filling in the vacancy aside from the police, which is in the building, remains also quite challenging, since the property is on the left side of the river. So it is attractive only to tenants in that part of the city. However, in S27, we're making pretty good progress, you know, considering as well that the property was fully vacant, you know, some months ago. In addition to school, we have found, you know, the volleyball association and some dentistry offices or so, and we're in good negotiations with many tenants, many visits to the property. In that sense, we're quite excited. The tenants are smaller than they would have been several years ago. The needs have been reviewed by many office tenants, and everybody's looking for efficiency. Everybody's looking for good quality premises and not that at very high prices. But I think the property itself has quite straightforward layout, and so we do expect further positive development in the office segment, especially in S27 building. North Star remains attractive for tenants. But yeah, with Upmalas, we have more challenge, and Lincona is also probably a more challenging property to fill in. The name of the game is to increase occupancy, increase rental income, and decrease cost. One of the main activities also in Q2 was that we again reviewed all of our expenses, renegotiated audit, renegotiated many of our other partners' expenses, reviewed ESG-related expenses and found some places where we can economize going forward. As well, the delisting of the fund in Stockholm is currently in process, and it will take a few more months to be completed. We do expect some savings there as well. I think, going into 2026, we should be cutting our expenses by several hundred thousand EUR per year. Financial expenses continue to decrease. However, it still remains quite high, but there's, you know, various ways how to address it. One way is to sell another property and take the proceeds from that, pay down the debt, especially the bond. We did achieve an agreement with the bond investors that we can pay the bond not in full amount, but also in EUR 3 million tranches, basically whenever suitable for us. We achieved that in June, that agreement, so we're quite satisfied with the flexibility that we got. But also, we'll talk about it a bit later, but the fund together with its largest investors is also discussing and contemplating on certain equity increase, you know, focusing currently most likely on the current investor base, to really reduce the debt level, which is too high at the moment still, and continue the operations of the fund in a more stabilized and normal environment. Overall, yeah, like to like rent increased slightly. The office segment has remained more challenging due to some of these vacancies, but we're making good progress in the rents comparably in retail and leisure segment. We also decided to postpone the semi-annual valuations since there's quite a bit of uncertainty, you know, around the inputs and as well in some cases in some of our properties, the future tenancy and cash flows. So there's a lot of activity going on as I discussed earlier with exiting and incoming tenants. So we have saved also some cost in that regard and but our planning as is required by fund rules to have at least annual valuations, and we'll be preparing for that in the second half of this year when as well many of the vacancy issues probably will be addressed. So it would be a much clearer picture. But yes, currently the fund has approximately EUR 7 million-EUR 7.5 million in cash and some questions have been asked, you know, that why don't you use that money to, you know, immediately pay down the bond. Then, that money, you know, is not fully freely to be used, you know, some of that free cash is actually either in our SPVs, is it, it's either, you know, secured for as minimum sort of cash necessary for the according to our loan agreements and as well for operating needs, you know, that will allow the fund and its SPVs to function properly on a daily basis. But as well, you know, we're planning, you know, to have some of that money invested into a new upcoming into new incoming tenants. As I said, we are very focused on refinancing, strategy update and looking for a best way when and how to reduce the bond further. In regards to our bank loans, the year to date cost of debt is 6.3%. However, you know, Q2 level already at 6.1%, gradually decreasing. We have during this past six months prolonged many of our loans. The next, let's say, negotiation that is to be expected with our financiers is at the end of this year, beginning of next year where three loans, the S27 and Pirita come up for renewal. It's not a secret also that we have been working on potential disposals of our smaller assets like Pirita and SKY. Some processes in motion, some processes are happening. So, if there is more concrete news on that, then we will of course share that through a stock exchange announcement. And quite straightforwardly, you know, this is what we are basically working on right now, and key focus areas is that, again, we're in the process of delisting. So, I do as well urge all investors that have SDRs then to contact your banks to make the transfers. There is still quite a few, you know, units, you know, listed in Stockholm and there is this very special process around the delisting. So that in case investors are not acting themselves to make the conversions to Estonia, then our agents there, Nordic Issuing and Euroclear, will be forced to try to sell the remaining units on the market. There's also a regulated process around that. So I think I would again urge anybody who owns SDRs then either to convert or then sell to the market, to control the process more, themselves over a period of time. So we still have a few months left for this process to continue and to, but yeah, by beginning of October, then the deadlines start to arrive and if again if the SDRs are not converted or transferred, then they will be sold to the market later on by the agent. So we are. I touched upon the valuations. So, you know, as usual in the portfolio, you know, there are some assets that are improving, some assets that have more challenges. So it is difficult to say what is to be expected by year and it also depends on the market. The investment market is still very quiet. It is dominated by local buyers. A lot of properties are for sale and as well what I have noticed and heard from other fund management firms that many deals are not taking place at the end because the buyers and sellers are still not matching or the expectations. Sellers don't really need to sell in many cases. Many would like to sell, but the buyers are very picky and there are also a limited amount of buyers locally. International buyers currently don't seem to be very active here, especially in the office and retail segments. It remains to be seen. I don't expect any quick changes in the upcoming quarters, but there are most likely at some point international buyers will start again looking at the Baltics more actively, given the attractive, you know, opportunities that we have here. But still, of course, geopolitics are affecting the markets and as well consumer confidence that is also quite fickle. But as I said, we are continuing to look to dispose some of our non-strategic assets and then use those proceeds for paying down the bond. And this is the situation in the fund currently. Let me check if I have received some questions. The question is how certain we are to achieve this occupancy level target of 90% that we have. So, we are giving update now every quarter in this presentation on the latest, you know, negotiations and what is certain is, you know, what is the actual occupancy and what the leases we have signed. So what is the expected, you know, tenants coming in, if they are not yet, you know, the tenant premises are not handed over. But the rest in these tables is just basically a snapshot. So, these are negotiations which are ongoing and they are serious negotiations, but in some cases these negotiations fail. So, there is a lot of activity, but not all of these leases, you know, can be, or are to be expected. We definitely, you know, remain, you know, in that sense, active and basically doing the best we can and to want to achieve this 90% occupancy, based on not only signed leases, but real occupancy. It remains uncertain still to some degree, and the time will tell when exactly we will achieve it. Also a question on what's the level of the fit-out expenses, you know, expected in our properties. Let's say we have various scenarios in that regard, but it's difficult also to state, you know, how much exactly is needed, you know, to fill in the properties. It's of course several million EUR, but in many cases, when we agree with anchor tenants, then majority of the investment is done by the tenant themselves. Let's say the budget for this year is still basically around EUR 3 million-EUR 4 million. And it depends on you know what works can be done still this year or next. There is definitely, and that's one of the big challenges for the fund today, how to most optimally solve this topic for the new tenants, and for the fund to have sufficient cash flow for these activities so that tenants can move in and for a longer period of time. Once again, a question on valuations. Let's say currently there's a lot of activity with tenants and with anchor tenants especially, and the question is why did we now this year change the frequency of valuations. So also talking to the evaluators, they you know basically say that not a lot of changes can be you know expected until you are certain you know with whom you can continue, what sort of rent levels you can achieve for the vacancy and so forth. So it was a discussion point and also the fact that we're saving some costs with that. We decided to postpone it and to have the annual valuations, which are to get done together with the audited report. There was announcement on the NAV. So we had some. It's a net positive change in the cash flows last quarter. It was affected by slightly better, you know, income from the tenants, but also more one-off solutions agreed with departing tenants about their debts. The debt management is an ongoing process and sometimes to receive the debts takes a long period of time or to agree with the tenant when the debts are basically resolved. Many of these cases then positively were solved in the second quarter. That's why there was a comment about that. There is a question on the fund management fee. I can only comment that this is an ongoing discussion with the new fund supervisory board. As you know as well, the fund supervisory board was changed a few months ago. And, as well, we have a new anchor investor, with whom these discussions are ongoing. So that's, I think that's the only comment I can give at this point. When it comes to the new equity support, and as we have tested the market for certain of our properties and found very little or very, very, let's say unattractive interest from the market, we have decided not to sell, you know, a larger amount of our properties in the given market. So that's why the discussions have been, you know, started or have been brought to the table on potential new equity increase. So it is nothing yet decided or the discussions are ongoing with our current main investors who are, you know, interested in seeing the future for the fund and to stabilize the fund further. So at least the discussion has been that we should do that together with our current investor base if at all and limit the interest in that way at least for the time being. But if we have more certain plans, and these discussions with main investors is ongoing, so on a regular basis now. So we will, of course, announce to the market, and we have an upcoming general meeting in September. The date is still to be specified, but I think more news will definitely be there, if the equity issue plan is to crystallize by that time. There's also a question on what sort of offer, you know, was made for Postimaja and Apollo Plaza. So, and at what levels were those offers made? So I cannot comment exactly, you know, what levels they were, but let's say those will be, I think those offers, most likely will be then considered at least to some extent, in the upcoming evaluations. But, again, you know, there was no transaction, no willing buyer or no willing seller. So is that really reflecting the market, you know? Offers can be made at any levels of prices, but that may not really mean that it is the actual value for the property, if the transaction has not taken place. I think evaluators have their ways of considering these in the upcoming evaluations, these processes and these indications. There's a question on getting rid of the expensive bond. Well, you know, and how much would it really affect the result of the fund? The effective interest rate there is about 10%, which is roughly EUR 2 million a year. I think it has a major effect on the balance sheet, this instrument. So, how the fund, you know, is expected to be cash flow positive and profitable again is a combination of not only cutting the cost and reducing the most expensive debt items, but also increasing the income. And there's definitely some potential there, as we have set the target, the long-term target of EUR 130 per sq m. Then, we still have some 16%-17%, you know, potential for that where the team is working hard to achieve. So in that combination, the fund results are expected to improve quite notably if the bond was not in the mix. So, we have the NOI targets, which, you know, we report every quarter, and it was some improvement there. We had EUR 107 per sq m NOI in Q1, and that had increased to EUR 109, so gradually moving towards the target of EUR 130. But as I mentioned, you know, there's a lot of activity with the tenants. So there are, you know, some outgoing tenants, but incoming tenants. This figure remains quite dynamic still also in the upcoming quarters. But we're doing the best we can when it comes to, you know, tenants that make sense for us. We have also rejected many tenants which don't make sense from the return perspective that either the first investment is too large from the landlord side and also the risk around certain tenants is too high. So that has just delayed the process. It's very important to make the best decisions here for a long-term, you know, establishing a long-term relationship because with the tenants, because it affects valuations, it affects a long-term income and so the target remains 130, but it's not that easy to achieve it in a short period of time. As long as we show gradually the right progress, then at least we believe that at some point it is achievable. Overall, you know, it remains challenging. What can I say? You know, of course, we would like to see, you know, quicker solutions for the vacancies and better tenants and expanding, you know, tenants. Many tenants are looking to optimize their cost base and as well the COVID effect now in many cases is being sort of materializing only now when many lease agreements have come to an end. It's not only in our properties, but across the market, of course. Office tenants definitely use their right to see what is the best fit for them in the future. In many cases, it means less square meters. I'm not also saying that, you know, people will like to work from homes now and this is the major trend. But let's say the major trend is hybrid work and that just evidently means less occupancy in the offices and more rotation of workplaces and so forth. So this affects the market overall and not only in the Baltics, but across the international markets as well. But I think, not to be too pessimistic, there are tenants that are moving around and let's say we're happy about the activity, actually. I think past two, three quarters, yeah, I think the activity even despite that it's summertime is quite notable. So hopefully that continues into the second half of this year. Very well. So I think, as I mentioned, you know, we have the general meeting on investors coming in in September. And I think more will be discussed there, you know, when it comes to the future strategy of the fund, any updates to it and also if there are any refinancing plans. We're working on them at the moment. I think that by that time we will be able to present something to the investor community, and to take this fund into the next stage of its life. We're happy that we have prolonged many of our anchor tenants for several years with fixed lease agreements. We're happy that in the sports and health area, we have strong partners, strong tenants. I think I can name MyFitness as one of our stronger tenants, you know, in many of our properties. They are doing very well and ongoing discussions, while they are in Pirita with prolonged agreement. They have an amazing space in Galerija and as well we have now discussing the future in Postimaja. So good to see that some activity, some segments are doing well and provide also future potential cash flows for the fund. So thank you very much for attending and let's be in touch very soon.