Interim report
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H | Baltic Horizon Unaudited condensed consolidated interim financial statements for the 6 - month period ended 30 June 2026 Interim report H1 2026 Vasara sākās šeit GALERIJA CENTRS ЯЗОИЗ
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4 Management review 5 H1 key figures 6 Property report 7 Structure and governance 10 Management board’s confirmation 12 Consolidated statement of profit or loss and other comprehensive income 13 Consolidated statement of financial position 14 Consolidated statement of changes in equity 15 Consolidated statement of cash flows 16 Notes to the consolidated financial statements 32 Management approval of consolidated financial statements Contents Management report Consolidated financial statements1. 2. 34 Definitions and abbreviations Appendices3.
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Management report
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The new management has also recognised a valuation loss of EUR 320 thousand arising from legacy lease incentives and capital expenditure that had been booked to other balance sheet lines. Property values were adjusted for these legacy lease costs, and the balance sheet is now clear of such items from earlier periods. With that, the clean-up of legacy accounting issues is complete, including the provisions for doubtful receivables and the accrual and expensing of broker fees. Management will decide by the end of the year on the last remaining legacy item, the deferred tax asset in the Lithuanian subsidiaries, with up to EUR 1.4 million net potentially for derecognition. The Management Board, with the approval of the Supervisory Board, decided not to commission mid-year valuations. The money is better spent on asset improvements, and in management's view the value of the Fund's assets has not changed materially since the year-end exercise. The portfolio will be revalued at the end of 2026. As communicated before, the management team is determined to complete the repayment of the remaining bonds, EUR 11.5 million, during 2026. Occupancy across the portfolio is not at an acceptable level. Restoring it, by winning new tenants for every property in the Fund and keeping the ones already there, is the single priority this management has set for itself. It is also the condition for everything else, since the strategic options open to the Fund and the prospect of returning operations to profit for unitholders both depend on it. The Fund returned to profit in the first half of 2026, its first profitable half year since 2022. Net profit for H1 2026 was EUR 698 thousand, against a loss of EUR 891 thousand in H1 2025. The turn came mainly from the EUR 12.3 million equity injection completed in March and the EUR 7.5 million of bonds repaid ahead of schedule, which cut the Fund's interest cost for the rest of the period: financial expenses fell to EUR 4,049 thousand from EUR 5,068 thousand. On a like-for-like basis, excluding the disposal of Meraki, net operating income rose slightly from EUR 5,881 thousand to EUR 6,086 thousand against the same period last year. During H1 the Fund moved to a more conservative approach to bad debt provisioning and now provides against every tenant debt where a payment problem has been notified, an accrual of EUR 335 thousand for H1 2026. All of the tenants concerned are engaged and the property teams are working closely to clear their arrears. Even carrying that provision in full, and with Meraki out of the comparison, NOI was ahead of last year. Fund overheads have been cut back to only the essential costs the Fund needs to operate. Management is targeting a run rate for overheads, excluding the management fee and one-off items, of around EUR 100 thousand per quarter, or EUR 400 thousand a year, against approximately EUR 207 thousand a quarter in 2025. That level has not been reached yet, but the Fund is moving towards it. Administrative expenses for the six months of 2026 were EUR 1,026 thousand against EUR 1,069 thousand in H1 2025, and still carry EUR 124 thousand of write-offs relating to accruals from 2025. Occupancy moved compared with Q4 2025 for two reasons. SKAI Baltija, the grocery anchor at Hipokrata SC, went bankrupt, and Swedbank left Lincona, which leaves that building at 61.2% occupancy. The Hipokrata SC anchor tenant has since been replaced. Baltic Horizon turned to profit in H1 2026 Management review Management report Management review Baltic Horizon Interim report H1 2026 4 Galerija Centrs
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1. Generated net cash flow is calculated based on net rental income less administrative expenses, less external interest expense s, less CAPEX expenditure. Listing related expenses and acquisition related expenses are added back in GNCF calculation. 2. Generated net cash flow per numbers of units at the end of the period. 3. Properties includes 11 cash flow properties. 4. Occupancy based on tenants moved in. 5. The weighted average unexpired lease term until the first break option. 6. Based on the closing prices units on the Nasdaq Tallinn Stock Exchange. Key figures H1 2026 Key earnings figures Unit H1 2026 H1 2025 H1 2024 Rental income EUR ‘000 7,546 7,528 7,667 Net rental income EUR ‘000 6,086 6,078 5,983 Valuation gains (losses) on investment properties EUR ‘000 (320) (9) (12,524) EBIT EUR ‘000 4,762 3,930 (8,118) Net profit (loss) EUR ‘000 698 (891) (12,849) Earnings per unit EUR 0.00 (0.01) (0.11) Generated net cash flow1 EUR ‘000 158 (740) (2,079) Generated net cash flow per unit2 EUR/unit 0.001 (0.005) (0.017) Net initial yield % 5.8 5.2 4.8 Key financial position figures Unit 30.06.2026 31.12.2025 31.12.2024 Total assets EUR ‘000 220,352 216,620 256,048 Total equity EUR ‘000 91,511 78,250 98,095 Equity ratio % 41.5 36.1 38.3 Interest-bearing loans and borrowings EUR ‘000 124,283 133,285 149,227 Total liabilities EUR ‘000 128,841 138,370 157,953 LTV % 59.4 64.0 61.8 Average cost of debt % 5.4 6.1 6.7 Weighted average duration of debt years 2.0 2.3 2.8 IFRS NAV per unit EUR 0.4039 0.5451 0.6833 Key property portfolio figures Unit 30.06.2026 31.12.2025 31.12.2024 Fair value of portfolio EUR ‘000 209,773 208,940 241,158 Properties3 number 11 11 12 Total Net leasable area sq. m 111,244 111,224 118,269 Occupancy rate4 % 82.6 86.2 82.1 WAULT5 years 3.9 3.7 3.3 Key unit figures Unit 30.06.2026 31.12.2025 31.12.2024 Number of units outstanding units 226,576,150 143,562,514 143,562,514 Highest unit price during the period EUR 0.2072 0.2850 0.3730 Lowest unit price during the period EUR 0.1435 0.1517 0.2410 Closing unit price EUR 0.1946 0.1550 0.2521 Market capitalisation6 EUR 44,091,719 22,252,190 36,192,110 Baltic Horizon Interim report H1 2026 5
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Property report Management report Property report 1. Based on the latest valuation as of 31 December 2025, recognized right-of-use assets and subsequent capital expenditure. 2. The net initial yield (NIY) is calculated by dividing annualized NOI by the market value of the property. 3. The Fund completed the disposal of the Duetto I and Duetto II properties on 6 June 2023. 4. The Fund completed the disposal of the Domus Pro Retail and Office complex on 6 March 2023. 5. The Fund completed the disposal of Meraki property on 13 March 2025. Property Sector Acqui- sition year Fair value1 (EUR ‘000) NLA (sq. m) Net initial yield H1 20262 Occu- pancy rate NOI development H1 2026 H1 2025 2025 2024 2023 Galerija Centrs Retail 2019 58,362 19,959 4.9% 87.3% 1,436 1,495 2,802 2,536 2,139 Postimaja and Apollo Plaza complex Retail 2015/ 2018 34,584 17,109 7.2% 99.9% 1,246 1,023 2,217 1,926 2,126 Europa SC Retail 2015 32,358 17,447 4.8% 80.8% 776 581 944 1,010 1,508 North Star Office 2019 18,781 10,706 7.6% 92.5% 713 608 1,262 1,374 1,495 Upmalas Biroji Office 2016 14,617 11,095 6.1% 56.6% 444 449 869 823 1,318 Vainodes I Office 2017 12,485 8,128 7.4% 100.0% 462 699 1,242 1,432 1,431 S27 Office 2018 12,412 7,348 3.2% 64.5% 201 (173) (148) (85) 814 Lincona Office 2011 11,423 10,767 5.1% 61.2% 293 550 1,015 1,038 1,068 Pirita SC Retail 2016 10,050 5,425 7.7% 92.8% 386 421 832 839 761 Hipokrata SC Retail 2013 4,701 3,260 5.5% 79.4% 129 228 438 446 420 Total active portfolio 2019 209,773 111,244 5.8% 82.6% 6,086 5,881 11,473 11,339 13,080 Total disposed properties3-5 197 190 249 1,537 Total portfolio 2015 209,773 111,244 5.8% 82.6% 6,086 6,078 11,663 11,588 14,617 Overview of investment properties as of 30 June 2026 Baltic Horizon Interim report H1 2026 6 Leasing and tenant update The Fund owns 11 commercial properties in the three Baltic capitals, all of them bought before 2020. Since the start of 2026 they have been managed by in-house teams employed by the Fund's subsidiaries and working only on Baltic Horizon assets. The people managing the buildings, dealing with tenants, negotiating leases and running fit-outs now all work for the Fund. Decisions are made faster and tenants deal with someone who answers directly to the owner. The Fund also scopes, tenders and supervises fit-out and refurbishment works itself, which holds capital spending down. Around 4,850 sqm of leases comes up for renewal in the second half of 2026. Three tenants account for most of that area and talks with all three are already under way. In July 2026, the Fund recorded net positive leasing of approximately 1,680 sqm. Most of the leasing work in the period went into two things: keeping and growing the anchor tenants, and filling vacant space at the assets being repositioned. Anchor tenants retention and expansion Postimaja (Tallinn). MyFitness was one of the largest leases due to expire in the near term. The tenant has signed for another 10 years and taken more space, now spread over the upper two floors. The new area will be taken into use in 2027. Lincona (Tallinn). Lincona Konsult has also signed for another 10 years and expanded its premises by around 590 sqm. Vainodes (Riga). Latvijas Valsts Meži has committed to a further eight years in the building. In exchange it handed back around 740 sqm on 1 July, which is now being marketed, and the large refurbishment programme reported in Q4 2025 has been scaled back to cosmetic work. Reletting and repositioning Europa (Vilnius). Europa's shift towards a retail and active-lifestyle destination is picking up pace. Sostinės Sporto Centras has finished fitting out its youth sports centre and opens for the new school year, and the Dialogai food hall is now fully let and will show sports events alongside its bar. A facade advertising screen, let on a long-term contract, adds a further income stream. Hipokrata SC (Riga). Grocery anchor SKAI Baltija, which held about 80% of the lettable area, became insolvent. ABRAND Cash & Carry has since signed for most of the space it left, on a long-term lease under which the tenant carries all property costs and paid for its own fit-out. Replacing the anchor therefore cost the Fund almost nothing in capital. The store opens in mid-August. Upmalas Biroji (Riga). Civinity Group has signed for around 550 sqm and will move its headquarters into the building in the second half of the year. S27 (Riga). New office tenants were taken on during H1 and three further leases were signed in July. Other vacant spaces are marketed directly by the in-house team, tenants are approached ahead of lease expiry, and the leasing position of every property is reviewed monthly. Lease agreements are reported only once signed.
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Baltic Horizon Fund Structure and governance Governance structure Management report Structure and governance Baltic Horizon Fund is a closed-end contractual investment fund registered in Estonia on 23 May 2016. The Fund is defined as a real estate fund under the Estonian Investment Funds Act. The Fund cannot enter into agreements on its own. The unitholders own all the Fund’s assets. The Fund has no employees except for the general directors and staff members of Lithuanian and Latvian subsidiaries (6 at the reporting date) as required by local law. The Fund is managed by the Management Company, which is Baltic Horizon Capital AS. The immediate team comprises of the Management Board, which is headed by the Fund Manager, and the Supervisory Board of the Management Company. The Fund also has its own Supervisory Board, which comprises of 3 independent board members. Commitment to corporate governance is rooted in the Management Company’s focus on long-term business relations with investors, partners, and tenants. In all relations, the Management Company encourages a professional and open dialogue based on mutual trust and strives to earn the respect of its business partners through strong commitment, transparency and fair dealings. The investor’s best interest is always considered by the Management Company to make sure that the investor is treated fairly. The Management Board ensures that conflicts of interests between related parties are avoided or are as small as possible. The Management Company is obliged to establish, maintain and document procedures to identify, prevent and manage conflicts of interest and, when necessary, issue supplementing instructions to the policies, instructions and guidelines. Unitholders Define Baltic Horizon’s Fund Rules and appoint representatives to the Supervisory Board. Supervisory Board Gives advice to Baltic Horizon Capital (BHC), focuses on topics where conflicts of interest may arise. Baltic Horizon Capital Responsible for Fund management including the execution of the investment strategy as stated in the Fund Rules. Management Board of the Management Company Edvinas Karbauskas (Chairman) Gerda Bliuvienė Supervisory Board of the Fund Supervisory Board of the Management Company Andrius Smaliukas (Chairman) Priit Perens Per V. Jenster Antanas Anskaitis (Chairman) Antanas Danys Tomas Milašauskas Baltic Horizon Interim report H1 2026 7
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Edvinas Karbauskas is the Fund Manager of Baltic Horizon Fund. Edvinas has previously served as a Board member of Baltic Horizon Capital AS from January 2023 to June 2024, during which time he held the position of Co-Fund Manager. He subsequently joined Tech Zity Vilnius Group as CFO and Board member, where he was responsible for the development of the Tech Zity Vilnius campus, one of the largest mixed-use technology hubs in the Baltics. Prior to that, Edvinas worked at EY, providing audit and consulting services. Edvinas holds a Master's degree in Accounting and Auditing from Kaunas University of Technology. Edvinas Karbauskas Chairman of the Management Board / Fund Manager Management Board and Supervisory Board of the Management Company The Management Board bears overall responsibility for the daily business of Baltic Horizon Fund. The Management Company’s Management Board is composed of two members. As of 1 April 2026, Edvinas Karbauskas joined the Management Board as the Co-Fund manager and as of 1 May 2026 was appointed as the Chairman of the Management Board and Fund Manager following the departure of Tarmo Karotam. The Management Board is supervised and advised by the Supervisory Board of the Management Company. Supervisory Board of the Fund The Fund has a Supervisory Board which consists of qualified members with recognised experience in the real estate markets in Estonia, Latvia, and Lithuania, impeccable reputation and appropriate education. In accordance with the Fund Rules, members of the Supervisory Board are appointed by the General Meeting for a period of at least two years. The Supervisory Board consists of three to five members. As of 1 June 2026, Priit Perens joined the Supervisory Board following the departure of Milda Dargužaitė. The current Supervisory Board members have been elected for a two-year period starting from 1 June 2026. The Supervisory Board acts solely in an advisory capacity and the Management Company remains responsible for making the decisions in connection with the Fund’s management. The Supervisory Board members fulfil their consultation responsibilities collectively. Supervisory Board members are entitled to remuneration for their service in the amount determined by the General Meeting. The chairman of the Supervisory Board is entitled to an annual remuneration of EUR 36,000 and a regular member is entitled to an annual remuneration of EUR 11,000. The Fund administration services are provided by the Management Company. Accounting and depository services have been outsourced to Swedbank AS. Management report Structure and governance Gerda Bliuvienė is the Head of Fund finance and administration of Baltic Horizon Fund. She previously served as the Head of Business Control at Grinvest Group. Prior to this role, she spent ten years with the Northern Horizon Group, where she was a Fund Controller and Senior Analyst. Gerda holds a Master‘s degree in Economics Policy from the University of Vilnius (2017). Gerda Bliuvienė Member of the Management Board / Head of Fund finance and administration Bios of the members of the Management Board of the Management Company Baltic Horizon Interim report H1 2026 8
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Dr. Smaliukas is the Managing Partner at MMSP, a Lithuanian law firm focused on strategic corporate advisory and dispute resolution. He previously partnered at one of the leading Pan-Baltic firm, Valiunas Ellex, and holds nearly 20 years of experience as an arbitrator and international arbitration lead counsel. Dr. Smaliukas earned his Ph.D. and Master of Laws from Vilnius University, conducted postgraduate research at Oxford, and completed executive programs at Cambridge Judge Business School and Harvard Law School. Dr. Smaliukas serves on the boards of Staticus Group, Kesko Senukai, has extensive advisory experience in commercial real estate M&A and investment management across the Baltic countries. Andrius Smaliukas Chairman of the Supervisory Board Priit Perens is a senior banking and corporate executive with over 30 years of leadership experience across the Baltic financial, energy, and healthcare sectors. He currently serves as CEO of Tartu University Hospital and as Chairman of the Supervisory Board of Tallinna Sadam. Mr. Perens previously held multiple senior roles within Swedbank, including Head of Baltic Banking and CEO of Swedbank Estonia, and was a member of the Group Executive Management. His earlier career includes senior finance and treasury positions at Eesti Energia and other leading banking institutions in Estonia. Mr. Perens has also contributed extensively to public and supervisory roles, including positions at the Estonian Health Insurance Fund and the Estonian Employers Confederation. He holds a Master’s degree in Economics from the University of Tartu and has completed executive education at INSEAD and the Helsinki School of Economics. Priit Perens Member of the Supervisory Board Bios of the members of the Supervisory Board of the Fund Dr. Per V. Jenster, Danish, received his PH.D from University of Pittsburgh, has a life-long vocation in real estate (20 years in the Baltics), along side a career as business professor i.a. at IMD, Copenhagen Business School and CEIBS in Shanghai. Per V. Jenster is a Professor Emeritus and International Dean of China’s first National Interdisciplinary Institute for Aging Research, Southwest Jiaotong University, and is currently Chairman at Center for International Management & Industrial Development, Switzerland. Per V. Jenster has recently retired a Chairman at Niche Masters Fund after serving 10 years as head of the board of the investment company. Professor Per V. Jenster Member of the Supervisory Board Management report Structure and governance Valuations The real estate property valuation policies of the Fund are determined in the Fund Rules based on common market practice. Only a licensed independent real estate appraiser of high repute and sufficient experience in appraising similar property and operating in the country where the relevant real estate property is located may evaluate real estate belonging to the Fund. Each potential investment/divestment opportunity is subject to extensive commercial, legal, technical and financial/tax due diligence performed by the Management Company in cooperation with reputable local and international advisers. Audit The auditor of the Fund is KPMG Baltics OÜ, which is a member of the Estonian Association of Auditors. In addition to statutory audit services, KPMG Baltics OÜ has provided the Fund with other assurance services. The Fund’s activities are monitored on a regular basis by the Estonian Financial Supervision and Resolution Authority and the Supervisory Board of the Fund. Baltic Horizon Interim report H1 2026 9
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Members of the Management Board of the Management Company Gerda Bliuvienė and Edvinas Karbauskas confirm that according to their best knowledge, the condensed consolidated interim financial statements for the six-month period ended 30 June 2026, prepared in accordance with IFRS as adopted by the European Union, present a correct and fair view of the assets, liabilities, equity, financial position, financial performance and cash flows of the Fund and its subsidiaries, taken as a whole, and the management report gives a true and fair view of the development, the results of the business activities and the financial position of the Fund and its subsidiaries, taken as a whole, as well as of the significant events which took place during the six-month period ended 30 June 2026 and their effect on the condensed consolidated interim accounts. Management Board’s confirmation Management report Management Board’s confirmation Baltic Horizon Interim report H1 2026 10
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Consolidated financial statements
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Consolidated statement of profit or loss and other comprehensive income EUR ‘000 Notes 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Rental income 3,900 3,734 7,546 7,528 Service charge income 5 1,254 1,217 2,513 2,549 Cost of rental activities 5 (2,077) (1,843) (3,973) (3,999) Net rental income 4 3,077 3,108 6,086 6,078 Administrative expenses 6 (518) (521) (1,026) (1,069) Other operating income (expenses) 22 8 22 26 Losses on disposal of investment properties - (191) - (1,096) Valuation losses on investment properties 10 (315) (4) (320) (9) Operating profit (loss) 2,266 2,400 4,762 3,930 Financial income 21 18 31 60 Financial expenses 7 (1,821) (2,353) (4,049) (5,068) Net financial expenses (1,800) (2,335) (4,018) (5,008) Profit (loss) before tax 466 65 744 (1,078) Income tax charge 4, 9 (5) 12 (46) 187 Profit (loss) for the period 4 461 77 698 (891) The accompanying notes are an integral part of these consolidated financial statements. EUR ‘000 Notes 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods Net gains (losses) on cash flow hedges 13b (72) (109) 293 (58) Income tax relating to net loss on cash flow hedges 13b, 9 - (2) - (7) Other comprehensive profit (loss), net of tax, that is or may be reclassified to profit or loss in subsequent periods (72) (111) 293 (65) Total comprehensive profit (loss) for the period, net of tax 389 (34) 991 (956) Basic earnings per unit (EUR) 8 0.00 0.00 0.00 (0.01) Diluted earnings per unit (EUR) 8 0.00 0.00 0.00 (0.01) Consolidated financial statements Statement of profit or loss Baltic Horizon Interim report H1 2026 12
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Consolidated statement of financial position EUR ‘000 Notes 30.06.2026 31.12.2025 Non-current assets Investment properties 4, 10 209,773 208,940 Property, plant and equipment 7 7 Derivative financial instruments 19 107 - Other non-current assets 12 242 Total non-current assets 209,899 209,189 Current assets Trade and other receivables 11 1,212 1,760 Prepayments 471 294 Cash and cash equivalents 12 8,770 5,377 Total current assets 10,453 7,431 Total assets 4 220,352 216,620 Equity Paid in capital 13a 163,765 151,495 Cash flow hedge reserve 13b 107 (186) Retained earnings (72,361) (73,059) Total equity 91,511 78,250 The accompanying notes are an integral part of these consolidated financial statements. EUR ‘000 Notes 30.06.2026 31.12.2025 Non-current liabilities Interest-bearing loans and borrowings 14 117,249 77,443 Deferred tax liabilities 9 690 644 Derivative financial instruments 19 - 186 Other non-current liabilities 1,309 1,110 Total non-current liabilities 119,248 79,383 Current liabilities Interest-bearing loans and borrowings 14 7,034 55,842 Trade and other payables 15 2,253 2,729 Income tax payable - 14 Other current liabilities 306 402 Total current liabilities 9,593 58,987 Total liabilities 4 128,841 138,370 Total equity and liabilities 220,352 216,620 Consolidated financial statements Statement of financial position Baltic Horizon Interim report H1 2026 13
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Consolidated statement of changes in equity EUR ‘000 Notes Paid in capital Cash flow hedge reserve Retained earnings Total equity As of 1 January 2025 151,495 (420) (52,980) 98,095 Comprehensive income profit (loss) Net profit (loss) for the period - - (20,079) (20,079) Other comprehensive profit (loss) 13b - 234 - 234 Total comprehensive profit (loss) - 234 (20,079) (19,845) As of 31 December 2025 151,495 (186) (73,059) 78,250 As of 1 January 2026 151,495 (186) (73,059) 78,250 Comprehensive income profit (loss) Net profit (loss) for the period - - 698 698 Other comprehensive profit (loss) 13b - 293 - 293 Total comprehensive profit (loss) - 293 698 991 Capital increase 12,270 - - 12,270 As of 30 June 2026 163,765 107 (72,361) 91,511 The accompanying notes are an integral part of these consolidated financial statements. Consolidated financial statements Statement of changes in equity Baltic Horizon Interim report H1 2026 14
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Consolidated statement of cash flows EUR ‘000 Notes 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Cash flows from core activities Profit (loss) before tax 744 (1,078) Adjustments for non-cash items: Value adjustment of investment properties 10 320 9 Losses on disposal of investment properties - 1,096 Value adjustment of derivative finance instruments - 111 Depreciation of property, plant and equipment - 7 Change in impairment losses for trade receivables 11 335 21 Financial income (31) (60) Financial expenses 7 4,049 5,068 Working capital adjustments: Change in trade and other accounts receivable 213 (62) Change in other current assets (177) 290 Change in other non-current liabilities 199 (282) Change in trade and other accounts payable (211) (1,892) Change in other current liabilities (96) (530) Income tax paid - (16) Total cash flows from core activities 5,345 2,682 The accompanying notes are an integral part of these consolidated financial statements. EUR ‘000 Notes 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Cash flows from investing activities Interest received 31 60 Proceeds from disposal of investment property - 15,556 Capital expenditure on investment properties (1,153) (2,705) Total cash flows from investing activities (1,122) 12,911 Cash flows from financing activities Proceeds from bank loans 1,500 490 Repayment of bank loans (3,029) (10,903) Repayment of bonds (7,500) (3,000) Transaction costs related to loans and borrowings (285) (13) Proceeds from issue of units 12,270 - Repayment of lease liabilities (3) (9) Interest paid (3,783) (5,126) Total cash flows from financing activities (830) (18,561) Net change in cash and cash equivalents 3,393 (2,968) Cash and cash equivalents at the beginning of the year 5,377 10,053 Cash and cash equivalents at the end of the period 8,770 7,085 Consolidated financial statements Statement of cash flows Baltic Horizon Interim report H1 2026 15
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1. Corporate information Baltic Horizon Fund is a regulated closed-end contractual investment fund registered in Estonia on 23 May 2016. The Fund is managed by Baltic Horizon Capital AS. Both the Fund and the Management Company are supervised by the Estonian Financial Supervision and Resolution Authority. The Depositary of the Fund is Swedbank AS. The Fund is the ultimate parent and controlling entity of the group comprising the Fund and its subsidiaries (the “Group” or the “Fund”). The Fund is a public fund with no particular lifetime (evergreen). Units of the Fund are made available to the public in accordance with the Fund Rules and applicable laws. The Fund is listed on the Fund List of the Nasdaq Tallinn Stock Exchange. The Fund’s registered office is at Roseni 7, 10111 Tallinn, Estonia. The Fund started in 2016 as the first listed real estate investment trust in the Baltics with the intention to invest into commercial real estate and generate attractive returns for its investors. Since its last investment made in 2019 the Fund has faced excessive indebtedness and a series of external shocks which in combination have caused the performance deteriorate dramatically. The turnaround of the Fund is underway, however it is highly uncertain as to how successful it will be, and whether the Fund will come back to being able to restart regular distributions to its unitholders. Once the over indebtedness is resolved and commercial performance of the properties held by the Fund is restored, the Management will determine the most viable future strategy. At the reporting date, the Fund held the following 100% interests in subsidiaries: 2. Basis of preparation The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group’s latest consolidated annual financial statements as of and for the year ended 31 December 2025. These interim condensed consolidated financial statements do not include all of the information required in the complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are relevant to understanding the changes in the Group’s financial position and performance since the last annual financial statements. Going concern assessment The management of the Fund has performed an assessment of the Fund’s future consolidated financial position, consolidated financial performance and cash flows and has concluded that the continued application of the going concern assumption is appropriate. New standards, amendments and interpretations A number of new standards and amendments to standards are not effective for annual periods beginning on 1 January 2026 but their earlier application is permitted. However, the Group has not early adopted any of the new or amended standards in preparing these interim condensed consolidated financial statements. Notes to the consolidated financial statements Name 30.06.2026 31.12.2025 BH Lincona OÜ 100% 100% BH CC Plaza OÜ 100% 100% BH Europa UAB 100% 100% Kontor SIA 100% 100% Pirita Center OÜ 100% 100% BH Rīga SIA 100% 100% BH Galerija Centrs SIA 100% 100% BH Northstar UAB 100% 100% Consolidated financial statements Note 1-2 Baltic Horizon Interim report H1 2026 16
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3. Summary of significant account policies The preparation of the Group's consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the reported item in the future. The assumptions and judgements applied in these interim condensed consolidated financial statements were the same as those applied in the Group’s consolidated financial statements for the year ended 31 December 2025. Material accounting policies The accounting policies applied in these interim financial statements are the same as those applied in the Group’s consolidated financial statements for the year ended 31 December 2025. Fair value measurements The Group measures certain financial instruments such as derivatives, and non-financial assets such as investment property, at fair value at the end of each reporting period. Also, the fair values of financial instruments measured at amortised cost are disclosed in the financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The Group must be able to access the principal or the most advantageous market at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs significant to the fair value measurement as a whole: Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities; Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. 4. Operating segments The Group’s reportable segments are as follows: Estonia segment includes Lincona Office Complex, Pirita Shopping Centre, Postimaja Shopping centre and Apollo Plaza investment properties. Latvia segment includes Galerija Centrs Shopping Centre, Hipokrata Shopping Centre, Upmalas Biroji, Vainodes I and S27 investment properties. Lithuania segment includes Europa Shopping Centre and North Star investment properties. For management purposes, the Group is organized into three business segments based on the geographical location of investment property. Management monitors the operating results of business segments separately for the purpose of making decisions about resources to be allocated and assessing performance. Segment performance is evaluated based on net rental income and net profit/loss. Information related to each reportable segment is set out on the next page. Segment net rental income is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries. Consolidated financial statements Note 3-4 Baltic Horizon Interim report H1 2026 17
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EUR ‘000 Estonia Latvia Lithuania Total 01.04.2026-30.06.2026: External revenue1 1,384 2,323 1,447 5,154 Segment net rental income 1,034 1,326 717 3,077 Net loss from fair value adjustment - (269) (46) (315) Interest expenses2 (414) (722) (323) (1,459) Income tax income (expenses) - - (5) (5) Segment net profit 602 251 279 1,132 01.01.2026-30.06.2026: External revenue1 2,702 4,585 2,772 10,059 Segment net rental income 1,925 2,672 1,489 6,086 Net loss from fair value adjustment - (274) (46) (320) Interest expenses2 (811) (1,434) (633) (2,878) Income tax income (expenses) - - (46) (46) Segment net profit 1,056 830 620 2,506 As of 30.06.2026: Segment assets 57,286 104,796 52,907 214,989 Investment properties 56,057 102,577 51,139 209,773 Segment liabilities 33,149 56,751 27,034 116,934 EUR ‘000 Estonia Latvia Lithuania Total 01.04.2025-30.06.2025: External revenue1 1,437 2,308 1,206 4,951 Segment net rental income 1,038 1,459 611 3,108 Net loss from fair value adjustment - (4) - (4) Interest expenses2 (448) (786) (337) (1,571) Income tax income (expenses) - (1) 13 12 Segment net profit (loss) 593 599 162 1,354 01.01.2025-30.06.2025: External revenue1 2,792 4,556 2,729 10,077 Segment net rental income 1,994 2,698 1,386 6,078 Net loss from fair value adjustment - (9) - (9) Interest expenses2 (904) (1,598) (858) (3,360) Income tax income (expenses) - (3) 190 187 Segment net profit (loss) 1,088 994 (524) 1,558 As of 30.06.2025: Segment assets 60,083 117,525 58,425 236,033 Investment properties 57,973 113,499 56,002 227,474 Segment liabilities 34,556 60,179 27,525 122,260 1. External revenue includes rental income and service charge income. The segments do not have inter -segment revenue. 2. Interest expenses include only external bank loan interest expenses and interest expenses on lease liabilities. 1. External revenue includes rental income and service charge income. The segments do not have inter -segment revenue. 2. Interest expenses include only external bank loan interest expenses and interest expenses on lease liabilities. Operating segments – 30 June 2026 Operating segments – 30 June 2025 Consolidated financial statements Note 4 Baltic Horizon Interim report H1 2026 18
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EUR ‘000 Total reportable segments Adjustments Consolidated 01.04.2026-30.06.2026: Net profit (loss) 1,132 (671)1 461 01.01.2026-30.06.2026: Net profit (loss) 2,506 (1,808)2 698 As of 30.06.2026: Segment assets 214,989 5,3633 220,352 Segment liabilities 116,934 11,9074 128,841 1. Segment net loss for Q2 2026 does not include Fund management fee (EUR 288 thousand), bond interest expenses (EUR 291 thousan d), bond arrangement fee amortisation (EUR 38 thousand), Fund custodian fees (EUR 10 thousand) and other Fund -level administrative expenses (EUR 44 thousand). 2. Segment net loss for H1 2026 does not include Fund management fee (EUR 548 thousand), bond interest expenses (EUR 760 thousan d), bond arrangement fee amortisation (EUR 76 thousand), bond prepayment fee (EUR 263 thousand), Fund custodian fees (EUR 20 thou sand), and other Fund-level administrative expenses (EUR 141 thousand). 3. Segment assets do not include cash, which is held at the Fund level (EUR 5,351 thousand) and prepayment and other receivables at the Fund level (EUR 12 thousand). 4. Segment liabilities do not include liabilities related to a bond issue at the Fund level (EUR 11,220 thousand), accrued bond coupon expenses (EUR 171 thousand), management fee payable (EUR 455 thousand), and other short -term payables at the Fund level (EUR 61 thousand). Reconciliation of information on reportable segments to IFRS measures Operating segments – 30 June 2026 Operating segments – 30 June 2025 EUR ‘000 Total reportable segments Adjustments Consolidated 01.04.2025-30.06.2025: Net profit (loss) 1,354 (1,277)1 77 01.01.2025-30.06.2025: Net profit (loss) 1,558 (2,449)2 (891) As of 30.06.2025: Segment assets 236,033 2,7563 238,789 Segment liabilities 122,260 19,3904 141,650 1. Segment net loss for Q2 2025 does not include Fund management fee (EUR 304 thousand), bond interest expenses (EUR 497 thousan d), bond arrangement fee amortisation (EUR 238 thousand), Fund custodian fees (EUR 11 thousand), losses on disposal (EUR 125 thou sand) and other Fund-level administrative expenses (EUR 102 thousand). 2. Segment net loss for H1 2025 does not include Fund management fee (EUR 606 thousand), bond interest expenses (EUR 1,081 thous and), bond arrangement fee amortisation (EUR 276 thousand), Fund custodian fees (EUR 22 thousand), losses on disposal (EUR 244 thou sand) and other Fund-level administrative expenses (EUR 220 thousand). 3. Segment assets do not include cash, which is held at the Fund level (EUR 2,465 thousand) and prepayment and other receivables at the Fund level (EUR 291 thousand). 4. Segment liabilities do not include liabilities related to a bond issue at the Fund level (EUR 18,567 thousand), accrued bond coupon expenses (EUR 280 thousand), management fee payable (EUR 463 thousand), and other short -term payables at the Fund level (EUR 80 thousand). Consolidated financial statements Note 4 Baltic Horizon Interim report H1 2026 19 Major tenant No single lease accounted for more than 10% of the Group’s total revenue.
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5. Cost of rental activities 6. Administrative expenses EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Utilities 483 206 1,121 647 Repair and maintenance 521 779 990 1,596 Real estate taxes 301 232 602 486 Property management expenses 263 326 566 667 Allowance (reversal of allowance) for bad debts 335 15 335 21 Sales and marketing expenses 110 128 208 263 Property insurance 30 37 68 75 Other 34 120 83 244 Total cost of rental activities 2,077 1,843 3,973 3,999 Part of the total cost of rental activities (mainly utilities and repair and maintenance expenses) was recharged to tenants: EUR 2,513 thousand during the six-month period ended 30 June 2026 (EUR 2,549 thousand during the six-month period ended 30 June 2025). EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Management fee 288 304 548 606 Legal fees 53 44 93 60 Consultancy fees 3 9 8 19 Audit fees 43 42 77 84 Fund marketing expenses 6 7 17 25 Custodian fees 10 11 20 22 Accounting fees 8 - 16 - Supervisory board fees 15 16 29 28 Listing related expenses 7 25 31 71 VAT 1 6 4 12 Other administrative expenses 84 57 183 142 Total administrative expenses 518 521 1,026 1,069 Other administrative expenses during the six-month period ended 30 June 2026 include EUR 124 thousand in write-offs related to prior-period accruals. The Management Company is entitled to receive an annual management fee which is calculated quarterly, based on the 3-month average market capitalisation of the Fund. The Management Company is entitled to calculate the performance fee, however, based on the past performance of the Fund there is no prospect of this performance fee becoming payable in the medium term. Transactions with related parties are disclosed in note 17. Consolidated financial statements Note 4-6 Baltic Horizon Interim report H1 2026 20
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9. Income tax Real estate revenues, or capital gains derived from real estate are subject to taxes by assessment in the countries where the real estate is situated. The Fund’s subsidiaries in Lithuania depreciate their historical property cost in accordance with applicable tax regulations. Depreciation is deducted from taxable profits in determining current taxable income. The Group’s consolidated effective tax rate in respect of continuing operations for the six-month period ended 30 June 2026 was minus 6.2% (Six-month period ended 30 June 2025: minus 17.3%). As of 30 June 2026, the Group had tax losses of EUR 5,181 thousand (31 December 2025: EUR 6,602 thousand) that are available indefinitely for offset against future taxable profits of the Lithuanian companies in which the losses arose. As of 30 June 2026, deferred tax liabilities on the difference between investment property fair and tax value and other deferred tax liabilities amounted to EUR 5,871 thousand (31 December 2025: EUR 7,246 thousand). Deferred tax is only applicable to the Fund’s subsidiaries in Lithuania. The major components of income tax for the periods ended 30 June 2026 and 2025 were as follows: EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Profit (loss) for the period, attributed to the unitholders of the Fund 461 77 698 (891) Weighted-average number of units: 8. Earnings per unit The calculation of earnings per unit is based on the following profit attributable to unitholders and weighted- average number of units outstanding. Profit (loss) attributable to the unitholders of the Fund: EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Issued units at the end of period 226,576,150 143,562,514 226,576,150 143,562,514 Weighted-average number of units 226,576,150 143,562,514 195,847,346 143,562,514 Basic and diluted earnings per unit: EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Basic earnings per unit 0.00 0.00 0.00 (0.01) Diluted earnings per unit* 0.00 0.00 0.00 (0.01) EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Consolidated statement of profit or loss Current income tax for the period - - - (3) Deferred tax for the period (5) 12 (46) 190 Income tax income reported in profit or loss (5) 12 (46) 187 Consolidated statement of other comprehensive income Deferred income tax related to items charged or credited to equity: Revaluation of derivative instruments to fair value - (2) - (7) Income tax reported in other comprehensive income - (2) - (7) Consolidated financial statements Note 7-9 *In March 2026, the Fund diluted its earnings per unit by issuing 83,013,636 new units to raise capital through a private pla cement. EUR ‘000 01.04.2026 - 30.06.2026 01.04.2025 - 30.06.2025 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Interest on external loans and borrowings 1,748 2,066 3,634 4,436 Loan arrangement fee amortisation 55 67 114 185 Interest on lease liabilities 2 3 4 5 Other financial expenses 16 217 297 442 Total financial expenses 1,821 2,353 4,049 5,068 7. Financial expenses Baltic Horizon Interim report H1 2026 21
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10. Investment property The fair value of the investment properties is approved by the Management Board of the Management Company, based on independent appraisals. Independent appraisals are performed in accordance with the Practice Statements and Relevant Guidance Notes of the RICS Valuation – Professional Standards approved by both the International Valuation Standards Committee (IVSC) and by the European Group of Valuers’ Associations (TEGoVA). In accordance with that basis, the market value is an estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The appraisers derive the fair value by applying the methodology and valuation guidelines as set out by the Royal Institution of Chartered Surveyors in the United Kingdom and in accordance with IAS 40. Fair value does not necessarily represent the liquidation value of the properties which would be dependent upon the price negotiated at the time net of selling costs. Fair value is largely based on estimates which are inherently subjective. Valuation techniques used to derive Level 3 fair values The values of the properties are based on the valuation of investment properties performed by Newsec as of 31 December 2025, increased by right-of-use assets and subsequent capital expenditure. The table on the next pages presents the following for each investment property segment: • A description of the valuation techniques applied; • The inputs used in the fair value measurement; • Quantitative information about the significant unobservable inputs used in the fair value measurement. EUR ‘000 30.06.2026 31.12.2025 Balance at 1 January 208,940 241,158 Capital expenditure 1,153 4,764 Disposals - (16,380) Net revaluation loss on investment property (311) (20,584) Net revaluation loss on right-of-use assets (9) (18) Closing balance 209,773 208,940 Closing balance excluding right-of-use assets 209,562 208,720 Consolidated financial statements Note 10 Baltic Horizon Interim report H1 2026 22
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The table in the next column sets out information about significant unobservable inputs used at 31 December 2025 in measuring investment properties categorised to Level 3 in the fair value hierarchy. Consolidated financial statements Note 10 The book values of investment properties as of 30 June 2026 were as follows: EUR ‘000 Total fair value Level 3 Latvia - Galerija Centrs (retail) 58,362 Estonia – Postimaja and Apollo Plaza (retail) 34,584 Lithuania – Europa (retail) 32,358 Lithuania – North Star (office) 18,781 Latvia – Upmalas Biroji (office) 14,617 Latvia – Vainodes I (office) 12,485 Latvia – S27 (office) 12,412 Estonia – Lincona (office) 11,423 Estonia – Pirita (retail) 10,050 Latvia – Hipokrata (retail) 4,701 Total 209,773 As of 31 December 2025: Segment Valuation technique Key unobservable inputs Range Estonia DCF Discount rate 9.0% - 9.7% Net leasable area (NLA) 33,127 sq. m. Rental growth p.a. 1.5% - 5.3% Year of construction/renovation 1980-2016 Exit yield 7.0% - 8.5% Average rent (EUR/sq. m) 9.71 - 14.32 Latvia DCF Discount rate 8.6% - 9.78% Net leasable area (NLA) 49,926 sq. m. Rental growth p.a. 0.0% - 3.4% Year of construction/renovation 2006-2014 Exit yield 7.0% - 8.5% Average rent (EUR/sq. m) 10.8 - 16.58 Lithuania DCF Discount rate 9.15% - 9.55% Net leasable area (NLA) 28,216 sq. m. Rental growth p.a. 2.4% - 4.51% Year of construction/renovation 2004-2009 Exit yield 7.5% Average rent (EUR/sq. m) 11.92 - 13.44 Type of asset class Valuation technique Significant unobservable input Range of estimates Fair value measurement sensitivity to unobservable inputs Investment property Discounted cash flow Exit yield 2025: 7.0% - 8.5% An increase in exit yield in isolation would result in a lower value of Investment property. Discount rate 2025: 8.6% - 9.78% An increase in discount rate in isolation would result in a lower value of Investment property. Rental growth p.a. 2025: 0.0% - 5.3% An increase in rental growth in isolation would result in a higher value of Investment property. Baltic Horizon Interim report H1 2026 23
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11. Trade and other receivables As of 30 June 2026, the Fund’s consolidated cash and cash equivalents amounted to EUR 8.8 million. Of this balance, EUR 2.0 million is subject to internal use restrictions under credit agreements, which limit payments to Parent company and related parties but to meet ongoing business obligations. Additionally, EUR 1.2 million is restricted, of which EUR 1.0 million is pledged under a security account pledge agreement and EUR 0.2 million is held as a deposit required by the bank. 13. Equity 13a. Paid in capital The units are currently listed on the Fund List of the Nasdaq Tallinn Stock Exchange. As of 30 June 2026, the total number of the Fund’s units was 226,576,150 (31 December 2025: 143,562,514). Units issued are presented in the table below: EUR ‘000 30.06.2026 31.12.2025 Trade receivables, gross 2,077 2,293 Less impairment allowance for doubtful receivables (1,256) (994) Accrued income 379 432 Other accounts receivable 12 29 Total 1,212 1,760 Consolidated financial statements Note 11-13 Trade receivables are non-interest-bearing and are generally on 30-day terms. As of 30 June 2026, trade receivables at a nominal value of EUR 1,256 thousand were fully impaired (EUR 994 thousand as of 31 December 2025). Movements in the impairment allowance for doubtful receivables were as follows: EUR ‘000 30.06.2026 31.12.2025 Balance as of 1 January (994) (649) Charge for the period (335) (540) Amounts written off 73 195 Balance at end of period (1,256) (994) The ageing analysis of trade receivables not impaired is as follows (at the end of the period): EUR ‘000 Total Neither past due nor impaired Past due but not impaired <30 days 30-60 days 60-90 days 90-120 days >120 days 30.06.2026 821 553 140 40 36 32 20 31.12.2025 1,299 725 345 82 61 55 31 12. Cash and cash equivalents EUR ‘000 30.06.2026 31.12.2025 Cash at banks and on hand 8,770 5,377 Total cash 8,770 5,377 EUR ‘000 Number of units Amount As of 1 January 2026 143,562,514 151,495 Increase in the number of units and capital 83,013,636 12,270 As of 30 June 2026 226,576,150 163,765 In March 2026, Baltic Horizon Fund successfully completed a private placement and issued 83,013,636 new units with a gross value of EUR 12.3 million. A unit represents the investor’s share in the assets of the Fund. The Fund has one class of units. The investors have the following rights deriving from their ownership of units: • to own a share of the Fund’s assets corresponding to the number of units owned by the investor; • to receive, when payments are made a share of the net income of the Fund in proportion to the number of units owned by the investor (pursuant to the Fund Rules); Baltic Horizon Interim report H1 2026 24
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• to call a general meeting in the cases prescribed in the Fund Rules and the law; • to participate and vote in a general meeting pursuant to the number of votes arising from units belonging to the investor and the number of votes arising from units which have been issued and not redeemed as of ten days before the general meeting is held. Subsidiaries did not hold any units of the Fund as of 30 June 2026 and 31 December 2025. The Fund did not hold its own units as of 30 June 2026 and 31 December 2025. 13b. Cash flow hedge reserve This reserve represents the fair value of the effective part of the derivative financial instruments (interest rate swaps), used by the Fund to hedge the cash flows from interest rate risk in the periods ended on 30 June 2026 and 31 December 2025. Please refer to note 18 for more information. Consolidated financial statements Note 13-14 EUR ‘000 30.06.2026 31.12.2025 Balance at the beginning of the year (186) (420) Movement in fair value of existing hedges 293 252 Movement in deferred income tax (note 9) - (18) Net variation during the period 293 234 Balance at the end of the period 107 (186) 14. Interest-bearing loans and borrowings Baltic Horizon Interim report H1 2026 25 1. Despite the bond’s maturity date of 8 May 2028, the remaining balance was reclassified as a current liability according to IF RS due to non- compliance with the equity ratio covenant as of 31 December 2025. The Fund’s equity ratio covenant non -compliance has been resolved by the new unit offering in March 2026 within the allowed term, thus, the bonds were reclassified as non -current as of 30 June 2026. 2. Despite the loan’s maturity date of 31 January 2028, the remaining balance was reclassified as a current liability according to IFRS due to non- compliance with the NOI covenant as of 31 December 2025. The covenant non-compliance has been resolved by receiving a waiver from the Bank and the covenant has been removed altogether in March 2026, thus, the loan was reclassified as non -current as of 30 June 2026. 3. The loans were reclassified as long-term since the maturity of the loans were extended to January 2028. 4. The loan was reclassified as short-term since the maturity of the loan is February 2027. 5. Despite the loan’s maturity date of 31 January 2029, the remaining balance was reclassified as a current liability according to IFRS due to non- compliance with the equity covenant as of 31 December 2025. The covenant non-compliance has been resolved by raising the equity of the Company in March 2026, thus, the loan was reclassified as non-current as of 30 June 2026. EUR ‘000 Maturity Effective interest rate 30.06.2026 31.12.2025 Non-current borrowings Unsecured bonds1 May 2028 3M EURIBOR + 8.00% 11,220 - Bank 12 Jan 2028 3M EURIBOR + 2.25% 2,330 - Bank 13 Jan 2028 3M EURIBOR + 1.60% 8,936 - Bank 13 Jan 2028 3M EURIBOR + 1.90% 6,865 - Bank 14 Feb 2027 6M EURIBOR + 1.90% - 4,281 Bank 1 Dec 2027 6M EURIBOR + 2.25% 7,761 7,760 Bank 2 Aug 2027 6M EURIBOR + 3.80% 27,550 28,120 Bank 35 Jan 2029 6M EURIBOR + 2.80% 15,028 - Bank 3 Feb 2029 6M EURIBOR + 3.00% 10,034 8,798 Bank 4 Nov 2029 6M EURIBOR + 3.00% 20,654 20,800 Bank 5 Aug 2028 6M EURIBOR + 2.50% 9,478 9,798 Lease liabilities 211 220 Less current portion of bank loans and bonds (2,812) (2,320) Less current portion of lease liabilities (6) (14) Total non-current debt 117,249 77,443
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Consolidated financial statements Note 14 Loan and bond securities Borrowings received were secured with the following pledges and securities as of 30 June 2026: *All properties are pledged as collateral for the bank loans. Please refer to note 10 for the carrying amounts of assets pled ged at period end. Mortgages of the property* Second rank mortgages for derivatives Cross-mortgage Commercial pledge of the entire assets Bank 1 Lincona, Hipokrata, S27, Vainodes I, and Pirita Pirita and Lincona for Pirita and Lincona bank loans, Vainodes I, Hipokrata and S27 for Vainodes I, Hipokrata and S27 bank loan BH Rīga SIA Bank 2 Galerija Centrs Galerija Centrs BH Galerija Centrs SIA Bank 3 Europa and North Star Bank 4 Apollo Plaza and Postimaja Bank 5 Upmalas Biroji Kontor SIA Guarantee Pledges of receivables Pledge of land lease rights of the land plots Pledges of bank accounts Share pledge Bank 1 Baltic Horizon Fund for BH Rīga SIA up to 1,500,000 BH Rīga SIA BH Rīga SIA Bank 2 Baltic Horizon Fund for BH Galerija Centrs SIA up to EUR 5,000,000 BH Galerija Centrs SIA Bank 3 BH Europa UAB, BH Northstar UAB Bank 5 Baltic Horizon Fund for Kontor SIA Kontor SIA Covenant reporting As of 30 June 2026, the Fund was in compliance with the DSCR covenant set under the bond issue terms and conditions dated 8 May 2023 and amended on 26 September 2024 and 12 June 2025. As of 30 June 2026, the Fund was in compliance with all special conditions and covenants set under the bank loan agreements. Baltic Horizon Interim report H1 2026 26 EUR ‘000 Maturity Effective interest rate 30.06.2026 31.12.2025 Current borrowings Unsecured bonds1 May 2028 3M EURIBOR + 8.00% - 18,643 Bank 23 Aug 2027 6M EURIBOR + 3.80% - - Bank 35 Jan 2029 6M EURIBOR + 2.80% - 15,388 Bank 12 Jan 2028 3M EURIBOR + 2.25% - 2,552 Bank 13 Jan 2028 3M EURIBOR + 1.90% - 7,364 Bank 13 Jan 2028 3M EURIBOR + 1.60% - 9,561 Bank 14 Feb 2027 6M EURIBOR + 1.90% 4,216 - Current portion of non-current bank loans and bonds 2,812 2,320 Current portion of lease liabilities 6 14 Total current debt 7,034 55,842 Total 124,283 133,285 Bond covenant reporting Bond covenant Requirement Ratio 30.06.2026 Equity Ratio > 37.5%* 41.5% Debt Service Coverage Ratio > 1.0** 1.02 * Equity ratio must be above 37.5%. ** As stated in Bond Terms and Conditions amended on 26 September 2024, the DSCR of the Group must be above 1.0 for the period from 1 July 2025 to 30 September 2026 and above 1.2 afterwards. 1. Despite the bond’s maturity date of 8 May 2028, the remaining balance was reclassified as a current liability according to IF RS due to non- compliance with the equity ratio covenant as of 31 December 2025. The Fund’s equity ratio covenant non -compliance has been resolved by the new unit offering in March 2026 within the allowed term, thus, the bonds were reclassified as non -current as of 30 June 2026. 2. Despite the loan’s maturity date of 31 January 2028, the remaining balance was reclassified as a current liability according to IFRS due to non- compliance with the NOI covenant as of 31 December 2025. The covenant non-compliance has been resolved by receiving a waiver from the Bank and the covenant has been removed altogether in March 2026, thus, the loan was reclassified as non -current as of 30 June 2026. 3. The loans were reclassified as long-term since the maturity of the loans were extended to January 2028. 4. The loan was reclassified as short-term since the maturity of the loan is February 2027. 5. Despite the loan’s maturity date of 31 January 2029, the remaining balance was reclassified as a current liability according to IFRS due to non- compliance with the equity covenant as of 31 December 2025. The covenant non-compliance has been resolved by raising the equity of the Company in March 2026, thus, the loan was reclassified as non-current as of 30 June 2026.
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15. Trade and other payables Consolidated financial statements Note 15-17 EUR ‘000 30.06.2026 31.12.2025 Trade payables 948 1,112 Management fee payable 455 686 Accrued financial expenses 394 496 Accrued expenses 169 129 Tax payables 189 156 Other payables 98 150 Total trade and other payables 2,253 2,729 Terms and conditions of trade and other payables: • Trade payables are non-interest-bearing and are normally settled on 30-day terms. • Other payables are non-interest-bearing and have an average term of 3 months. 16. Commitments and contingencies 16a. Litigation As of 30 June 2026, there was no ongoing litigation, which could materially affect the consolidated financial position of the Group. 16b. Contingent assets The Group did not have any contingent assets as of 30 June 2026. 16c. Contingent liabilities The Group did not have any other contingent liabilities as of 30 June 2026. 17. Related parties During the reporting period, the Group entered into transactions with related parties. Those transactions and related balances are presented below. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. All transactions between related parties are priced on an arm’s length basis. Baltic Horizon Capital AS As set out in Baltic Horizon Fund Rules, Baltic Horizon Capital AS (the Management Company) carries out asset manager functions on behalf of the Fund and the Fund pays management fees for it (note 6). The Management company owns Gene Investments OÜ which held 5.0% of the Fund units as of 30 June 2026. The Group’s transactions with related parties during H1 2026 and 2025 were the following: EUR ‘000 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Baltic Horizon Capital AS Management fees 548 606 EUR ‘000 30.06.2026 31.12.2025 Baltic Horizon Capital AS Management fees payable 455 686 The Group’s balances with related parties as of 30 June 2026 and 31 December 2025 were the following: Baltic Horizon Interim report H1 2026 27
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Consolidated financial statements Note 17 As of 30 June 2026 Number of units Percentage Swedbank AB, Lithuania clients 109,199,464 48.2% Skandinaviska Enskilda Banken AB clients 14,627,097 6.5% Gene Investments OÜ 11,318,367 5.0% The Management Company is entitled to receive an annual management fee which is calculated quarterly, based on the 3-month average market capitalisation of the Fund. In case the market capitalisation is lower than 90% of the NAV of the Fund, the amount equal to 90% of the NAV of the Fund shall be used for the management fee calculation instead of the market capitalisation. The fee is based on the following rates and in the following tranches: • 1.50% of the market capitalisation below EUR 50 million; • 1.25% of the part of the market capitalisation that is equal to or exceeds EUR 50 million and is below EUR 100 million; • 1.00% of the part of the market capitalisation that is equal to or exceeds EUR 100 million and is below EUR 200 million; • 0.75% of the part of the market capitalisation that is equal to or exceeds EUR 200 million and is below EUR 300 million; • 0.50% of the part of the market capitalisation that is equal to or exceeds EUR 300 million. The Management Company is entitled to calculate the performance fee based on the annual adjusted funds from operations (AFFO) of the Fund. If AFFO divided by paid in capital during the year exceeds 8% per annum, the Management Company is entitled to a performance fee in the amount of 20% of the amount exceeding 8%. The performance fee based on this formula has been calculated starting from 1 January 2017. The performance fee first became payable in the fifth year of the Fund (i.e. 2020). Baltic Horizon Capital AS did not own any units of the Fund as of 30 June 2026. Supervisory Board of the Fund As set out in Baltic Horizon Fund Rules, Supervisory Board members are entitled to remuneration for their service in the amount determined by the General Meeting. The remuneration of the Supervisory Board of the Fund amounted to EUR 29 thousand during H1 2026 (EUR 28 thousand during H1 2025). Please refer to note 6 for more information regarding the total expenses related to the Supervisory Board of the Fund. Entities having control or significant influence over the Fund The Management company owns Gene Investments OÜ which held 5.0% of the Fund units as of 30 June 2026. The holders of units owning more than 5% of the units in total as of 30 June 2026 and 31 December 2025 are presented in the tables below: As of 31 December 2025 Number of units Percentage Swedbank AB, Lithuania clients 57,399,802 40.0% Skandinaviska Enskilda Banken AB clients 13,770,162 9.6% Raiffeisen Bank International AG clients 8,543,169 6.0% Baltic Horizon Interim report H1 2026 28
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18. Financial instruments Fair values Set out below is a comparison by category of the carrying amounts and fair values of all the Group’s financial instruments carried in the consolidated financial statements: EUR ‘000 Carrying amount Fair value 30.06.2026 31.12.2025 30.06.2026 31.12.2025 Financial assets Trade and other receivables 1,212 1,760 1,212 1,760 Cash and cash equivalents 8,770 5,377 8,770 5,377 Derivative financial instruments 107 - 107 - Financial liabilities Interest-bearing loans and borrowings Bank loans (112,852) (114,422) (112,852) (114,422) Bonds (11,220) (18,643) (11,500) (19,000) Trade and other payables (2,253) (2,729) (2,253) (2,729) Derivative financial instruments - (186) - (186) Consolidated financial statements Note 18 Fair value hierarchy Quantitative disclosures of the Group’s financial instruments in the fair value measurement hierarchy as of 30 June 2026 and 31 December 2025: As of 30 June 2026 As of 31 December 2025 Baltic Horizon Interim report H1 2026 29 EUR ‘000 Level 1 Level 2 Level 3 Total fair value Financial assets Trade and other receivables - - 1,760 1,760 Cash and cash equivalents - 5,377 - 5,377 Financial liabilities Interest-bearing loans and borrowings Bank loans - - (114,422) (114,422) Bonds - - (19,000) (19,000) Trade and other payables - - (2,729) (2,729) Derivative financial instruments - (186) - (186) EUR ‘000 Level 1 Level 2 Level 3 Total fair value Financial assets Trade and other receivables - - 1,212 1,212 Cash and cash equivalents - 8,770 - 8,770 Derivative financial instruments - 107 - 107 Financial liabilities Interest-bearing loans and borrowings Bank loans - - (112,852) (112,852) Bonds - - (11,500) (11,500) Trade and other payables - - (2,253) (2,253)
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Consolidated financial statements Note 19-20 Management assessed that the carrying amounts of cash and short-term deposits, rent and other receivables, trade payables and other current liabilities approximate their fair values largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions are used to estimate the fair values: • Trade and other receivables are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer, and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected losses on these receivables. As of 30 June 2026, the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values. • The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. The fair value of derivatives has been calculated by discounting the expected future cash flows at prevailing interest rates. • The fair values of the Group’s interest-bearing loans and borrowings are determined by discounting the expected future cash flows at prevailing interest rates. The estimated fair values of the Group’s interest-bearing loans and borrowings were determined using effective agreements’ interest rates which represent current market rate. • Cash and cash equivalents are attributed to Level 2 in the fair value hierarchy. 19. Derivative financial instruments The Group has entered into interest rate swaps (IRS) agreements with OP and SEB. The purpose of derivative instruments is to hedge the interest rate risk arising from the interest rate fluctuations of the Group’s non-current loans and some of the Group’s current loans because the Group’s policy is to have fixed interest expenses. According to the IRS agreements, the Group makes fixed interest payments to the bank and receives variable interest rate payments from the bank. An interest rate cap allows to limit the interest rate fluctuation to a certain level. IFRS 9 allows hedge accounting provided that the hedge is effective. In such cases, any gain or loss recorded on the fair value changes of the financial instrument is recognised in an equity reserve rather than the income statement. The ineffective part of the change in the fair value of the hedging instrument (if any) is recognised in the income statement. Specific documentation on each financial instrument is required to be maintained to ensure compliance with hedge accounting principles. Please refer to note 13b for more information. EUR ’000 Fair value Derivative type Starting date Maturity date Notional amount Variable rate (received) Fixed rate (paid) 30.06.2026 31.12.2025 IRS Dec 2024 Nov 2027 13,150 6M EURIBOR 2.45% 38 (58) IRS Dec 2024 Nov 2027 13,150 6M EURIBOR 2.39% 47 (45) IRS Dec 2024 Oct 2027 2,361 3M EURIBOR 2.33% 6 (9) IRS Dec 2024 Oct 2027 8,012 6M EURIBOR 2.50% 11 (51) IRS Dec 2024 Oct 2027 4,012 6M EURIBOR 2.50% 5 (23) Derivative financial instruments, assets 107 - Derivative financial instruments, liabilities - (186) Net value of financial derivatives 107 (186) Derivative financial instruments were accounted for at fair value as of 30 June 2026 and 31 December 2025. The maturity of the derivative financial instruments of the Group is as follows: Classification according to maturity EUR ‘000 Liabilities Assets 30.06.2026 31.12.2025 30.06.2026 31.12.2025 Non-current - (186) 107 - Current - - - - Total - (186) 107 - 20. Subsequent events There were no other significant events after the reporting date. Baltic Horizon Interim report H1 2026 30
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Consolidated financial statements Note 21 21. List of consolidated companies Name Registered office Registration Number Date of incorporation/ acquisition Activity Interest in capital BH Lincona OÜ Hobujaama str. 5, Tallinn, Estonia 12127485 20 June 2011 Asset holding company 100% BH CC Plaza OÜ Hobujaama str. 5, Tallinn, Estonia 12399823 11 December 2012 Asset holding company 100% BH Europa UAB Konstitucijos av. 7A-1, Vilnius, Lithuania 300059140 2 March 2015 Asset holding company 100% Kontor SIA Mūkusalas str. 101, Rīga, Latvia 40003771618 30 August 2016 Asset holding company 100% Pirita Center OÜ Merivälja str. 24, Tallinn, Estonia 12992834 16 December 2016 Asset holding company 100% BH Rīga SIA Skanstes iela 27, Riga, Latvia 40103810023 15 August 2018 Asset holding company 100% BH Galerija Centrs SIA Audeju str. 16, Riga, Latvia 40003311422 13 June 2019 Asset holding company 100% BH Northstar UAB Ulonų str. 2, Vilnius, Lithuania 305175896 29 May 2019 Asset holding company 100% Baltic Horizon Interim report H1 2026 31
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The interim condensed consolidated financial statements of Baltic Horizon Fund were approved for issue by the Management Board of the Management Company on 6 August 2026. Management approval of consolidated financial statements Edvinas Karbauskas Chairman of the Management Board Gerda Bliuvienė Member of the Management Board Consolidated financial statements Management approval Baltic Horizon Interim report H1 2026 32
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Appendices
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Definitions and abbreviations Definitions and abbreviations AFFO Adjusted Funds From Operations means the net operating income of properties less fund administration expenses, less external interest expenses and less all capital expenditures including tenant fit-out expenses invested into existing properties by the Fund. New investments and acquisitions and follow-on investments into properties are not considered to be capital expenditures. Direct Property Yield NOI divided by acquisition value and subsequent capital expenditure of the property. Discounted cash flows (DCF) Under the DCF method, a property’s fair value is estimated using explicit assumptions about the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. This involves the projection of a series of cash flows and applying to this an appropriate, market-derived discount rate to establish the present value of the income stream. The duration of the cash flow and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related lease up periods, re-letting, redevelopment, or refurbishment. Discount rate Rate used to discount the net cash flows generated from rental activities during the period of analysis. Equity ratio The ratio is calculated as total equity divided by total assets. Exit yield A rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income per year is divided by the terminal cap rate to get the terminal value. The exit yield is calculated according to the growth rate of the stabilized net operating income or based on forecast. Fund Baltic Horizon Fund. GAV Gross Asset Value of the Fund. Highest and best use For all investment property that is measured at fair value, the current use of the property is considered the highest and best use. IFRS International Financial Reporting Standards. IRR Internal rate of return. LTV Loan-to-value ratio. The ratio is calculated as the amount of the external bank loan debt less lease liabilities (IFRS 16) divided by the carrying amount of investment property (including investment property under construction). Management Company Baltic Horizon Capital AS, register code 11025345. NAV Net asset value for the Fund. NAV per unit NAV divided by the amount of units in the Fund at the moment of determination. Net Initial Yield NOI divided by market value of the property. NLA Net leasable area. Leasable space that can be rented to tenants, excluding non-leasable areas such as hallways, utility rooms, and other common spaces. NOI Net operating income. Occupancy rate The ratio is calculated as rented area divided by net leasable area. Rental growth The estimated average increase in rent based on both market estimations and contractual indexations. Baltic Horizon Interim report H1 2026 34
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Baltic Horizon Fund is managed by Alternative Investment Fund Manager license holder Baltic Horizon Capital AS. Roseni 7 10111 Tallinn Estonia Edvinas.karbauskas@baltichorizon.com