Oslo, 29 Aug 2025, 08:00 CEST.
We are pleased to present our Half-Year (Q2) 2025 report, marking another period of revenue growth and sustained cash flow development: Download here (link updated 02.09.2025)
Top Line Growth — Improving Results as Financing Costs Decline
Rental income rose 11% to mEUR 4.60 in the first half of 2025 (from mEUR 4.14 in the first half of 2024), driven by CPI indexation and the commencement of rental income from newly developed premises for ESO at Liepų Parkas (Klaipėda) early in the year.
Direct ownership costs for the first six months of 2025 amounted to mEUR 0.20, up from mEUR 0.13 in the same period last year. Net rent increased to mEUR 4.40 from mEUR 4.01, demonstrating our ability to grow NOI through both new projects and active asset management, where the majority of direct ownership costs are recovered through lease agreements.
Administration costs for the period were mEUR 0.77, up from mEUR 0.65 last year, while other operating expenses decreased to mEUR 0.42 from mEUR 0.49.
As a result, EBITDA increased 11% to mEUR 3.29 from mEUR 2.96 last year, and Income from Property Management grew 57% to mEUR 1.66 compared with mEUR 1.06. These results highlight not only strong top-line growth but also our ability to translate revenues into higher operating profits through disciplined cost control and active asset management. Importantly, the improvement reflects sustainable drivers, CPI linked rental growth, successful project deliveries, and structurally lower financing costs, providing a solid foundation for further earnings growth.
Valuations Remain Relatively Stable
We observed a modest upward movement in market yields in the first half of 2025, but higher CPI expectations supported a like-for-like valuation gain of mEUR 0.49. Annualised return on equity was 5.7% (vs. 5.4% last year, incl. dividends), with profit after tax of mEUR 1.34.
Impact from Tax Increases
While the successive increases in Lithuanian corporate tax (from 15% to 16% in 2025 and to 17% in 2026) have temporarily weighed on returns through higher deferred tax liabilities, we do not expect further tax increases beyond these defence-related measures. Looking ahead, we see upside from active asset management, scale benefits, and a stable tax framework, which should strengthen run-rate returns going forward.
Maintaining Dividend Capacity
In May, the Board approved a cash dividend of NOK 2.00 per share. This is the 5th consecutive year of dividend distributions, highlighting our consistent dividend track record.
Portfolio Updates
BSP Park Vilnius A4: Amended expansion agreement with anchor tenant Rhenus, extending the build option to 2027 and confirming a long-term lease to 2040.
BSP Park Vilnius East: Active asset management to secure new clients after the anchor tenant leaves in January 2026.
Liepų Parkas: Building D is on schedule for handover to Inchape Auto in January 2026, while construction of Building B has commenced with active pre-leasing ongoing.
For further information, please contact:
Lars Christian Berger,
CEO
Phone: +47 930 94 319
Email: Lcb@balticsea.no
The information in this announcement is subject to disclosure requirements under
the EU Market Abuse Regulation (MAR) and listing rules for Euronext Growth Oslo.