Baltic Sea Properties

Quarterly Report • Nov 16, 2023

Quarterly report

Baltic Sea Properties

About us

Baltic Sea Properties is a Norwegian public listed, open-ended and fully integrated investment company. The company is among the Baltics' leading real estate investors and developers – owning a diversified cash flow generating portfolio of modern real estate in the logistics, industrial and commercial segments.

Our strategy is to develop long-term relationships with strong clients and to hold high-quality assets in attractive locations. We grow our portfolio by own developments and acquisitions with the objective to maximise shareholder values and the company's dividend capacity.

The property management is conducted through fully-owned subsidiaries by a professional management team with deep knowledge of the Baltic real estate market

Contents

About us	2
Our Vision, Mission & Values	4
Highlights	6
Financial overview Key figures group Financing Financial results & position Comprehensive income & Net Asset Value Net Asset Value (NAV)	8 9 12 14 20 22
Investment Portfolio Rent roll Investment strategy BREEAM — Certification status	24 25 26 28
Property portfolio Client mix Presentation of our properties Land bank	30 31 32 42
Contact	43
Euronext Growth Oslo	45

Disclaimer:

This report has been prepared by Baltic Sea Properties AS in good faith and to our best ability with the purpose to give the company's shareholders updated information about the company's operations and status. This document must not be understood as an offer or encouragement to invest in the company. The financial figures presented are unadited and may thus include discrepancies. Baltic Sea Properties AS further makes reservations that errors may have occurred in its calculations of key figures or in the development of the report which may contribute to an inaccurate impression of the company's status and/or operations. The report also includes descriptions and comments which are based on subjective assumptions and considerations, and thus must not be understood as a guarantee of future events or future profits.

Our Vision

Our vision is to be the preferred real estate partner and leading investment company in the region.

We will achieve this by staying true to our mission and values.

Our Mission

Our mission is to foster a great team, to provide high quality and sustainable solutions for our partners, thus creating superior long-term value and returns for our shareholders.

Our Values

• • Commitment to our people and their professional development.
• Focusing on innovation and value creation.
• • Respect for our social and physical environment.
• • Accountability and fairness with our stakeholders.
• • Reliability and integrity in all we do

Highlights

Q3 2023 reporting

We are pleased to present our third-quarter report, showcasing growth despite challenging market dynamics. This period has been marked by a robust increase in our rental income, with a significant 20% rise compared to the same period last year. This growth is a testament to our resilience and adaptability in a challenging market environment.

Maintaining strong project pipeline and resilient investment portfolio

Despite the headwinds of increasing financial costs due to rising interest rates through 2023, our strategic growth strategy has been important. The successful introduction of new developments and investment assets throughout last year has been instrumental in sustaining the strong cash flow development we have consistently achieved in recent years albeit at a lower pace than before. Below we have highlighted some of the major developments thus far in 2023:

• Completion of solar panel installation at Klaipėda Business Park, furthering our commitment to sustainability and lower electricity prices for our clients.
• Successful finalisation and handover of the Oribalt expansion project.
• Advancement in our BREEAM In-Use certification strategy, reinforcing our dedication to environmental responsibility.
• Transition to International Financial Reporting Standards (IFRS) to enhance transparency for investors and stakeholders.
• Dividend distribution of NOK 1.60 per share to our shareholders in June in line with the company's long term startegy.
• Significant progress in our development project pipeline, including preliminary agreements for Liepu Parkas development in Klaipeda.
• Securing a 17,255 sqm expansion project for Rhenus Logistics, entering a new 15-year lease agreement, to commence following the expected 2025 handover. Upon completion, the over 35 600-square-meter facility will become one of the Baltic region's leading logistics centers.

Subsequent Events

In November, a new lease agreement was secured with the Klaipeda Free Economic Zone (FEZ), setting the stage for the expansion of Klaipėda Business Park by up to 16,000 sqm in two phases. This expansion will increase the integrated business park complex from 24,000 sqm to over 40,000 sqm, underlining our commitment to supporting growth and innovation in the region. First established in 2003, Klaipėda Business Park is the leading business park in Western Lithuania, with more than 30 companies leasing production, logistics, commercial, and office space in flexible units. We are eager to advance the project and have already commenced the planning process.

Fundamentals drives us forward

Our fundamental approach to real estate management and development, combined with a strong capital structure, positions us to navigate the current market cycle. We have a strong position in our sector and are are optimistic about seizing further opportunities.

Wish all a nice start to the Winter season!

Company (EUR)	2023 Jan-Sept	2022 Jan-Sept	2022 Jan - Dec
Rental income (mEUR)	5.97	4.98	6.88
Income From Property Management (IFPM) (mEUR)	2.39	2.10	2.93
Annualised Return on Equity inc. dividend (ROE ) - YTD	3.85%	10.36%	12.20%
Investment properties value (mEUR)	98.59	94.90	96.67
Loan to Value investment portfolio (LTV) (excl. cash, mezzanine facilities & seller credit)	54.32%	54.54%	53.90 %

BSP Park - Vilnius A4 (top) | Photo of current terminal. BSP Park - Vilnius A4 (bottom) | Illustration of terminal after planned expansion.

Financial overview

Q3 2023

• Key figures group
• Financial results & position

• Financing

• Comprehensive income & Net Asset Value

• Net Asset Value (NAV)

Please note:

Unless stated otherwise, the financial figures presented in this chapter have been prepared using the same IFRS principles as described in the company's Annual Report 2022 (available for download on balticsea.no). The consolidated statements presented in this quarterly report are however simplified from the IFRS requirements.

Please note that the quarterly/half-yearly figures in this report are unaudited.

Key figures group

Q3 quarterly report 2023 (unaudited)

Per share	30.09.2023	30.09.2022	31.12.2022	31.12.2021
Net Asset Value (NAV) in NOK	67.41	61.49	62.11	53.93
NAV in EUR	5.99	5.81	5.91	5.40
YTD Return NAV incl. dividend (EUR)	3.85 %	10.36 %	12.18 %	20.79 %
YTD Return NAV incl. dividend (NOK)	10.55 %	16.79 %	18.08 %	15.24 %
Dividend distributed (NOK)	1.60	1.50	1.50	1.50
Last transaction price per date (NOK)	47.00	48.60	50.00	50.50
Number of shares issued	6 688 232	6 688 232	6 688 232	6 688 232
EURNOK rate, balance sheet date 1	11.25	10.58	10.51	9.99
EURNOK rate, YTD average 2	11.35	10.01	10.10	10.16

1) EURNOK rate per balance sheet date is used when converting balance sheet figures.

2) EURNOK YTD average rate is used when converting P&L figures.

Group key figures (MNOK)	30.09.2023	30.09.2022	31.12.2022	31.12.2021
Fair value of portfolio	1 110	1 004	1 016	754
Value of equity based on NAV - BSP method	450	410	414	360
Value of equity based on NAV - BSP method (MEUR)	40 .01	38.77	39.5	36.1
Gross rent income per date	59.75	49.83	69.5	63.8
Net income from property management (IFPM)	27.2	21,1	29,7	26,3
Annualised contracted rent	91.1	79,39	88,4	66,46
NOI yield (investment projects)	8.10 %	7.60%	7.88 %	7.60 %
Dividend yield	2.44 %	2,50 %	2.50%	2.80%
Occupancy rate	100 %	98 %	99 %	98 %
WAULT (years)	9.5 yrs	9.66 yrs	9.1 yrs	10.1 yrs
IBD (incl. mezzanine & seller credit)	660	548	604	406
LTV investment portfolio (incl. mezzanine & seller credit)	59.50 %	60.86 %	59.42 %	53.9%
Net LTV (inc. Cash)	57.18 %	55.78 %	56.95 %	50.3 %
Interest cost coverge ratio (ICR) - inc. Group finance	2.23	2.94	2.39	2.45
Interest cost coverge ratio (ICR) - SPV finance	3.24	4.50	4.22	4.50

Terms/abbreviations used in this report:

• Fair value of portfolio = valuation of the real estate assets
• NOI = Net operating income from property portfolio (incl.internal property management expenses)
• NOI yield = NOI / Market value of the investment portfolio excluding development land value (land bank).
• Net rent = Income from rental activity from property portfolio minus (-) all unrecovered property expenses (not including internal property management fees).
• IFPM (Income From Property Management) = Profit/loss before tax excluding depreciations, profit/loss/value movements on properties, realised investments, currency and other financial instruments.
• PFPM yield = Profit from Property Management/ Net Asset Value (NAV)
• IBD = Interest-Bearing Debt all outstanding debt to credit institutions and/or other credit facilities
• LTV = Loan to Value ratio
• EBITDA = Earnings before interest, tax, depreciation and amortisation
• WAULT = Weighted average unexpired lease term
• Interest cost ratio (ICR) inc. group finance- Group EBITDA/all interest paid
• Interest cost ratio (ICR) SPV finance Consolidated EBITDA of real estate subsidiaries/interest paid from real estate finance

Financial results

Q3 quarterly report 2023

Rental income performance

For the year 2023 to date, our rental income reached mEUR 5.97, a notable increase from mEUR 4.98 in the previous year. This substantial growth is primarily attributed to the successful introduction of new developments and investment assets throughout 2022/2023, coupled with CPI adjustments on existing leases. These strategic expansions and adjustments have significantly contributed to our income in 2023.

Operational cost and net rent

The first half of 2023 saw a marginal increase in direct ownership costs, rising to mEUR 0.23 from mEUR 0.18. This rise is primarily due to the expansion of our portfolio. Net rent for the same period has been robust, standing at mEUR 5.7, up from mEUR 4.8. With the majority of our portfolio governed by triple net agreements, the direct unrecovered property costs have remained comparatively low. We anticipate these costs to continue at this manageable level, reflecting our efficient portfolio management.

Our administration costs have remained relatively stable, with a slight increase to approximately mEUR 0.93 from mEUR 0.90, reflecting consistent operational efficiency and we have ability to increase our scale with minimum increase of our management cost. Other operating expenses were reduced with approximately mEUR 0.25 to mEUR 0.34 from mEUR 0.66 in Q3 22.

Impact of increased interest rates

The year 2023 has witnessed a significant increase in EURIBOR, equal to the broader trend in global markets. This increase has led to higher funding costs for BSP in comparison to the previous year. Our interest expenses for year to date amounted to mEUR 2.1, a notable increase from mEUR 1.13 in the corresponding period last year. Specifically, financing cost of our portfolio increased to mEUR 1.73 (inc. swaps), compared to mEUR 0.85 in the previous year. Despite rising interest costs, we still have a comfortable spread to our bank covenants with both our Group debt service cost coverage (DSCR) and our interest coverage rate (ICR) at 1.20 and 2.23 respectively. Adjusted for group financing and sellers credit, real estate financed SPV´s have a consolidated DSCR of 1.62 and a ICR of 3.24 excluding internal management fees.

Net income from property management

Our net income from property management for Q3 2023 reached mEUR 2.39, an increase of 13% compared to the same period last year.

Fair value adjustments

The first half of the year saw a reduction in the fair value of our investment properties, amounting to approximately mEUR 0.41. This decrease is due to marginaly higher construction costs for the Oribalt expansion project, along with other uncapitalised capital repairs.

Valuation methodology and portfolio yield

The valuations of our investment portfolio have been made by two independent valuators using the standard Discounted Cash Flow (DCF) method, in line with our normal practice. As of our 30.09.23 valuations, there have been no management adjustments on the half year valuations, with valuation yields and discount rates remaining consistent according to valuators. Since 31.12.2022, the portfolio yield has seen an average increase of approximately 0.5%.

The portfolio was valued at a total of mEUR 97.89 as of 30th September 2023, based on valuations from Newsec and Oberhaus as of 30th June 2023, adjusted for additional investments made during the quarter.

Per end of period (EUR)	30/09/2023	30/09/2022	31/12/2022
Rental income	5 975 081	4 983 074	6 881 875
Property expenses ex mng	-232 449	-184 536	-216 210
Net rent	5 742 632	4 798 539	6 665 665
Other operating income	39 390	90 841	112 605
Administration cost	-928 637	-899 710	-1 292 393
Other operating cost	-337 357	-661 394	-796 425
Net realised interest cost & finance expenses	-2 120 059	-1 218 675	-1 774 968
Net income from property management (IFPM)	2 395 968	2 109 601	2 914 484
Change in fair value of investment properties	-411 943	1 506 653	1 707 720
Changes in value of financial instruments	-350 157	956 808	1 019 107
Realised changes in value of investment properties		0	-197 979
Depreciation, amortisation and impairment	-68 429	-14 794	-22 000
Net currency exchange differences	13 651	142 494	97 137
Profit before tax	1 579 090	4 700 762	5 518 469
Current tax	-6 673	-86 876	-116 955
Deferred tax	-86 894	-592 049	-795 039
Profit from continued operations	1 485 523	4 021 837	4 606 475

Financing

Q3 quarterly report 2023

	Debt maturity				Interest Swap maturity
Year	EUR	Share %	Interest margin	EUR	Share %	Swap fixed rate
0-1 year				17 385 566	87.42 %	0.58 %
1-3 years	53 560 625	91.30 %	2.19 %	2 502 386	12.58 %	0.72 %
4-5 years
Total funding real estate portfolio1	53 560 625	91.30 %	2.19 %	19 887 952	37.13 %	0.60 %
Mezzanine2	1 777 225	3.03 %	9.30 %
Seller credit3	3 324 800	5.67 %	8.00 %
Sum loan	58 662 650	100 %	2.73 %	19 887 952	33.90 %	0.60 %

1) Weighted average bank interest margin is 2.19 % + 3-months EURIBOR ( per 30th of September 2023). The interest swap is against 3-months EURIBOR.

2) Interest rate for the mezzanine loan is including margin. In October, the company decided to draw up mNOK 30 on same conditions. The original plan is to repay an equal amount as of the sellers credit. The loan facility expires in September 2024.

3) Interest rate for the seller credit is including margin. Interest cost all-inclusive. Seller credit is related to the transaction of Grandus SC and expires at the end of 2023.

Loan financing	30/09/2023	31/12/2022
Interest-bearing debt incl. mezzanine loan and seller credit (MEUR)	58.66	57.4
LTV incl. mezzanine loan and seller credit	59.50%	59.38 %
Interest-bearing debt excl.mezzanine loan and seller credit (MEUR)	53.56	52.1
LTV excl. mezzanine loan and seller credit	54.32 %	53.92 %
12-month running interest margin all loans (margin)*	2.74 %	2.73 %
Interest rate hedging ratio	33.90 %	39.74 %
Interest rate coverage (ICR) - group	2.23	2.39
Interest rate coverage (ICR) - SPV finance	3.24	4.5
Time until maturity interest-bearing debt (weighted)	3.7 yrs	4.4 yrs
Time until maturity interest hedging contracts (weighted)	0.44 yrs	1.3 yrs

* Excl. 3-months EURIBOR & swap agreements

(MEUR)	30/09/2023	31/12/2022
Interest-bearing debt, total	58.6	57.4
Interest-bearing debt, bank loan	53.6	52.1
Interest-bearing debt, mezzanine	1.7	2.1
Interest-bearing debt, seller credit	3.3	3.2
LTV, total	59.50 %	59.38 %

Oribalt | Expansion area while under construction (completed Spring 2023)

Per 30.09.2023		Per 30.09.2022
NOK	EUR	NOK	EUR
23 428 786	2 064 566	6 853 610	684 985
31 150	2 745	1 573 373	157 251
-4 020 274	-354 270	-
1 410 500	124 295	1 728 228	172 728
2 181 301	192 218	1 175 435	117 479
23 031 464	2 029 554	11 330 646	1 132 443

Concept visualisation | Liepų Street, Klaipėda Liepų Parkas (3.6 hectare) | Retail and business park

Consolidated statement of profit or loss

Year to date	30 September 2023	31 December 2022	30 September 2022
	Unaudited		Unaudited
Rental income	67 805	69 521	49 858
Gain from sale of fixed assets		0
Other income	447	1 138	909
Total operating income	68 252	70 659	50 767
Payroll and related costs	10 538	13 056	9 002
Depreciation, amortisation and impairment	777	219	148
Other operating expenses	6 466	11 789	8 464
Total operating expenses	17 781	25 063	17 614
Change in fair value of investment properties	-4 675	17 252	15 075
Operating profit	45 797	62 847	48 228
Change in fair value of financial instruments	-3 974	10 295	9 573
Financial income	127	456	16
Financial expenses	-24 186	(18 387)	-12 193
Net currency exchange differences	155	981	1 426
Net financial income (cost)	-27 877	(6 654)	-1 178
Profit before income tax	17 920	56 193	47 049
Income tax expense	76	1 181	869
Change in deferred tax liability/asset	986	8 032	5 924
Profit for the period	16 858	46 979	40 256
Earnings per share	30 September 2023	31 December 2022	30 September 2022
Basic	2.52	7.04	6.03
Diluted	2.52	7.04	6.03
Profit is attributable to:	2023 Q3	31 December 2022	30 September 2022
- Owners of Baltic Sea Properties group	16 858	46 979	40 256
- Non-controlling interests	-	-	-

Consolidated statement of comprehensive income

Year to date	30 September 2023	31 December 2022	30 September 2022
	Unaudited		Unaudited
Profit for the period	16 858	46 979	40 256
Other comprehensive income not to be reclassified to profit and loss
Foreign currency translation differences	28 554	21 020	23 609
	28 554	21 020	23 609
Total comprehensive income for the period	45 412	68 001	63 865
Total comprehensive income is attributable to:
- Owners of Baltic Sea Properties group	45 412	68 001	63 865
- Non-controlling interests	-	-	-
	45 412	68 001	63 865

BSP Park – Vilnius West | Expansion area (4,876 m²) handed over to client in September 2022

Consolidated statement of financial position

Per date	30 September 2023	31 December 2022	30 September 2022
	Unaudited		Unaudited
Assets
Investment property	1 136 660	1 040 278	1 028 019
Other operating assets	1 635	1 727	1 878
Right-of-use assets	173	231	260
Financial derivatives, non-current	3 051	6 581	5 956
Other financial non-current assets	0	0	0
Long-term receivables	144	134	135
Total non-current assets	1 141 662	1 048 951	1 036 248
Trade receivables	3 174	4 071	3 484
Financial derivatives, current	0	0	0
Other receivables and other current assets	4 989	3 726	4 411
Cash and cash equivalents	45 058	44 083	91 483
Total current assets	53 221	51 880	99 378
Investment property held for sale	-	-	-
Total assets	1 194 883	1 100 831	1 135 626

Consolidated statement of financial position

Per date	30 September 2023	31 December 2022	30 September 2022
	Unaudited		Unaudited
Equity
Share capital	669	669	669
Share premium	118 788	118 788	119 018
Other paid-in equity	-1	-1	-1
Total paid-in equity	119 456	119 456	119 686
Retained earnings	321 040	286 226	281 862
Total equity	440 496	405 682	401 548
Liabilities
Deferred tax liabilities	46 704	42 772	41 796
Interest-bearing liabilities	614 838	541 659	589 323
Lease liabilities, non-current	28 107	23 919	23 663
Financial derivatives, non-current	0	0	0
Other non-current provisions	143	134	266
Total non-current liabilities	689 792	608 484	655 046
Lease liabilities, current	256	220	231
Interest-bearing liabilities, current	40 209	60 150	50 912
Trade payables	3 522	8 149	9 413
Income tax payable	2 116	2 132	2 978
Financial derivatives, current	0	0	0
Other current liabilities	18 491	16 014	15 498
Total current liabilities	64 595	86 665	79 032
Total equity and liabilities	1 194 883	1 100 831	1 135 626

Consolidated statement of changes in equity

Attributable to owners of Baltic Sea Properties AS
Share capital	Share premium reserve	Other paid-in equity	Retained earnings	Total	Non controlling interests	Total equity
669	118 788	(2)	228 029	347 485	-	347 485
-	-	-	46 979	46 979	-	46 979
-	-	-	-	-	-	-
-	-	-	230	231	-	231
-	-	-	21 020	21 020	-	21 020
-	-	-	68 000	68 000	-	68 000
-	-	-	-	-	-
-	-	-	(10 032)	(10 032)	-	(10 032)
669	118 788	(1)	286 227	405 683	-	405 683

	Share capital	Share premium reserve	Other paid-in equity	Retained earnings	Total	Non controlling interests	Total equity
Equity at 1 January 2023	669	118 788	(1)	286 226	405 682	-	405 682
Net profit for the period	-	-	-	16 858	16 858	-	16 858
Capital increase	-	-	-	-	-	-	-
Share based payments	-	-	0	89	89	-	89
Other comprehensive income for the period	-	-	-	28 554	28 554	-	28 554
Total comprehensive income in the period	-	-	-	45 412	45 501	-	45 412
Transactions with owners of the company:
Transaction with non-controlling interests	-	-	-	-	-	-	-
Dividends paid	-	-	-	(10 687)	(10 687)	-	(10 687)
Equity at 30 June 2023 (Unaudited)	669	118 788	(1)	321 040	440 496	-	440 496

Vilnius

Comprehensive income & Net Asset Value

Q3 quarterly report 2023

Income from Property management	Q3-2023	Q3-2022	31/12/2022	Q3-2023	Q3-2022	31/12/2022
	Unaudited	Unaudited		Unaudited	Unaudited
Currency	EUR	EUR	EUR	NOK	NOK	NOK
	thousand	thousand	thousand	thousand	thousand	thousand
Rental income	5 975	4 983	6 882	67 805	49 858	69 521
Property expenses ex mng	-232	-185	-216	-2 638	-1 846	-2 184
Net rent	5 743	4 799	6 666	65 168	48 012	67 337
Other operating income	39	91	113	447	909	1 138
Administration cost	-929	-900	-1 292	-10 538	-9 002	-13 056
Other operating cost	-337	-661	-796	-3 828	-6 618	-8 046
Net realised interest cost & finance expenses	-2 120	-1 219	-1 775	-24 059	-12 193	-17 931
Net income from property management (IFPM)	2 396	2 110	2 914	27 190	21 108	29 442
Changes in value of investment properties	-412	1 507	1 708	-4 675	15 075	17 252
Changes in value of financial instruments	-350	957	1 019	-3 974	9 573	10 295
Realised changes in value of investment properties	0	0	-198	0	0	-2 000
Depreciation, amortisation and impairment	-68	-15	-22	-777	-148	-222
Net currency exchange differences	14	142	97	155	1 426	981
Profit before tax	1 579	4 701	5 518	17 920	47 033	55 748
Current tax	-7	-87	-117	-76	-869	-1 181
Deferred tax	-87	-592	-795	-986	-5 924	-8 032
Profit from continued operations	1 486	4 022	4 606	16 858	40 240	46 535
Net asset value	Q3-2023	Q3-2022	31/12/2022	Q3-2023	Q3-2022	31/12/2022
	Unaudited	Unaudited		Unaudited	Unaudited
Currency	EUR	EUR	EUR	NOK	NOK	NOK
Equity as recognised in balance sheet	39 143	37 940	38 586	440 496	401 548	405 682
Pr share	5.86	5.68	5.78	65.96	60.13	60.75
Net Asset Value - BSP method
Equity as recognised in balance sheet	39 143	37 940	38 586	440 496	401 548	405 682
Deferred tax according to balance sheet (-)	4 150	3 949	4 068	46 704	41 796	42 772
Equity excluding deferred tax	43 293	41 889	42 654	487 200	443 343	448 454
Deferred tax according to BSP orignal NAV definition (-)	3 292	3 121	3 203	37 044	33 035	32 032
Net asset value - BSP Method	40 001	38 768	39 451	450 156	410 308	416 422
Pr share	5.99	5.81	5.91	67.41	61.49	62.11

Klaipėda County

Net Asset Value (NAV)

Net Asset Value (NAV) is a measure of the fair value of the company's net assets on an on-going long-term basis, calculated as the total value of the company's assets minus the total value of its liabilities, with certain adjustments.

Public and private real estate companies and real estate funds use slightly different adjustment principles when calculating their NAV. Below is therefore an explanation of how NAV is calculated in Baltic Sea Properties.

Assets valuation and adjustments for NAV:	• • •	Investment (income generating) property and development land is valued and included using the most recent market value based on independent valuations (using discounted cash flow method.) External financial investments are valued and included at their most recently published/ recorded NAV (alternatively most recent transaction price if NAV is not available.) Development property, unfinished construction and other assets are valued and included at book value (cost price less depreciation)
Liabilities adjustments for NAV:	• • • •	Financial liabilities are valued and included at book value. Deferred tax liabilities are valued and included at 50 % of the deferred profit tax calculated on the difference between the current property market value and tax book value. (This adjustment principle is based on market practice and a deemed fair value basis) Interest rate swaps are valued and included at book value. Other liabilities are valued and included at book value.

Net Asset Value (NAV) per share development	30/09/2023	31/12/2022	31/12/2021	31/12/2020
NAV (NOK) - BSP method (IFRS)	67.41	62.11	53.93	48.08
Dividend (NOK)	1.50	1.50	1.50	1.00
Return on equity inc. dividend YTD (NOK)	10,55 %	18.08 %	15.24 %
NAV (EUR) - BSP method (IFRS)	5.99	5.91	5.40	4.59
Dividend (EUR)	0.16	0.15	0.15	0.10
Return on equity inc. dividend YTD (EUR)	3.85 %	12.18 %	20.79 %
Applied EURNOK conversion rate	11.25	10.51	9.98	10.47

Vilnius | Cathedral Square

Investment portfolio Q3 2023

• Rent roll
• Investment strategy
• Sustainability BREEAM Certification status
• Market update from Newsec Baltics

Rent roll

Client list

Company	Segment	Client	Contractual annualised rent (EUR) 1	GLA	WAULT
BSP LP	Logistics	Girteka		17 149	2.5
BSP LP II	Logistics	Vinges		21 929	15.3
BSP LP IV5	Logistics	Rhenus		18 226	16.9
BSP LP V2	Logistics	Delamode		13 205	11.8
BSP LP VI 4	Logistics	Oribalt		9 629	12.4
BSP LP VII3	Logistics	DPD		1 771	14.3
BSP LP VIII3	Logistics	DPD		2 370	19.3
Klaipeda Business Park (KVP)	Industrial	Multiple		23 990	3.7
BSP RP I	Retail	Multiple		1 337	2.5
BSP RP V	Retail	Maxima		3 021	9.6
BSP Grandus	Retail	Multiple		11 437	4.5
Sum			8 044 049	124 064	9.5

1) Contractual annualised rent in this table is CPI-adjusted for 2023.

2) The expansion project for Delamode was completed in September 2022.

3) The development projects for DPD were completed in October 2022.

4) The expansion project for Oribalt was completed in March 2023. 5) The expansion project for Rhenus facilitates a lease extension of 15 years, commencing from the date of handover of the expanded premises. Rent income for expan-

sion is not included in contractual rent.

Terms/abbreviations used in the table above:

• GLA: Leasable area.
• Contractual annualised rent: Group contracted annual rent including from projects under development.

Investment strategy

Investing in Baltic Sea Properties gives an investor exposure to highyielding, quality commercial real estate assets in the Baltic region.

We have a clear strategy for sustainable growth, ambitions to achieve economy of scale and believe the attractive yield spread to the Nordics will still enable both high cash yield returns and value growth potential.

Our overall goals and objectives are to:

01

Target an average annual net IRR (internal rate of return) of 10-15 %

02

Continually integrate leading sustainability & ESG principles

03

Monitor and investigate strategic M&A opportunities

04

Sustain a growing, high quality and balanced investment portfolio

05

Continually identify, balance, mitigate and manage risks

Our development approach

27

Sustainability in development

Building for the future — a holistic approach to new developments.

We are working actively with both building- and system-optimising solutions to improve the sustainability and reduce the carbon emission footprint of our operations.

We focus on the long-term longevity of our buildings and optimising our strategic locations. That is why we always design the buildings in our new developments to be durable for the long-term, focusing on high-quality material and solutions which offer building flexibility and adaptability for business and operational changes, different clients, and lease cycles over its lifespan.

We believe transition of the sustainability and quality in the operations should be imbedded in the development of buildings, also for industrial and logistics. Hence, at an early stage in the process in our built-to-suit developments, we offer a variety of sustainability solutions to our clients, including but not limited to:

BREEAM In-Use "Very Good" certification as a minimum

Efficiency-focused designs, emphasising longevity and flexibility for future adaptions

Solar panels, geothermal heating and heat pumps

Waste, recycling and smart water systems

Internal and external LED-lighting in all buildings

BREEAM is an environmental assessment and rating system that measures a building's sustainability performance across categories like energy use, water consumption, materials, and waste, aiming to promote sustainable building practices and reduce environmental impact. The resulting rating indicates the building's sustainability performance and can be used to demonstrate a commitment to sustainability and improve longterm building performance.

Property portfolio Q3 2023

• Client mix
• Presentation of our properties
• Land bank

Client mix

Distribution of rent income

BSP Park - Vilnius A4 | Logistics

Client: Rhenus Logistics GLA: 18 226 m2 Expansion project: 17 255 m2

Location: Highway A4, Vilnius, Lithuania Maturity lease agreement: 2040 (15 years from handover in 2025)

The property was finalised in June 2017 and further expanded in 2020. It is currently leased by UAB Rhenus Logistics, a subsidiary of the Rhenus Group. In August 2023, we agreed on an expansion project of 17 255 m2 with expected handover in Q2/Q3 2025. Upon completion the logistics terminal will be approx. 35 600 m2 .

The Rhenus Group is one of Europe's biggest transportation groups, and UAB Rhenus Logistics covers the group's operations in the Baltics and part of the East European network.

BSP Park - Vilnius A3 | Logistics

Client: Vingės Terminalas GLA: 21 929 m2 Maturity lease agreement: 2038

Location: Highway A3, Vilnius, Lithuania

The property is strategically located along the highway between Vilnius og Minsk in Belarus.

Vingės Terminalas is a local logistics company within the the Vingės Logistics Group, operating within export, transit, order processing and goods transport. The company has a wide spectre of clients in Europe and CEE.

BSP Park - Vilnius East | Logistics

Client: Girteka Logistics GLA: 17 149 m2 Maturity lease agreement: 2026

Location: Highway A3, Vilnius, Lithuania

The property is leased by Girteka Logistics, one of Europe's leading transportation companies, strategically located by Vilnius International Airport.

The property has a land area of 42 907 m2 with 11 458 m2 storage, 2 014 m2 frozen storage, 3 348 m2 cold storage and 1 134 m2 office.

BSP Park - Vilnius West | Logistics

Client: Delamode Baltics GLA: 13 205 m2 Maturity lease agreement: 2035

Location: Highway A1, Vilnius, Lithuania

The property was finalised in August 2020 and is currently leased by Delamode Baltics, a dynamic supplier of freight forwarding-solutions to the global market.

In July 2021, BSP signed an agreement with Delamode to expand the facility. The expansion project (apx. 4 780 m2 ) was completed in September 2022.

BSP Park - Vilnius A1 | Logistics

Client: Oribalt GLA: 9 625 m2 Maturity lease agreement: 2035

Location: Highway A1, Vilnius, Lithuania

The property was finalised in August 2020 and is currently leased by Oribalt. An expansion area of apx. 2 800 m2 was handed over to the client in 2023.

Oribalt offers a wide spectre of logistics solutions for pharmaceutical producers, including storage, distribution, transportation and direct delivery.

Small frame | Terminal after expansion

Baltic Sea Properties AS Quarterly report | Q3 2023 Update?

Klaipėda Business Park (KVP) | Business park

Clients: Multiple (27) Location: Klaipėda, Lithuania GLA: 23 990 m2 Maturity lease agreement: 2022-2035

Klaipėda Business Park (KVP) offers its tenants industrial, commercial and office spaces within the Free Economic Zone of Klaipėda.

The property was acquired by BSP in April 2021.

RP 1/RP 5 | Retail

Main clients: Maxima/Multi-tenant Location: Lithuania GLA: 4 358 m2 Maturity lease agreements: 2022 - 2034

DPD | Logistics

Client: DPD Location: Šiauliai & Telšiai, Lithuania GLA: 4 141 m2 Maturity lease agreements: 2042 & 2037

In October 2022 we delivered two new terminals to DPD, one of the world's largest distribution operators, and the official opening ceremony was held on the 18th of November.

Grandus | Retail

Clients: Multiple Location: Klaipėda, Lithuania GLA: 11 437 m2 Maturity lease agreements: 2022-2032

Grandus is a neighborhood shopping center located along one of the main access road to the center of Klaipėda. The center is located in the immediate vicinity of a larger residential area that ensures good access to visitors every day.

Land bank | Development

Type: Land plots for development Locations: Vilnius and Klaipėda, Lithuania Area: 17.9 hectare Zoning: Commercial Project: Design & planning

Strategically located land plots along strategic road networks near Vilnius and Klaipėda.

Liepų Parkas (3.6 hectare) Liepų Street, Klaipėda

By Oribalt terminal (6.9 hectare) Highway A1, Vilnius

By Rhenus terminal reserved for expansion (4.1 hectare) Highway A4, Vilnius

Contact

Lars Christian Berger

CEO +47 930 94 319 LCB@BalticSea.no

Sigitas Jautakis

Director, Vilnius +370 652 47 287 SJ@BalticSea.no

James Andrew Clarke

Chairman & CIO +370 612 37 515 JAC@BalticSea.no

Rolandas Jonuška

Director, Klaipėda +370 618 87 270 Rolandas.Jonuska@BalticSea.no

www.balticsea.no

Oslo Apotekergata 10 0180 Oslo Norway

Klaipėda Pramones str. 8A LT-94102 Klaipėda Lithuania

Vilnius Didzioiji str. 10A-29 LT-01128 Vilnius Lithuania

Visit BalticSea.no for our latest news & updates

www.balticsea.no

European Real Estate Brand Awards 2022

Proudly awarded 1st place in the category

"Strongest Brand

Baltics Developers logistics"

for three consecutive years!

2022 : 1st place 2021 : 1st place 2020 : 1st place

Euronext Growth Oslo

Baltic Sea Properties AS has since 2017 been listed for trading on Merkur Market/Euronext Growth Oslo, a MTF under Oslo Stock Exchange.

Since Euronext's acquisition of Oslo Stock Exchange in June 2019, trading at Euronext Growth Oslo has been migrated to Euronext's trading system Optiq. The trading system gives all trading on Euronext marketplaces in Europe access to trading on the marketplaces under Oslo Stock Exchange. Pricing data is available on live.euronext.com were trades are updateed in real-time.

Euronext Growth Oslo is subject to Euronext's rulebook regime.

For more information, please refer to the following links:

English: https://www.oslobors.no/ob_eng/Oslo-Boers/ About-Oslo-Boers/Web-pages-has-been-moved-to-Euronext

Norwegian: https://www.oslobors.no/Oslo-Boers/Om-Oslo-Boers/Nettsider-flyttes-til-Euronext

Useful info:

As Baltic Sea Properties (ticker: BALT) is listed for trading on Euronext Growth Oslo, the share may be traded through different channels. You may for instance place purchase or sales orders on different online trading platforms.

Contact your custodian, stock broker or bank for more information.