INVL Baltic Real Estate
Notification on material event
INVL Baltic Real Estate unaudited Interim information for 9 months of 2020
For 9 months of 2020, the unaudited consolidated net profit of the INVL Baltic Real Estate group was EUR 4.687 million, revenue was EUR 3.2 million (for 9 months of 2019 consolidated net profit was EUR 2.136 million, revenue was EUR 4.4 million). The unaudited net profit of INVL Baltic Real Estate itself amounted to EUR 4.789 million for 9 months of 2020 and EUR 2.3 million for 9 months of 2019.
The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first three quarters of this year was EUR 4.687 million or nearly 2.2 times the amount for the same period last year. The company’s consolidated equity at the end of September this year, including a share buy-back liability required by accounting standards, was EUR 23.6 million, or EUR 2.23 per share not being bought back.
In the management’s opinion, it is most likely that shareholders will not take advantage of the share buy-back offering, as currently 598 shares have been presented for buy-back of the 2,551,838 which are eligible and the share price on the market is bigger than the buy-back price. Thus, the company’s consolidated equity at the end of September this year not including the share buy-back liability required by accounting standards would be EUR 28.3 million, or EUR 2.15 per issued share. That per-share equity figure is up 36% compared to the end of September 2019 also taking into account the dividends paid out.
INVL Baltic Real Estate’s consolidated net operating incoming from its properties in the first three quarters of this year was EUR 1.84 million, or 35.7% more than in the same period last year. The company’s consolidated revenue was EUR 3.2 million, or 26% less than in three quarters of 2019. Of that amount, the consolidated operating income from property holdings decreased 31.5% to EUR 2.368 million. That result was influenced by the sale of the IBC Business Centre completed in March.
“We finished the third quarter of this year with the successful sale of part of the Vilnius Gates business centre, which brought investors a gain of EUR 11 million. In terms of the future outlook, we continue work on developing our existing assets and increasing their value. We’re ready to invest in non-standard, creative solutions that would help earn a big return for investors and expand the real estate management business,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Also noteworthy in the period was the Talent Garden Vilnius coworking space’s successful start of operations. Talent Garden Vilnius is not only maintaining a high rate of occupancy – the level was 82% at the end of the third quarter – but is at the same time successfully competing on the market for coworking space.
While the coronavirus pandemic early this year had a negative effect on the company’s results due to discounts given to tenants, it was not substantial and, if there are no new major changes, does not significant impact on the company’s results.
INVL Baltic Real Estate holds real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. At the end of September this year, the company’s properties had occupancy levels of between 69% and 100%.
INVL Baltic Real Estate’s property holdings have a total area of 25 800 sq. m. and a value of EUR 23.5 million.
Since its inception (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates as a closed-end investment company. Management of the company was assumed by INVL Asset Management, one of Lithuania’s leading asset management firms. The company will operate as a closed-end investment company until 2046, with an extension possible for a further 20 years.
The person authorized to provide additional information:
Real Estate Fund Manager of Management Company