Audited results of INVL Baltic Real Estate group of 2017
The audited consolidated net profit of INVL Baltic Real Estate group amounted to EUR 3,577 thousand, the revenue was EUR 6,203 thousand for the period of 2017 (for 2016 – consolidated net profit was EUR 4,507 thousand, revenue was EUR 6,290 thousand). The audited net profit of INVL Baltic Real Estate itself amounted to EUR 3,780 thousand in 2017 and EUR 4,710 thousand in 2016.
The real estate investment company INVL Baltic Real Estate’s consolidated net profit for 2017 was EUR 3.58 million and was 20.6 per cent smaller than in 2016. Its consolidated equity at the end of December 2017 was EUR 33.86 million. Equity per share (recalculated as per the current number and nominal value of shares) was EUR 2.57 and increased 11 per cent in the year (equity per share at the end of 2016 was EUR 2.36, also taking into account the dividends of EUR 0.06 per share that were paid).
INVL Baltic Real Estate’s consolidated net operating income from owned properties in 2017 was EUR 2.68 million, or 14 per cent more than in 2016. The company’s consolidated revenue for last year was EUR 6.2 million, or 1.4 per cent less than in 2016, with leasing consolidated income from owned properties rising 10.6 per cent in the year to EUR 3.98 million.
“We’re happy with these results – they essentially correspond to the forecast that was announced, and because of the growth of net operating income from owned properties, total property value grew too. We’ll continue seeking to maintain the planned growth pace on the basis of the high quality portfolio of assets held, constant work with clients and our properties’ occupancy levels. We hope those who are considering investing in commercial real estate will also take these results and the company’s outlook into account,” said Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.
The attractiveness of INVL Baltic Real Estate’s shares should be increased by the more than doubling of dividends in the company’s dividend policy late last year to EUR 0.13 per share. That is the dividend amount which, based on INVL Baltic Real Estate’s 2017 results, the management company proposes paying for last year. The total amount of dividends paid out would thus be EUR 1.71 million. The proposal will be considered by the general meeting of INVL Baltic Real Estate shareholders on 26 March.
It is also foreseen that the liquidity of INVL Baltic Real Estate’s shares will increase this year, as Invalda INVL late last year announced plans to relinquish up to 22 per cent of the company’s shares, thereby increasing the stock’s free float from 16 per cent to 38 per cent. The plan is to offer institutional investors an opportunity to acquire INVL Baltic Real Estate shares, and later, once the Bank of Lithuania has approved a prospectus specifying the share price and manner of distribution, to also offer shares to retail investors.
By asset value, 80 per cent of INVL Baltic Real Estate’s property holdings are in the central part of the city of Vilnius. Their occupancy at the end of 2017 ranged from 78 per cent to 100 per cent. The largest property, the IBC Business Centre, last year continued to maintain high occupancy and increased leasing income, which compared to 2016 grew 1.3 per cent to EUR 1.88 million. The other properties owned by INVL Baltic Real Estate also demonstrated high levels of occupancy and improving results during 2017.
The forecasts of INVL Baltic Real Estate’s financial results published late last year projected the company would have net operating income in 2017 of EUR 2.57 million, or 28 per cent more than in 2016. In 2018, meanwhile, net operating income was forecast to grow a further 43 per cent versus forecast of 2017 to EUR 3.69 million. INVL Baltic Real Estate’s net asset value per share was projected to equal EUR 2.5776 at the end of 2017 (in valuation of the new nominal share value), or 9 per cent more than at the end of 2016, while at the end of 2018, considering a forecast dividend allocation of EUR 0.13 per share, net asset value per share would be EUR 2.6427. In January this year the nominal value of INVL Baltic Real Estate’s registered shares was changed from EUR 0.29 to EUR 1.45 aiming to increase the shares’ liquidity and reduce price fluctuations.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. As at 31 December 2017, the company’s property holdings had a total area of 56 900 square metres and a value of EUR 56.3 million.
Since 22 December 2016, INVL Baltic Real Estate has operated 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 extension possible for another 20 years.
The person authorized to provide additional information:
Real Estate Fund Manager of the Management Company